Should SPDR MSCI USA StrategicFactors ETF (QUS) Be on Your Investing Radar?

Core Viewpoint - The SPDR MSCI USA StrategicFactors ETF (QUS) is a significant player in the Large Cap Blend segment of the US equity market, with over $1.53 billion in assets, providing investors with a diversified investment option [1]. Group 1: Fund Overview - QUS is a passively managed ETF launched on April 15, 2015, sponsored by State Street Investment Management [1]. - The fund targets large cap companies, defined as those with a market capitalization above $10 billion, which are generally more stable and less volatile compared to mid and small cap companies [2]. Group 2: Costs and Performance - The ETF has an annual operating expense ratio of 0.15%, making it one of the more cost-effective options in its category, with a 12-month trailing dividend yield of 1.45% [3]. - QUS aims to match the performance of the MSCI USA Factor Mix A-Series Index, achieving a return of approximately 5% year-to-date and 9.32% over the past year as of August 4, 2025 [6]. Group 3: Sector Exposure and Holdings - The ETF has a significant allocation to the Information Technology sector, comprising about 25.3% of the portfolio, followed by Financials and Healthcare [4]. - Microsoft Corp (MSFT) is the largest holding at approximately 3.37% of total assets, with the top 10 holdings accounting for about 21.65% of total assets under management [5]. Group 4: Risk Profile - QUS has a beta of 0.88 and a standard deviation of 14.17% over the trailing three-year period, indicating a medium risk profile with effective diversification across approximately 550 holdings [7]. Group 5: Alternatives - The ETF holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Large Cap Blend market segment [8]. - Other comparable ETFs include the SPDR S&P 500 ETF (SPY) and the Vanguard S&P 500 ETF (VOO), with assets of $644.75 billion and $686.74 billion respectively, and lower expense ratios of 0.09% for SPY and 0.03% for VOO [9]. Group 6: Conclusion - Passively managed ETFs like QUS are increasingly favored by both retail and institutional investors due to their low costs, transparency, flexibility, and tax efficiency, making them suitable for long-term investment strategies [10].