Core Insights - The American Century U.S. Quality Growth ETF (QGRO) utilizes a portfolio construction methodology that focuses on large- and mid-cap U.S. equities, filtering the S-Network US Equity Large/Mid-Cap 1000 universe by excluding the bottom 2% based on market capitalization [1] Group 1: Portfolio Construction Methodology - The underlying index employs a quality screen that eliminates the lowest-scoring 25% of companies overall and within each industry, based on metrics such as return on assets (ROA), return on equity (ROE), gross profitability, asset turnover, and free cash flow/assets [1] - A growth screen is applied to exclude the bottom 40% of companies based on a composite of historical and expected earnings and cash-flow growth, as well as implied growth metrics like price-to-earnings (P/E) and price-to-book (P/B) ratios [1] - The portfolio consists of two optimized sub-portfolios: Pure Growth, which targets sectors with 50-200% of market coverage, quality scores of 15% or higher, and growth rates of 30% or more; and Stable Growth, which targets sectors with 30-150% of market coverage, quality scores of 15% or higher, and growth rates of at least 15% [1] Group 2: Stock Weighting and Rebalancing - Stock weights in the portfolio are subject to a minimum of 0.25% and size/volatility caps ranging from approximately 0.5% to 3.5%, with the top-decile size limited to 15% of the market [1] - The index blends the two sub-portfolios in a ratio of 35-65%, with monthly adjustments limited to 15%, and it undergoes quarterly reconstitution effective on the first business day of March, June, September, and December [1]