On the lookout for a strong ETF to end 2024 and potentially launch portfolios into 2025? In that case, the American Century U.S. Quality Growth ETF (QGRO ) could stand out. The fund has seen its price rise 43% over the last one year, per YCharts data. Its tech chart, too, shows strong momentum, with its price well above its 50 and 200-day simple moving averages. With rate cuts arriving, too, QGRO could be poised for a strong 2025.
See more: Quality Growth ETF QGRO Hits $1 Billion in AUM
QGRO launched in 2018. The quality growth ETF charges a small 29 basis point fee. In doing so, it tracks an index seeking U.S. companies with strong financial fundamentals and high growth potential. QGRO’s managers screen for factors like growth, quality, and income via metrics like sales, cash flow, and more. Together, QGRO’s management looks for a portfolio with about 35% to 65% of firms in high-growth stocks and 30% to 65% in more stable firms.
How Quality Growth ETF QGRO Attracted Attention Ahead of 2025
That has helped the quality growth ETF return nearly 40% over the last year, per American Century Investments data. It has done so while holding a number of firms outside of the huge, megacap tech names that have driven so much growth this year. For example, per ETF Database analysis, its top-weighted firm, APPLovin Corp (APP), a mobile app company, sits in the midcap category, but has delivered huge returns. It has produced a scorching hot 736% return YTD, per YCharts data.
How, then, might the fund take that performance even further in 2025? Should a new administration make good on its plans for tariffs and other regulatory shifts, a quality ETF could stand out. Quality firms may be better poised for higher supply chain costs and related volatility.
Most significant, however, is QGRO’s combination of quality and growth. Quality firms can also take advantage of cheaper borrowing costs and their often-healthy balance sheets to make aggressive moves. Meeting the index’s growth categorization standards, those firms could be poised for some notable upside with an overall brighter economic picture. Taken together, the quality growth ETF can make a potent case for inclusion in portfolios ahead of 2025.
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VettaFi LLC (“VettaFi”) is the index provider for QGRO, for which it receives an index licensing fee. 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.
