ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Smart Beta Channel
  2. A Beta ETF Without the Exorbitant Expense Ratios
Smart Beta Channel
Share

A Beta ETF Without the Exorbitant Expense Ratios

Ben HernandezDec 03, 2020
2020-12-03

Investors looking to get into smart beta funds that implement a factor strategy might be put off usual premium prices. If so, they haven’t checked out the Xtrackers Russell 1000 US QARP ETF (QARP B+), especially when it comes to getting exposure to value and quality factors.

QARP seeks investment results that correspond generally to the performance, before fees and expenses, of the Russell 1000 2Qual/Val 5% Capped Factor Index (the “underlying index”). The fund will invest at least 80% of its total assets (but typically far more) in component securities of the underlying index.

The underlying index is designed to track the equity market performance of companies in the United States selected on the investment style criteria (“factors”) of quality and value.

How reasonable is QARP? The fund has a low 0.19% expense ratio in a market where smart beta funds can usually come in with a hefty price tag.

The fund is up 12.3% thus far according to Morningstar performance numbers. The previous year, the fund was up 30%.

As more investors cycle out of technology names and into quality or value, QARP has been a beneficiary of that rotation. The fund bumped past its 50-day moving average in November, buoyed by positivity surrounding a vaccine and new incoming presidential administration.

QARP Performance Figures

With Investing, Patience is Key

Like the traits of many great investors, patience is always key. ETF investors looking for quality names can get it all in one ETF wrapper via QARP, the patience piece is on them.
“The biggest and best gains are generally achieved by stepping into quality names and then letting time do most of the work,” a Star Herald article said. “Most of us should be willing to make a five-year commitment to a stock if we’re willing to own it for even a day. Most of us, however, simply don’t have the discipline to do that.”

“By the way, Peter Lynch has seen the power of patience play out in his favor many times.” the article noted further. “Perhaps the biggest payback for his discipline was served up by Lukens Steel. It gained around 500% for the Magellan fund in just one year, but it wasn’t until the 15th year the fund owned the company.”

For more news and information, visit the Smart Beta Channel.


Content continues below advertisement

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X