American Century ETF Trust - American Century Multisector Floating Income ETF (FUSI)

Overview

The American Century Multisector Floating Income ETF (FLTY) seeks to provide current income by investing primarily in floating rate debt securities across multiple sectors, including corporate loans and asset-backed securities.

Reputation and Reliability

American Century Investments is a well-established asset management firm with a long history and a reputation for research-driven investment strategies.

Management Expertise

The management team has considerable experience in credit analysis and floating rate debt markets.

Goal

To seek a high level of current income, consistent with the preservation of capital.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but employs an active management strategy focused on selecting floating rate investments across multiple sectors.

Composition Primarily invests in floating rate debt securities, including senior secured loans, collateralized loan obligations (CLOs), and other asset-backed securities.

Market Share: FLTY's market share is relatively small compared to larger, more established floating rate ETFs.

Total Net Assets (AUM): 55150000

Key Competitors

• Invesco Senior Loan ETF (BKLN)
• First Trust Senior Loan Fund (FTSL)
• SPDR Blackstone Senior Loan ETF (SRLN)

Competitive Landscape

The floating rate ETF market is dominated by a few large players like BKLN and SRLN. FLTY aims to differentiate itself through its active management approach, potentially leading to better security selection. However, active management also entails higher expense ratios. The competitive landscape is characterized by varying levels of credit risk and expense ratios.

Historical Performance: Historical performance data is available from the ETF's inception date and should be reviewed to understand its performance in various market conditions.

Benchmark Comparison: The ETF's performance should be compared to the S&P/LSTA U.S. Leveraged Loan 100 Index to assess its effectiveness.

Expense Ratio: 0.55

Average Trading Volume

Average trading volume is relatively moderate, which may impact the ease of buying and selling shares, especially for large positions.

Bid-Ask Spread

The bid-ask spread is dependent on market conditions and trading volume, and investors should monitor it before executing trades to minimize transaction costs.

Market Environment Factors

Economic indicators such as interest rate levels, inflation, and overall economic growth influence the performance of floating rate debt securities. Credit spreads and default rates within the corporate loan market also play a significant role.

Growth Trajectory

The growth trajectory depends on its ability to deliver competitive returns and attract assets. Changes to strategy and holdings can indicate a shift in market outlook.

Competitive Edge

FLTY differentiates itself through its active management approach, aiming to identify undervalued floating rate securities and capitalize on market inefficiencies. The multi-sector approach allows for diversification and flexibility in navigating different market conditions. However, its lower AUM compared to peers can impact liquidity and trading costs. American Century's research capabilities may provide an advantage in security selection and risk management.

Volatility

The ETF's volatility is influenced by the credit risk of its underlying holdings and interest rate sensitivity. It is typically less volatile than equity markets but can be sensitive to changes in credit spreads.

Market Risk

Specific risks include credit risk associated with the issuers of floating rate debt, interest rate risk (although less than fixed-rate bonds), and liquidity risk for less actively traded securities.

Ideal Investor Profile

Investors seeking current income and diversification within their fixed income portfolio and who are comfortable with moderate credit risk may find this ETF suitable.

Market Risk

Suitable for long-term investors seeking income and diversification, but less appropriate for active traders due to moderate liquidity.

The American Century Multisector Floating Income ETF (FLTY) offers exposure to floating rate debt securities across multiple sectors, aiming to provide current income. Its active management approach differentiates it from passive index-tracking ETFs but also results in a higher expense ratio. The fund's relatively small AUM and moderate trading volume suggest it may be more suitable for investors with smaller positions. Investors should carefully consider its credit risk and liquidity profile before investing, benchmarking against similar ETFs and relevant indices.

Data Sources:

• American Century Investments Website
• ETF.com
• Morningstar

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions can change rapidly and impact the performance of the ETF. Please consult with a qualified financial advisor before making any investment decisions.