GARP Stock: iShares MSCI USA Quality GARP ETF Profile & Analysis (2026)
A multi-factor strategy focusing on U.S. large- and mid-cap companies with strong growth, high quality, and reasonable valuations. — Updated May 2026 with current AUM, expense ratio, holdings, and performance data.
The iShares MSCI USA Quality GARP ETF (GARP) is designed for investors seeking “Growth at a Reasonable Price.” Unlike traditional growth funds that may ignore high valuations, the GARP strategy utilizes a multi-factor approach to select companies with sustainable earnings growth, high return on equity (ROE), and moderate price-to-earnings multiples. While pure growth investors often flock to a complete list of semiconductor companies regardless of price, GARP applies a valuation “tilt” to ensure these companies aren’t trading at excessive premiums.
As of May 2026, the fund is heavily concentrated in the technology sector, but it maintains exposure to other industries to balance risk. Investors looking for a more defensive or stable profile might also compare this fund to the complete list of food and beverage companies, which often carry higher quality scores but lower growth trajectories. GARP bridges the gap between aggressive growth and conservative value, offering a Morningstar Gold Medal rated core holding for diversified portfolios.
Key Takeaways — GARP Stock
GARP combines forward EPS growth with quality metrics (ROE, low debt) and value metrics (P/E, P/B) to create a balanced portfolio.
At just 0.15%, GARP is one of the most cost-effective ways to access a smart-beta growth strategy in the current market.
Approximately 55% of the fund is invested in Technology, driven by the strong quality and growth profiles of major software and hardware firms.
The fund carries a high analyst rating due to its robust methodology and the backing of BlackRock’s extensive management resources.
GARP — Live Price Chart
Real-time chart from TradingView.
GARP ETF Vitals & Key Statistics
Core data as of May 2026.
| Data Point | Value | Data Point | Value |
|---|---|---|---|
| Full Name | iShares MSCI USA Quality GARP ETF | Ticker | GARP |
| Issuer | BlackRock (iShares) | Asset Class | U.S. Equity – Large Growth |
| Index Tracked | MSCI USA Quality GARP Select Index | Structure | Open-Ended ETF |
| Expense Ratio | 0.15% | AUM | $1.27B |
| Inception Date | January 14, 2020 | Exchange | AMEX |
| No. of Holdings | 144 | Dividend Yield | 0.15% |
| 52-Week High | $82.35 | 52-Week Low | $78.78 |
| Avg Daily Volume | High | YTD Return | 0.15% |
| 1-Year Return | 0.15% | 5-Year Return | 0.15% |
| Category | Multi-Factor Growth | Dividend Frequency | Quarterly |
GARP Top 10 Holdings (May 2026)
Largest positions by weight. Click columns to sort.
| Rank | Ticker | Company Name | Sector | Weight % |
|---|---|---|---|---|
| 1 | MU | Micron Technology | Technology | 5.17% |
| 2 | MSFT | Microsoft | Technology | 5.01% |
| 3 | AAPL | Apple | Technology | 4.85% |
| 4 | AVGO | Broadcom | Technology | 4.74% |
| 5 | NVDA | Nvidia | Technology | 4.44% |
| 6 | KLAC | KLA Corporation | Technology | 4.17% |
| 7 | META | Meta Platforms | Communication | 3.80% |
| 8 | V | Visa | Financials | 3.59% |
| 9 | LLY | Eli Lilly | Healthcare | 3.48% |
| 10 | NFLX | Netflix | Communication | 3.48% |
GARP — Pros & Cons
✓ Valuation Discipline
By screening for reasonable P/E ratios, the fund avoids “growth at any cost,” reducing the impact of valuation bubbles.
✗ Sector Imbalance
The heavy 55% weight in technology means the fund is highly susceptible to shifts in the tech sector and interest rate changes.
✓ High Quality Standards
Only companies with strong balance sheets and consistent earnings variability are included, which provides a safety net during downturns.
✗ Rebalance Lags
Quarterly rebalancing may cause the fund to hold onto “expensive” stocks for several weeks before the index resets.
✓ Institutional Grade
Managed by BlackRock (iShares), providing high liquidity and very narrow bid-ask spreads for all investor sizes.
✗ Tracking Error
Multi-factor funds can underperform broader market benchmarks like the S&P 500 during sharp momentum-driven bull markets.
Who Should Consider GARP?
Long-term investors who want growth exposure but are wary of buying overvalued tech stocks at record highs.
Income-seeking investors, as the focus is on capital appreciation rather than high dividend payouts.
You want to diversify a portfolio that includes small cap aerospace & defense stocks or other niche industrial segments.
Brokerage or IRAs; its low turnover and tax-efficient ETF structure make it suitable for almost any tax environment.
GARP vs Similar ETFs
Key metrics comparison.
| ETF | Full Name | Expense Ratio | AUM | Holdings | Div Yield | YTD | Best For |
|---|---|---|---|---|---|---|---|
| GARP ★ | iShares MSCI USA Quality GARP ETF | 0.15% | $1.27B | 144 | 0.15% | 0.15% | Multi-Factor Core |
| SPGP | Invesco S&P 500 GARP ETF | 0.34% | $3.2B | 76 | 1.10% | N/A | Pure S&P 500 GARP |
| QGRO | American Century U.S. Quality Growth | 0.29% | $850M | 170 | 0.85% | N/A | Active Quality Growth |
| SCHG | Schwab U.S. Large Cap Growth ETF | 0.04% | $25B | 250 | 0.45% | N/A | Broad Passive Growth |
GARP Technical Analysis
Real-time buy/sell signals.
GARP — Risks & Considerations
Growth Factor Reversal
If the market shifts toward deep value or cyclical stocks, growth-focused strategies like GARP often experience significant outflows and price drops.
Interest Rate Sensitivity
High-growth tech companies are sensitive to rate hikes, which can compress valuation multiples even if earnings growth remains positive.
Concentration Risk
With over 50% of assets in Tech, the fund lacks sector diversification compared to broad-market ETFs like VTI or SPY.
Valuation Trap
Sometimes “reasonable” prices can still be high relative to historic norms, particularly in the current average P/E environment of 35x.