American Century Sustainable Equity ETF (ESGA)ESGA

ETF American Century Sustainable Equity ETF (ESGA) Overview

Profile: ESGA is an actively managed ETF that invests in large- and mid-cap U.S. companies with strong environmental, social, and governance (ESG) practices. The ETF targets companies across various sectors with a focus on long-term growth and sustainability.

Objective: ESGA aims to provide investors with long-term capital appreciation and income while promoting positive social and environmental impact.

Issuer: American Century Investments

• Reputation and Reliability: American Century is a reputable investment management firm with over 50 years of experience and $241 billion in assets under management as of September 30, 2023.
• Management: The ETF is managed by a team of experienced professionals with expertise in ESG investing.

Market Share: ESGA is a relatively small ETF with a market share of 0.48% in its sector as of October 27, 2023.

Total Net Assets: $129.6 million as of October 27, 2023.

Moat:

• Experienced Management: The experienced management team has a strong track record in ESG investing.
• Unique Focus: ESGA focuses on long-term growth and sustainability with a rigorous ESG screening process.
• Active Management: The active management approach allows the portfolio managers to adapt to changing market conditions and identify new opportunities.

Financial Performance:

• Since Inception (12/15/2015): ESGA has returned 15.49% on average per year.
• YTD (as of October 27, 2023): ESGA has returned 2.72%.
• 3-Year Average: ESGA has returned 10.52% on average per year.

Benchmark Comparison: ESGA has outperformed the S&P 500 (considered a relevant benchmark) in three out of the last five years.

Growth Trajectory: The sustainable investing market is projected to grow significantly in the coming years, benefiting ESGA's long-term growth potential.

Liquidity:

• Average Trading Volume: 64,306 shares as of October 27, 2023.
• Bid-Ask Spread: 0.05% as of October 27, 2023.

Market Dynamics: Factors affecting the ETF's market environment include:

• Increased Investor Demand for ESG Investing: Growing awareness of ESG issues is driving investor demand for sustainable investments.
• Government Regulations and Policies: Governments are increasingly implementing regulations and policies that promote sustainability.
• Technological Advancements: Developments in technology are creating new opportunities for sustainable businesses.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU): Market share of 16.72%
• Vanguard ESG US Stock ETF (ESGV): Market share of 7.28%
• SPDR S&P 500 ESG ETF (EFIV): Market share of 4.52%

Expense Ratio: 0.39% (as of October 27, 2023)

Investment Approach and Strategy:

• Strategy: Active management approach that focuses on identifying companies with strong ESG practices and attractive long-term growth potential.
• Composition: Invests primarily in large- and mid-cap U.S. equities across various sectors.

Key Points:

• Invests in leading sustainable companies
• Actively managed for long-term growth
• Strong ESG focus
• Competitive expense ratio

Risks:

• Market Risk: The ETF's value is subject to market fluctuations.
• ESG Risk: The performance of the underlying companies can be affected by ESG-related factors.
• Volatility: The ETF's value can fluctuate significantly due to its focus on specific sectors and active management.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and income
• Investors who want to align their investments with their values by promoting positive social and environmental impact
• Investors looking for exposure to leading sustainable companies

Fundamental Rating Based on AI: 8.5/10

Analysis: ESGA exhibits strong fundamentals due to its experienced management team, unique focus on sustainable growth, and competitive expense ratio. The AI rating reflects the ETF's potential for long-term growth and its alignment with the growing demand for sustainable investing. However, investors should be aware of the associated market risks and volatility.

Resources:

• American Century Investments: https://www.americancentury.com/individual/etfs/esga
• ETF.com: https://www.etf.com/ESGA
• Morningstar: https://www.morningstar.com/etfs/ark/esga/overview

Disclaimer: This information is for educational purposes only and should not be considered financial advice. Investing involves risk, and you could lose money.