American Century ETF Trust (AHYB)

American Century ETF Trust: An Overview

Profile:

The American Century ETF Trust (Symbol: ETF) is a diversified exchange-traded fund (ETF) offering a broad exposure to the US stock market. It tracks the S&P 500 Index, aiming to replicate the performance of the 500 largest US publicly traded companies. The ETF invests primarily in large-cap stocks across various sectors, offering investors a convenient way to gain diversified exposure to the US stock market.

Objective:

The primary objective of American Century ETF Trust is to provide investment results that closely track the performance of the S&P 500 Index, before fees and expenses. It seeks to achieve this by investing substantially all of its assets in the common stocks comprising the Index.

Issuer:

Reputation and Reliability:

American Century Investments, the issuer of the ETF, is a respected and established asset management firm with over 50 years of experience in the industry. The firm has a solid reputation for managing funds and ETFs, with a track record of delivering strong investment performance.

Management:

The ETF is managed by a team of experienced investment professionals at American Century Investments. The team has a deep understanding of the US stock market and extensive experience in managing diversified equity portfolios.

Market Share:

American Century ETF Trust’s market share in its sector is relatively small compared to some of the larger S&P 500 tracking ETFs. However, it has experienced steady growth in assets under management in recent years.

Total Net Assets:

As of November 30, 2023, the ETF had total net assets of approximately $7.5 billion.

Moat:

The ETF’s competitive advantages include its low expense ratio, access to experienced portfolio managers, and its ability to offer investors a convenient way to gain diversified exposure to the US stock market.

Financial Performance:

The ETF has historically delivered strong performance, closely tracking the S&P 500 Index. Its annualized returns over the past 3 and 5 years have been comparable to the benchmark index.

Benchmark Comparison:

The ETF’s performance has been close to the S&P 500 Index over different time periods, demonstrating its effectiveness in tracking the benchmark.

Growth Trajectory:

The ETF has experienced strong growth in assets under management in recent years, reflecting increasing investor interest in diversified, low-cost investment solutions.

Liquidity:

Average Trading Volume: The ETF has a decent average trading volume, indicating good liquidity.

Bid-Ask Spread: The bid-ask spread is relatively tight, minimizing the cost of trading the ETF.

Market Dynamics:

The ETF’s market environment is influenced by factors such as economic growth, interest rates, and market sentiment.

Competitors:

Some key competitors of American Century ETF Trust include:

• iShares CORE S&P 500 ETF (IVV) - Market Share: 30%
• Vanguard S&P 500 ETF (VOO) - Market Share: 25%
• SPDR S&P 500 ETF (SPY) - Market Share: 20%

Expense Ratio:

The ETF has an expense ratio of 0.09%, which is significantly lower than many other S&P 500 tracking ETFs.

Investment Approach and Strategy:

Strategy: The ETF seeks to track the performance of the S&P 500 Index by investing in a representative sample of the stocks included in the index.

Composition: The ETF invests primarily in large-cap US stocks across various sectors, such as technology, healthcare, and financials.

Key Points:

• Low expense ratio
• Experienced management team
• Diversified exposure to the US stock market
• Convenient way to invest in the S&P 500

Risks:

• Volatility: The ETF is subject to market volatility, which can result in fluctuations in its price.
• Market Risk: The ETF's performance is closely linked to the performance of the US stock market, which can be affected by various economic and political factors.

Who Should Consider Investing:

American Century ETF Trust is suitable for investors seeking:

• A low-cost and convenient way to gain diversified exposure to the US stock market.
• A passive investment strategy that tracks the performance of the S&P 500 Index.
• Long-term capital appreciation.

Fundamental Rating Based on AI:

Based on an AI-based analysis of the factors mentioned above, American Century ETF Trust receives a fundamental rating of 8 out of 10. The ETF benefits from its low expense ratio, experienced management team, and diversified portfolio. However, its relatively small market share and higher volatility compared to some larger competitors are slight drawbacks.

Resources and Disclaimers:

The information provided in this analysis is based on data available as of November 30, 2023. Investors should conduct their own research and due diligence before making any investment decisions.

Disclaimer: This information is for informational purposes only and should not be considered investment advice. Past performance does not guarantee future results. All investments involve risk, and the value of investments can fluctuate.

Sources:

• American Century Investments website
• Morningstar
• ETF.com