American Century U.S. Quality Growth ETF (QGRO)

American Century U.S. Quality Growth ETF (QGRO)

Profile:

QGRO is an actively managed ETF that invests in large-cap U.S. companies with strong fundamentals and a history of profitable growth. The ETF focuses on companies with consistent earnings growth, low debt levels, and strong returns on equity. It employs a bottom-up stock selection process, aiming to identify companies with sustainable competitive advantages and long-term growth potential.

Objective:

The primary objective of QGRO is to achieve long-term capital appreciation by investing in high-quality U.S. companies with a track record of growth and profitability.

Issuer:

American Century Investments

• Reputation and Reliability: American Century Investments is a reputable asset management firm with over 50 years of experience and a strong track record of performance. They manage over $280 billion in assets across various investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in fundamental analysis and stock selection. The lead portfolio manager, Phil Davidson, has over 25 years of investment experience.

Market Share:

QGRO has a market share of 0.07% in the U.S. Large Growth Equity ETF category.

Total Net Assets:

As of November 2nd, 2023, QGRO has approximately $495 million in total net assets.

Moat:

QGRO's competitive advantages include:

• Active management: The ETF's active management approach allows for more flexibility in selecting stocks and potentially outperforming the market.
• Experienced management team: The portfolio managers have a deep understanding of the U.S. market and a proven track record of identifying high-quality growth companies.
• Focus on fundamentals: QGRO's focus on strong fundamentals helps to mitigate risk and improve long-term returns.

Financial Performance:

• Since inception (2017): QGRO has returned an annualized 13.7%, outperforming the S&P 500 by 2.2% per year.
• Year-to-date (2023): QGRO is up 7.4%, compared to the S&P 500's 12.7% gain.
• 3-year annualized return: QGRO has delivered a 15.2% annualized return, outperforming the S&P 500 by 4.7% per year.

Growth Trajectory:

QGRO has experienced consistent growth in assets under management since its inception, indicating increasing investor interest in its investment strategy.

Liquidity:

• Average Trading Volume: QGRO has an average daily trading volume of approximately 50,000 shares.
• Bid-Ask Spread: The bid-ask spread is typically around 0.05%.

Market Dynamics:

The ETF's market environment is influenced by factors such as:

• Economic growth: A strong economy can lead to increased corporate profits and higher stock prices, benefiting QGRO's holdings.
• Interest rates: Rising interest rates can make growth stocks less attractive, potentially impacting QGRO's performance.
• Market volatility: Increased market volatility can lead to higher risk and potentially lower returns for QGRO.

Competitors:

• iShares Russell 1000 Growth ETF (IWF) - Market share: 1.3%
• Vanguard Growth ETF (VUG) - Market share: 1.2%
• Invesco QQQ Trust (QQQ) - Market share: 0.9%

Expense Ratio:

QGRO has an expense ratio of 0.42%.

Investment Approach and Strategy:

• Strategy: QGRO uses an active management approach to invest in a concentrated portfolio of 50-75 large-cap U.S. stocks.
• Composition: The ETF primarily invests in stocks within the technology, healthcare, and consumer discretionary sectors.

Key Points:

• Actively managed ETF focused on high-quality growth companies.
• Strong track record of outperforming the market.
• Experienced management team with a proven investment process.
• Moderate expense ratio.

Risks:

• Market risk: QGRO is exposed to the overall market risk, which can lead to losses during market downturns.
• Volatility: The ETF's focus on growth stocks can lead to higher volatility compared to broader market ETFs.
• Interest rate risk: Rising interest rates can make growth stocks less attractive, potentially impacting QGRO's performance.

Who Should Consider Investing:

QGRO is suitable for investors with a long-term investment horizon and a tolerance for moderate risk who are seeking exposure to high-quality U.S. growth companies.

Fundamental Rating Based on AI:

8.5/10

QGRO receives a high rating based on its strong financial performance, experienced management team, and focus on high-quality companies. The ETF has a proven track record of outperforming the market, and its investment approach is well-suited for the current market environment. However, investors should be aware of the potential risks associated with investing in growth stocks.

Resources and Disclaimers:

• American Century U.S. Quality Growth ETF (QGRO): https://www.americancentury.com/individual/etf/etf-detail.aspx?etfId=2884
• Morningstar: https://www.morningstar.com/etfs/arcx/qgro/quote
• Disclaimer: This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.