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What QGRO Does Differently to Find the Best Growth Stocks 

How does one define growth stocks? Every investor wants to fill their portfolio with the best growth stocks, bought at low values and poised to explode. The question is how to find them. The American Century U.S. Quality Growth ETF (QGRO B) offers an intriguing approach, combining quality and growth views for long-term outperformance.Key Takeaways: Concentration risk and AI-driven valuations loom over growthier stocks like tech right now. So how do investors add growth? Finding the best growth stocks may mean reconsidering what qualifies and what investors want from that category. QGRO’s combination of quality and growth screens has outperformed over longer periods. QGRO charges a 29 basis point fee to track the American Century U.S. Quality Growth Index. That index looks for firms with higher growth potential and stronger fundamentals than rivals. The index screens for quality, income, and growth via metrics like profitability and cash flow. The fund looks to provide that outperformance by marrying the understanding that the best growth stocks are those that help meet long-term goals. QGRO diversifies between high growth and stable growth firms, with the latter combining high profits and appealing valuations. QGRO has a notable allocation to midcaps with that strategy, helping to balance its overall multi-factor ETF approach and producing long-term outperformance. According to ETF Database data, the fund has returned 20.8% over the last three years and has outperformed the ETF Database Large Cap Growth category average for that period, which was 18.2% as of October 29. What’s more, the fund has also beaten the five-year category average of 7.4%, returning 10% in that time. Of course, finding the best growth stocks is every investor’s ultimate goal. But while not every stock hits, strategies like QGRO, that combine quality and growth metric views, can help deliver for portfolios overall. With a holdings that include both big-name firms and rising names like Arista Networks (ANET) (up 37.9% YTD), QQGRO it a solid option to watch as the year draws to a close. 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. For more news, information, and analysis, visit the Core Strategies Content Hub.

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