Portfolio updates
CT QR Series US Equity Active UCITS ETF (QRUS)
Top 10 Underweights - 31 January 2026
Stock | Rationale | Relative weight |
|---|---|---|
1. Amazon.com, Inc. | Amazon (Consumer Discretionary) shows weak valuation metrics due to relatively low cash flows and higher capital expenditures. Earnings quality, particularly accruals, is also poor. | -3.61% |
2. Broadcom Inc. | Broadcom (Information Technology) ranks as expensive across several valuation metrics, including cash flows, earnings, and intangible-adjusted book value. | -2.41% |
3. Tesla Inc | Tesla (Consumer Discretionary) exhibits very weak valuation and quality measures. On valuation, it compares poorly across a wide range of metrics. As for quality, its capital allocation appears sub-optimal including its level of financing and capital expenditures. | -1.91% |
4. Berkshire Hathaway Inc | Berkshire Hathaway (Financials) demonstrates negative characteristics across valuation, quality, and catalyst themes. In particular, shareholder yield, earnings and sales volatility, and analyst estimate revisions are especially weak. | -1.40% |
5. JPMorgan Chase & Co. | JPMorgan (Financials) ranks as expensive on earnings yield, has relatively poor year-over-year changes in profitability and asset turnover, and a negative earnings call surprise. | -1.31% |
6. Eli Lilly and Company | Eli Lilly (Health Care) ranks highly expensive on cash flows and sales as well as low quality. The negative quality score is mainly due to external financing through relatively high debt issuance and poor cash flow conversion. | -1.31% |
7. Johnson&Johnson | Johnson & Johnson (Health Care) shows negative quality characteristics, including high external financing through debt issuance and weak earnings quality. | -0.86% |
8. Visa Inc. | Visa (Financials) ranks expensive on cash flows and exhibits negative catalyst characteristics, including short utilization and weaker than expected revenue guidance. | -0.85% |
9. Walmart Inc | Walmart (Consumer Staples) appears expensive based on cash flows and earnings and has a relatively weak shareholder yield. | -0.82% |
10. Micron Technology, Inc. | Micron (Information Technology) appears unattractive based on valuation and quality characteristics. It seems expensive relative to its history as well as having high and growing capital intensity. | -0.73% |
Quick Response - Stocks removed since rebalance
Date of sale | Stock removed since rebalance | Rationale | Weight before sale |
|---|---|---|---|
27 May 2026 | James Hardie Industries plc | James Hardie Industries plc (Materials – Building Products) was downgraded following a notable weakening in Catalyst indicators, primarily driven by deteriorating Business Momentum (such as earnings revisions). Since the completion of its acquisition of AZEK Co Inc in July 2025, the company has also experienced declining Value and Quality metrics. Valuation measures such as Cash Flow Yield and Deep Value have weakened further, compounded by persistently low Shareholder Yield. On the Quality side, Efficiency & Profitability has moderated from previously strong levels, while Financial Strength metrics have slipped below peer averages. | 0.07% |
27 May 2026 | CNA Financial Corp. | CNA Financial Corp. (Financials – Insurance) was removed after failing to meet the Good Governance requirements under Article 8 compliance. | 0.05% |
27 May 2026 | Louisiana-Pacific Corp. | Louisiana-Pacific Corp. (Materials – Building Products) was downgraded following broad-based deterioration across Value, Quality, and Catalyst indicators after its preliminary first quarter 2026 results. On the Value side, weakening Shareholder Yield and Cash Flow Yield reduced its relative attractiveness versus peers. Quality metrics also softened, primarily due to declining Efficiency & Profitability. In addition, Catalyst signals weakened, with both Price Momentum (such as linear momentum) and Business Momentum (such as text-based earnings surprise) turning less supportive. | 0.03% |
27 May 2026 | Brighthouse Financial Inc. | Brighthouse Financial Inc. (Financials – Insurance) was downgraded following a marked deterioration in both Quality and Value indicators after its preliminary first quarter 2026 results. On the Quality side, the stock was negatively impacted by weaker Earnings Quality alongside negative Business Sustainability metrics such as revenue stability. At the same time, valuation signals deteriorated further, with low Shareholder Yield, weak Cash Flow Yield, and a worsening Earnings Yield all weighing on the overall assessment. | 0.02% |
27 May 2026 | Birkenstock Holding plc | Birkenstock Holding plc (Consumer Discretionary – Footwear) was downgraded following a deterioration in both Catalyst and Quality indicators. On the Quality side, Efficiency & Profitability metrics weakened, reducing confidence in the company’s operational performance relative to peers. At the same time, Catalyst signals declined materially, with broad based weakness across Price Momentum (such as relative strength), Business Momentum (such as earnings revisions), and Informed Trading (such as short interest), the latter two now ranking at the bottom of the peer group. | 0.02% |
2 April 2026 | Enphase Energy, Inc. | Enphase Energy was downgraded as its relative factor positioning weakened following the introduction of updated sector models toward the end of 2025. Under the revised framework, the stock’s Value characteristics deteriorated despite remaining above peer averages, while Quality metrics softened on weaker profitability and capital allocation signals. Catalyst continued to lag due to subdued business momentum indicators, leading to a downgrade and subsequent sale. | 0.03% |
19 February 2026 | WESCO International, Inc. | WESCO International, Inc. (Industrials – Trading Companies & Distributors) was downgraded following clear signs of weakening cash generation trends and overall financial quality. Third quarter 2025 results shone a light on their deteriorating operating cash flow and higher capital expenditure. These dynamics had softened WESCO’s relative Value and Quality profile within its peer set, while more recently, its business momentum fuelled by its earnings revisions led to a starker negative view of the stock. | 0.09% |
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