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How Quality Growth ETF QGRO Navigates Rising Growth Stock Volatility

2026 has been a remarkably complicated year for headlines and markets. From geopolitical risk to remarkable advances in artificial intelligence (AI), stocks have had much to navigate. Growth stocks have benefited from remarkable megacap tech gains, but they’ve also had to navigate rising long-term bond yields. The American Century U.S. Quality Growth ETF (QGRO B) charts a balanced path forward that may resonate with investors.Key Takeaways: Growth stocks, including the megacap tech stocks, have helped many portfolios deliver this year. Still, volatility driven by higher long-term yields and concentration risk looms. A quality growth ETF like QGRO can help navigate this volatility. Recent analysis by American Century Investments’ Co-CIO Keith Lee and Client Portfolio Manager Ryan Walker explored the nature of current growth stock volatility. The duo pointed to pressure on longer-term growth stocks from rising yields and ongoing scrutiny of a potential AI bubble. These conditions may position QGRO’s quality growth ETF approach to deliver. The strategy charges a 29 bps fee to track the American Century U.S. Quality Growth Index. The index aims to identify companies exhibiting healthy financial fundamentals. To achieve this, it screens stocks based on income, quality, and growth as measured in cash flow, sales, and profitability.How QGRO Balances High and Stable GrowthWhere it sets itself apart, however, is how the index addresses growth stock volatility and risk. Specifically, it aims to balance high-growth and stable growth companies within its portfolio. In addition, the latter group includes companies showing both appealing profits and healthy valuations. Together, this produces a quality growth ETF with a multi-factor approach spread across two different tranches of firms. QGRO’s strategy has helped it return 18.7% over the last three years, outperforming the fund’s ETF Database Large Cap Growth Equities category average for that period. See more: Is Now the Moment for Value ETFs? The Case for VALQ Right now, QGRO holds a number of big megacap tech names like Microsoft (MSFT) and Apple (AAPL), along with growth names outside of that tier like Salesforce (CRM). Looking ahead, QGRO’s goal of balancing different kinds of growth names could make it a durable fund to consider for navigating growth stock volatility. For more news, information, and analysis, visit the Core Strategies Content Hub. VettaFi LLC (“VettaFi”) is the index provider for QGRO for which it receives index licensing fees. However, QGRO is not issued, sponsored, endorsed, or sold by VettaFi, and VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of QGRO.

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