American Century ETF Trust (CATF)

American Century ETF Trust Overview

Profile: American Century ETF Trust is a family of actively managed exchange-traded funds (ETFs) offered by American Century Investments. The ETFs cover a variety of asset classes, including equities, fixed income, and alternatives, with a focus on active management and long-term capital appreciation.

Objective: The primary investment goal of the American Century ETF Trust is to provide investors with long-term capital growth and income, while seeking to outperform their respective benchmarks. Each individual ETF within the trust may have a slightly different objective, depending on its specific focus and strategy.

Issuer: American Century Investments is a privately held asset management firm founded in 1958, with over $290 billion in assets under management as of September 30, 2023.

• Reputation and Reliability: American Century has a strong reputation in the industry, with numerous awards and accolades for its investment performance and client service.
• Management: The firm boasts a team of experienced and highly qualified portfolio managers, with an average of over 20 years of investment experience.

Market Share: The American Century ETF Trust has a relatively small market share compared to larger ETF providers. However, they have experienced significant growth in recent years, with assets under management exceeding $21 billion as of September 30, 2023.

Total Net Assets: As mentioned above, the American Century ETF Trust has over $21 billion in total net assets under management.

Moat: The competitive advantage of American Century ETF Trust lies in its active management approach. Unlike passively managed index ETFs, American Century's ETFs leverage the expertise of seasoned portfolio managers to identify and capitalize on market opportunities. This active approach aims to generate alpha and outperform benchmark indices over the long term.

Financial Performance: The historical performance of American Century ETFs varies depending on the specific ETF and market conditions. However, several funds have outperformed their respective benchmarks over different time periods, highlighting the effectiveness of the active management strategy.

Growth Trajectory: American Century ETF Trust has witnessed a consistent growth trajectory in recent years, driven by increasing investor demand for actively managed ETF solutions. The firm continues to expand its ETF offerings and attract new assets.

Liquidity: The average trading volume of American Century ETFs is generally moderate, indicating acceptable liquidity for most investors. The bid-ask spread, which represents the difference between the buying and selling price, is also within a reasonable range for most ETFs in the trust.

Market Dynamics: The ETF market environment is constantly evolving, influenced by various factors like economic indicators, sector growth prospects, and current market conditions. American Century actively monitors these dynamics and adjusts its ETF strategies accordingly to navigate market fluctuations and capture potential opportunities.

Competitors: Major competitors in the actively managed ETF space include BlackRock, T. Rowe Price, and J.P. Morgan Asset Management. Each firm offers a variety of actively managed ETFs across different asset classes.

Expense Ratio: The expense ratios for American Century ETFs vary depending on the specific fund. Typically, the expense ratios fall within the range of 0.25% to 0.60%, which is considered competitive in the actively managed ETF landscape.

Investment Approach and Strategy: American Century ETFs utilize an active management approach, where portfolio managers employ their research and analysis to select individual securities for the ETF portfolios. This differs from passively managed index ETFs, which simply track a specific index. The composition of each ETF portfolio varies depending on its investment objective and target sector.

Key Points:

• Actively managed ETF family with a focus on long-term capital appreciation.
• Strong reputation and experienced management team.
• Growing market share and total net assets.
• Competitive expense ratios.
• Variety of ETFs across different asset classes.

Risks:

• Active management involves inherent risks, and performance may not always outperform the benchmark.
• Market volatility can significantly impact the value of ETF investments.
• Specific asset class risks associated with the underlying holdings of each ETF.

Who Should Consider Investing:

• Investors seeking long-term capital growth and income.
• Investors comfortable with active management strategies.
• Investors with a moderate to high risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-powered analysis of various factors, including financial health, market position, and future prospects, American Century ETF Trust receives a 7.5 out of 10 rating. This indicates a strong, well-managed ETF family with a solid track record and potential for future growth.

Resources and Disclaimers:

• This analysis was compiled using information from American Century Investments website (www.americancentury.com) and ETF.com.
• This information is for educational purposes only and should not be considered financial advice. Please consult with a qualified financial advisor before making any investment decisions.