#USA #Kansas City #ETF #American Century #Securitized Credit

American Century Launches Securitized Credit ETF

In a significant move to broaden its product offerings, American Century Investments has launched the American Century Securitized Credit ETF (ASEC). This new actively-managed exchange-traded fund (ETF) is designed to enhance core bond allocations and provides investors with diversification benefits. Brought to market on the NASDAQ Exchange, ASEC is positioned to attract investors looking for innovative income solutions beyond traditional corporate credit.

According to Paul Norris, Senior Portfolio Manager at American Century, the need for income and diversification is driving investors to explore new avenues in the fixed-income landscape. "Investors seeking income and diversification are looking beyond traditional corporate credit, and we're eager to provide a low-cost offering that applies our active management expertise to high-quality securitized credit through a disciplined process," stated Norris, emphasizing the fund's goal to capture market inefficiencies.

An Active Approach to Fixed Income

ASEC adopts a unique focus on high-quality securitized credit, particularly in areas often underrepresented within typical portfolios. The ETF primarily targets U.S. investment-grade securitized debt securities, delving into various asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), collateralized loan obligations (CLOs), along with government agency securities. This focus is intended to enhance income potential while mitigating risks associated with duration and credit quality.

With a gross expense ratio of just 0.29%, ASEC offers a competitive option for fixed-income investors. Co-managed by Norris and Michael Waggaman, the American Century fixed income team boasts over 50 years of experience and manages approximately $40 billion in assets, ensuring a deep-rooted knowledge base driving fund decisions.

Expansion of Fixed Income ETFs

ASEC's introduction marks an important milestone in American Century's ongoing expansion of its ETF lineup. This fund joins the ranks of other notable products, including the American Century Diversified Corporate Bond ETF and American Century Select High Yield ETF. The firm's ETF program, initiated in 2018, was created to provide clients with lower-cost and tax-efficient investment strategies. Since then, American Century has quickly ascended to become the fourth-largest issuer of active ETFs in the U.S., exhibiting one of the fastest rates of organic growth in the sector.

A Commitment to Clients and Research

Founded in 1958, American Century Investments prioritizes delivering exceptional investment results while fostering enduring relationships with clients. A unique aspect of their operational model is the firm’s commitment to supporting the Stowers Institute for Medical Research—receiving over $2 billion in dividend payments since 2000. This initiative underscores the firm’s emphasis on developing breakthrough medical research alongside fulfilling their financial responsibilities.

In conclusion, the launch of the American Century Securitized Credit ETF represents a substantial advancement in meeting the diverse needs of fixed-income investors. As market dynamics evolve, ASEC aims to offer a compelling avenue for those seeking enhanced yield and diversification, challenging conventional approaches to bond investing. For further details on this innovative fund, interested parties can visit American Century’s website.