See What Rose & Fell

Advisors know that their clients often want to have tier cake and eat it, too. Investors want their growth exposures, but they also want strategies that can prove their worth even in periods of uncertainty. Quality growth ETF investing provides a strong way to do just that, making it particularly newsworthy when such fund shift their allocations. A leading ETF in that space, QGRO, recently rebalanced, with some intriguing changes therein.

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The American Century U.S. Quality Growth ETF (QGRO) charges a 29 basis point fee for exposure to U.S. firms exhibiting high growth potential. Its index screens stocks for factors like growth, quality, and income, measuring metrics like cash flow and profitability. That has helped it outperform the ETF Database Large Cap Growth Equities Category average over the last three years.

Risers & Fallers in Quality Growth ETF QGRO

What changes, then, might its index have made amid so much global uncertainty?  The American Century U.S. Quality Growth Index (ACQGRO) made a big move in dropping Amazon (AMZN) completely from its holdings. The stock had previously held a 1.48% weight. The quality growth ETF’s index made an add in its place, with DexCom Inc. (DXCM) joining its holdings. DXCM, an American multinational healthcare firm, focuses on diabetes management technology.

Five further holdings within the ETF saw pretty significant increases in weight, while five others saw significant decreases. Healthcare firm McKesson Group (MCK) grew from a small 0.14% weight to a sizable 3% weight in the index, suggesting confidence on the part of the index’s team. Apple (AAPL) and Costco (COST) also saw big jumps in weight.

In terms of decreases, the index dropped Alphabet (GOOGL) from a 4.06% weight to just 0.28%. Other notable drops include Lam Research Corp (LRCX) which fell from a 4.2% weight to 2.5%, and Gilead Sciences (GILD) which fell from 1.8% to just 0.12%. 

Together, those moves may provide an interesting bit of data for advisors and investors to consider. For those wanting a quality ETF that adapts as needed to find the best growth opportunities, QGRO may be one to consider.

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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.