Summary

• I upgrade iShares MSCI Quality GARP ETF (GARP) to 'buy' due to its robust growth, quality, and value profile.
• GARP has delivered a 60.81% total return since its June 2024 Index change, outperforming an impressive peer group that includes IWY, VUG, SCHG, and QQQ.
• The ETF's 21.30% next-five-year EPS growth rate, 22.82x forward P/E, and 1.07x PEG ratio highlight superior fundamentals and disciplined exposure to mega-cap tech.
• Proper guardrails exist to sustain quality. The Index also screens for ROE, which comes in at a massive 34.92%, and GARP also has an excellent and competitive EBIT margins.

Investment Thesis

I last reviewed the iShares MSCI Quality GARP ETF (GARP) on March 11, 2025, when I rated it a solid "hold" but questioned if its new tracked Index, less than one year old at the

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GARP, QGRO, SPY, MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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