Uncertainty is evergreen when it comes to investing. Some years, however, it’s a bigger factor than others, with 2026 already defined by geopolitical and policy twists and turns. Even absent those factors, however, investors are facing a complicated market defined by concentration risk. One need not believe that AI is a true bubble to want some different options. Quality stocks, for example, can provide a different view on a broadening market.
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Why quality? By emphasizing individual firms’ metrics rather than simply tracking them because of a market cap-weighted index, a quality view can construct a diversified portfolio of potential standout stocks. With the 2026 equities outlook poised to broaden beyond just tech, a quality view can gain exposure to firms from other sectors.
Quality Stocks ETF QGRO
The American Century U.S. Quality Growth ETF (QGRO) provides an example of a quality strategy that could perform well this year. By charging a 29 basis point (bps) fee, the strategy’s addition of a growth view can help it find durable, high-quality names with potential for high performance.
QGRO tracks the American Century U.S. Quality Growth Index, seeking exposure to companies that combine growth potential and strong financial fundamentals. The index screens stocks based on income, quality, and growth, using metrics such as cash flow, profitability, sales, and return on assets.
Its quality view helps mitigate potential risks added by growth names as well. The quality stocks ETF leans on its greater weight in mid- and large-cap firms to add durability compared to other growth ETFs.
That has given the fund some notable long term durability. QGRO has returned 20.6% over the last three years, according to ETF Database data. That has also beaten the Large Cap Growth Equities Category Average in that time. Together, the fund could make for a solid core plus addition to diversify away from an overreliance on tech while still offering performance potential. While the 2026 equities outlook presents challenges, QGRO can serve as a useful tool.
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.
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