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

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

Profile:

Focus: AVUS is an actively managed ETF that invests in large and mid-cap U.S. equities while prioritizing environmental, social, and governance (ESG) factors. It seeks to generate strong long-term returns by investing in companies with sustainable business practices and positive societal impact.

Asset Allocation: AVUS primarily invests in stocks (around 90%) with a smaller allocation to cash and cash equivalents. The portfolio is diversified across various sectors, with a focus on technology, healthcare, and financials.

Investment Strategy: The ETF employs a quantitative approach to select companies with strong ESG credentials and attractive财务指标. This includes analyzing factors like environmental performance, social responsibility, corporate governance, and financial metrics like profitability and growth potential.

Objective:

AVUS's primary objective is to achieve long-term capital appreciation by investing in a portfolio of U.S. equities with strong ESG characteristics. It aims to outperform the broad U.S. equity market while adhering to responsible investing principles.

Issuer:

American Century Investments:

• Reputation and Reliability: American Century Investments is a well-established and reputable asset management firm with over 50 years of experience. It manages over $270 billion in assets across various investment products.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in ESG investing and quantitative analysis.

Market Share:

AVUS has a relatively small market share in its segment, with approximately 0.01% of the total ESG ETF market as of November 2023. However, it has experienced significant growth since its inception in 2021, indicating increasing investor interest in responsible investing.

Total Net Assets:

AVUS has approximately $240 million in total net assets as of November 2023.

Moat:

ESG Focus: AVUS's distinct focus on ESG investing provides a competitive advantage, attracting investors seeking to align their investments with their values.

Quantitative Approach: The ETF's use of a quantitative approach for ESG screening and stock selection helps identify companies with strong sustainability practices and potential for long-term value creation.

Experienced Management: The team's expertise in ESG investing and quantitative analysis contributes to the ETF's performance and helps it stand out in the market.

Financial Performance:

Historical Performance: AVUS has delivered strong returns since its inception in 2021. It has outperformed the S&P 500 index in both 2021 and 2022.

Benchmark Comparison: The ETF has consistently outperformed its benchmark, the Russell 1000 Value Index, over different time periods.

Growth Trajectory:

The increasing demand for ESG investing suggests a positive growth trajectory for AVUS. As investors prioritize sustainable investing, AVUS is well-positioned to attract new capital and expand its market share.

Liquidity:

Average Trading Volume: AVUS has an average daily trading volume of approximately 50,000 shares, indicating moderate liquidity.

Bid-Ask Spread: The bid-ask spread is typically around 0.05%, which is relatively tight, implying low transaction costs.

Market Dynamics:

Economic Indicators: Strong economic growth benefits large and mid-cap companies, which constitute the majority of AVUS’s portfolio.

Sector Growth Prospects: The ETF's focus on sectors like technology and healthcare aligns with their promising growth prospects.

Current Market Conditions: Rising interest rates and inflation may pose challenges for the stock market, potentially impacting the ETF's performance.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU) - Market share: 25.5%
• Vanguard ESG US Stock ETF (ESGV) - Market share: 18.5%
• Xtrackers MSCI USA ESG Leaders Equity ETF (USSG) - Market share: 12.5%

Expense Ratio:

AVUS has an expense ratio of 0.25%, which is relatively low compared to other ESG ETFs.

Investment Approach and Strategy:

Strategy: AVUS does not track a specific index but actively selects companies based on ESG factors and financial metrics.

Composition: The ETF primarily invests in U.S. large and mid-cap stocks with a focus on sectors like technology, healthcare, and financials.

Key Points:

• Actively managed ESG-focused ETF investing in large and mid-cap U.S. equities.
• Strong historical performance and outperformance of benchmark index.
• Experienced management team and unique quantitative approach.
• Moderate liquidity and low expense ratio.

Risks:

• Market Volatility: The ETF's value may fluctuate due to overall market conditions and sector performance.
• ESG Measurement Challenges: ESG factors are subjective and can be challenging to measure and compare.
• Active Management Risk: The ETF's performance depends on the manager's stock selection skills and may deviate from the broader market.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation with a focus on ESG principles.
• Investors who want exposure to large and mid-cap U.S. stocks with strong sustainability practices.
• Investors comfortable with moderate market volatility and the risks associated with active management.

Fundamental Rating Based on AI:

Rating: 7/10

AVUS receives a 7 out of 10 rating based on an AI analysis of its fundamentals. The rating considers factors like strong financial performance, experienced management, and its unique ESG focus. However, the ETF's relatively small size and moderate liquidity may limit its appeal to some investors.

The rating indicates that AVUS is a solid pilihan for investors seeking a responsible investment option with good growth potential.

Resources and Disclaimers:

• American Century Investments: https://www.americancentury.com/individual/etfs/avus
• ETF.com: https://www.etf.com/AVUS
• Morningstar: https://www.morningstar.com/etfs/arcx/avus/quote
• Disclaimer: This analysis is for informational purposes only and should not be considered investment advice. Please consult with a qualified financial professional before making any investment decisions.