American Century ETF Trust - American Century Multisector Floating Income ETF (FUSI)

Overview

The American Century Multisector Floating Income ETF (FLTI) seeks to provide current income by investing in a diversified portfolio of floating rate debt instruments across various sectors, including corporate loans, high-yield bonds, and other debt securities. It offers exposure to a broad range of credit qualities and maturities, aiming to enhance yield potential in a rising interest rate environment.

Reputation and Reliability

American Century Investments has a long-standing reputation in the asset management industry, known for its research-driven approach and focus on delivering long-term investment results.

Management Expertise

The management team consists of experienced professionals with expertise in credit analysis, portfolio construction, and floating rate debt markets.

Goal

To provide current income.

Investment Approach and Strategy

Strategy: The fund does not track a specific index but employs an active management strategy to select securities and allocate assets across different sectors of the floating rate debt market.

Composition The ETF holds a diversified portfolio of floating rate debt instruments, including corporate loans, high-yield bonds, and other debt securities. It invests across various credit qualities and maturities.

Market Share: FLTI has a relatively small market share within the broader floating rate debt ETF market.

Total Net Assets (AUM): 107900000

Key Competitors

• Invesco Senior Loan ETF (BKLN)
• iShares Floating Rate Bond ETF (FLOT)
• SPDR Blackstone Senior Loan ETF (SRLN)

Competitive Landscape

The floating rate debt ETF market is competitive, with several established players. FLTI distinguishes itself through its active management approach and multisector focus. While active management can potentially lead to outperformance, it also carries the risk of underperformance relative to passively managed competitors.

Historical Performance: Historical performance data needs to be retrieved from financial data providers for different time periods.

Benchmark Comparison: Benchmark comparison data needs to be retrieved from financial data providers.

Expense Ratio: 0.39

Average Trading Volume

FLTI exhibits moderate liquidity, suitable for most individual investors but potentially less ideal for very large institutional trades.

Bid-Ask Spread

The bid-ask spread is typically low, indicating reasonable trading costs for investors.

Market Environment Factors

Economic growth, interest rate expectations, and credit market conditions influence the performance of floating rate debt. Rising interest rates generally benefit floating rate instruments as their yields adjust upward.

Growth Trajectory

Growth of FLTI depends on investor demand for floating rate debt and its ability to deliver competitive performance within its peer group. Changes in market conditions and investment strategy impact the ETF's asset base.

Competitive Edge

FLTI's competitive edge lies in its active management approach, allowing the portfolio managers to adjust the portfolio based on market conditions and credit opportunities. The multisector focus provides diversification benefits, and the ability to invest across different credit qualities can enhance yield potential. American Century's research capabilities support informed security selection. The fund's relatively small size provides flexibility in navigating less liquid sectors of the debt market.

Volatility

Volatility data needs to be retrieved from financial data providers to assess the ETF's historical volatility.

Market Risk

Specific risks include credit risk associated with the underlying debt securities, interest rate risk (though mitigated by the floating rate nature), and liquidity risk in certain segments of the debt market.

Ideal Investor Profile

The ideal investor is someone seeking current income and potentially some capital appreciation, with a moderate risk tolerance and an understanding of floating rate debt instruments.

Market Risk

FLTI is suitable for long-term investors seeking income and diversification within their fixed income portfolio, but is not ideal for active traders due to potential for lower trading volume.

The American Century Multisector Floating Income ETF aims to deliver current income through a diversified portfolio of floating rate debt. Its active management and multisector approach can potentially offer higher yield than passively managed funds, but also introduces the risk of underperformance. The ETF is suitable for investors with a moderate risk tolerance seeking income and diversification. Investors should consider the fund's expense ratio and liquidity before investing. Overall, FLTI provides targeted exposure to floating rate debt in a actively managed fund that could generate alpha.

Data Sources:

• American Century Investments Website
• ETF.com
• Morningstar
• SEC Filings

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Consult with a qualified financial advisor before making any investment decisions.