LVOL Profile
American Century Low Volatility ETF is designed to provide investors with exposure to U.S. companies exhibiting lower volatility compared to the broader market. The fund primarily invests in common stocks of U.S. companies with a market capitalization exceeding $2 billion. By focusing on these large-cap stocks, the ETF aims to offer a more stable investment profile relative to the S&P 500 Index, its benchmark.
The ETF employs an advanced stock selection process that goes beyond traditional measures of price volatility. This approach incorporates metrics of asymmetric volatility, focusing on securities from businesses with stable operations, consistent cash flows, and robust balance sheets. By targeting companies with these attributes, the fund seeks to reduce realized portfolio volatility and deliver more predictable returns.
As an actively managed ETF, American Century Low Volatility does not aim to replicate the performance of a specific index. Instead, it leverages active management techniques to identify and invest in stocks that are expected to exhibit lower volatility and consistent performance. This strategy is designed to provide investors with a defensive investment option that seeks to minimize risk while achieving steady returns.
Overall, the American Century Low Volatility ETF offers a refined investment approach for those seeking lower risk and enhanced stability within the U.S. equity market. Its focus on companies with stable financial fundamentals and the application of sophisticated volatility measures position it as a prudent choice for risk-averse investors aiming to balance growth with capital preservation.
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