Portfolio updates
CT QR Series US Equity Active UCITS ETF (QRUS)
Top 10 Underweights - 30 June 2026
Stock | Rationale | Relative weight |
|---|---|---|
1. Microsoft Corporation | Microsoft (Information Technology) exhibits 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 compare less favourably with competing opportunities, reducing the stock’s relative attractiveness. | -4.00% |
2. Amazon.com, Inc. | Amazon (Consumer Discretionary) reflects weaker capital allocation discipline, while cash-flow generation appears less attractive relative to the company’s valuation. Earnings quality metrics also compare less favourably with many peers, suggesting that profit growth is not being converted into shareholder value as efficiently as elsewhere in the sector. | -3.33% |
3. Alphabet Inc. Class A | Alphabet (Communication Services) displays weaker capital allocation and earnings quality characteristics than many peers in the sector. In addition, valuation measures appear stretched relative to underlying fundamentals, reducing the stock’s attractiveness compared with alternative opportunities. | -3.00% |
4. Broadcom Inc. | Broadcom (Information Technology) exhibits weaker earnings quality characteristics than a number of competing semiconductor opportunities. At the same time, valuation and quality metrics appear neutral, while business momentum has moderated relative to peers, reducing the stock’s relative attractiveness. | -2.53% |
5. Alphabet Inc. Class C | Alphabet’s Class C shares exhibit similar characteristics to the Class A share line, with capital allocation and earnings quality metrics comparing less favourably with peers. Valuation signals also register as excessive, making the shares less attractive relative to alternative opportunities. | -2.42% |
6. Apple Inc. | Apple (Information Technology) is held below benchmark weight due to the ESG Materiality rating assigned to it. We incorporate ESG Materiality ratings within portfolio construction for Article 8 alignment. | -1.94% |
7. Tesla, Inc. | Tesla (Consumer Discretionary) appears expensive across several valuation measures, while capital returned to shareholders remains limited relative to many peers. In addition, earnings characteristics compare less favourably with alternative opportunities, reducing the stock’s overall attractiveness. | -1.77% |
8. Eli Lilly and Company | Eli Lilly (Health Care) trades at a significant premium relative to many healthcare peers. At the same time, cash-flow generation appears less compelling relative to valuation, while earnings-quality characteristics compare less favourably with alternative opportunities. | -1.38% |
9. Advanced Micro Devices, Inc. | AMD (Information Technology) appears expensive relative to both cash-flow generation and earnings characteristics. In addition, capital returned to shareholders is less attractive than for many peers, reducing the stock’s relative appeal within the sector. | -1.36% |
10. Berkshire Hathaway Inc. | Berkshire Hathaway (Financials) offers limited capital return to shareholders relative to many peers. Combined with valuation characteristics that appear less attractive than alternative opportunities, the stock currently presents a less compelling investment case. | -1.34% |
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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