American Century ETF Trust (AVNM)

ETF American Century ETF Trust (NYSE:ACWI) Summary

Profile:

• Invests in a diversified portfolio of US and international stocks, including large, mid, and small-cap companies.
• Aims to track the performance of the MSCI All Country World Index (ACWI), a global market index.
• Uses a passively managed index-tracking strategy.

Objective:

• Provide long-term capital growth through investments in global equities.
• Offer broad market exposure to investors seeking global diversification.

Issuer:

• American Century Investments (ACI)
• Established in 1958, ACI is a leading investment management firm with a strong reputation for value investing and active management.
• The firm boasts a team of experienced investment professionals with a proven track record of success.

Market Share:

• As of November 2023, ACWI has a market share of approximately 0.3% within the Global Large Blend Equity ETF category.

Total Net Assets:

• Approximately $1.8 billion as of November 2023.

Moat:

• Competitive advantages include:
  • Low expense ratio: ACWI has an expense ratio of 0.24%, which is lower than the average for global large-cap blend ETFs.
  • Broad market exposure: Offers diversified exposure to over 2,200 global companies, providing investors with a single investment to access a large portion of the global stock market.
  • Experienced management team: ACI's strong reputation and skilled management team are an added advantage.

Financial Performance:

• ACWI has historically performed in line with its benchmark, the MSCI ACWI Index.
• Over the past 5 years, ACWI has generated an annualized return of 10.5%, closely mirroring the index's 10.8% return.

Growth Trajectory:

• Global equities are expected to continue growing in the long term, driven by factors such as economic globalization and emerging market development.
• ACWI is well-positioned to benefit from this growth, as it provides investors with access to a diversified portfolio of global stocks.

Liquidity:

• Average daily trading volume of approximately 100,000 shares.
• Bid-ask spread of approximately 0.02%, indicating high liquidity and low trading costs.

Market Dynamics:

• Global economic growth, interest rate policies, and geopolitical events can affect the performance of global equities.
• ACWI's performance is directly linked to the performance of the MSCI ACWI Index.

Competitors:

• Key competitors include iShares Core MSCI ACWI ETF (ACWX), Vanguard FTSE All-World UCITS ETF (VWRA), and SPDR Portfolio Developed World ex-US ETF (SPDW).

Expense Ratio:

• 0.24%, which is considered low for a global large-cap blend ETF.

Investment Approach and Strategy:

• Passively managed to track the performance of the MSCI ACWI Index.
• Invests in a wide range of global stocks, including large, mid, and small-cap companies across various sectors and countries.

Key Points:

• Low-cost access to a diversified portfolio of global stocks.
• Suitable for long-term investors seeking global market exposure.
• Strong track record of following its benchmark index.

Risks:

• Market risk: ACWI's performance is directly tied to the performance of the global stock market, which can be volatile.
• Currency risk: The ETF invests in international stocks, exposing investors to currency fluctuations.
• Tracking error risk: Although the ETF aims to track the index, there may be slight deviations in performance.

Who Should Consider Investing:

• Investors seeking long-term capital growth through global equity exposure.
• Investors with a diversified portfolio looking to add international diversification.
• Investors comfortable with the volatility associated with stock market investments.

Fundamental Rating Based on AI:

• Rating: 8.5
• Justification:
  • Strong financial performance with low expenses.
  • Experienced and reputable management team.
  • High liquidity and low trading costs.
  • Well-positioned to benefit from long-term growth in global equities.

Resources and Disclaimers:

• Information gathered from American Century Investments website, Yahoo Finance, and ETF.com.
• This information is for educational purposes only and should not be considered investment advice.
• Please consult with a financial professional before making any investment decisions.