SXQG employs a quantitatively-driven strategy in constructing its high quality and growth portfolio. From an initial universe consisting of companies in the broad US equity market, the fund excludes micro-cap companies and companies that exhibit poor liquidity and momentum characteristics. From there, remaining securities with the highest-ranking composite scores based on variables that measure profitability, growth, and ability to service financing obligations are selected for inclusion. While the fund utilizes a proprietary methodology, holdings are indicated to be market-cap-weighted and capped at 5% individually. On Nov. 16, 2021 ETC took over distribution of the fund.