Tired of the media narrative whiplash between rate cuts, higher for longer, and hard vs. soft landings? It may be worth taking a much longer term look at portfolio options. Certain strategies offer long term track records that could boost their appeal. Looking forward from now, those strategies can offer a patient, focused response to a complicated macroeconomic moment. One standout option may be the quality growth ETF QGRO.
See more: As High Interest Rates Persist, Consider Quality ETFs
QGRO, the American Century U.S. Quality Growth ETF, charges 29 basis points (bps). It tracks the American Century U.S. Quality Growth Index for its holders. Over the last five years, it has returned 14.4% over the last five years. That positions it among the best performing ETFs with more than $500 million in AUM over that time frame.
So how does it invest? QGRO’s index looks for firms with higher growth potential and strong fundamentals. It looks for firms via growth, quality, and income screens. QGRO and its managers assess those potential firms by metrics like sales, profitability, cash flow, and more. It looks to combine so-called high-growth stocks as well as more stable growth firms.
The strategy does produce a somewhat larger allocation to mid caps, but with its quality screen, it can find strong opportunities therein. The quality growth ETF does hold significant weights in tech, but without too much exposure to the megacap world. That can prevent it from suffering if concentration risk issues take a bite out of the stock market.
Over the last year, that’s actually proven to offer some real benefits, too. The strategy has returned 25% over the last one year period. Overall, the strategy has outperformed both tis ETF Database Category and Factset Segment averages. For investors looking for a quality growth ETF, QGRO may stand out as an option.
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