Fund Evaluator:

GMO Quality VI Overview

GMO Quality VI (GQLOX) is an actively managed U.S. Equity Large Blend fund. GMO launched the fund in 2006.

The investment seeks total return. The adviser seeks to achieve the fund’s investment objective by investing the fund’s assets primarily in equities of companies that GMO believes to be of high quality. At times, the fund may have substantial exposure to a single asset class, industry, sector, country, region, issuer, currency or companies with similar market capitalizations. The fund may invest in securities of companies of any market capitalization. The fund also may invest in U.S. Treasury fund, in money market funds unaffiliated with GMO, and directly in the types of investments typically held by money market funds.

About GMO Quality VI (GQLOX)

There are 3 members of the management team with an average tenure of 11.77 years: Anthony Hene (2015), Ty Cobb (2019), Thomas Hancock (2009). Management tenure is more important for actively managed funds than passive index funds.

The fund has 1 primary benchmark: S&P 500 (TR) (1970) index with a weighting of 100%. GMO Quality VI has 48 securities in its portfolio. The top 10 holdings constitute 43.9% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

GMO Quality VI is part of the Equity global asset class and is within the U.S. Equity fund group. GMO Quality VI has 18.6% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 80.5%. There is 18.6% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). GMO Quality VI has 0.9% of the portfolio in cash.

Assets Under Management

The fund has $3 billion in total assets, which is below the $6 billion average for the Large Blend category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

GQLOX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The GMO Quality VI expense ratio is average compared to funds in the Large Blend category. GMO Quality VI has an expense ratio of 0.42%, which is 48% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. GMO Quality VI has a portfolio turnover rate of 24%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 48% for the Large Blend category.

Recently, in the month of July 2026, GMO Quality VI returned 1.5%, which earned it a grade of B, as the Large Blend category had an average return of 0.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

GMO Quality VI has a trailing yield of 0.91%, which is above the 0.56% category average. The fund normally distributes its income semi-annually and its capital gains semi-annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

GMO Quality VI Grades

Year to date, the fund has returned 7.4%, 1.9 percentage points worse than the category, which translates into a grade of D. The fund has returned 21.3% over the past year (grade of A), 16.9% over the past three years (grade of D) and 12.3% per year over the past five years (grade of B) and 15.7% per year over the past 10 years (grade of A).

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