QLTI ETF — Holdings & Analysis

The GMO International Quality ETF (QLTI) is an actively managed equity ETF with $0.08 billion in assets under management and an expense ratio of 0.60%.

QLTI focuses on non-US equities deemed high-quality based on quantitative metrics like profitability and leverage, combined with qualitative assessments of market conditions and growth prospects. The fund aims for total return by identifying companies with strong returns on past investments and potential for effective cash flow management, utilizing valuation techniques to find undervalued stocks.

GMO International Quality ETF (QLTI) ETF — Price, Holdings & Analysis

The GMO International Quality ETF (QLTI) is an actively managed equity ETF with $0.08 billion in assets under management and an expense ratio of 0.60%. QLTI focuses on non-US equities deemed high-quality based on quantitative metrics like profitability and leverage, combined with qualitative assessments of market conditions and growth prospects. The fund aims for total return by identifying companies with strong returns on past investments and potential for effective cash flow management, utilizing valuation techniques to find undervalued stocks.

ETF Overview

QLTI seeks total return by investing in non-US equities that it considers to be high-quality. A high-quality company is defined by its solid operational foundation and ability to generate future returns. For its selection process, QLTI utilizes a mix of quantitative metrics, such as profitability and leverage, along with qualitative assessments of market conditions and growth prospects. It focuses on identifying companies that have demonstrated strong returns on past investments and show potential for effective cash flow management, whether through reinvestment or shareholder returns. Valuation techniques, including discounted cash flow and price-to-earnings ratios, help identify stocks that may be undervalued. While QLTI has flexibility in targeting specific sectors or regions, it maintains liquidity through investments in the GMO US Treasury Fund and other money market instruments, allowing for varied exposure across developed and emerging markets.

QLTI aims to achieve total return by investing in non-US equities that GMO considers to be high-quality. The fund's investment strategy involves a blend of quantitative and qualitative analysis to identify companies with solid operational foundations and the ability to generate future returns. Quantitative metrics such as profitability and leverage are used, alongside qualitative assessments of market conditions and growth prospects. The ETF focuses on companies demonstrating strong returns on past investments and potential for effective cash flow management, whether through reinvestment or shareholder returns. Valuation techniques, including discounted cash flow and price-to-earnings ratios, are employed to identify potentially undervalued stocks. The top holdings include Taiwan Semiconductor Manufacturing Co Ltd ADR (5.39%), Industria De Diseno Textil SA Share From Split (5.20%), and Novartis AG ADR (4.26%).

Risk Metrics

QLTI's risk profile includes concentration risk, as its top 10 holdings constitute a significant portion of its assets. For example, Taiwan Semiconductor Manufacturing Co Ltd ADR makes up 5.39% of the fund. The fund's focus on international equities exposes it to currency risk and geopolitical risks specific to the countries in which its holdings are located. With a beta of 0.00, QLTI has demonstrated very low volatility relative to the market, but this may not hold true in the future. The 0.60% expense ratio can create a drag on returns, especially in a lower-return environment. Past performance does not guarantee future results.

Expense Ratio

0.60%

What does QLTI hold?

Holding	Weight
Taiwan Semiconductor Manufacturing Co Ltd ADR (TSM)	5.39%
Industria De Diseno Textil SA Share From Split (ITX.MC)	5.20%
Novartis AG ADR (NVS)	4.26%
Lvmh Moet Hennessy Louis Vuitton SE ADR (LVMUY)	4.24%
ASML Holding NV ADR (ASML)	4.24%
SAP SE ADR (SAP)	4.08%
Roche Holding AG ADR (RHHBY)	4.08%
Haleon PLC ADR (HLN)	4.00%
L'Oreal SA ADR (LRLCY)	3.92%
Safran SA ADR (SAFRY)	3.89%

Dividend Yield

0.00%

Invesco QQQ Trust, Series 1 (QQQ) — 0.18% expense ratio
State Street Technology Select Sector SPDR ETF (XLK) — 0.08% expense ratio
State Street SPDR Dow Jones Industrial Average ETF Trust (DIA) — 0.16% expense ratio
State Street Energy Select Sector SPDR ETF (XLE) — 0.08% expense ratio
iShares Russell 2000 ETF (IWM) — 0.19% expense ratio
State Street Financial Select Sector SPDR ETF (XLF) — 0.08% expense ratio
iShares MSCI Emerging Markets ETF (EEM) — 0.72% expense ratio
iShares MSCI EAFE ETF (EFA) — 0.32% expense ratio

GMO Ultra-Short Income ETF (GMOC) (Fixed Income) — 0.20% expense ratio

Risk Metrics

Beta: 0.00

Questions & Answers

What is QLTI and what does it track?

QLTI, the GMO International Quality ETF, is an actively managed fund that seeks total return by investing in non-US equities that GMO considers to be high-quality.

The fund employs a mix of quantitative metrics, such as profitability and leverage, and qualitative assessments to identify companies with strong returns on past investments and potential for effective cash flow management.

What is the expense ratio for QLTI?

The expense ratio for QLTI is 0.60%. This means that for every $10,000 invested in the fund, $60 is used to cover the fund's operating expenses.

While this is a factor to consider, it's important to weigh the expense ratio against the fund's potential returns and investment strategy. Expense ratios can vary widely among equity ETFs, so comparing QLTI's expense ratio to similar funds is advisable.

What are the top holdings in QLTI?

As of 2026-03-15, the top holdings in QLTI are: 1) Taiwan Semiconductor Manufacturing Co Ltd ADR (TSM) at 5.39%, 2) Industria De Diseno Textil SA Share From Split (ITX.MC) at 5.20%, 3) Novartis AG ADR (NVS) at 4.26%, 4) Lvmh…

Moet Hennessy Louis Vuitton SE ADR (LVMUY) at 4.24%, and 5) ASML Holding NV ADR (ASML) at 4.24%.

Is QLTI a good long-term investment?

Whether QLTI is a suitable long-term investment depends on an individual's investment goals, risk tolerance, and time horizon. QLTI focuses on high-quality international equities, which may offer diversification benefits and potential for long-term growth.

However, the fund's 0.60% expense ratio should be considered, as it can impact overall returns over time.

How does QLTI compare to similar ETFs?

QLTI differentiates itself through its focus on high-quality international equities identified through a blend of quantitative and qualitative analysis.

Compared to other international equity ETFs, QLTI's expense ratio of 0.60% may be higher than some passively managed index funds but potentially lower than other actively managed funds.

Does QLTI pay dividends?

As of 2026-03-15, QLTI's dividend yield is 0.00%. This indicates that the fund is not currently distributing any dividends to its shareholders. Investors seeking income-generating investments may want to consider other ETFs with a higher dividend yield.

However, it's important to note that dividend yields can fluctuate over time and are not guaranteed.