American Century Sustainable Growth ETF (ESGY)

Overview

The American Century Sustainable Growth ETF (ESGS) seeks long-term capital appreciation by investing in companies exhibiting sustainable business practices and strong growth potential. It focuses on companies with innovative products, strong brands, or dominant market positions, while also considering environmental, social, and governance (ESG) factors.

Reputation and Reliability

American Century Investments is a well-established investment management firm with a long history of providing investment solutions. They are known for their research-driven approach and commitment to client success.

Management Expertise

American Century has a team of experienced portfolio managers and analysts dedicated to sustainable investing. They have a strong understanding of ESG factors and their impact on long-term performance.

Goal

To seek long-term capital appreciation by investing in sustainable growth companies.

Investment Approach and Strategy

Strategy: The ETF employs a fundamental, bottom-up investment approach, focusing on identifying companies with strong growth potential and attractive valuations, while also integrating ESG considerations into the investment process.

Composition The ETF primarily holds stocks of large- and mid-cap U.S. companies. It may also invest in foreign securities.

Market Share: Data unavailable to precisely calculate ESGS's market share.

Total Net Assets (AUM): 52700000

Key Competitors

• CRBN
• ICLN
• ESGU
• QCLN
• VUG

Competitive Landscape

The sustainable growth ETF market is competitive, with numerous ETFs offering exposure to companies with strong growth potential and positive ESG characteristics. ESGS differentiates itself through its active management and focus on companies with innovative products and strong brands. However, it faces competition from passively managed ETFs with lower expense ratios and a broader focus on ESG.

Historical Performance: Historical performance data should be retrieved from financial data providers. Provide details over 1, 3, 5, and 10 year time horizons when available.

Benchmark Comparison: Compare the ETF's performance against relevant benchmarks like the Russell 1000 Growth Index or a relevant ESG index.

Expense Ratio: 0.39

Average Trading Volume

Assess the ETF's liquidity based on its average trading volume; typically trading volume is adequate for most investors.

Bid-Ask Spread

Provide details of the bid-ask spread to understand the cost of trading the ETF; often the spread remains tight.

Market Environment Factors

The ETF's performance is influenced by factors such as economic growth, interest rates, investor sentiment towards growth stocks, and the adoption of sustainable business practices. Positive economic growth and increased investor interest in ESG investing can benefit the ETF.

Growth Trajectory

The ETF's growth trajectory depends on its ability to consistently identify and invest in sustainable growth companies. Changes to strategy and holdings could occur based on market conditions and investment opportunities.

Competitive Edge

ESGS benefits from American Century's expertise in identifying companies with innovative products, strong brands, or dominant market positions, all while integrating ESG considerations into the investment process. This approach could lead to superior long-term performance compared to passively managed ESG ETFs. The active management style allows for flexibility in navigating market conditions and capitalizing on emerging opportunities within the sustainable growth space. A focus on financial health within holdings may further differentiate the fund.

Volatility

Assess American Century Sustainable Growth ETFu2019s historical volatility using metrics such as standard deviation or beta.

Market Risk

The ETF is subject to market risk, which is the risk that the overall market declines, causing the ETF's value to decrease. It is also exposed to sector-specific risks, such as technology or healthcare, depending on its holdings.

Ideal Investor Profile

The ideal investor for the American Century Sustainable Growth ETF is one who seeks long-term capital appreciation and is comfortable with the risks associated with investing in growth stocks. They should also have an interest in sustainable investing and be willing to accept a potentially higher expense ratio for actively managed exposure.

Market Risk

The ETF is best suited for long-term investors who are looking for a blend of growth and sustainability. It may not be suitable for active traders or those seeking passive index-tracking strategies.

The American Century Sustainable Growth ETF offers investors access to a portfolio of companies with strong growth potential and sustainable business practices. Its active management approach and focus on ESG factors differentiate it from passively managed alternatives. Investors should consider their risk tolerance, investment objectives, and time horizon before investing. While actively managed, the expense ratio might be higher than passive alternatives. However, the selection process may provide better long term performance.

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. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions. Market share information is not exact as that detail can be proprietary and the available information from sources may conflict.