American Century International, Value ETFs Draw Investor Interest

• With the U.S. equity market highly concentrated and representing a smaller share of global GDP, advisors are seeking non-U.S. growth opportunities. Funds like the American Century Quality Diversified International ETF (QINT) are capturing significant assets as investors target more attractive overseas valuations.
• As current ETF investing trends show a pivot away from the heavy concentration of the “Magnificent Seven,” funds like the Focused Large Cap Value ETF (FLV) are gaining traction by offering broader exposure to sectors like healthcare and financials.
• The actively managed Diversified Municipal Bond ETF (TAXF) demonstrates how deep credit research can uncover high-yield, tax-advantaged opportunities and provide a resilient fixed-income solution.

International equities and quality- and value-oriented strategies have caught investor attention, according to Sandra Testani, American Century’s head of ETF product and strategy. Indeed, the top fund for inflows over the past four weeks is its international quality fund, the American Century Quality Diversified International ETF (QINT B+).

The $523 million fund pulled in more than $27 million over the last monthlong period and nearly $88 million year to date. In all, American Century has nearly $6 billion in assets invested across the more than 15 ETFs carrying the firm’s brand name. The largest of those funds is the American Century U.S. Quality Growth ETF (QGRO B) at more than $2 billion in assets.

Testani attributed QINT’s appeal to the fund’s international exposures, given the outperformance exhibited by non-U.S. markets last year and into 2026. She noted that many advisors are underweight in non-U.S. securities because the U.S. had outperformed by such a wide margin for so long.

“If you’re looking to diversify away from the concentration in the U.S. equity markets, you look outside the U.S. You have a much broader footprint. The valuations remain — even despite the recent outperformance — relatively much more attractive,” Testani said in a recent interview.

She noted that 70% of companies are outside the U.S. and that while the U.S. represents nearly two thirds of global market cap, it is only 25%-30% of the global GDP.

“It’s really about opportunities,” Testani added.

Similarly, as investors grow disillusioned with Magnificent Seven stocks and their outsized positions in market indexes, value seems like an opportunity for investors, according to Testani. She pointed out that investors and the market have started to pull back from some of these companies.

“In the U.S., in the growth indexes, the top 10 names are almost 60% of the index. In the S&P 500, they’re almost 40%,” Testani also noted.

She added: “When you look at what the value side of the ledger looks like, it’s much more diversified and has pretty different exposures. And whether it’s financials or healthcare or energy names, [it’s] just a little bit less concentrated in some of those AI-related bets.”

American Century’s lineup includes the semitransparent actively managed American Century Focused Large Cap Value ETF (FLV C+), which has pulled in roughly $35 million year to date, more than four times what it pulled in during the same time period last year. The fund holds more than $320 million in assets under management.

FLV was one of the first semitransparent ETFs to launch, rolling out in early 2020. Testani notes that it is run by the same large value team that has managed a mutual fund with a very similar value strategy focused on high quality and low beta for more than 30 years.

American Century also has a strong bond ETF lineup and Testani highlighted the actively managed American Century Diversified Municipal Bond ETF (TAXF ) as an object of growing interest for investors. The $582 million ETF, which launched in 2018, has pulled in roughly $38 million year to date, as investors flood into the space.

Not only do municipal bonds come with tax exemptions, they rarely default. Moreover, some municipalities prefer not to pay for their bonds to receive ratings, which means that those bonds are automatically classified as high yield, no matter what their other characteristics, Testani pointed out.

It means that the bonds do not qualify for a standard municipal bond index, but could represent an opportunity for an active manager willing to do the research to uncover the bond’s true creditworthiness. Nearly 13% of TAXF’s portfolio consists of high-yield municipal bonds.

“We think it’s really fertile ground for us to be able to add value,” Testani said of the municipal bond space.

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