American Century Sustainable Growth ETF (ESGY)

Overview

The American Century Sustainable Growth ETF (ESGY) seeks long-term capital appreciation by investing in a portfolio of U.S. growth companies that exhibit sustainable characteristics based on environmental, social, and governance (ESG) factors.

Reputation and Reliability

American Century Investments has a solid reputation and a long track record in the asset management industry, known for its research-driven approach and commitment to responsible investing.

Management Expertise

American Century's investment team possesses extensive experience in growth stock investing and sustainable investing, providing them with a good handle on ESG consideration and expertise in analyzing companies through a sustainability lens.

Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs a quantitative investment process to identify companies with strong growth potential and favorable ESG characteristics. It does not track a specific index but constructs its own portfolio.

Composition The ETF primarily holds U.S. large- and mid-cap growth stocks with high ESG ratings.

Market Share: ESGY's market share within the sustainable growth ETF category is moderate.

Total Net Assets (AUM): 429517034.23

Key Competitors

• ICLN
• TAN
• QCLN

Competitive Landscape

The sustainable growth ETF market is competitive, with ESGY facing competition from both broad-based growth ETFs and those focused on specific sustainable themes. ESGY differentiates itself through its combined focus on growth and ESG, but it may face challenges in attracting investors who prioritize either growth or sustainability alone. Also, its AUM is small when compared to its competitors.

Historical Performance: Historical performance data will be represented in a structured array format.

Benchmark Comparison: Benchmark comparison data will be represented in a structured array format.

Expense Ratio: 0.39

Average Trading Volume

ESGY exhibits moderate liquidity with an average trading volume of approximately 85,000 shares daily.

Bid-Ask Spread

ESGY's bid-ask spread is generally tight, reflecting its reasonable liquidity and efficient trading.

Market Environment Factors

Economic growth, interest rates, investor sentiment towards growth stocks, and the regulatory landscape for ESG investing can all impact ESGY's performance.

Growth Trajectory

ESGY's growth trajectory is tied to the overall market environment for growth stocks and the increasing adoption of ESG investing principles.

Competitive Edge

ESGY's competitive edge lies in its disciplined quantitative approach to selecting growth stocks with strong ESG characteristics, combined with American Century's research capabilities. The ETF offers investors a streamlined solution for integrating ESG considerations into their growth equity portfolio. The integration of quantitative and fundamental research methods distinguishes ESGY and gives it a competitive advantage. It also uses sustainability principles as a method to provide better long term performance.

Volatility

ESGY's volatility is expected to be similar to that of other growth stock ETFs, potentially higher than the broader market.

Market Risk

ESGY is subject to market risk, particularly related to fluctuations in growth stock valuations and changing investor sentiment towards ESG investing.

Ideal Investor Profile

The ideal investor for ESGY is one who seeks long-term capital appreciation and is committed to sustainable investing principles. Investors should be comfortable with the volatility associated with growth stocks.

Market Risk

ESGY is suitable for long-term investors who want to incorporate ESG factors into their investment strategy. It may not be suitable for active traders or those seeking passive index exposure.

The American Century Sustainable Growth ETF (ESGY) provides exposure to U.S. growth stocks with strong ESG characteristics. ESGY is designed for long-term investors seeking to integrate sustainability into their growth equity allocation. While ESGY offers a compelling approach, it is important to note that the sustainable growth ETF space is highly competitive. Investors need to consider their risk tolerance and investment goals carefully when evaluating ESGY.

• VUG
• SCHG
• IWF
• QQQ
• MGK

Data Sources:

• American Century Investments Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should conduct their own due diligence before making any investment decisions. Market share and performance data are subject to change.