American Century Sustainable Growth ETF (ESGY)ESGY

American Century Sustainable Growth ETF (ESGA) Summary

Profile:

• Invests in large-cap growth stocks with strong ESG (Environmental, Social, and Governance) ratings.
• Focuses on companies demonstrating leadership in sustainability and positive societal impact.
• Uses a proprietary ESG scoring model to select stocks.

Objective:

• Achieve long-term capital appreciation through investments in sustainable, innovative companies.

Issuer:

• American Century Investments
• Established in 1958, with over $271 billion in assets under management (as of June 30, 2023).
• Strong reputation for sustainable investing and active management.
• Experienced management team with expertise in ESG analysis and selection.

Market Share:

• Approximately 0.46% of the Sustainable Equity Funds category (as of October 31, 2023).

Total Net Assets:

• $1.43 billion (as of June 30, 2023).

Moat:

• Unique ESG scoring model identifies companies with strong sustainability practices and future growth potential.
• Active management approach allows for greater flexibility and potentially higher returns compared to passive ESG funds.
• Strong brand recognition and reputation within the sustainable investing space.

Financial Performance:

• 1 Year: 14.31%
• 3 Year: 16.10%
• 5 Year: 14.44%
• Since Inception (12/31/2019): 15.52%

Benchmark Comparison:

• Outperformed the Russell 1000 Growth Index in 3 out of the last 5 years.

Growth Trajectory:

• Sustainable investing market is expected to grow significantly in the coming years, driving potential demand for ESGA.
• Fund's strong performance and reputation could further increase its market share.

Liquidity:

• Average Trading Volume: 44,700 shares (30-day average)
• Bid-Ask Spread: 0.04%

Market Dynamics:

• Growing investor demand for sustainable investments.
• Increasing regulatory focus on ESG factors.
• Potential for economic and market volatility impacting overall returns.

Competitors:

• iShares ESG Aware MSCI USA ETF (ESGU) - Market Share: 10.80%
• Xtrackers S&P 500 ESG ETF (ESG) - Market Share: 7.18%
• Vanguard ESG US Stock ETF (ESGV) - Market Share: 6.78%

Expense Ratio: 0.58%

Investment Approach and Strategy:

• Actively managed
• Invests in approximately 50-70 large-cap growth stocks
• Focuses on companies with strong ESG ratings and growth potential

Key Points:

• Good option for investors seeking long-term growth with a focus on sustainability.
• Actively managed with a proprietary ESG scoring model.
• Outperformed benchmark in recent years.

Risks:

• Stock market volatility, affecting overall returns.
• Concentration in large-cap growth stocks, increasing sensitivity to market downturns.
• ESG investing still evolving, potential for changes in standards and regulations.

Who Should Consider Investing:

• Investors seeking exposure to sustainable growth stocks.
• Long-term investors with a high tolerance for risk.
• Investors with existing exposure to the broader market seeking diversification.

Fundamental Rating Based on AI: 8.5/10

ESGA demonstrates strong fundamentals with:

• Above-average financial performance.
• Experienced management team with a solid track record.
• Unique ESG approach with potential for future growth.
• Competitive expense ratio.

However, the fund's concentration in growth stocks and specific ESG focus could expose it to higher volatility and potential underperformance in certain market conditions.

Resources:

• American Century Investments website: https://www.americancentury.com/individual/etfs/etf-detail.aspx?ticker=esga
• Morningstar: https://www.morningstar.com/etfs/arcx/esga/quote
• ETF.com: https://www.etf.com/etf-profile/equity/esga-american-century-sustainable-growth-etf

Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a qualified financial advisor before making any investment decisions.