American Century Investments Expands ETF Offerings
American Century Investments, a prominent global asset manager with over $300 billion in assets, has recently enhanced its ETF platform by launching the American Century Small Cap Growth Insights ETF (ACSG) and the American Century Small Cap Value Insights ETF (ACSV). These fundamental active ETFs are designed to tap into the growth potential inherent within small cap stocks while aligning with benchmark portfolios for strategic allocation.
Innovative ETF Solutions for Investors
These ETFs are now available on the CBOE BZX Exchange, Inc., providing investors with new choices in a segment that traditionally offers limited options. Victor Zhang, chief investment officer at American Century, emphasizes that the company's success is intertwined with client success. "We're thrilled to introduce two innovative small cap ETFs that combine our extensive investment expertise with the flexibility that ETFs offer. ACSG and ACSV aim to provide solid paths for seeking alpha, leveraging our vast experience in small cap stock selection," Zhang remarked.
Strategic Investment Approach
The Small Cap Insights ETFs rely on rigorous stock selection processes from American Century's seasoned teams specializing in small cap growth and value. This approach ensures investments are well-suited for market liquidity, tax-efficiency, and pricing expectations typical in the ETF landscape. The portfolio managers utilize a bottom-up method, founded on proprietary research to target U.S. small cap companies.
Focus on Growth and Value
ACSG identifies companies demonstrating accelerating growth rates alongside strong fundamental metrics. In contrast, ACSV is focused on higher quality businesses currently trading at discounts to their assessed fair value. This dual focus allows investors to capture varied opportunities within the market.
Experienced Portfolio Management
Both ETFs are co-managed by experienced professionals. ACSG is adeptly overseen by senior portfolio managers Jackie Wagner and Jeff Hoernemann, alongside Stephen Quance, who serves as the chief investment officer of disciplined equity. ACSV, meanwhile, is co-managed by Ryan Cope and Quance, with the small cap equities team at American Century overseeing an impressive $48 billion in assets under management.
Emphasizing Price Discovery
According to Quance, the potential for price discovery within the small cap sector is substantial. He states, "Our ETFs blend comprehensive research with quantitative strategies to provide an efficient investment approach that enhances tax efficiency and reduces transaction costs, giving investors advantageous access to small cap opportunities." This reflects American Century's commitment to innovate while catering to the needs of their clients.
American Century's Commitment to Clients
Since introducing its ETF program in 2018, American Century has rapidly positioned itself among the top four active ETF issuers within an increasingly competitive U.S. market. This status is rooted not just in investment strategies, but also in a sincere commitment to client outcomes and relationship building.
About American Century Investments
The firm was founded in 1958 and employs 1,400 professionals dedicated to serving a diverse clientele including financial institutions, corporations, and individual investors. With offices scattered across major cities, American Century operates globally while fundamentally anchoring its mission in support of significant medical research initiatives. Remarkably, over 40% of its dividends are directed to the Stowers Institute for Medical Research, showcasing a unique commitment to societal benefit as part of its operational ethos.
For investors looking for innovative ETF options, American Century's new offerings are a testament to the firm’s ongoing evolution in addressing client needs in a traditionally niche investment space.
Frequently Asked Questions
What are the new ETF offerings from American Century Investments?
American Century launched the Small Cap Growth Insights ETF (ACSG) and the Small Cap Value Insights ETF (ACSV) designed to capture growth potential within small cap stocks.
Who manages the American Century Small Cap Insights ETFs?
The ACSG ETF is co-managed by Jackie Wagner, Jeff Hoernemann, and Stephen Quance, whereas ACSV is managed by Ryan Cope and Stephen Quance.
What is the investment strategy behind ACSG and ACSV?
ACSG targets high-growth companies with solid fundamentals, while ACSV focuses on quality companies available at discounted prices for potential investment growth.
Where can investors access these new ETFs?
The new ETFs are available for trading on the CBOE BZX Exchange, providing retail and institutional investors access to these offerings.
What is American Century's unique commitment in the investment landscape?
American Century Investments allocates over 40% of its dividends to medical research, reinforcing its goal of achieving investment success while contributing positively to society.
