HGRO ETF: What Is It? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
The Hedgeye Quality Growth ETF (HGRO) is an actively managed ETF that builds a concentrated portfolio of high-quality growth stocks, using the S&P 500 as its benchmark. It emphasizes long-term capital appreciation and potential excess returns over the market rather than dividends, making it a useful reference when comparing related stocks and ETFs.
SubscribeWhat Is the Hedgeye Quality Growth ETF?
This ETF uses the S&P 500 as its benchmark and actively selects U.S.-listed stocks with high-quality growth characteristics. Rather than replicating an index, it allocates weights according to its conviction in each stock.
It suits growth investors who want to go beyond index tracking and seek excess returns through active stock selection.
It is an actively managed ETF run by Hedgeye Asset Management.
How Does the Hedgeye Quality Growth ETF Invest?
| Item | Details |
|---|---|
| Benchmark Index | S&P 500 (pursuing active excess returns) |
| Management Style | Active (does not replicate the index; holdings based on stock conviction) |
| Rebalancing Frequency | Ad hoc adjustments as conviction in stocks changes |
| Dividend Frequency | Short dividend history, so the schedule needs to be confirmed |
| Total Expense Ratio | 0.70% |
The fund divides candidates into three groups: compounding growth companies with strong moats, companies that benefit from innovation and structural growth, and companies in idiosyncratic special situations. It then concentrates weight in a small number of stocks with the aim of maximizing risk-adjusted returns. It uses the S&P 500 as a reference index, but is free to build a sector and stock mix that differs from the index.
- A conviction-based concentrated portfolio rather than index replication
- A three-group stock classification strategy: quality, innovation, and special situations
Hedgeye Quality Growth ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) are $110.0M, and the total expense ratio is 0.70% per year.
Compared with JGRW and HQGO in the same category, its track record is shorter, so long-term performance comparisons remain limited for now.
Hedgeye Quality Growth ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeWith only a short operating period since launch, it is too early to judge a long-term trend. Because of its active stock selection, its volatility relative to the index may differ from that of the benchmark.
The active quality growth category as a whole tends to see volatile fund flows depending on market interest rates and growth stock valuations, and as a newly launched active ETF, this fund is still in the early stage of asset growth.
Hedgeye Quality Growth ETF Pros and Cons
Its conviction-based concentrated portfolio offers excess return potential as a strength, while its short track record and the volatility that comes with a non-diversified structure are drawbacks.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Hedgeye Quality Growth ETF
Both JGRW and HQGO shown in the table are active ETFs in the same quality growth category, though they differ in fund manager and stock selection approach. In addition, you can also consider QUAL, a factor-based passive fund holding high-quality stocks, MOAT, which focuses on companies with economic moats, SPHQ, which selects only the quality factor within the S&P 500, and QGRO, which follows a similar active quality growth strategy.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 JGRW | Jensen Quality Growth ETF | $28.41 | -1.0% | $62.3M | 0.57% | 0.38% | +4.9% |
 HQGO | Hartford US Quality Growth ETF | $66.03 | -2.0% | $3.4M | 0.34% | 0.51% | +9.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 FAF | First American Financial Corp | 0.14% | $63.82 | +0.2% | $6.5B | 9.0 | 3.64% |
| AAPL | Apple Inc | 0.17% | $344.63 | -1.2% | $5.03T | 39.5 | 0.32% |
| NVDA | NVIDIA Corp | 0.14% | $204.64 | -4.2% | $4.93T | 25.9 | 0.38% |
| GOOGL | Alphabet Inc | 0.08% | $279.84 | -1.4% | $3.41T | 14.6 | 0.31% |
| MSFT | Microsoft Corp | 0.07% | $521.91 | -1.6% | $3.88T | 27.3 | 0.74% |
| AMZN | Amazon.com Inc | 0.10% | $240.35 | -1.4% | $2.59T | 19.4 | - |
Hedgeye Quality Growth ETF Investor Checkpoints
These are the points to check before investing in HGRO. Because it is an actively managed fund that holds a concentrated set of stocks instead of replicating an index, it is worth carefully checking its fee level, stock concentration, and volatility in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the level of active management fees | Higher than passive |
| 📊 Stock Concentration | Whether a small number of stocks are held in a concentrated way | Non-diversified structure |
| 🕰️ Track Record | Whether a long-term track record exists | Short history |
| 💰 Dividend Profile | Whether dividends are paid and how often | Needs confirmation |
The short track record and the non-diversified, concentrated portfolio structure could amplify short-term volatility. The possibility that active management results fall short of the benchmark also cannot be ruled out.
It suits investors who expect excess returns from active stock selection rather than index replication, while the volatility that comes with its short track record and non-diversified structure is a factor to weigh before investing.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of July 2, 2026.
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