American Century U.S. Quality Growth ETF rated Hold due to underperformance despite strong growth traits
The American Century U.S. Quality Growth ETF (QGRO) is rated Hold as its strong growth-at-a-reasonable-price (GARP) and quality portfolio traits are overshadowed by its underperformance compared to peers and the broader market. Despite having an attractive growth and quality investment premise, QGRO has lagged behind leading growth ETFs like IWF, SCHG, QQQM, and the S&P 500 ETF (IVV) year-to-date and since a strategy change in May 2023. The fund's portfolio features a low weighted average PEG ratio of 0.68, indicating quality GARP names, but recent results do not justify upgrading the rating from Hold. Investors should remain cautious given the fund's relative underperformance.
The American Century U.S. Quality Growth ETF (QGRO) is rated Hold as its strong growth-at-a-reasonable-price (GARP) and quality portfolio traits are overshadowed by its underperformance compared to peers and the broader market. Despite having an attractive growth and quality investment premise, QGRO has lagged behind leading growth ETFs like IWF, SCHG, QQQM, and the S&P 500 ETF (IVV) year-to-date and since a strategy change in May 2023. The fund's portfolio features a low weighted average PEG ratio of 0.68, indicating quality GARP names, but recent results do not justify upgrading the rating from Hold. Investors should remain cautious given the fund's relative underperformance.
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