In this piece, we will take a look at the five best quant exchange traded funds or ETFs. If you want to take a look at the recent events in the stock market and how investor sentiment is shifting when it comes to inflation and interest rates, then check out 10 Best Quant ETFs.
5. Vanguard U.S. Value Factor ETF (BATS:VFVA)
5 Year Return: 7.44%
Vanguard U.S. Value Factor ETF (BATS:VFVA) tracks the CRSP index of large cap value stocks. As opposed to the Vanguard U.S. Multifactor ETF, it narrows down focus only on stocks that are priced lower on the stock market than their fundamentals would suggest. The top three stock picks are Bank of America Corporation (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), and Ford Motor Company (NYSE:F).
4. Vanguard U.S. Momentum Factor ETF (BATS:VFMO)
5 Year Return: 7.65%
Vanguard U.S. Momentum Factor ETF (BATS:VFMO) is a quantitative exchange traded fund that focuses primarily on investing in momentum stocks. Momentum indicators are key components of quantitative trading, and they include several metrics of share prices such as their overbought or oversold readings and their average share prices over certain time periods. The Vanguard U.S. Momentum Factor ETF (BATS:VFMO) has net assets worth $351 million and it was set up in 2018. The top three stocks in the ETF are NVIDIA Corporation (NASDAQ:NVDA), Cadence Design Systems, Inc. (NASDAQ:CDNS), and Netflix, Inc. (NASDAQ:NFLX).
3. iShares U.S. Equity Factor ETF (NYSE:LRGF)
5 Year Return: 8.03%
iShares U.S. Equity Factor ETF (NYSE:LRGF) is an exchange traded fund for the technically inclined investor. It uses a mathematical process called optimization to select stocks. Optimization sets a target value and inputs to determine how the inputs impact the target. For the iShares U.S. Equity Factor ETF (NYSE:LRGF), these inputs include momentum, value, volatility, and other indicators. The fund has $1.42 billion in net assets and it was set up in 2015.
2. ALPS O’Shares U.S. Quality Dividend ETF Shares (BATS:OUSA)
5 Year Return: 8.37%
ALPS O’Shares U.S. Quality Dividend ETF Shares (BATS:OUSA) is part of the ALPS fund family. It tracks stocks that are part of the O’Shares Quality Dividend Index, which comprises of dividend paying companies with certain levels of liquidity and volatility – both of which are quantitative indicators. The ALPS O’Shares U.S. Quality Dividend ETF Shares (BATS:OUSA) has $672 million in net assets and it was set up in 2015. Its investments in The Home Depot, Inc. (NYSE:HD), Microsoft Corporation (NASDAQ:MSFT), and S&P Global Inc. (NYSE:SPGI) represent roughly 15% of the portfolio.
1. Cambria Shareholder Yield ETF (BATS:SYLD)
5 Year Return: 12.17%
Cambria Shareholder Yield ETF (BATS:SYLD) screens stocks for investment based on their market capitalization, stock repurchases, and dividend payments. These three metrics are quantitatively analyzed to generate a score that influences stock selection. The fund has net assets of $839 million and some top holdings are Chevron Corporation (NYSE:CVX), McKesson Corporation (NYSE:MCK), and Toll Brothers, Inc. (NYSE:TOL). The ETF is also the only one on our list with double digit five year returns.
Disclosure: None. You can also take a look at 17 Countries with Highest Child Marriage Rates in the World and Goldman Sachs China Stocks: Top 10 Stock Picks.
