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2 days agoQLTY's 37% Tech Allocation Was A Tailwind; Now It's A Liability
The GMO U.S. Quality ETF ( NASDAQ:QLTY) has attracted $3 billion since launching in November 2023 by focusing on companies with exceptional returns on capital. That strategy delivered 20.5% returns over the past year by concentrating on profitable technology leaders like Microsoft ( NASDAQ:MSFT) and Meta Platforms ( NASDAQ:META), outpacing the S&P 500 ( NYSEARCA:SPY) by roughly 500 basis points. Yet Reddit investors increasingly debate whether valuations have stretched too far entering 2026.
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