Exploring American Century's New Active Small-Cap ETFs
Introduction to New ETFs from American Century
American Century Investments, a prominent asset management firm with over $300 billion in assets, has taken a significant step in the investment landscape by launching two innovative active small-cap ETFs. These are the American Century Small Cap Growth Insights ETF (BATS: ACSG) and the American Century Small Cap Value Insights ETF (BATS: ACSV).
Purpose of the New Funds
These new funds aim to offer investors consistent exposure to small-cap stocks, merging American Century's extensive experience in stock selection with the enhanced advantages ETFs bring to the table. ACSG and ACSV are designed to provide robust pathways for investors seeking alpha, as noted by Victor Zhang, the Chief Investment Officer at American Century.
Investment Strategy and Methodology
The investment strategy for both ETFs is meticulously designed. Drawing on the expertise of American Century’s seasoned small-cap equity professionals, they apply a bottom-up stock-picking approach rooted in proprietary fundamental research.
Specifically, ACSG targets companies with accelerating growth rates alongside strengthening business fundamentals. In contrast, ACSV focuses on identifying high-quality companies that are trading below their intrinsic value. Both ETFs incorporate a systematic and risk-aware portfolio construction strategy adapted to meet the unique liquidity and tax efficiency needs of the ETF market.
Insights from Portfolio Managers
“Small caps are rich in opportunities for price discovery,” mentioned Senior Portfolio Manager Stephen Quance. He elaborated that ACSG and ACSV leverage the deep research capabilities inherent in American Century’s small-cap growth and value teams while utilizing quantitative methods to refine portfolio construction, enhance tax efficiency, and lower transaction costs.
Enhanced Market Position for Active ETFs
With the launch of these two small-cap ETFs, American Century is solidifying its position as a leader in the active ETF segment. This move offers investors targeted access to dynamic small-cap growth and value strategies, benefiting from the intrinsic transparency, flexibility, and tax efficiencies that accompany ETF structures.
The Impact on Investors
The introduction of ACSG and ACSV is a promising development for investors looking to diversify their portfolios with small-cap equities. As American Century leads the way in this space, investors can look forward to capitalizing on the nuanced approaches these ETFs provide.
Frequently Asked Questions
What are the new ETFs launched by American Century?
The two new ETFs are the American Century Small Cap Growth Insights ETF (ACSG) and the American Century Small Cap Value Insights ETF (ACSV).
What is the investment strategy for these ETFs?
ACSG focuses on growth companies, while ACSV targets high-quality firms sold at below fair value, using a bottom-up selection process.
Who are the key people involved in these ETFs?
Key figures include Victor Zhang, Chief Investment Officer, and Stephen Quance, Senior Portfolio Manager.
What is the significance of these ETFs?
These ETFs aim to provide strong growth and value opportunities while enhancing transparency and efficiency in investment.
How do these ETFs fit into American Century's offerings?
This launch strengthens American Century’s leadership in active management within the ETF market, providing expanded access to small-cap strategies.
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