Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I was looking at the portfolio components of iShares Quality etf ($QUAL) and was very surprised to see that $BRK is not included. If I were asked to name a handful of Quality stocks, Berkshire would definitely be one of them. I wonder what characteristic Berkshire lacks that wouldn't permit it to pass iShares quality screen?
But it's only in the MSCI USA Financial Index, not in the MSCI USA Index. QUAL just selects from the latter. I tried to find why BRK isn't there, but couldn't find a reason as the broader index does have financials.
Years ago, when there was only BRK-A, even the S&P excluded it due to its very high price (= low liquidity for indexing). Some companies may also be excluded if they have dual class structures, except for the grandfathered ones, but I haven't looked at BRK capital structure.
I think Yogi answered the question. It's absentin QUAL because it is not in the pond they are fishing in. Looking at QUAL vs. JQUA, I think JQUA may be a better choice. The most glaring difference from the S&P500 for both is the absence of Tesla.
Does any one off hand know SMID (small, mid cap) Quality ETF(s)?
Does SDVY fit the bill? SMID rising dividends?
Is SYLD in there somewhere?
I bought FMIMX for the IRA. Whatever they do seems to fit well in SMID. And I wanted something a little less exciting as I try to simplify before I have to take distributions.
Like a lot of etf's in small/mid cap, XSHQ returns have been anemic over the last five years. So I like to go with funds that have a ten year life span with M*. I 'll have more flexibility with MFO premium.
There are some good returns from RWK and RWJ, if you can live with the volatility.
Some old-timey managed funds have held up OK. Will they prosper when the sun finally shines in the back door of smid caps someday? Who can say?
Some funds I have dug up since moving to Fido: FMIMX, NBGNX, CAMMX, TSCSX, and so on. I'm not buying all of them. Your mileage may vary.
Comments
QUAL, OTOH https://www.etf.com/QUAL
But it's only in the MSCI USA Financial Index, not in the MSCI USA Index. QUAL just selects from the latter. I tried to find why BRK isn't there, but couldn't find a reason as the broader index does have financials.
Years ago, when there was only BRK-A, even the S&P excluded it due to its very high price (= low liquidity for indexing). Some companies may also be excluded if they have dual class structures, except for the grandfathered ones, but I haven't looked at BRK capital structure.
If you want to buy an etf that holds lots of it, look here: https://www.etf.com/stock/BRK.B
Edited to add:
I didn't see Yogi's answer while typing mine. I guess dryflower will have to talk to the folks at MSCI about BRK.B absence from their index.
But I wonder if Berk.B's return on equity would make the cut for QUAL, even if it was in the MSCI index.
While poking around on the internet I ran into this piece from Samuel Lee, from back in the days when M* had compelling reads from time to time.
Looking at QUAL vs. JQUA, I think JQUA may be a better choice.
The most glaring difference from the S&P500 for both is the absence of Tesla.
Is SYLD in there somewhere?
I bought FMIMX for the IRA. Whatever they do seems to fit well in SMID. And I wanted something a little less exciting as I try to simplify before I have to take distributions.
LC Quality SPHQ, FQAL
SC Quality XSHQ
There are several others with dividend-quality angle.
https://etfdb.com/etfs/
There are some good returns from RWK and RWJ, if you can live with the volatility.
Some old-timey managed funds have held up OK. Will they prosper when the sun finally shines in the back door of smid caps someday? Who can say?
Some funds I have dug up since moving to Fido: FMIMX, NBGNX, CAMMX, TSCSX, and so on. I'm not buying all of them. Your mileage may vary.