Seeking Quality - Strong Cash Flow and Prudent Debt Leverage

Components Performance/Risk
Period Return
31.9%
Return Rank
Strong
Risk Exposure
Low Risk

The selection of equities, listed on NYSE and NASDAQ, is updated dynamically by machine learning at market closure every night

Stocks are screened for strong fundamentals, controling for low volatility, a strong cash conversion ratio and low debt

 

Cash conversion

  • signals quality when cash earnings (measured by FCF) gain on accrual earnings (measured by net income)
  • it is a comparison of how much cash flow a company generates compared to its accounting profit

 

Debt leverage (D/E)

  • Financial leverage refers to the amount of debt the company has been using to finance its business operations
  • When interest rates are rising, low debt protects the firm, especially when profitability is impacted by a recession

 

Invesco S&P 500 Quality ETF is the benchmark of the selection

Theme Components
Name
Ticker
Sector
Industry
Cur. Price
Mkt. Cap
Performance
Momentum
Risk Rank
Risk Contrib
 
Alliance Resource Partners L.P. ARLP Basic MaterialsCoal & Lignite Mining26.703.4 B27.9% Neutral Low Risk
Dorchester Minerals L.P. DMLP EnergyRoyalty Interests Oil&Gas29.801.4 B35.7% Neutral Low Risk
Chevron CVX EnergyIntegrated Oil & Gas Companies235.52470 B58.5% Weak Up Low Risk
Suncor Energy SU EnergyIntegrated Oil & Gas Companies79.4295 B107.7% Weak Up Below Average
Exxon Mobil XOM EnergyIntegrated Oil & Gas Companies187.25780 B71.1% Weak Up Low Risk
Imperial Oil IMO EnergyIntegrated Oil & Gas Companies138.1067 B61.8% Weak Up Below Average
HealthStream HSTM TechnologyData Processing & Data Analytics (EDP)33.70989 M38.1% Weak Up Below Average
Analog Devices ADI TechnologySemiconductors - Signal Processing417.11204 B81.7% Neutral Below Average
Canon (ADR) CAJPY TechnologyImaging Systems29.9031 B4.2% Neutral Low Risk
Amdocs DOX TechnologySoftware - Business Process Mngt62.836.8 B-21.6% Neutral Below Average
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