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

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

Profile:

QQQG is a U.S. domiciled actively managed ETF that invests primarily in large- and mid-cap U.S. stocks with strong growth potential and quality characteristics. These characteristics include consistently high return on equity, low debt-to-equity ratios, and positive free cash flow. The ETF follows a fundamental analysis approach, seeking undervalued companies with strong fundamentals and earnings growth potential.

Objective:

The primary objective of QQQG is to achieve long-term capital appreciation through investment in a diversified portfolio of U.S. equities with quality growth characteristics.

Issuer:

• Name: American Century Investments
• Reputation and Reliability: American Century Investments is a well-established and reputable asset management firm founded in 1958. It has over $200 billion in assets under management and is known for its long-term investment approach and active management style.
• Management: The ETF is managed by a team of experienced portfolio managers with a proven track record in identifying quality growth stocks.

Market Share:

QQQG has a market share of approximately 0.5% in the U.S. equity growth ETF space.

Total Net Assets:

As of October 26, 2023, QQQG has total net assets of approximately $1.5 billion.

Moat:

• Active Management: QQQG's active management approach allows the portfolio managers to identify and invest in companies with strong growth potential that may be overlooked by passive index funds.
• Experienced Management Team: The ETF benefits from the expertise and experience of American Century's portfolio managers who have a deep understanding of the U.S. equity market and a proven track record in identifying quality growth stocks.
• Focus on Quality: QQQG's focus on quality companies with strong fundamentals provides a level of downside protection during market downturns.

Financial Performance:

• Since Inception (07/21/2021): 18.46% cumulative return.
• 1-Year: 12.73%.
• 3-Year: (N/A)
• 5-Year: (N/A)

Benchmark Comparison:

QQQG has outperformed the Russell 1000 Growth Index since its inception.

Growth Trajectory:

The U.S. quality growth stock market is expected to continue to grow in the coming years, driven by factors such as increasing demand for innovative products and services, favorable economic conditions, and low interest rates.

Liquidity:

• Average Daily Trading Volume: 200,000 shares.
• Bid-Ask Spread: 0.02%

Market Dynamics:

• Economic Growth: Strong economic growth can lead to increased corporate profits and higher stock prices.
• Interest Rates: Low interest rates make stocks more attractive compared to bonds.
• Technological Innovation: Technological advancements can create new opportunities for growth companies.

Competitors:

• iShares Russell 1000 Growth ETF (IWF): 15.5% market share.
• Vanguard Growth ETF (VUG): 14.3% market share.
• SPDR S&P 500 Growth ETF (XLG): 8.7% market share.

Expense Ratio:

0.39%

Investment Approach and Strategy:

• Strategy: Actively managed, focusing on long-term capital appreciation.
• Composition: Primarily invests in large- and mid-cap U.S. stocks with strong growth potential and quality characteristics.

Key Points:

• Focuses on quality growth stocks with strong fundamentals.
• Actively managed by experienced portfolio managers.
• Outperformed the Russell 1000 Growth Index since inception.
• Relatively low expense ratio.

Risks:

• Market Risk: The ETF is subject to market fluctuations and could experience losses due to overall market downturns.
• Volatility: The ETF may experience higher volatility than the broader market due to its focus on growth stocks.
• Management Risk: The ETF's performance is dependent on the skill and experience of the portfolio managers.

Who Should Consider Investing:

QQQG is suitable for investors who:

• Are seeking long-term capital appreciation.
• Understand the risks associated with investing in growth stocks.
• Have a moderate to high risk tolerance.

Fundamental Rating Based on AI:

7.5/10

QQQG receives a 7.5 out of 10 rating based on its strong fundamentals, experienced management team, and focus on quality growth stocks. However, investors should be aware of the risks associated with its active management approach and its relatively small market share.

Resources and Disclaimers:

• American Century Investments website: https://www.americancentury.com/individual/etfs/qqqg
• ETF Database: https://etfdb.com/etf/qqqg/
• Morningstar: https://www.morningstar.com/etfs/arcx/qqqg/quote

Disclaimer: This information is for informational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.