QCON Profile
The American Century Quality Convertible Securities ETF is an actively managed exchange-traded fund (ETF) that primarily focuses on investing in convertible securities. Convertible securities, which blend features of both bonds and common stocks, typically include debt instruments and preferred stocks that can be converted into or exchanged for a predetermined number of common shares or other equity securities within a set timeframe and at a specified price. Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowed funds, to these convertible securities.
The ETF's investment strategy emphasizes securities that combine fixed income and equity characteristics, offering potential benefits from both bond-like income and stock-like capital appreciation. Convertible securities are often favored for their ability to provide stable income through interest or dividends while also allowing investors to participate in the upside potential of the underlying stock if conversion is exercised. The fund's managers may also invest in high-yield securities, commonly referred to as junk bonds, which offer higher returns compared to investment-grade bonds but come with increased risk.
The American Century Quality Convertible Securities ETF is designed for investors seeking exposure to convertible securities with an emphasis on quality. By focusing on high-quality convertible securities, the fund aims to offer a balanced risk-return profile, benefiting from both the stability of bonds and the growth potential of stocks. The ETF's approach allows investors to potentially capture capital appreciation while maintaining income stability through convertible securities.
The fund is non-diversified, concentrating its investments within the convertible securities sector. This concentration can lead to higher volatility and risk, but also potentially greater rewards if the underlying convertible securities perform well. Investors should consider their risk tolerance and investment objectives when considering this ETF, as its performance is closely tied to the dynamics of the convertible securities market and high-yield investments.
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