The American Century STOXX U.S. Quality Growth ETF tracks an index that tries to identify U.S. companies that have higher growth potential and stronger financial fundamentals relative to rivals. The index screens stocks based on growth, quality, and income, using measures like sales, profitability, cash flow, and return on assets and equity. By focusing on larger companies with sound fundamentals and less volatility, QGRO attempts to mitigate some of the risk inherent in growth equities. The fund aims to have 35 percent to 65 percent of its portfolio in high-growth stocks, and 30 percent to 65 percent in so-called stable growth companies that exhibit attractive profitability and valuation. QGRO has a larger allocation to mid cap names than some single-factor quality and growth ETFs on the market, making it appealing for investors who want some diversification out of the large cap space. Money managers have long recognized that certain factors, when deployed during certain market conditions, have consistently rewarded investors, such as volatility, value, quality, growth, and price momentum. Factor ETFs have proliferated in recent years and there are many active and passive ETF options that target single factors or a combination. QGRO is reasonably priced for a multi-factor index fund, though it’s more expensive than ultra-low-cost plain-vanilla index ETFs. QGRO also owns a relatively narrow slice of the market, so investors sacrifice diversification in exchange for the factor strategy. QGRO could make a good complement for a core equity holding for investors who want a multi-factor approach and believe in American Century’s strategy. Investors should compare price, performance, and portfolio against plain-vanilla index funds and other multi-factor ETFs in the U.S. equity space, as well as quality, growth, and dividend-focused ETFs.