AVMA Profile
The American Century ETF Trust Avan (ticker: AVMA) is designed to achieve long-term capital appreciation through a diversified approach that includes both equity and fixed income exchange-traded funds (ETFs). As a fund-of-funds, AVMA strategically allocates its assets across various ETFs to capitalize on market opportunities and enhance returns. The fund aims to overweight securities anticipated to outperform those in a passive, market cap-weighted index, thereby seeking superior returns compared to traditional benchmarks.
On the equity side, the fund maintains a targeted allocation strategy with a focus on U.S. funds, which are expected to constitute 40-60% of its equity holdings, with a target weight of 47%. It also invests in developed markets outside the U.S., with allocations ranging from 7-20% and a target of 12%. Emerging markets are allocated between 3-10%, with a target weight of 6%. Additionally, real estate ETFs may make up to 5% of the fund, with a 2% target weight. This diversified geographical allocation reflects a market-cap-based approach with a bias towards U.S. equities.
The fixed income component of AVMA targets an allocation of 30-40% of its assets, with a specific target weight of 33%. This portion of the portfolio is designed to provide stability and income, complementing the equity investments. The fund’s allocations are regularly reviewed and adjusted based on market conditions, investment costs, and tax implications. This active management ensures that the fund remains aligned with its investment objectives while responding to changing market environments.
As an actively managed ETF, AVMA provides its fund managers with the flexibility to make buy, sell, and hold decisions at their discretion. This includes the ability to modify target ranges and adjust the underlying funds based on evolving market conditions and investment opportunities. This dynamic approach allows the fund to adapt to market trends and optimize performance, aiming to deliver long-term capital growth for its investors.
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