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GARP — iShares MSCI USA Quality GARP ETF

GARP tracks the MSCI USA Quality GARP Select Index, screening U.S. large- and mid-caps for high quality and durable earnings growth, then tilting toward the names still trading at a reasonable valuation rather than the most expensive growth leaders.

Equity Efficiency:ACapital Efficiency grades how well this ETF delivers equity-side returns relative to the capital and beta it uses, with SPY as the B baseline. Leveraged ETFs score higher when they free up capital for an alpha sleeve. Long/short and factor ETFs are graded on excess return versus SPY, net of costs. GARP is a quality growth-at-a-reasonable-price U.S. large/mid equity sleeve. The grade scores its return versus SPY for the equity risk it takes.

GARP price history

Range
+29.87%
Total return (1Y)
GARP

Total return (Yahoo adjusted close—dividends and splits per Yahoo), normalized to $10,000 at first available trade date. Educational only.

Strategy

The index scores the eligible universe on three axes: a quality score (return on equity, debt to equity, earnings variability), a growth score (forward and historical EPS and sales growth), and a value score (forward P/E, price to book, EV to operating cash flow). Securities are weighted by market cap combined with a tilt score built from those three factors, with issuer and sector caps to limit concentration.

The screen structurally lands on richly valued growth sectors: technology alone runs above half the portfolio, with communication services and consumer cyclical rounding out the growth tilt. GARP is not a value fund in the traditional sense, it buys growth companies whose valuations have not fully detached from their fundamentals, which is a narrower and more concentrated bet than a broad quality or value index.

Manager and Issuer Pedigree

GARP is managed by BlackRock Fund Advisors on the iShares platform, the same index-replication infrastructure BlackRock runs across its core and factor ETF lineup. The MSCI USA Quality GARP Select Index methodology is MSCI's, so index construction, rebalancing, and factor definitions sit outside BlackRock's direct control, which is standard for iShares' factor suite.

BlackRock reported approximately $14.0 trillion in total assets under management at Dec. 31, 2025, making it the largest asset manager in the world. That scale gives GARP tight bid/ask spreads and deep primary-market liquidity even though the fund itself, at roughly $2.6B, is a mid-sized name within iShares' broader factor shelf.

Outperformance

Outperforms when the market rewards durable earnings growth at a discount to the most expensive names, a growth environment where quality and valuation discipline both matter, letting the fund capture upside from technology and communication-services leadership without paying peak multiples for it.

Underperforms when leadership rotates to small-cap, deep value, or low-volatility names, or when the highest-multiple growth stocks the index deliberately screens out keep outrunning everything else; the favorable backdrop is broad, fundamentals-driven growth leadership rather than a narrow multiple-expansion melt-up.

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Official ETF page

Read the official ETF page for current NAV, holdings, and documents: iShares (GARP).

Beta and MER may not be accurate.
Educational content only; not investment advice. Past performance does not guarantee future results.