Which Stocks Are Driving Results in Quality Growth ETF QGRO?

Quality views can sometimes prove a key differentiator for ETFs and mutual funds. By adding that lens, funds can separate the wheat from the chaff and bring some strongest securities to the fore. For the quality growth ETF QGRO, that approach has helped find some firms that have stood out YTD, according to proprietary data from VettaFi.

Key Takeaways:

• Communications, tech, and industrials had standout stocks
• Quality screening helped identify potential performers
• QGRO could be one to watch

QGRO, the American Century U.S. Quality Growth ETF, launched in September 2018. Charging 29 basis points, the fund tracks the American Century U.S. Quality Growth Index. The strategy looks for U.S. firms with both strong financial fundamentals compared to peers and elevated growth potential.

Specifically, the index screens stocks for quality, growth, and income, applying metrics like sales, profitability, return on assets, and cash flow. Overall, it looks to craft a a balanced, quality portfolio combining high growth and stable growth companies. This strategy has helped QGRO outperform the ETF Database Large Cap Growth Equities Category average over the last month. 

Specifically, then, which stocks have stood out the most? Proprietary analysis found a few standout names that market watchers may want to note are key contributors to the quality growth ETF. First is Comfort Systems, USA, Inc. (FIX). Its return of 55.4% YTD is the largest contribution among industrials stocks to the index’s overall performance. The overall industrials sector within the index returned 6.5% YTD, according to the data set.

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In technology, Corning Incorporated (GLW), the largest contributor among tech stocks in the index YTD, returned about 86% YTD. That also came amid a notable decline for tech stocks writ large and in the index. GLW focuses on advanced optics as well as glass, ceramics, and other materials therein

Finally, in media and communications stocks, the New York Times Co. (NYT) offered a 17.85% return YTD. The stock, one of the largest by average weight in the media and communications segment of the index, majorly outperformed. 

Taken together, the stock has found some intriguing possibilities even amid volatility. QGRO is one that investors may want to watch as circumstances change and markets look to find their footing.

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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.

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