QGRW ETF

Growth investing, particularly with large- and mega-cap stocks, has paid off for investors in recent years. For example, both the Nasdaq 100 (NDX) and the S&P 500 Growth indexes sharply outpaced the S&P 500 this year and over the past two years.

The WisdomTree U.S. Quality Growth Fund ETF is downgraded from a buy to a hold due to its high valuation and concentrated allocation. Despite strong technicals and momentum, potential early 2025 volatility from tax-gain selling poses downside risks for QGRW. QGRW's portfolio is heavily weighted toward US mega-cap growth stocks, with significant exposure to Information Technology, Consumer Discretionary, and Communications Services sectors.

QGRW holds 100 stocks emphasizing growth and quality, in a portfolio heavily weighted in mega-cap tech stocks. The ETF is more expensive than the S&P 500 but boasts superior growth and quality metrics, as expected from the methodology. Since its inception, QGRW has outperformed SPY and the most popular growth ETFs, although its short track record limits long-term assessment.

More than halfway through 2024, many advisors and investors are aware that growth stocks are delivering the goods. As of July 1, the average YTD return posted by the Nasdaq-100 and Russell 1000 Growth indexes is nearly 20%.

WisdomTree U.S. Quality Growth ETF uses a quality factor to measure companies' profitability, resulting in a tilt towards profitable growth stocks. QGRW has performed well, exceeding the Russell 1000 and S&P 500 indexes and other growth ETFs, driven by its overweight stance in mega-cap stocks and the technology sector. The Fund offers exposure to higher-growth companies while aiming to balance growth and profitability, making it an interesting opportunity for investors.

The Nasdaq 100 ETF (QQQ) has been tough to keep pace with, gaining 25% since October, with mega-cap tech stocks performing well. WisdomTree U.S. Quality Growth Fund ETF (QGRW) offers a robust construction process for playing big-cap tech and the quality and growth themes. QGRW screens the top 500 US stocks for quality and growth characteristics, with the top 100 included in the index.

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WisdomTree U.S. Quality Growth Fund is a new fund that combines quality and growth attributes in its investment approach. QGRW tracks the WisdomTree U.S. Quality Growth Index, comprising 100 large-cap growth firms with specific quality thresholds. The fund has outperformed similar ETFs and offers exposure to high-quality growth companies but has a high concentration in top holdings and the technology sector.

The WisdomTree US quality growth fund ETF has outperformed the S&P 500 with a return of ~50% YTD, and growth funds too. The fund focuses on large-to-mid-cap US stocks that display both growth and quality characteristics, with top holdings, including Apple, Microsoft, Alphabet, NVIDIA, and Amazon. While some of its holdings could have a downside next year, broadly speaking it looks like a good one to Buy for the medium to long term.