3 High-Quality Stocks to Watch in QGRO

Core Viewpoint - The article discusses the potential for a market downturn in late year and suggests that high-quality stocks, particularly through the American Century U.S. Quality Growth ETF (QGRO), may be a favorable investment strategy amidst economic uncertainties [1][5]. Fund Overview - The American Century U.S. Quality Growth ETF (QGRO) charges a fee of 29 basis points to track the American Century U.S. Quality Growth Index, focusing on a mix of "high growth" and "stable growth" companies [2]. - QGRO employs a rigorous screening process for quality, growth, income, cash flow, and profitability in its investment selections [2]. Performance Metrics - Over the past year, QGRO has achieved a return of 25.3%, outperforming the ETF Database Category average of 18.8% and the FactSet Segment average of 10.76% [3]. - The fund's largest holding, Booking Holdings (BKNG), has returned 13.1% year-to-date (YTD) and has a forward price-to-earnings (P/E) ratio of 24.86, along with a 17% return on assets [3]. - Applovin (APP) has shown a remarkable YTD return of 47.8% and boasts a return on equity of 259.7% as of September 2 [4]. - TJX Cos. (TJX), another investment in QGRO, has returned 14.1% YTD and has a return on equity of 60% [5]. Future Outlook - High-quality stocks are positioned to perform well if other market areas weaken, making QGRO an appealing option for investors looking to refresh their equity holdings [5].