The ETF landscape continues to grow and evolve. Active ETF launches in particular are a key driver once again this year. Active small-cap ETFs offer some real benefits that may speak to their growing popularity, and with new options all the time, investors have their pick of active approaches. American Century Investments is the latest firm to add to the category, with two new active options therein, with growth and value approaches.
See more: American Century’s Greenblath Talks Corporate Bonds, Yields
The shop launched the American Century Small Cap Growth Insights ETF (ACSG) and American Century Small Cap Value Insights ETF (ACSV) this week. The pair of funds lean on the firm’s small-cap growth and value teams, applying a bottom-up stock selection process. The ETFs emphasize the company’s proprietary fundamental research, seeking accelerating growth and improving business fundamentals.
Active Small-Cap ETFs to Watch
“We’re delighted to launch two Small Cap Insights ETFs today. ACSG and ACSV combine our deep fundamental expertise with disciplined portfolio construction to offer robust, repeatable and resilient paths to seeking alpha,” said Victor Zhang, chief investment officer. “These offerings marry our long history of successful stock selection in small caps with the attributes of ETFs many investors prefer.”
The move comes as the firm’s ETFs have taken in big inflows this year. Altogether, five of American Century Investments’ ETFs have added more than $1 billion in net inflows YTD. The leading ETF by flows, the Avantis Emerging Markets Equity ETF (AVEM ), has added more than $4 billion YTD.
“American Century has quickly established a leadership presence with their active ETF lineup,” said VettaFi head of research Todd Rosenbluth. “It is great to see them expand their lineup with small-cap strategies that can benefit as interest rates decline.”
Looking ahead, the funds’ could make for intriguing adds at the edges of an existing equity allocation. Active ETFs are serving bigger and bigger roles for investors and advisors. As the economic picture changes, the funds offer growth and value views into the promising small-cap space.
For more news, information, and analysis, visit the Core Strategies Content Hub.
