QUAL: Calling Into Quest Tech's Fortress Balance Sheets

Mike Zaccardi, CFA, CMT9.03K FollowersFollow5ShareSavePlay(7min)CommentsSummaryThe iShares MSCI USA Quality Factor ETF remains a hold, with a lofty 24x P/E and tepid technical momentum.QUAL has underperformed both the S&P 500 and international equities over the past year, despite solid absolute returns.The fund's tech-heavy portfolio faces shifting fundamentals as debt rises among major holdings and cyclical sectors outperform.While bullish seasonality persists through August, QUAL's softening RSI and elevated valuation suggest muted near-term returns. Selcuk Oner/iStock Editorial via Getty Images The iShares MSCI USA Quality Factor ETF (QUAL) has performed well since I issued a hold rating on it back in July of 2025. Dig deeper, though, and you’ll find that the US quality factorThis article was written byMike Zaccardi, CFA, CMT9.03K FollowersFollowFreelance Financial Writer | Investments | Markets | Personal Finance | RetirementI create written content used in various formats including articles, blogs, emails, and social media for financial advisors and investment firms in a cost-efficient way. My passion is putting a narrative to financial data. Working with teams that include senior editors, investment strategists, marketing managers, data analysts, and executives, I contribute ideas to help make content relevant, accessible, and measurable. Having expertise in thematic investing, market events, client education, and compelling investment outlooks, I relate to everyday investors in a pithy way. I enjoy analyzing stock market sectors, ETFs, economic data, and broad market conditions, then producing snackable content for various audiences. Macro drivers of asset classes such as stocks, bonds, commodities, currencies, and crypto excite me. My thing is communicating finance with an educational and creative style. I also believe in producing evidence-based narratives using empirical data to drive home points. Charts are one of the many tools I leverage to tell a story in a simple but engaging way. I focus on SEO and specific style guides when appropriate.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.