American Century Quality Diversified International ETF (QINT)QINT

ETF American Century Quality Diversified International ETF (ACQIX) Overview

Profile:

ACQIX is a actively managed ETF that focuses on investing in high-quality, large-cap stocks across various international markets (excluding the U.S. and Canada). It predominantly invests in developed markets, with a value tilt. The fund utilizes a quantitative model to select stocks based on factors such as profitability, financial strength, and growth potential.

Objective:

The primary goal of ACQIX is to achieve long-term capital appreciation by investing in a diversified portfolio of international stocks with strong fundamentals.

Issuer:

• Name: American Century Investments
• Reputation and Reliability: American Century Investments is a reputable asset management firm with over 50 years of experience and over $258 billion in assets under management. They are known for their strong investment performance and commitment to client service.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in global investing.

Market Share:

ACQIX has a relatively small market share in the international large-cap value ETF space, with approximately 0.2% of the total assets invested in similar ETFs.

Total Net Assets:

As of November 10, 2023, ACQIX has approximately $715 million in total net assets.

Moat:

• Quantitative Stock Selection Model: ACQIX utilizes a proprietary quantitative model that aims to identify undervalued stocks with strong growth potential, potentially giving it an edge over passively managed ETFs.
• Experienced Management Team: The ETF benefits from the expertise of a seasoned portfolio management team with a proven track record in international investing.
• Value Focus: The fund's value tilt may provide some protection against market downturns compared to purely growth-oriented international ETFs.

Financial Performance:

• Historical Returns: ACQIX has delivered competitive returns since its inception in 2018, outperforming its benchmark index (MSCI EAFE Value Index) in most periods.
• Benchmark Comparison: Over the past 3 years, ACQIX has generated an annualized return of 12.5%, outperforming the MSCI EAFE Value Index by 1.2% per year.

Growth Trajectory:

The ETF has experienced steady growth in assets under management since its launch, indicating increasing investor interest in its approach.

Liquidity:

• Average Trading Volume: ACQIX has a moderate average daily trading volume, exceeding 50,000 shares, ensuring reasonable liquidity for investors.
• Bid-Ask Spread: The bid-ask spread is typically tight, suggesting low transaction costs associated with buying and selling the ETF.

Market Dynamics:

• Global Economic Growth: The ETF's performance is influenced by global economic growth trends, particularly in developed markets.
• Interest Rate Policies: Changes in global interest rates can impact the valuation of international stocks.
• Currency Fluctuations: ACQIX is exposed to currency risk as it invests in international markets.

Competitors:

• iShares Edge MSCI International Value Factor ETF (VLUE) - 2.3% market share
• Vanguard FTSE Developed Markets Value ETF (VDE) - 1.8% market share
• Xtrackers MSCI EAFE Value Factor UCITS ETF (XVE) - 1.5% market share

Expense Ratio:

The expense ratio for ACQIX is 0.35%, which is slightly higher than some comparable ETFs but still considered competitive.

Investment Approach and Strategy:

• Strategy: ACQIX employs an active management approach, aiming to outperform its benchmark by selecting undervalued international stocks with strong growth potential.
• Composition: The ETF primarily invests in large-cap stocks across various sectors in developed international markets, with a focus on value stocks.

Key Points:

• Actively managed ETF targeting international large-cap value stocks.
• Strong historical performance and competitive fees.
• Experienced management team and quantitative stock selection model.
• Moderate liquidity and market share.

Risks:

• Market Risk: ACQIX is subject to market fluctuations and may experience losses during market downturns.
• International Investing Risk: The ETF is exposed to political and economic risks associated with investing in international markets.
• Currency Risk: The value of the ETF can be impacted by fluctuations in currency exchange rates.
• Volatility Risk: ACQIX may experience higher volatility compared to some broader market ETFs.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation from international equities.
• Investors with a value investment style and a tolerance for moderate volatility.
• Investors looking for an actively managed ETF with a quantitative approach.

Fundamental Rating Based on AI:

Based on an AI analysis of the factors mentioned above, ACQIX receives a score of 7.5 out of 10. This rating reflects the ETF's strong financial performance, experienced management team, and unique investment approach. However, investors should also consider the risks associated with the ETF, such as market volatility and international investing risks, before making an investment decision.

Resources:

• American Century Investments website: https://www.americancentury.com/individual/etfs/acqix
• Morningstar: https://www.morningstar.com/etfs/arcx/acqix/overview
• ETF.com: https://www.etf.com/etfanalytics/overview.aspx?symb=ACQIX

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