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Defining “Quality” When it Comes to Investing
April 25, 2013 at 21:00 PM EDT
By Daniel Morillo, PhD, iShares Head of Investment Research Quality is a very popular word within the fund-management world. There are more than 120 equity-focused funds listed on Bloomberg with the word “quality” in their names including “conservative quality” funds, “quality growth” funds and many other apple-pie sounding combinations using the word. But what exactly does “quality” mean? Many of the typical descriptions of a quality company, such as a good management team or clean balance sheet, are hard to assess and even harder to factor into a stock price. Instead, to measure quality in a more concrete manner, investors often zero in on a company’s net earnings, or bottom line [for more ETF analysis, make sure to sign up for our free ETF newsletter]. A better method may be to look at a company’s “quality of earnings.” The idea is to not only look at a company’s level of earnings but to [...] Click here to read the original article on ETFdb.com. Related Posts: No Related Posts
By Daniel Morillo, PhD, iShares Head of Investment Research Quality is a very popular word within the fund-management world. There are more than 120 equity-focused funds listed on Bloomberg with the word “quality” in their names including “conservative quality” funds, “quality growth” funds and many other apple-pie sounding combinations using the word. But what exactly does “quality” mean? Many of the typical descriptions of a quality company, such as a good management team or clean balance sheet, are hard to assess and even harder to factor into a stock price. Instead, to measure quality in a more concrete manner, investors often zero in on a company’s net earnings, or bottom line [for more ETF analysis, make sure to sign up for our free ETF newsletter]. A better method may be to look at a company’s “quality of earnings.” The idea is to not only look at a company’s level of earnings but to [...]
