American Century Low Volatility ETF (LVOL)

Overview

The American Century Low Volatility ETF (LVOL) seeks to provide investment results that closely correspond, before fees and expenses, to the performance of the Russell 1000 Low Volatility Index. It focuses on large-cap US equities with lower relative volatility.

Reputation and Reliability

American Century Investments has a solid reputation for providing investment management services for over 60 years.

Management Expertise

The management team has extensive experience in quantitative and factor-based investing.

Goal

To track the Russell 1000 Low Volatility Index, providing exposure to large-cap US equities with lower volatility than the broader market.

Investment Approach and Strategy

Strategy: The ETF tracks a specific index, the Russell 1000 Low Volatility Index, which identifies stocks with lower volatility within the Russell 1000.

Composition The ETF primarily holds stocks of large-cap US companies.

Market Share: LVOL's market share is relatively small compared to major low-volatility ETFs.

Total Net Assets (AUM): 139493037

Key Competitors

• Invesco S&P 500 Low Volatility ETF (SPLV)
• iShares MSCI USA Min Vol Factor ETF (USMV)
• Franklin LibertyQ U.S. Low Volatility ETF (FLQV)

Competitive Landscape

The low volatility ETF market is dominated by SPLV and USMV. LVOL aims to provide similar low-volatility exposure but with a different weighting methodology. The advantages of LVOL may lie in a potentially lower expense ratio or slightly different sector allocations compared to its larger competitors. However, its disadvantage is its smaller AUM and lower trading volume.

Historical Performance: Historical financial performance data needs to be collected from valid sources such as Bloomberg, Yahoo Finance, etc.

Benchmark Comparison: Benchmark Comparison data needs to be collected from valid sources such as Bloomberg, Yahoo Finance, etc.

Expense Ratio: 0.29

Average Trading Volume

LVOL's average trading volume is moderate, which could impact execution costs for larger trades.

Bid-Ask Spread

LVOL's bid-ask spread is generally tight, indicating reasonable liquidity but can fluctuate depending on market conditions.

Market Environment Factors

Economic indicators like interest rates and inflation, sector performance, and overall market sentiment influence LVOL's performance.

Growth Trajectory

LVOL's growth depends on the continued demand for low-volatility strategies and its ability to attract assets in a competitive market. Any changes to the fund's strategy or holdings would also affect its growth.

Competitive Edge

LVOL's competitive advantage lies in American Century's quantitative expertise and potentially different weighting scheme. The ETF may offer slightly different sector exposures, which may align better with some investors' preferences. American Century's established brand can provide reassurance to investors. The ETF's lower expense ratio may entice some investors, making it a cost-effective alternative. However, it faces stiff competition from ETFs with greater AUM and stronger liquidity.

Volatility

LVOL is designed to have lower volatility than the broad market, but it is still subject to market fluctuations.

Market Risk

LVOL's underlying assets are primarily large-cap US equities, making it susceptible to broad market downturns and sector-specific risks within the US economy.

Ideal Investor Profile

The ideal investor for LVOL is a risk-averse individual seeking lower volatility exposure to the US equity market.

Market Risk

LVOL is best suited for long-term investors looking for a core holding with reduced volatility characteristics and those seeking passive index-following strategies.

The American Century Low Volatility ETF (LVOL) offers exposure to large-cap US equities with lower volatility than the broader market. It tracks the Russell 1000 Low Volatility Index and is suitable for risk-averse investors seeking a core holding. However, LVOL faces stiff competition from larger ETFs with greater liquidity and AUM. Its lower expense ratio and quantitative-driven approach may appeal to certain investors. Investors should consider factors like expense ratio, trading volume, and index construction methodology before investing.

Data Sources:

• American Century Investments
• Bloomberg
• Yahoo Finance
• ETF.com

Disclaimers:

The data provided is for informational purposes only and should not be considered financial advice. Past performance is not indicative of future results. Market share data is approximate and may vary depending on the source and calculation methodology.