Portfolio updates
CT QR Series US Equity Active UCITS ETF (QRUS)
Top 10 Underweights - 30 June 2026
Stock | Rationale | Relative weight |
|---|---|---|
1. Alphabet Inc. | Alphabet (Communication Services) displayed weaker capital allocation and earnings quality than many peers in the sector. In addition, valuation measures appeared stretched relative to underlying fundamentals, reducing the stock’s attractiveness compared with alternative opportunities. | -5.4% |
2. Microsoft Corporation | Microsoft (Information Technology) exhibited weaker earnings quality than a number of peers, with earnings and cash-flow trends appearing less consistent than expected for a company of its scale. In addition, capital allocation metrics compared less favourably with competing opportunities, reducing the stock’s relative attractiveness. | -4.0% |
3. Amazon.com, Inc. | Amazon (Consumer Discretionary) reflected weaker capital allocation discipline, while cash-flow generation appeared less attractive relative to the company’s valuation. Earnings quality also compared less favourably amongst peers, suggesting that profit growth is not being converted into shareholder value as efficiently as elsewhere in the sector. | -3.3% |
4. Broadcom Inc. | Broadcom (Information Technology) exhibited weaker earnings quality than a number of competing semiconductor opportunities. At the same time, business growth had moderated relative to peers, reducing the stock’s relative attractiveness. | -2.5% |
5. Apple Inc. | Apple (Information Technology) is held below benchmark weight due to ESG-related factors, which are taken into consideration within portfolio construction for Article 8 alignment. | -1.9% |
6. Tesla, Inc. | Tesla (Consumer Discretionary) appeared expensive across several valuation measures, while capital returned to shareholders remained limited relative to many peers. In addition, earnings quality compared less favourably with alternative opportunities, resulting in the exclusion from the portfolio. | -1.8% |
7. Eli Lilly and Company | Eli Lilly (Health Care) traded at a significant premium relative to many healthcare peers. At the same time, cash-flow generation appeared less compelling relative to valuation, while earnings quality compared less favourably with alternative opportunities. | -1.4%
|
8. Advanced Micro Devices, Inc. | AMD (Information Technology) appeared expensive relative to both cash-flow generation and earnings. In addition, capital returned to shareholders was less attractive than for many peers, reducing the stock’s relative appeal within the sector. | -1.4% |
9. Berkshire Hathaway Inc. | Berkshire Hathaway (Financials) offered limited capital return to shareholders relative to many peers. Combined with valuation characteristics that appeared less attractive than alternative opportunities, the stock presented a less compelling investment case. | -1.3% |
10. JPM Chase | JPMorgan Chase (Financials) displayed weaker valuation characteristics than a number of alternative opportunities, particularly across earnings yield, forward earnings yield and adjusted book-to-price measures. | -1.3% |
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% |
The fund is classified under Article 8 of EU Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (Disclosure Regulation) as a fund that promotes environmental or social characteristics. When deciding to invest in the advertised fund, all characteristics or objectives of the advertised fund should be considered as described in its prospectus.
Key risks
Investment Risk – The value of investments can fall as well as rise and investors might not get back the sum originally invested.
Currency Risk – Where investments are in assets that are denominated in multiple currencies, or currencies other than your own, changes in exchange rates may affect the value of the investments.
ESG Investment Criteria – The funds apply a range of measures as part of its consideration of ESG factors, including the exclusion of investments involved in certain industries and/or activities. This reduces the investable universe and may impact the performance of the Funds positively or negatively relative to a benchmark or other funds without such restrictions.
High Volatility Risk – The funds may carry a risk of high volatility due to their portfolio composition or the portfolio management techniques used. This means that the funds’ value may fall and rise more frequently and this could be more pronounced than with other funds.
Emerging Markets Risks:
Political and Financial Risk – The funds may invest in markets where economic and regulatory risk can be significant. These factors can affect liquidity, settlement and asset values. Any such event can have a negative effect on the value of your investment.
Liquidity Risk – The funds hold assets which could prove difficult to sell. The funds may have to lower the selling price, sell other investments or forego more appealing investment opportunities.
China-Hong Kong Stock Connect – The funds may invest through the China-Hong Kong Stock Connect programmes which have significant operational constraints including quota limits and are subject to regulatory change and increased counterparty risk.
For Information only.
The information unless otherwise attributed, is produced by the investment manager and is provided to you for information purposes. This document must not be passed on to any third party.
In the UK: Issued by Columbia Threadneedle Management Limited, No. 517895, both registered in England and Wales and authorised and regulated in the UK by the Financial Conduct Authority.
In the EEA an Switzerland: Issued by Threadneedle Management Luxembourg S.A., registered with the Luxembourg Registre de Commerce et des Sociétés with No. B 110242 and authorised by the Commission de Surveillance du Secteur Financier (CSSF).
Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies.
