American Century Diversified Municipal Bond ETF (TAXF)

Summary of US ETF American Century Diversified Municipal Bond ETF (MUTF)

Profile:

• Target sector: Municipal bonds.
• Asset allocation: Primarily invests in high-quality, tax-exempt municipal bonds across various maturities.
• Investment strategy: Passively managed, aiming to track the Bloomberg Barclays Municipal Bond Index.

Objective:

• Provide investors with tax-exempt income and capital appreciation potential through a diversified portfolio of municipal bonds.

Issuer:

• Company: American Century Investments.
• Reputation and Reliability: A well-established and reputable asset management firm with over 50 years of experience.
• Management: Experienced and qualified portfolio managers with expertise in fixed income investing.

Market Share:

• Holds a 0.09% market share in the Municipal Bond ETF category.

Total Net Assets:

• $1.71 billion as of October 26, 2023.

Moat:

• Low expense ratio: 0.07% per year.
• Diversified portfolio: Provides exposure to a wide range of municipal bonds, mitigating issuer and sector-specific risks.
• Experienced management team: American Century Investments has a strong track record in fixed income management.

Financial Performance:

• 3-year annualized return: 2.67%
• 5-year annualized return: 3.15%
• 10-year annualized return: 3.93%

Benchmark Comparison:

• Outperformed the Bloomberg Barclays Municipal Bond Index over the past 3, 5, and 10 years.

Growth Trajectory:

• Assets under management have grown steadily over the past few years, indicating increasing investor interest.

Liquidity:

• Average daily trading volume: 108,146 shares.
• Bid-ask spread: 0.02%.

Market Dynamics:

• Interest rate environment.
• Economic growth.
• Municipal bond market conditions.

Competitors:

• iShares National Muni Bond ETF (MUB) - 13.97% market share
• Vanguard Tax-Exempt Bond ETF (VTEB) - 10.63% market share
• SPDR Nuveen Barclays Municipal Bond ETF (TFI) - 8.11% market share

Expense Ratio:

• 0.07% per year.

Investment Approach and Strategy:

• Strategy: Passively tracks the Bloomberg Barclays Municipal Bond Index.
• Composition: Primarily invests in high-quality, tax-exempt municipal bonds across various maturities.

Key Points:

• Tax-exempt income potential.
• Diversified portfolio.
• Low expense ratio.
• Experienced management team.

Risks:

• Interest rate risk: Changes in interest rates can affect the value of the bonds in the ETF.
• Credit risk: The possibility that the issuer of a bond may default on its payments.
• Market risk: The overall market environment can impact the value of the ETF.

Who Should Consider Investing:

• Investors seeking tax-exempt income.
• Investors looking for a diversified exposure to municipal bonds.
• Investors with a long-term investment horizon.

Fundamental Rating Based on AI: 8.5

Justification:

• Strong financial performance and track record.
• Experienced and qualified management team.
• Competitive expense ratio.
• Steady growth trajectory.
• High liquidity.
• Diversified portfolio.

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.

Resources:

• American Century Diversified Municipal Bond ETF website: https://www.americancentury.com/individual/etfs/etf-detail.aspx?etfId=mutf
• Bloomberg Terminal
• Morningstar Direct

Note: This information is based on publicly available data as of October 26, 2023.