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

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

Profile:

QGRO is a actively managed ETF that invests in large- and mid-cap U.S. stocks with strong earnings potential and growth prospects. It follows a quality growth strategy, focusing on companies with sustainable competitive advantages, strong management teams, and consistent earnings growth. The ETF's portfolio is concentrated, typically holding around 50-75 stocks across various sectors.

Objective:

The primary objective of QGRO is to achieve long-term capital appreciation through investments in high-quality growth companies.

Issuer:

American Century Investments is the issuer of QGRO.

Reputation and Reliability:

American Century Investments is a well-established and reputable asset management firm with over 50 years of experience. The firm manages over $260 billion in assets across various investment products.

Management:

The portfolio management team for QGRO is led by veteran portfolio manager Phil Davidson, who has over 20 years of experience in managing growth-oriented portfolios.

Market Share:

QGRO has a small market share in the U.S. Large Growth ETF category, with approximately $1.2 billion in assets under management.

Total Net Assets:

$1.2 billion

Moat:

QGRO's competitive advantages include:

• Active management: The ETF's active management approach allows for flexibility in selecting stocks and responding to market changes.
• Experienced management team: The portfolio management team has a strong track record of success in managing growth-oriented portfolios.
• Focus on quality: The ETF's focus on high-quality companies with sustainable competitive advantages aims to mitigate downside risk.

Financial Performance:

QGRO has outperformed its benchmark index, the Russell 1000 Growth Index, over the past 3 and 5 years. However, it is important to note that past performance is not indicative of future results.

Growth Trajectory:

The ETF's growth trajectory is expected to be in line with the overall growth of the U.S. large-cap growth market.

Liquidity:

QGRO has moderate liquidity, with an average daily trading volume of around 100,000 shares.

Bid-Ask Spread:

The bid-ask spread for QGRO is typically around 0.05%, which is relatively low for an actively managed ETF.

Market Dynamics:

Factors affecting the ETF's market environment include:

• Economic growth: Strong economic growth can benefit growth stocks.
• Interest rates: Rising interest rates can negatively impact growth stocks.
• Market sentiment: Market sentiment can influence investor demand for growth stocks.

Competitors:

• iShares Russell 1000 Growth ETF (IWF)
• Vanguard Growth ETF (VUG)
• SPDR S&P 500 Growth ETF (SPYG)

Expense Ratio:

0.45%

Investment approach and strategy:

• Strategy: Actively managed, focusing on high-quality growth companies.
• Composition: Large- and mid-cap U.S. stocks across various sectors.

Key Points:

• Actively managed ETF with a focus on high-quality growth companies.
• Outperformed its benchmark index over the past 3 and 5 years.
• Moderate liquidity and relatively low bid-ask spread.

Risks:

• Market risk: The ETF's value can fluctuate with the overall market.
• Sector risk: The ETF is concentrated in the growth sector, which can be more volatile than other sectors.
• Management risk: The ETF's performance is dependent on the skill of the portfolio management team.

Who Should Consider Investing:

QGRO is suitable for investors who:

• Have a long-term investment horizon.
• Are comfortable with moderate risk.
• Believe in the potential for growth in the U.S. market.

Fundamental Rating Based on AI:

Based on an AI-based analysis, QGRO receives a 7.5 out of 10 for its fundamentals. This rating considers factors such as the ETF's financial health, market position, and future prospects. The strong management team, focus on quality, and historical outperformance contribute to the positive rating. However, the relatively small market share and higher expense ratio compared to some competitors are considered negative factors.

Resources and Disclaimers:

• American Century Investments website: https://www.americancentury.com/individual/etfs/qgro
• Morningstar: https://www.morningstar.com/etfs/arcx/qgro/quote

Disclaimer: The information provided is for general knowledge and educational purposes only, and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions.