American Century ETF Trust - Avantis Responsible U.S. Equity ETF (AVSU)

Overview

The Avantis Responsible U.S. Equity ETF (AVSU) seeks long-term capital appreciation by investing in a broad and diverse portfolio of U.S. companies, while integrating environmental, social, and governance (ESG) considerations into the investment process.

Reputation and Reliability

American Century Investments has a long-standing reputation as a well-established asset manager, known for its quantitative investment approach and commitment to research.

Management Expertise

The management team consists of experienced portfolio managers and analysts with expertise in quantitative investing and ESG analysis.

Goal

To provide long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF uses a market-cap weighted approach with tilts toward companies that are smaller, more profitable, and lower priced relative to fundamentals, while excluding companies with certain ESG risks.

Composition Primarily invests in U.S. large-cap and mid-cap stocks.

Market Share: Data unavailable without real-time market data access.

Total Net Assets (AUM): 147658562.47

Key Competitors

• Xtrackers S&P 500 ESG ETF (SNPE)
• Vanguard ESG U.S. Stock ETF (ESGV)
• iShares ESG Aware MSCI USA ETF (ESGU)

Competitive Landscape

The ESG ETF market is competitive, with larger, more established players like Vanguard and iShares holding significant market share. AVSU differentiates itself with its factor-based approach within the ESG framework, potentially offering different risk and return characteristics. However, it faces the challenge of gaining traction against more well-known and lower-cost competitors. AVSU is newer and offers a combination of value and ESG, which differs from broad ESG indexes.

Historical Performance: Data unavailable without specific historical data.

Benchmark Comparison: Data unavailable without specific benchmark data.

Expense Ratio: 0.15

Average Trading Volume

The ETF's average trading volume reflects moderate liquidity, typically sufficient for most retail investors.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting the ETF's efficient trading and cost-effectiveness.

Market Environment Factors

Economic growth, interest rate changes, and investor sentiment towards ESG investing can all impact AVSU's performance.

Growth Trajectory

The ETF's growth is dependent on increasing investor interest in ESG investing and its ability to deliver competitive returns compared to peers. Changes in the methodology and ESG criteria may also impact the fund.

Competitive Edge

AVSU's competitive edge lies in its integrated factor-based and ESG approach, combining value, profitability, and size factors with environmental, social, and governance screens. This differentiates it from pure market-cap weighted ESG ETFs. It aims to deliver superior risk-adjusted returns by systematically tilting towards companies that meet specific ESG standards and have attractive financial characteristics. The combination attempts to optimize for both financial and social impact.

Volatility

The ETF's volatility is expected to be similar to the broader U.S. equity market, with potential variations due to its ESG and factor tilts.

Market Risk

The ETF is subject to market risk, meaning its value can decline due to broad market downturns, sector-specific risks, and company-specific events.

Ideal Investor Profile

The ideal investor is someone seeking long-term capital appreciation while aligning their investments with ESG principles. Investors who understand and accept the potential for short-term underperformance relative to broader market indexes in pursuit of long-term, responsible returns.

Market Risk

AVSU is suitable for long-term investors who prioritize ESG factors and understand the nuances of factor-based investing.

The Avantis Responsible U.S. Equity ETF (AVSU) is an ESG-focused ETF employing a systematic factor-based approach that targets long-term capital appreciation. Its strategy combines ESG screening with tilts towards value, profitability, and size. While newer and smaller than its larger competitors, it offers a differentiated approach that may appeal to investors seeking both financial and social returns. Investors should consider its performance relative to its benchmarks and understand the specific ESG criteria it employs before investing.

Data Sources:

• American Century Investments Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results. Market share estimates may vary based on data source and methodology.