March, as a month, has a habit of being… testy. Like a dwarf who’s misplaced his beard comb. Over the last couple of years, it’s been particularly prone to fits of economic pique. Last year, the market decided to have a wobble, and the S&P 500 (^GSPC 0.61%) took a six percent tumble. A perfectly respectable fall, if you’re a particularly enthusiastic acrobat, but less so for those of us with portfolios.
And this year? Well, let’s just say the market’s mood isn’t exactly sunshine and lollipops. The S&P 500 hasn’t exactly been sprinting towards prosperity. As of last week, it was down around 2.7% – a figure achieved amidst concerns about geopolitical kerfuffles, the price of magically-extracted liquid fuel, and an uptick in the number of people politely requesting employment. This is all happening while the market seems to be convinced everything is worth more than it actually is, particularly amongst the larger, more established businesses. It’s a bit like a dragon hoarding gold, only the gold is shares and the dragon is…well, everyone.
Now, history has a funny way of rhyming, as the bards are fond of saying. Last year, after a rather grumpy March and April, the market decided to cheer up considerably. Will that happen again? The Oracle is currently unavailable for comment, and frankly, even if she were available, she’d probably just offer cryptic pronouncements about tea leaves and the migratory patterns of particularly grumpy geese. So, we’re left to rely on a bit of common sense. Investors should be thinking long-term, beyond the immediate chaos. It’s like building a cathedral – you don’t worry about the scaffolding wobbling on Tuesday, you focus on the fact that it will eventually have a roof.
And with a long-term view, a bit of a dip can be…advantageous. An opportunity to acquire an exchange-traded fund (ETF) that’s built for growth, and comprised of stocks that aren’t priced as if they’re made of unobtainium. Which brings us to the iShares MSCI USA Quality GARP ETF (GARP 0.71%). It’s not a magic potion, mind you, but it’s a sensible place to start.
Growth, Value, and a Spot of Quality
The iShares MSCI USA Quality GARP ETF is a potentially smart investment right now because it seeks growth, but with a healthy dose of skepticism. It’s designed to filter out those overvalued stocks that tend to plummet faster than a goblin down a well during periods of market turbulence. It’s a bit like having a particularly discerning gatekeeper for your portfolio.
The GARP ETF tracks the MSCI USA Quality GARP Index, which includes both large and mid-cap growth stocks that meet certain value and quality criteria. It’s a rigorous process, involving a lot of spreadsheets and a surprising amount of tea.1
These criteria are designed to ensure that the index, and the ETF by extension, includes stocks that are reasonably priced with the potential for long-term growth. It’s not about finding the flashiest, most hyped-up companies; it’s about finding the solid, dependable ones that are quietly getting on with the job.
The stocks in the index are weighted by a proprietary system that assigns a score based on market cap, growth characteristics, value, and quality. It’s a complex algorithm, involving arcane calculations and a deep understanding of market dynamics.2
The ETF currently holds 147 stocks, with the largest five being Meta Platforms, Microsoft, Nvidia, Apple, and semiconductor equipment manufacturer Lam Research. A fairly sensible bunch, if you ask me. Not a single company selling entirely improbable elixirs or guaranteed-to-win lottery tickets.
A History of Not Falling Over Quite as Much as the S&P 500
This ETF has consistently outperformed the S&P 500 and the Russell 1000 over time. It’s not a guarantee of future success, of course. The market is a fickle beast, and even the most carefully constructed strategies can be derailed by unforeseen events. But it’s a good sign.
Over the past 12 months, it has returned 32%, compared to around 21.5% for both the S&P 500 and the Russell 1000. Over the past five years, it has had an average annualized return of 16% compared to 11.5% for the S&P 500 and 10.7% for the Russell 1000. It’s not going to make you a king overnight, but it might provide a comfortable retirement.
When markets are volatile, investors should focus on acquiring good, quality, long-term stocks that are reasonably priced. And this ETF has consistently delivered that for investors. It’s not a thrilling ride, but it’s a sensible one. And sometimes, sensible is exactly what you need.
1
The tea is crucial. It calms the algorithms and prevents them from developing sentience. Trust me on this.
2
The algorithm was originally designed to predict the optimal brewing time for tea, but we repurposed it for financial analysis. It turns out the principles are surprisingly similar.
Read More
- Building 3D Worlds from Words: Is Reinforcement Learning the Key?
- Spotting the Loops in Autonomous Systems
- The Best Directors of 2025
- The Glitch in the Machine: Spotting AI-Generated Images Beyond the Obvious
- 2025 Crypto Wallets: Secure, Smart, and Surprisingly Simple!
- Umamusume: Gold Ship build guide
- 20 Best TV Shows Featuring All-White Casts You Should See
- Mel Gibson, 69, and Rosalind Ross, 35, Call It Quits After Nearly a Decade: “It’s Sad To End This Chapter in our Lives”
- Gold Rate Forecast
- Uncovering Hidden Signals in Finance with AI
2026-03-15 16:33