American Century Mid Cap Growth Impact ETF (MID)

Overview

The American Century Mid Cap Growth Impact ETF (Impact ETF) seeks to provide capital appreciation by investing in U.S. mid-capitalization growth companies that exhibit strong environmental, social, and governance (ESG) characteristics. The fund focuses on companies with sustainable business models and positive societal impact, aiming to balance financial returns with ethical considerations. Its asset allocation primarily consists of equities.

Reputation and Reliability

American Century Investments is a well-established, privately-held asset management firm with a long history of providing investment solutions. They are known for their research-driven approach and commitment to long-term investing, which contributes to their reputation for reliability.

Management Expertise

The ETF is managed by experienced investment professionals at American Century Investments, who leverage the firm's extensive research capabilities and disciplined investment process to identify growth opportunities within the mid-cap space, with an added focus on ESG integration.

Goal

The primary investment goal of the American Century Mid Cap Growth Impact ETF is to achieve long-term capital growth.

Investment Approach and Strategy

Strategy: The ETF does not aim to track a specific index. Instead, it employs a fundamental, active management strategy focused on identifying U.S. mid-cap companies with high growth potential and positive ESG impact.

Composition The ETF primarily holds a diversified portfolio of U.S. mid-capitalization stocks. These stocks are selected based on their growth prospects, financial health, and alignment with ESG principles.

Market Share: Data on specific market share for this particular ETF is not readily available in public databases. Its market share would be a small fraction of the overall mid-cap growth ETF market.

Total Net Assets (AUM): 1695684000

Key Competitors

• Vanguard Mid-Cap Growth ETF (VOOG)
• iShares Russell Mid-Cap Growth ETF (IWP)
• Schwab U.S. Mid-Cap Growth ETF (SCHG)

Competitive Landscape

The mid-cap growth ETF market is highly competitive, dominated by large-cap index-tracking ETFs. American Century Mid Cap Growth Impact ETF differentiates itself by focusing on ESG integration, appealing to investors seeking both growth and ethical alignment. Its disadvantages may include a higher expense ratio compared to passive index funds and a potentially smaller universe of investable companies due to its ESG screening. Its advantage lies in its actively managed, impact-focused strategy.

Historical Performance: As of recent data, the ETF has demonstrated positive returns over various time periods, reflecting the growth-oriented nature of its holdings. Detailed historical performance data would include year-to-date, 1-year, 3-year, 5-year, and 10-year returns, which are subject to market fluctuations.

Benchmark Comparison: The ETF's performance is typically benchmarked against indices such as the Russell Midcap Growth Index. It aims to outperform its benchmark through active management and stock selection, though it may lag during periods of strong performance in non-ESG focused companies.

Expense Ratio: 0.68

Average Trading Volume

The average trading volume for the American Century Mid Cap Growth Impact ETF is generally sufficient for most retail investors to enter and exit positions without significant price impact.

Bid-Ask Spread

The bid-ask spread for this ETF is typically tight enough to ensure reasonable trading costs for most investors, though it can widen during periods of high market volatility.

Market Environment Factors

The ETF is influenced by broader economic conditions, interest rate policies, and investor sentiment towards growth stocks and ESG investing. Strong economic growth and a favorable environment for innovation and technology sectors can positively impact its performance. Conversely, rising interest rates or a shift away from growth investing could pose challenges.

Growth Trajectory

The ETF's growth trajectory is tied to its ability to identify and invest in mid-cap companies with sustainable competitive advantages and positive ESG impact. Any changes in its strategy would likely involve adjustments to its ESG screening criteria or a shift in its sector focus within mid-cap growth.

Competitive Edge

The ETF's primary competitive edge lies in its integration of ESG factors into a mid-cap growth investment strategy. This allows it to target companies with not only strong financial potential but also a commitment to sustainability and social responsibility. This dual focus appeals to a growing segment of ethically-minded investors. The expertise of American Century Investments in research and active management further strengthens its position.

Volatility

As a growth-oriented ETF, the American Century Mid Cap Growth Impact ETF can exhibit higher volatility compared to broad market or value-focused ETFs. Its returns may be more sensitive to market downturns and sector-specific risks.

Market Risk

The specific risks associated with the ETF's underlying assets include equity market risk, mid-cap company risk (which can be more volatile than large-caps), and the risks associated with ESG investing, such as potential for underperformance if ESG factors do not translate into financial success.

Ideal Investor Profile

The ideal investor for this ETF is someone seeking long-term capital appreciation, comfortable with the inherent volatility of mid-cap growth stocks, and who prioritizes investing in companies with strong ESG practices and a positive societal impact.

Market Risk

This ETF is best suited for long-term investors who believe in the growth potential of mid-cap companies and want to align their investments with their values. It is less suitable for short-term traders or those solely focused on maximizing immediate returns without considering ethical factors.

The American Century Mid Cap Growth Impact ETF (AIIM) offers investors a way to gain exposure to U.S. mid-cap growth companies while also considering environmental, social, and governance factors. Its active management approach by American Century Investments aims for capital appreciation by selecting companies with sustainable business models. While it faces competition from larger passive ETFs, its ESG focus provides a distinct advantage for ethically-minded investors. The ETF's performance is tied to the growth prospects of mid-cap companies and its ability to integrate ESG effectively into its strategy, though it carries higher volatility risks.

Data Sources:

• American Century Investments Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com)

Disclaimers:

This information is for informational purposes only and should not be construed as investment advice. Past performance is not indicative of future results. Investors should consult with a financial advisor before making any investment decisions. Market share data is an estimation based on general market understanding and may not be precise.