Is iShares MSCI USA Quality GARP ETF (GARP) a Strong ETF Right Now?

Launched on 01/14/2020, the iShares MSCI USA Quality GARP ETF (GARP) is a smart beta exchange traded fund offering broad exposure to the Style Box - All Cap Growth category of the market.What Are Smart Beta ETFs?For a long time now, the ETF industry has been flooded with products based on market capitalization weighted indexes, which are designed to represent the broader market or a particular market segment.Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.There are some investors, though, who think it's possible to beat the market with great stock selection; this group likely invests in another class of funds known as smart beta, which track non-cap weighted strategies.Non-cap weighted indexes try to choose stocks that have a better chance of risk-return performance, which is based on specific fundamental characteristics, or a mix of other such characteristics.This area offers many different investment choices, such as simplest equal-weighting, fundamental weighting and volatility/momentum based weighting methodologies; however, not all of these strategies can deliver superior results.Fund Sponsor & IndexBecause the fund has amassed over $315.23 million, this makes it one of the average sized ETFs in the Style Box - All Cap Growth. GARP is managed by Blackrock. This particular fund seeks to match the performance of the MSCI USA QUALITY GARP SELECT INDEX before fees and expenses.The MSCI USA Quality GARP Select Index composes of U.S. large and mid-capitalization growth stocks exhibiting favourable value and quality characteristics.Cost & Other ExpensesFor ETF investors, expense ratios are an important factor when considering a fund's return; in the long-term, cheaper funds actually have the ability to outperform their more expensive cousins if all other things remain the same.With one of the least expensive products in the space, this ETF has annual operating expenses of 0.15%.The fund has a 12-month trailing dividend yield of 0.50%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.Representing 46% of the portfolio, the fund has heaviest allocation to the Information Technology sector; Consumer Discretionary and Financials round out the top three.When you look at individual holdings, Microsoft Corp (MSFT) accounts for about 5.39% of the fund's total assets, followed by Mastercard Inc Class A (MA) and Apple Inc (AAPL).The top 10 holdings account for about 42.83% of total assets under management.Performance and RiskThe ETF has lost about -16.55% so far this year and is up about 0% in the last one year (as of 04/22/2025). In the past 52-week period, it has traded between $45.13 and $59.23.GARP has a beta of 1.13. With about 136 holdings, it effectively diversifies company-specific risk.AlternativesIShares MSCI USA Quality GARP ETF is a reasonable option for investors seeking to outperform the Style Box - All Cap Growth segment of the market. However, there are other ETFs in the space which investors could consider.Fidelity Blue Chip Growth ETF (FBCG) tracks ---------------------------------------- and the iShares Core S&P U.S. Growth ETF (IUSG) tracks S&P 900 Growth Index. Fidelity Blue Chip Growth ETF has $3.24 billion in assets, iShares Core S&P U.S. Growth ETF has $18.26 billion. FBCG has an expense ratio of 0.59% and IUSG charges 0.04%.Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Style Box - All Cap Growth.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares MSCI USA Quality GARP ETF (GARP): ETF Research Reports Apple Inc. (AAPL): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report Mastercard Incorporated (MA): Free Stock Analysis Report iShares Core S&P U.S. Growth ETF (IUSG): ETF Research Reports Fidelity Blue Chip Growth ETF (FBCG): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks