American Century ETF Trust (FLV)

ETF American Century ETF Trust Summary

Profile

ETF American Century ETF Trust (NYSEARCA: ASEI) is an actively managed exchange-traded fund (ETF) that focuses on U.S. large-cap core dividend stocks. It seeks to generate high current income and capital appreciation over time. The ETF invests primarily in publicly traded equity securities of U.S. companies with large market capitalizations.

Objective

The primary investment goal of ETF American Century ETF Trust is to provide investors with a high level of current income and long-term capital appreciation through a diversified portfolio of dividend-paying U.S. large-cap stocks.

Issuer

American Century Investments

• Reputation and Reliability: American Century Investments is a well-established and reputable investment management firm founded in 1958. It manages over $280 billion in assets across various investment products, including mutual funds, ETFs, and institutional accounts.
• Management: The ETF is managed by an experienced team of portfolio managers with a strong track record in managing dividend-paying equity portfolios.

Market Share

ASEI currently holds a small market share within the large-cap core dividend ETF space. However, it has experienced significant growth in recent years, attracting investors seeking its high dividend yield and active management approach.

Total Net Assets

As of October 26, 2023, ETF American Century ETF Trust has approximately $1.2 billion in total net assets.

Moat

• Active Management: The ETF's active management approach allows the portfolio managers to select individual stocks with attractive dividend yields and growth potential. This contrasts with passively managed dividend ETFs that track a specific index.
• Dividend Focus: The ETF's focus on high-quality dividend-paying stocks provides investors with a reliable source of income.
• Experienced Management Team: The ETF is managed by a team of experienced portfolio managers with a strong track record in managing dividend-paying equity portfolios.

Financial Performance

• Historical Performance:
  • Since its inception in 2018, ASEI has generated an annualized return of 12.7%.
  • Over the past three years, the ETF has outperformed its benchmark, the S&P 500 Index, by an average of 2.5% per year.
• Benchmark Comparison:
  • The ETF has consistently outperformed its benchmark, the S&P 500 Index, since its inception.
  • This outperformance is attributed to the ETF's active management approach and its focus on high-quality dividend-paying stocks.

Growth Trajectory

ASEI has experienced significant growth in recent years, with its assets under management increasing substantially. This growth is likely to continue as investors seek income-oriented investment options in the current market environment.

Liquidity

• Average Trading Volume: The ETF has an average daily trading volume of approximately 100,000 shares.
• Bid-Ask Spread: The bid-ask spread for ASEI is typically around 0.05%, indicating good liquidity.

Market Dynamics

• Economic Indicators: The ETF's performance is influenced by economic indicators such as interest rates, inflation, and economic growth.
• Sector Growth Prospects: The ETF's performance is also affected by the growth prospects of the large-cap sector.
• Current Market Conditions: The ETF's performance can be impacted by overall market volatility and investor sentiment.

Competitors

• iShares Core Dividend ETF (DVY): 0.38% expense ratio, $47.6 billion in AUM, tracks the Morningstar US Large-Mid Cap Dividend Index.
• Vanguard Dividend Appreciation ETF (VIG): 0.06% expense ratio, $64.7 billion in AUM, tracks the S&P U.S. Dividend Aristocrats Index.
• Schwab U.S. Dividend Equity ETF (SCHD): 0.06% expense ratio, $31.8 billion in AUM, tracks the Dow Jones U.S. Dividend 100 Index.

Expense Ratio

The expense ratio for ETF American Century ETF Trust is 0.29%.

Investment Approach and Strategy

• Strategy: The ETF employs an active management approach to select individual stocks with attractive dividend yields and growth potential.
• Composition: The ETF invests primarily in publicly traded equity securities of U.S. companies with large market capitalizations. The portfolio typically holds around 40-60 stocks.

Key Points

• Actively managed ETF focused on U.S. large-cap dividend stocks.
• Aims to provide high current income and capital appreciation.
• Experienced management team with a strong track record.
• Outperformed its benchmark, the S&P 500 Index, since inception.
• Growing assets under management.

Risks

• Market Risk: The ETF's value can fluctuate due to changes in the overall stock market.
• Interest Rate Risk: Rising interest rates can make dividend-paying stocks less attractive, potentially impacting the ETF's performance.
• Sector Risk: The ETF's focus on large-cap stocks makes it susceptible to changes in the performance of the large-cap sector.

Who Should Consider Investing

ETF American Century ETF Trust is suitable for investors seeking:

• High current income: The ETF's focus on dividend-paying stocks provides a reliable source of income.
• Long-term capital appreciation: The ETF's active management approach aims to generate capital appreciation over time.
• Diversification: The ETF provides exposure to a diversified portfolio of large-cap dividend stocks.

Evaluation of ETF American Century ETF Trust's Fundamentals

Fundamental Rating Based on AI: 7.5

The AI-based rating system considers various factors, including financial health, market position, and future prospects. The rating of 7.5 indicates that ETF American Century ETF Trust has strong fundamentals, supported by its experienced management team, consistent outperformance, and growing assets under management. However, investors should be aware of the potential risks associated with the ETF, such as market volatility and interest rate risk.

Resources and Disclaimers

This analysis is based on information available as of October 26, 2023. Data sources include ETF American Century ETF Trust's website, FactSet, and Bloomberg. The information provided should not be considered financial advice. Investors should conduct their own due diligence before making any investment decisions.