KORP Profile
The American Century Diversified Corporate Bond ETF is designed to provide investors with exposure to a diversified portfolio of corporate debt securities. Under normal market conditions, the fund's portfolio managers are committed to investing at least 80% of the fund's net assets, including any leverage employed for investment purposes, in a broad range of corporate debt instruments. This includes bonds issued by corporations across various sectors and industries, aimed at delivering a steady income stream and potential capital appreciation.
The ETF focuses on corporate bonds with a diverse range of credit qualities and maturities, aiming to balance yield and risk. The fund's investment strategy includes both investment-grade and high-yield corporate debt, providing investors with access to a wide spectrum of credit profiles. The goal is to construct a portfolio that maximizes income while managing exposure to credit risk through diversification.
The weighted average duration of the fund's portfolio is expected to be maintained between three and seven years under normal market conditions. Duration measures the sensitivity of the bond portfolio's price to interest rate changes, with a focus on managing interest rate risk. By targeting this duration range, the fund aims to strike a balance between potential yield and interest rate volatility, aligning with investors' risk tolerance and investment objectives.
Investors in the American Century Diversified Corporate Bond ETF gain exposure to a broad spectrum of corporate bonds, potentially benefiting from a diversified income stream and the stability of a well-managed bond portfolio. The fund is particularly suited for those seeking to enhance their fixed-income allocations with corporate debt, offering a strategic approach to income generation and risk management in a dynamic interest rate environment.
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