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 in a diversified portfolio of floating rate debt securities across various sectors. It aims to offer a higher yield compared to traditional fixed-rate investments while managing interest rate risk.

Reputation and Reliability

American Century Investments has a solid reputation as a well-established asset manager with a long history of providing investment solutions.

Management Expertise

American Century has a dedicated team of portfolio managers and analysts with extensive experience in credit analysis and fixed income investing.

Goal

The primary investment goal is to seek current income.

Investment Approach and Strategy

Strategy: FLTY does not track a specific index; it is actively managed.

Composition The ETF primarily holds floating rate debt securities, including corporate loans, high-yield bonds, and other types of floating rate instruments across various sectors.

Market Share: Data not readily available without real-time market data access.

Total Net Assets (AUM): 345850000

Key Competitors

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

Competitive Landscape

The floating rate loan ETF market is moderately competitive with a few large players dominating. FLTY differentiates itself through its multisector approach and active management style, potentially offering higher returns but also carrying higher risk compared to passively managed funds like BKLN. SRLN has the backing of Blackstone, a well-known credit manager. Competitors include actively and passively managed ETFs that invest in floating rate loans.

Historical Performance: Historical performance data is not provided here but can be obtained from financial data providers.

Benchmark Comparison: Benchmark comparison requires a specific benchmark and historical performance data.

Expense Ratio: 0.45

Average Trading Volume

The ETF's liquidity, as measured by average trading volume, can be found on major financial data platforms.

Bid-Ask Spread

The bid-ask spread can be obtained from real-time market data feeds and varies based on market conditions.

Market Environment Factors

Economic indicators, interest rate movements, and credit market conditions significantly impact FLTY's performance. Rising interest rates generally benefit floating rate loans, while economic downturns can increase credit risk.

Growth Trajectory

Growth trajectory depends on the ETF's ability to generate competitive returns, attract assets, and adapt to changing market conditions. Actively managed strategies and sector allocations impact FLTY's growth.

Competitive Edge

FLTY's competitive advantage lies in its active management and multisector approach, enabling it to potentially outperform passively managed funds in certain market environments. This allows for flexibility in adjusting the portfolio based on market conditions and identifying undervalued opportunities. The American Century brand and established fixed income team also provide an advantage. This allows it to invest across a broader array of floating-rate instruments.

Volatility

Volatility can be assessed using historical price data and calculating standard deviation or beta.

Market Risk

Specific risks include credit risk associated with the underlying debt securities, interest rate risk (although floating rate loans mitigate this), and liquidity risk, especially in less liquid parts of the market.

Ideal Investor Profile

The ideal investor is one seeking current income, has a moderate risk tolerance, and understands the dynamics of floating rate debt securities. Investors seeking diversification and inflation hedging may also find it suitable.

Market Risk

FLTY is suitable for long-term investors seeking income and diversification, as well as those who are comfortable with moderate risk and understand the nature of floating rate investments. It may be less suitable for passive index followers.

American Century Multisector Floating Income ETF (FLTY) offers a strategy focused on current income through a diversified portfolio of floating rate debt. Its active management and multisector approach provides flexibility but also introduces higher risks compared to passive strategies. Ideal investors are those seeking income, moderate risk and understand floating rate debt markets. Potential benefits of inflation hedging needs to be weighted with the risks.

Data Sources:

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

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market data is subject to change. Consult with a financial advisor before making any investment decisions.