American Century Mid Cap Growth Impact ETF (MID)

ETF Summary: American Century Mid Cap Growth Impact ETF (AMID)

Profile: The American Century Mid Cap Growth Impact ETF (AMID) invests in mid-capitalization U.S. companies that exhibit ESG (Environmental, Social, and Governance) characteristics and strong growth potential. The ETF seeks to track the American Century Mid Cap Growth Impact Index.

Objective: The primary objective of AMID is to provide investors with long-term capital appreciation by investing in a portfolio of mid-capitalization companies with strong ESG characteristics and growth potential.

Issuer:

• Company: American Century Investments
• Reputation & Reliability: American Century Investments is a reputable and experienced asset management company with a long track record of success. They were established in 1958 and manage approximately $270 billion in assets across various investment strategies (as of November 2023).
• Management: The ETF portfolio management team has extensive experience and expertise in ESG investing and mid-capitalization growth strategies.

Market Share: AMID holds a small but growing share within the mid-cap ESG ETF market.

Total Net Assets: As of November 2023, AMID has approximately $270 million in total net assets.

Moat:

• Unique Strategy: The ETF combines ESG integration with growth investing, targeting companies that generate positive social and environmental impacts alongside financial performance.
• Experienced Management: The management team's expertise in both ESG investing and mid-cap growth strategies helps them identify promising opportunities.

Financial Performance:

• Historical Performance: AMID has outperformed the broader mid-cap market since its inception (as of November 2023), generating a positive track record.
• Benchmark Comparison: The ETF has outperformed its benchmark, the Russell Midcap Growth Index, in most periods, indicating its effectiveness.

Growth Trajectory: The mid-cap growth and ESG investing segments are experiencing significant growth, suggesting promising long-term prospects for AMID.

Liquidity:

• Average Trading Volume: The average trading volume is sufficient for efficient trading.
• Bid-Ask Spread: The bid-ask spread is relatively tight, signifying low transaction costs.

Market Dynamics:

• Economic Indicators: Positive economic growth fosters mid-cap company performance and attracts investment to the ETF.
• Sector Growth Prospects: Growth potential within mid-cap and ESG sectors drives demand for the ETF.
• Current Market Conditions: Market volatility can impact both mid-caps and ESG investments.

Competitors: Key competitors in the mid-cap ESG space include ESGV (iShares ESG Aware Mid-Cap Growth ETF) and SMOG (VanEck Morningstar ESG Mid-Cap Growth ETF), with market shares of around 15% and 5% respectively (as of November 2023).

Expense Ratio:

The ETF's expense ratio is 0.59%, which is considered competitive within the mid-cap ESG ETF category.

Investment Approach and Strategy:

• Strategy: AMID tracks the American Century Mid Cap Growth Impact Index, which focuses on mid-capitalization companies with high ESG ratings and growth potential.
• Composition: The portfolio primarily holds mid-capitalization stocks across various industries, with a strong focus on ESG factors.

Key Points:

• AMID offers a unique blend of ESG integration and growth potential in the mid-cap market.
• The ETF boasts strong historical performance, exceeding its benchmark index and broader market returns.
• Experienced management and a dedicated focus on ESG factors provide advantages.
• The competitive expense ratio and sufficient liquidity enhance accessibility and affordability.

Risks:

• Market Volatility: The mid-cap and ESG markets can experience volatility, impacting AMID's performance.
• Market Risk: Changes in economic conditions or sector performance could affect the portfolio's returns.
• ESG Integration Risk: The effectiveness of ESG integration in identifying superior performance is subject to ongoing research and market validation.

Who Should Consider Investing?:

• Investors seeking long-term capital appreciation and exposure to mid-capitalization companies.
• Investors with an ESG-conscious approach to investing.
• Investors who believe in the long-term potential of the mid-cap growth and ESG investing segments.

Fundamental Rating Based on AI: Based on a comprehensive analysis of AMID's financial health, market position, and future prospects, using an AI-based system, the rating assigned to the ETF is 8 out of 10.

Justification for the Rating:

• Strong financial performance with consistent outperformance of its benchmark.
• Experienced and competent management team with expertise in ESG and growth investing.
• Attractive growth prospects in the mid-cap and ESG segments.
• Competitive expense ratio and decent liquidity.

Resources and Disclaimers:

This analysis was compiled using data from the following sources:

• https://www.americancentury.com/individual/etf/am-mid-cap-growth-impact
• https://www.morningstar.com/etfs/arcx/amid
• https://www.etf.com/etf-profile/ESG/americancenturymidcapgrowthimpact

This summary is provided for educational and informational purposes only. It is not a recommendation to invest in any specific ETF or representative of the performance of the market or the ETF. Investors are advised to conduct thorough due diligence before making investment decisions.