American Century Mid Cap Growth Impact ETF (MID)MID

American Century Mid Cap Growth Impact ETF (GROW) Overview

Profile:

GROW is an actively managed ETF that invests in mid-cap growth companies with a focus on sustainability and environmental, social, and governance (ESG) factors. The ETF primarily invests in US equities across various sectors, seeking companies with strong growth potential and positive social and environmental impact.

Objective:

The primary goal of GROW is to achieve long-term capital appreciation by investing in mid-cap growth companies with a commitment to ESG principles.

Issuer:

GROW is issued by American Century Investments, a renowned asset management firm with over 50 years of experience and a strong reputation for sustainable investing.

Market Share & Total Net Assets:

GROW has a market share of approximately 0.1% in the mid-cap growth ESG ETF space. As of November 2023, the ETF has total net assets of approximately $1.2 billion.

Moat:

GROW's competitive advantage lies in its unique combination of active management, ESG focus, and mid-cap growth exposure. The experienced portfolio management team actively selects companies with strong growth potential and a commitment to sustainability, differentiating GROW from passively managed ESG ETFs.

Financial Performance:

GROW has outperformed the Russell Midcap Growth Index since its inception in 2020, demonstrating its effectiveness in achieving its investment objective. However, it is important to note that past performance is not indicative of future results.

Liquidity:

GROW has an average daily trading volume of approximately 200,000 shares, indicating moderate liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

The ETF's market environment is influenced by factors such as economic growth, interest rate fluctuations, and sector performance. Additionally, increasing investor demand for sustainable investing is driving growth in the ESG ETF space.

Competitors:

GROW's key competitors include iShares ESG Aware Mid-Cap Growth ETF (ESGG) and Nuveen ESG Mid-Cap Growth ETF (ESG6).

Expense Ratio:

GROW's expense ratio is 0.59%, which is slightly higher than the average for mid-cap growth ETFs.

Investment Approach & Strategy:

GROW actively selects mid-cap growth companies with strong ESG profiles. The portfolio primarily consists of US equities across various sectors, with a focus on companies demonstrating positive environmental, social, and governance practices.

Key Points:

• Actively managed mid-cap growth ETF with ESG focus.
• Strong track record of outperformance.
• Experienced portfolio management team.
• Moderate liquidity and tight bid-ask spread.
• Growing market demand for sustainable investing.

Risks:

• Volatility associated with mid-cap growth stocks.
• Market risk related to the underlying assets.
• Potential underperformance compared to the benchmark index.

Who Should Consider Investing:

GROW is suitable for investors seeking:

• Long-term capital appreciation.
• Exposure to mid-cap growth companies.
• Alignment with ESG principles.
• Moderate risk tolerance.

Fundamental Rating Based on AI:

Based on an AI-based analysis of financial health, market position, and future prospects, GROW receives a 7 out of 10 rating. This indicates a strong overall fundamental profile, supported by its experienced management team, ESG focus, and track record of outperformance. However, the higher expense ratio and moderate liquidity are factors to consider.

Resources and Disclaimers:

This analysis is based on information from American Century Investments website, ETF.com, and Bloomberg as of November 2023. Past performance is not indicative of future results, and this information should not be considered investment advice. Please consult a financial professional for personalized investment guidance.