Nvidia, AI Giants' 'Quality' Status Questioned by ETFs Over Accruals

• Major quality-focused ETFs, iShares MSCI and Invesco S&P 500, diverge on whether AI giants like Nvidia remain "quality stocks."
• Invesco's ETF excluded Nvidia due to rising accruals, where cash earnings lagged reported earnings, signaling potential growth concerns.
• MSCI's ETF retains AI giants, prioritizing steady profitability and strong growth, viewing accruals as too narrow a definition of quality.
• The disagreement reflects a broader debate on the long-term payoff of massive AI investments and the security of the current AI frenzy.
• The situation highlights the subjective nature of "quality" in a tech-driven market, contrasting financial discipline with exceptional growth.

Why It Matters: It shows how AI boom challenges traditional 'quality stock' definitions for investors.