Seeking Quality - Strong Cash Flow and Prudent Debt Leverage

Components Performance/Risk
Period Return
26.7%
Return Rank
Above Average
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 Mining25.863.3 B27.6% Neutral Low Risk
BioMarin Pharmaceutical BMRN Health CareBiopharmaceuticals63.3712 B18.6% Neutral Below Average
Regeneron Pharmaceuticals REGN Health CareBiopharmaceuticals803.9085 B42.8% Neutral Below Average
Vertex Pharmaceuticals VRTX Health CareGene Therapies514.99131 B35.6% Neutral Below Average
Chemed CHE Health CareHospital/Nursing Homes496.626.8 B10.4% Weak Down Below Average
ResMed RMD Health CareRespiratory Disorders221.9732 B-17.9% Neutral Below Average
argenx SE (ADR) ARGX Health CareImmunotherapy963.7959 B31.2% Neutral Below Average
Dorchester Minerals L.P. DMLP EnergyRoyalty Interests Oil&Gas29.101.4 B31.5% Weak Up Low Risk
Chevron CVX EnergyIntegrated Oil & Gas Companies202.41404 B37.1% Neutral Low Risk
Suncor Energy SU EnergyIntegrated Oil & Gas Companies66.9480 B65.1% Neutral Low Risk
1 – 10 of 25