With more and more ETFs arriving every day, it can be easy to get distracted by the latest shiny object. ETFs of all ages can play a role, yes, but sometimes it makes the most sense to consider those long term performance ETFs that have proven their worth over several years. Indeed, investors shouldn’t sleep on those standout strategies that have shown their worth over longer periods.
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For example, the American Century U.S. Quality Growth ETF (QGRO ) could make a case for itself based on its history. The strategy, which charges 29 basis points (bps), has returned 16.2% over the last five years per American Century Investments data. That performance outpaces both its ETF Database Category and Factset Segment averages, per VettaFi data. Those averages over five years sit at 9.1% and 3.2%, respectively.
The fund tracks an index of U.S. firms with high growth potential and strong fundamentals. In doing so, it looks to combine high growth and stable growth firms in its portfolio. QGRO screens for factors like growth, income, and quality. Given its focus on quality growth, it could appeal in an expensive, top-heavy tech environment.
On top of QGRO, another sleeper among long term performance ETFs may be QINT. The American Century Quality Diversified International ETF (QINT ) has returned 8.2% over five years. That has also outperformed its ETF Database Category and Factset Segment averages. The strategy’s index includes large and mid-cap stocks with sound financials and appealing growth opportunities. Its global view and screens could provide a notable source of diversification for a 39 bps fee.
ETFs have exploded in popularity, but many investors are still looking to add ETF exposure. Looking at long term performance ETFs could help sift through that growing number of strategies.
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