(AVSC) American Century Trust - Ratings and Ratios

The American Century ETF Trust (AVSC) is designed for investors seeking exposure to small-capitalization companies in the U.S., with a focus on value. The fund typically allocates at least 80% of its assets to these small-cap equities, which are historically more volatile but offer substantial growth potential. This strategic focus allows investors to tap into companies that may be overlooked by larger funds, potentially leading to higher returns over the long term.

As an actively managed ETF, AVSC differentiates itself by not adhering to a specific index. This approach relies on the expertise of its portfolio managers, who continually analyze market trends and financial data to make informed investment decisions. While active management can lead to outperformance, it also introduces the risk of underperformance relative to passively managed funds.

In addition to its equity investments, AVSC engages in securities lending to generate additional income. The collateral from these activities is typically invested in low-risk instruments, such as government money market funds, enhancing the funds overall returns without exposing investors to undue risk. This strategy is particularly beneficial in low-yield environments, where maximizing income is crucial.

With an AUM of approximately $1.5 billion, AVSC is sizable enough to maintain liquidity while remaining agile in the small-cap market. This balance allows the fund to capitalize on emerging opportunities without the constraints faced by much larger funds. For investors looking to integrate small-cap value exposure into their portfolios, AVSC presents a compelling option, offering both the potential for growth and the income benefits of securities lending.