QPFF Profile
The American Century Quality Preferred ETF is an actively managed fund designed to provide investors with exposure to a diverse range of preferred securities, both from U.S. and non-U.S. issuers. Under normal market conditions, the fund allocates at least 80% of its net assets, including any borrowings for investment purposes, to preferred securities. These include various types of preferred stock, hybrid preferred securities combining features of both stock and debt, and floating rate preferred securities.
The fund's investment universe extends to junior subordinated debt and senior unsecured debt obligations, typically denominated in $25 par amounts. It may also include re-packaged preferreds and convertible securities, which offer the potential to convert into common stock under specified conditions. This broad spectrum of securities aims to provide income generation and potential capital appreciation while seeking to manage risk through diversified exposure.
Managed with a focus on quality, the fund employs rigorous selection criteria to identify preferred securities with strong credit profiles and favorable financial characteristics. The portfolio managers analyze various factors, including issuer creditworthiness, security structure, and market conditions, to build a portfolio that aligns with the fund’s objectives. This strategy aims to deliver attractive yields while maintaining a prudent approach to credit risk.
The American Century Quality Preferred ETF is non-diversified, which means it may concentrate its investments in fewer securities or sectors compared to more broadly diversified funds. Investors should be aware of the potential risks associated with preferred securities, such as interest rate sensitivity and credit risk, and consider how this fund fits within their overall investment strategy and risk tolerance.
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