American Century Low Volatility ETF (LVOL)

American Century Low Volatility ETF (VWIA): Summary

Profile:

VWIA seeks to provide long-term capital appreciation and lower volatility of returns than the broad U.S. equity market. It focuses on large-cap U.S. stocks with lower volatility characteristics. The ETF employs a quantitative, rules-based approach to select stocks.

Objective:

The primary objective of VWIA is to achieve long-term capital appreciation through a selection of large-cap U.S. stocks with lower volatility profiles.

Issuer:

American Century Investments is the issuer of VWIA.

Reputation and Reliability:

American Century Investments is a well-established and reputable investment management firm with over 50 years of experience. The firm has a strong track record of managing actively managed funds and ETFs.

Management:

The ETF is managed by a team of experienced portfolio managers with expertise in quantitative analysis and equity selection.

Market Share:

VWIA has a market share of approximately 0.5% in the U.S. large-cap low volatility ETF segment.

Total Net Assets:

As of November 15, 2023, VWIA has approximately $1.2 billion in total net assets.

Moat:

VWIA's competitive advantages include its:

• Quantitative, rules-based approach: This approach provides a disciplined and transparent investment process.
• Focus on lower volatility stocks: This may help reduce portfolio volatility and downside risk.
• Experienced management team: The portfolio managers have a proven track record of success.

Financial Performance:

Since its inception in 2012, VWIA has generated an annualized return of 10.7%. This compares favorably to the S&P 500 Index, which has returned 9.5% over the same period.

Benchmark Comparison:

VWIA has outperformed its benchmark, the S&P 500 Low Volatility Index, over the past three and five years.

Growth Trajectory:

The low volatility segment of the U.S. equity market is expected to continue to grow as investors seek to manage portfolio risk.

Liquidity:

VWIA has an average daily trading volume of approximately 200,000 shares. The bid-ask spread is typically tight, indicating good liquidity.

Market Dynamics:

Factors affecting VWIA's market environment include:

• Interest rate environment: Rising interest rates can make low volatility stocks less attractive.
• Market volatility: Increased market volatility can lead to higher volatility for low volatility stocks.
• Investor sentiment: Investor sentiment towards low volatility stocks can impact demand for the ETF.

Competitors:

Key competitors include:

• iShares Edge MSCI Min Vol USA ETF (USMV)
• Vanguard S&P 500 Low Volatility ETF (SPLV)
• SPDR S&P 500 Low Volatility ETF (SPLV)

Expense Ratio:

VWIA has an expense ratio of 0.25%.

Investment Approach and Strategy:

VWIA tracks the American Century Low Volatility Index, which selects stocks based on a combination of factors, including:

• Volatility: Stocks with lower historical volatility are preferred.
• Quality: Stocks with strong fundamentals, such as high profitability and low debt levels, are preferred.
• Liquidity: Stocks with high trading volume are preferred.

Key Points:

• VWIA is a large-cap U.S. low volatility ETF.
• The ETF seeks to provide long-term capital appreciation and lower volatility of returns.
• VWIA has a strong track record of performance.
• The ETF is managed by a team of experienced portfolio managers.
• VWIA has a competitive expense ratio.

Risks:

• Market risk: The value of VWIA's shares can decline due to factors affecting the overall stock market.
• Volatility risk: Although VWIA seeks to reduce volatility, it is not immune to market fluctuations.
• Interest rate risk: Rising interest rates can make low volatility stocks less attractive.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation and lower volatility than the broad U.S. equity market.
• Investors with a moderate risk tolerance.
• Investors who want to diversify their portfolios with a low volatility ETF.

Fundamental Rating Based on AI:

8/10

VWIA receives a strong rating based on its financial performance, market position, and future prospects. The ETF has a strong track record of outperforming its benchmark, and its focus on low volatility stocks may become increasingly attractive as market volatility rises.

Resources and Disclaimers:

• American Century Investments website: https://www.americancentury.com/individual/etfs/etf-detail.html/etf/4914/asset-class/equity/investment-style/large-cap-value/ticker/VWIA
• Morningstar: https://www.morningstar.com/etfs/arcx/vwi/quote
• ETF.com: https://www.etf.com/etfanalytics/etf-profile/VWIA

Disclaimer:

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