American Century ETF Trust - Avantis Responsible U.S. Equity ETF (AVSU)

Overview

The Avantis Responsible U.S. Equity ETF (AVSU) seeks long-term capital appreciation by investing in a broad and diverse portfolio of U.S. companies while considering environmental, social, and governance (ESG) factors. The ETF focuses on companies with strong profitability and value characteristics.

Reputation and Reliability

American Century Investments is a well-established investment manager with a long track record. Avantis Investors is an investment division within American Century Investments, known for its systematic, value-oriented approach.

Management Expertise

The management team has extensive experience in quantitative investing and portfolio management, leveraging systematic strategies and research-driven insights.

Goal

To provide long-term capital appreciation by investing in a broad and diverse portfolio of U.S. companies.

Investment Approach and Strategy

Strategy: The ETF does not aim to track a specific index. It employs a proprietary, quantitatively driven investment strategy that selects companies based on profitability, value, and ESG considerations.

Composition The ETF primarily holds U.S. equities across various sectors, aiming for diversification and reduced risk.

Market Share: Market share data is not readily available in real-time for specific ETFs, and it is constantly fluctuating.

Total Net Assets (AUM): 199281829

Key Competitors

• iShares ESG Aware MSCI USA ETF (ESGU)
• Vanguard ESG U.S. Stock ETF (ESGV)
• Xtrackers S&P 500 ESG ETF (SNPE)

Competitive Landscape

The competitive landscape involves several ESG-focused U.S. equity ETFs. AVSU distinguishes itself through its quantitative, value-oriented approach within the ESG space, which might appeal to investors seeking a specific factor tilt combined with ESG considerations. ESGU and ESGV are larger, more established funds with broad ESG screening, while AVSU may offer a potentially different risk/return profile due to its value emphasis.

Historical Performance: Historical performance data should be sourced from financial data providers. The ETF's performance is influenced by its value tilt and ESG criteria.

Benchmark Comparison: The ETF's performance should be compared to benchmarks such as the MSCI USA Index or a custom ESG-aware benchmark to evaluate its effectiveness.

Expense Ratio: 0.12

Average Trading Volume

The average trading volume of AVSU can vary, but it's generally sufficient for most investors, ensuring ease of buying and selling shares.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting the fund's liquidity and efficient trading, though it will vary depending on market conditions.

Market Environment Factors

Economic growth, interest rates, inflation, and geopolitical events can influence the performance of AVSU's holdings. Demand for ESG investments also plays a role.

Growth Trajectory

The growth trajectory of AVSU is tied to the broader demand for ESG investing and its ability to deliver competitive returns relative to its peers. Changes to its investment strategy and holdings are driven by its quantitative model and ESG criteria.

Competitive Edge

AVSU's competitive edge stems from its distinctive value-oriented approach within the ESG space, combined with the established expertise of American Century/Avantis in quantitative investing. The ETF's systematic methodology offers a consistent and transparent approach to portfolio construction. This strategy differentiates it from broader ESG ETFs that may not emphasize value factors as strongly. The low expense ratio also enhances its attractiveness.

Volatility

AVSU's historical volatility can be assessed using standard deviation and beta metrics. It's influenced by the volatility of the underlying U.S. equity market and its specific factor tilts.

Market Risk

Market risk is inherent in U.S. equities. Specific risks include economic downturns, sector-specific challenges, and changes in ESG preferences among investors.

Ideal Investor Profile

The ideal investor profile for AVSU is someone seeking long-term capital appreciation through a responsible investing approach. It is suitable for investors who want exposure to U.S. equities with a value tilt and ESG considerations.

Market Risk

AVSU is best suited for long-term investors who understand and accept the potential for market volatility and are aligned with its ESG principles.

The Avantis Responsible U.S. Equity ETF provides a diversified portfolio of U.S. equities, incorporating ESG considerations with a value tilt. It seeks long-term capital appreciation through a systematic, quantitative approach. AVSU is suitable for investors seeking a responsible investing strategy with a potential for enhanced returns through value factors. The low expense ratio and experienced management team add to its appeal.

Data Sources:

• American Century Investments website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market share data is approximate and subject to change. Past performance is not indicative of future results. Consult with a financial advisor before making any investment decisions.