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The best Quality-Factor ETFs

How to invest in quality-factor ETFs

0.25% p.a. - 0.60% p.a.
annual total expense ratio (TER) of quality-factor ETFs
on the quality factor, which are tracked by ETFs
on the quality factor
The best indices for quality-factor ETFs

How do I invest in the quality factor?

Statistical observations show that particularly solid companies with a robust business model have tended to outperform other companies in certain economic periods in the past. This research-based observation is referred to as the quality factor. Usually, the quality factor is measured by a company's debt level and its price-to-book ratio. Sometimes additional measures of company performance are also taken into account.

This factor strategy can also be implemented by means of an index. In this investment guide, you will find all available worldwide quality ETFs. Currently, there are 5 ETFs available.
 

MSCI World Sector Neutral Quality performance

1 month: 5.10%
1 year: 6.30%
3 years: 37.54%
5 years: 56.93%
 

Quality-factor ETFs in comparison

The most important factors at a glance

When choosing a quality-factor ETF one should consider several other factors in addition to the methodology of the underlying index and performance of an ETF. For better comparison, you will find a list of all quality-factor ETFs with details on size, cost, age, income, domicile and replication method ranked by fund size.

Compare all quality-factor ETFs in detail
Compare all quality-factor ETFs in a chart

Provider
ISIN
  Fund size
in m EUR
TER
in %
Use of profits Fund domicile Replication method
iShares Edge MSCI World Quality Factor UCITS ETF (Acc)IE00BP3QZ601 1,251 0.30% p.a. Accumulating Ireland Optimized sampling
Xtrackers MSCI World Quality Factor UCITS ETF 1CIE00BL25JL35 276 0.25% p.a. Accumulating Ireland Optimized sampling
WisdomTree Global Quality Dividend Growth UCITS ETF USD AccIE00BZ56SW52 40 0.38% p.a. Accumulating Ireland Optimized sampling
Invesco FTSE RAFI All World 3000 UCITS ETFIE00B23LNQ02 23 0.39% p.a. Distributing Ireland Optimized sampling
First Trust Global Equity Income UCITS ETF AccIE00BYTH6121 2 0.60% p.a. Accumulating Ireland Full replication

Source: justETF.com; As of 26/11/20

 

Return comparison of all quality-factor ETFs

The table shows the returns of all quality-factor ETFs in comparison. All return figures are including dividends as of month end. Besides the return the reference date on which you conduct the comparison is important. In order to find the best ETFs, you can also perform a chart comparison.

ETF   1 month
in %
3 months
in %
6 months
in %
1 year
in %
3 years
in %
WisdomTree Global Quality Dividend Growth UCITS ETF USD Acc -3.32% 2.19% 5.40% 4.08% 28.52%
Xtrackers MSCI World Quality Factor UCITS ETF 1C -3.04% 1.75% 3.20% 0.94% 24.62%
iShares Edge MSCI World Quality Factor UCITS ETF (Acc) -3.06% 1.75% 3.16% 0.90% 24.33%
Invesco FTSE RAFI All World 3000 UCITS ETF -2.19% 0.12% 0.80% -12.38% -4.08%
First Trust Global Equity Income UCITS ETF Acc -1.26% -0.80% -5.18% -20.57% -15.19%
ETF   2020
in %
2019
in %
2018
in %
2017
in %
2016
in %
WisdomTree Global Quality Dividend Growth UCITS ETF USD Acc -2.18% 35.74% -4.47% 12.46% -
Xtrackers MSCI World Quality Factor UCITS ETF 1C -5.47% 34.08% -4.01% 8.80% 12.39%
iShares Edge MSCI World Quality Factor UCITS ETF (Acc) -5.50% 33.04% -2.92% 8.19% 8.47%
Invesco FTSE RAFI All World 3000 UCITS ETF -16.76% 24.93% -8.91% 5.86% 15.91%
First Trust Global Equity Income UCITS ETF Acc -24.19% 17.86% -6.96% 7.35% 11.01%

Source: justETF.com; As of 31/10/20; Calculations in EUR including dividends