It tracks the MSCI USA Quality GARP Select Index and builds its portfolio by combining three core metrics: earnings growth (Growth), financial soundness (Quality) and reasonable share prices (Value).

It suits investors who want growth stock exposure but also want to reduce balance sheet risk and valuation burden.

Launched by iShares in 2020, it is a passively managed (index-tracking) ETF.

The fund analyzes earnings growth rates, return on equity (ROE), debt ratios and other measures to select high-quality growth stocks, then adjusts position sizes by giving more weight to stocks with lower price-to-earnings ratios (PER).

• Multi-angle stock selection combining growth, quality and value factors
• Low fees despite being a smart beta strategy

Assets under management (AUM) stand at $3.5B, and the expense ratio is 0.15% per year.

Compared with quality-based ETFs such as VFQY, QLTY and QLC in the table, GARP stands out because it clearly adds a value factor in the form of a "reasonable price." It also differs from quality momentum strategies such as JOET, so investors need to choose according to their own objectives.

The fund has delivered solid results in bull markets led by large-cap, tech-heavy growth stocks. In particular, it has kept a stable trajectory, showing relative resilience when market valuation concerns intensify.

As interest grows in multi-factor strategies, which offer better risk diversification than single-factor investing, inflows have appeared, and the low management fee is working as a positive for long-term investors.

Its balanced strategy of holding high-quality growth stocks at reasonable prices is a strength, but sector concentration and the possibility of strategy drift need to be checked.

While VFQY and QLTY in the table focus on quality, investors who want purer growth stock exposure can consider SCHG or VUG as alternatives. Those who want to concentrate even more on the quality factor can look at QUAL, and those who want a stronger value tilt can review VLUE alongside it. PWB, which approaches a similar strategy in a different way, is also worth comparing.

These are the key points to review before investing in GARP. The fund goes through multi-angle analysis combining three factors, but investors should thoroughly check in advance for sector concentration and for volatility from changes in the market environment.

Because the weighting in information technology is relatively high, volatility can increase when tech stocks decline, and given the nature of a multi-factor strategy, investors should note that performance can diverge from general market indexes.

It is a suitable choice for smart beta investors who want to hold high-quality growth stocks at a low fee. It also works well as a core holding in a portfolio that seeks a long-term balance of growth and value.