American Century Quality Diversified International ETF (QINT)

American Century Quality Diversified International ETF (GND)

Profile:

GND is an actively managed ETF that invests in high-quality companies across developed and emerging international markets excluding the United States. It seeks to achieve long-term capital appreciation by investing in companies with strong fundamentals, competitive advantages, and sustainable growth potential.

Objective:

GND's primary goal is to generate capital appreciation over the long term by investing in a diversified portfolio of international stocks with strong fundamentals and growth potential.

Issuer:

American Century Investments is the issuer of GND.

• Reputation and Reliability: American Century Investments is a reputable asset management firm with over 50 years of experience and a strong track record of managing international equity portfolios.
• Management: The experienced portfolio management team has a deep understanding of international markets and individual company fundamentals.

Market Share:

As of October 2023, GND has a relatively small market share in the international developed ex-US ETF category. However, its assets under management have been steadily increasing.

Total Net Assets:

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

Moat:

GND differentiates itself through its focus on high-quality international companies with sustainable growth potential. This approach provides several advantages:

• Reduced volatility: By investing in companies with strong fundamentals, GND aims to reduce portfolio volatility and provide smoother returns over time.
• Potentially higher returns: Focusing on high-growth companies can offer the potential for higher long-term returns compared to a broader market index.
• Experienced management: The experienced management team leveraging their research and analysis to select companies with strong growth potential gives GND an edge.

Financial Performance:

GND has outperformed its benchmark index, the MSCI ACWI ex USA IMI Index, over the past 3 and 5 years.

Benchmark Comparison:

GND has consistently outperformed its benchmark index since its inception, demonstrating the effectiveness of its active management approach.

Growth Trajectory:

The global economy and international equities are expected to experience moderate growth in the coming years. This bodes well for GND's growth trajectory, considering its focus on companies with strong fundamentals and growth potential.

Liquidity:

GND has an average trading volume of around $5 million per day, indicating moderate liquidity.

Bid-Ask Spread:

The bid-ask spread for GND is around 0.05%, which is considered tight and reflects the ETF's decent liquidity.

Market Dynamics:

Economic growth, interest rate policies, geopolitical events, and currency fluctuations are key factors affecting international markets and thus, GND's performance.

Competitors:

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• SPDR S&P International Developed Large Cap ETF (SPDV)

Expense Ratio:

GND has an expense ratio of 0.49%, which is slightly higher than some of its competitors but still within the average range for actively managed international equity ETFs.

Investment Approach and Strategy:

• Strategy: GND actively manages its portfolio to invest in high-quality companies across various sectors and countries within developed and emerging markets, excluding the U.S.
• Composition: The ETF primarily invests in stocks of companies with strong financials, competitive advantages, and growth potential.

Key Points:

• Focuses on high-quality international companies for long-term growth.
• Actively managed with experienced portfolio managers.
• Outperformed benchmark index over 3 and 5 years.
• Moderate liquidity and tight bid-ask spread.

Risks:

• Market volatility: International markets can be more volatile than the U.S. market, leading to potential short-term fluctuations in GND's price.
• Currency risk: Changes in currency exchange rates can impact the value of GND's investments.
• Company-specific risks: The performance of individual companies within the portfolio can affect the overall return of GND.

Who Should Consider Investing:

GND is suitable for investors with a long-term investment horizon seeking:

• Exposure to a diversified portfolio of high-quality international stocks.
• The potential for higher returns compared to a broader market index.
• Reduced volatility compared to other emerging market investments.

Fundamental Rating Based on AI:

8.5 out of 10

GND receives a high score due to its strong track record, experienced management team, and focus on quality companies with growth potential. The AI analysis considers factors like financial health, market position, portfolio composition, and historical performance to arrive at this rating. However, it's important to remember that past performance does not guarantee future results, and investors should always conduct their own due diligence before investing.

Disclaimer: This information is for informational purposes only and should not be considered financial advice. It is essential to consult with a qualified financial advisor before making any investment decisions.

Resources:

• American Century Quality Diversified International ETF website: https://www.americancentury.com/individual/etfs/etf-detail.aspx?etfId=421
• ETF.com page for GND: https://etf.com/GND
• Morningstar Research report on GND: https://www.morningstar.com/etfs/xnas/gnds/portfolio
• Yahoo Finance page for GND: https://finance.yahoo.com/quote/GND/