AHYB Profile
The American Century Select High Yield ETF is an actively managed fund designed to provide investors with exposure to high-yield debt securities, commonly known as junk bonds. Under normal market conditions, the funds portfolio managers allocate at least 80% of its net assets, along with any borrowings for investment purposes, to these high-yield debt instruments. The fund focuses on corporate bonds that offer higher yields due to their lower credit ratings, making it a suitable option for investors seeking higher income potential in exchange for increased risk.
Unlike index-tracking ETFs, the American Century Select High Yield ETF does not aim to replicate the performance of a specific benchmark. Instead, its portfolio managers actively select and manage the funds holdings, leveraging their expertise to identify opportunities within the high-yield bond market. This active management approach allows the fund to adapt to changing market conditions and capitalize on emerging trends in credit markets. The funds strategy involves rigorous credit analysis and a careful balancing of risk and return, with the goal of optimizing income generation while managing credit risk.
The funds focus on high-yield corporate bonds means that it is more susceptible to credit risk than investment-grade bond funds. However, this risk is also accompanied by the potential for higher returns, particularly in environments where economic conditions support the performance of lower-rated bonds. The American Century Select High Yield ETF seeks to mitigate some of the inherent risks through diversified holdings across various sectors and issuers, while actively managing the credit quality and duration of its investments. This approach allows the fund to adjust its exposure based on the outlook for different segments of the high-yield market.
American Century Investments, the sponsor of the Select High Yield ETF, is renowned for its active management strategies and a commitment to delivering long-term value to investors. The firms fixed-income team brings extensive experience and a disciplined investment process to the management of the fund, aiming to provide a compelling income solution for investors willing to navigate the complexities of the high-yield bond market. The fund is particularly well-suited for investors who are seeking enhanced income opportunities and are comfortable with the risks associated with investing in lower-rated debt securities.
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