XMMO - FLQM: Mid-Cap Multifactor Fund Swaps Growth For Quality
2024-06-18 09:13:25 ET
Summary
- FLQM is a multi-factor mid-cap fund emphasizing quality, value, momentum, and low volatility. Its expense ratio is 0.30% and the ETF has $673 million in assets under management.
- FLQM's Index assigns a 50% weighting to the quality factor. I've double-checked this using Seeking Alpha Factor Grades and found it's the most profitable mid-cap fund on the market.
- The tradeoff is weak growth, which ranks #58/67 in its category. However, that can be mitigated with another high-quality, higher growth fund with only 9% overlap with FLQM.
- An equal-weight portfolio of these two ETFs produces an impressive portfolio that should outperform low-cost benchmarks like IWR. As a result, I'm confident rating FLQM a "buy".