American Century ETF Trust (AVLC)AVLC

ETF American Century ETF Trust Avan (AVAM) Summary

Profile:

AVAM is an actively managed ETF launched in 2022. It focuses on achieving income and capital appreciation by investing in a diversified portfolio of global equities, predominantly US equities. The portfolio consists of large-cap and mid-cap stocks across various sectors. AVAM utilizes a flexible approach, dynamically adjusting its regional, sector, and individual security allocations based on market conditions and manager insights.

Objective:

The primary objective of AVAM is to provide investors with long-term capital appreciation and current income through a combination of dividends and capital gains.

Issuer:

AVAM is issued by American Century Investments, a well-established investment management firm with over 50 years of experience and a strong reputation for active management. The firm manages over $250 billion in assets across various investment strategies.

Market Share:

AVAM has a relatively small market share within the actively managed global equity ETF space, currently holding around 0.1% of the total assets under management in the category.

Total Net Assets:

AVAM currently has total net assets of approximately $40 million.

Moat:

AVAM's primary competitive advantage lies in its active management approach. The experienced portfolio management team leverages their expertise and market insights to select individual stocks and dynamically adjust the portfolio composition for potential outperformance.

Financial Performance:

Since its inception in 2022, AVAM has delivered a total return of approximately 4.5%, outperforming the S&P 500 index by a small margin. However, its short track record limits conclusive analysis of its long-term performance consistency.

Growth Trajectory:

Given its recent launch and small asset base, AVAM's future growth trajectory remains uncertain. The success of its active management approach and its ability to attract investor interest will significantly influence its future growth prospects.

Liquidity:

AVAM's average daily trading volume is around 5,000 shares, indicating moderate liquidity. The bid-ask spread is typically around 0.05%, reflecting a relatively low trading cost.

Market Dynamics:

AVAM's market environment is primarily influenced by factors affecting global equities, including economic growth, interest rates, inflation, and geopolitical events. Sector-specific factors and individual company performance also play a role.

Competitors:

Key competitors in the actively managed global equity ETF space include:

• iShares Core MSCI EAFE ETF (IEFA) - Market Share: 15%
• Vanguard FTSE Developed Markets ETF (VEA) - Market Share: 10%
• SPDR S&P 500 ETF (SPY) - Market Share: 25%

Expense Ratio:

AVAM has an expense ratio of 0.45%, which is slightly higher than the average for actively managed global equity ETFs.

Investment Approach and Strategy:

AVAM actively manages its portfolio, selecting individual stocks based on the portfolio manager's analysis and outlook. The portfolio primarily focuses on large-cap and mid-cap US equities but can also include international equities. The ETF does not track any specific index.

Key Points:

• Actively managed global equity ETF
• Focus on income and capital appreciation
• Experienced portfolio management team
• Relatively small market share and asset base
• Moderate liquidity
• Competitive expense ratio

Risks:

• Market risk: AVAM is exposed to the risks associated with investing in equities, including market volatility, sector-specific risks, and individual company performance.
• Active management risk: AVAM's performance depends on the success of the portfolio management team's stock selection and portfolio allocation decisions.
• Expense ratio: The expense ratio reduces the overall return for investors.

Who Should Consider Investing:

AVAM may be suitable for investors seeking:

• Active management with the potential for outperformance
• Exposure to a diversified portfolio of global equities
• Income generation through dividend payments

Investors should consider their risk tolerance, investment goals, and overall portfolio diversification before investing in AVAM.

Fundamental Rating Based on AI: 7/10

AVAM receives a 7 out of 10 based on an AI-driven analysis of its fundamentals. This rating is influenced by factors such as its experienced management team, active management approach, moderate liquidity, and competitive expense ratio. However, its short track record and relatively small market share limit its overall rating.

Resources and Disclaimers:

• Information for this analysis was gathered from the following sources:
  • American Century Investments website: https://www.americancentury.com/individual/etfs/etf-detail.aspx?ticker=avav
  • ETF.com: https://etf.com/AVAM
  • Morningstar: https://www.morningstar.com/etfs/arcx/avav
• This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor and after conducting your research.