2025 may be two weeks in, but there’s still plenty of time to refresh portfolios. A myriad of 2025 investing options are available for investors. For many investors, however, a straightforward quality ETF could be just the right option. Where many investors relied heavily on just a handful of firms in 2024, 2025 could widen that market, with a quality view helping identify some of the strongest opportunities.
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For example, as interest rate cuts from last year continue to filter through the market, many smaller firms will likely attract investor interest. Not all of those firms are created equal, however. As more companies outside of just the few megacap leaders draw attention, a quality screen can help avoid potential pitfalls. What’s more, with valuations quite high, a quality ETF approach can help find those firms that may be closer to justifying higher price tags.
Quality Growth ETF QGRO’s 2025 Take
QGRO, the American Century Quality Growth ETF, charges 29 basis points for its approach. The fund tracks an index that seeks firms with higher growth potential and stronger fundamentals. Specifically, the fund screens for factors like profitability, income, cash flow, and more to identify growth and quality characteristics.
The fund combines so-called “high-growth” stocks with “stable growth” firms, adjusting as needing. Its managers invest 35%–65% in those growthier stocks. The rest will be allocated to more stable growth names. Intriguingly, the fund has tended to produce a larger mid-cap allocation than other rival funds.
Together, that approach has helped the quality ETF return 31.36% over the last one year period, as of December 31, per American Century Investments data. For those looking or a fund that can identify strong contenders outside of the tech-heavy large cap world, QGRO’s quality focus can appeal. Should markets broaden and more, smaller firms gather momentum, QGRO may help identify those opportunities.
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