Seeking Quality - Strong Cash Flow and Prudent Debt Leverage

Components Performance/Risk
Period Return
29.4%
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
 
BioMarin Pharmaceutical BMRN Health CareBiopharmaceuticals66.9713 B13.5% Strong Up Below Average
Regeneron Pharmaceuticals REGN Health CareBiopharmaceuticals852.0390 B52.4% Strong Up Below Average
Utah Medical Products UTMD Health CareMedical Devices72.77232 M23.0% Weak Up Below Average
Alcon ALC Health CareMedical Devices72.2435 B-6.7% Weak Up Below Average
Vertex Pharmaceuticals VRTX Health CareGene Therapies556.75141 B40.4% Weak Up Below Average
Chemed CHE Health CareHospital/Nursing Homes523.997.2 B15.0% Neutral Below Average
The Cooper Companies COO Health CareEyewear & Frames69.7314 B3.9% Neutral Below Average
ResMed RMD Health CareRespiratory Disorders230.8734 B-12.7% Weak Up Below Average
argenx SE (ADR) ARGX Health CareImmunotherapy1,055.3764 B46.2% Weak Up Below Average
Expeditors International of Washington EXPD TransportationLogistics Services186.1625 B57.5% Weak Up Below Average
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