10 of the Best Quant ETFs to Buy in 2024

Optimize Your Investment Strategy with These Top Quantitative ETFs

Quantitative investing, or “quant investing,” has gained popularity as a data-driven approach that utilizes algorithms, statistical models, and complex mathematical analysis to identify investment opportunities. Quantitative Exchange-Traded Funds (ETFs) offer investors the chance to tap into sophisticated strategies that can outperform traditional market benchmarks. In 2024, a variety of quant ETFs are available, each offering unique exposure to different sectors and strategies. This article will explore 10 of the best quant ETFs to buy, helping you diversify and optimize your portfolio.

1. iShares MSCI USA Momentum Factor ETF (MTUM)

The iShares MSCI USA Momentum Factor ETF focuses on U.S. large- and mid-cap stocks that exhibit strong momentum, meaning they have consistently outperformed in recent months. This ETF applies a quantitative approach to identify these high-momentum stocks, making it a great choice for investors looking to capitalize on upward-trending equities.

2. Invesco S&P 500 High Beta ETF (SPHB)

The Invesco S&P 500 High Beta ETF aims to capture stocks from the S&P 500 that have higher volatility, or “beta,” compared to the broader market. This quant ETF is designed to perform well during bull markets, as it tends to focus on stocks with the potential for large price swings. It’s ideal for aggressive investors seeking higher returns.

3. Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC)

The Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF follows a multi-factor model, using quantitative analysis to select stocks based on value, momentum, quality, and low volatility. By balancing these factors, this ETF aims to outperform the S&P 500, making it a strong pick for investors seeking long-term growth with reduced risk.

4. JPMorgan Diversified Return International Equity ETF (JPIN)

Focusing on international stocks, the JPMorgan Diversified Return International Equity ETF employs a quant-based strategy that selects equities based on multiple factors such as value, momentum, and size. This ETF is excellent for investors looking to diversify their holdings globally while still benefiting from data-driven stock selection.

5. Invesco QQQ Trust (QQQ)

As one of the most popular ETFs in the market, the Invesco QQQ Trust tracks the Nasdaq-100 Index, but its quant-based approach emphasizes large-cap growth stocks, primarily in the tech sector. For investors looking to capture the innovation and high growth potential of tech-heavy companies, this ETF is a strong contender.

6. WisdomTree U.S. Quality Dividend Growth ETF (DGRW)

The WisdomTree U.S. Quality Dividend Growth ETF takes a quantitative approach to select U.S. stocks with both strong fundamentals and a high likelihood of dividend growth. This ETF is suitable for income-oriented investors who also want to benefit from stock appreciation over time.

7. First Trust Dorsey Wright Focus 5 ETF (FV)

The First Trust Dorsey Wright Focus 5 ETF uses a momentum-based quant strategy to invest in sector ETFs that demonstrate the strongest relative strength. By focusing on the top-performing sectors, this ETF helps investors capitalize on the best opportunities in the market, making it a solid choice for tactical investors.

8. Invesco S&P 500 Equal Weight ETF (RSP)

The Invesco S&P 500 Equal Weight ETF takes a different approach from traditional market-cap-weighted ETFs. By equally weighting all S&P 500 stocks, it avoids concentration in a few large companies and provides more balanced exposure across sectors. Its quant-based rebalancing strategy ensures it remains aligned with market trends.

9. iShares Edge MSCI Minimum Volatility USA ETF (USMV)

The iShares Edge MSCI Minimum Volatility USA ETF is designed for risk-averse investors who want exposure to the U.S. equity market without the high volatility typically associated with it. Using a quant model, this ETF selects stocks with lower volatility, making it a safer option during periods of market turbulence.

10. Alpha Architect U.S. Quantitative Value ETF (QVAL)

The Alpha Architect U.S. Quantitative Value ETF employs a deep value investing strategy, utilizing a quant model to select undervalued stocks with high-quality financial metrics. This ETF is tailored for value investors looking to capitalize on stocks trading below their intrinsic value with the potential for significant growth.

Conclusion

Quantitative ETFs provide investors with a sophisticated, data-driven approach to building a diversified and optimized portfolio. From momentum and high-beta strategies to low-volatility and value-focused options, these 10 quant ETFs represent some of the best choices for 2024. Whether you’re seeking aggressive growth, international exposure, or income through dividends, there’s a quant ETF to match your investment goals. Carefully consider your risk tolerance and financial objectives, and incorporate these quant ETFs to maximize your returns in the evolving market landscape.