As uncertainty mounts over the direction of the economy and financial markets, investors are flooding into exchange-traded funds focused on so-called quality stocks. Quality stocks are those of companies with higher and more reliable profits, low debt and other measures of sustainable earnings. Presumably, these are the stocks that can withstand an economic downturn better than others, and advisers see exposure to quality as a way to reduce risk at a time when stock valuations are still high.

Source: Wall Street Journal October 07, 2019 02:03 UTC