American Century Investments Adds 2 Active Small-Cap ETFs

American Century Investments has expanded its active ETF offerings with the launch of two new small-cap funds, the American Century Small Cap Growth Insights ETF (ACSG) and American Century Small Cap Value Insights ETF (ACSV). These new ETFs leverage the firm's proprietary fundamental research and bottom-up stock selection to identify companies with accelerating growth and improving business fundamentals. The move reinforces American Century's strong position in the active ETF market, following over $1 billion in net inflows across its ETF lineup year-to-date, and positions these small-cap strategies to potentially benefit from a declining interest rate environment.

Analysis

American Century Investments has strategically expanded its active ETF offerings with the launch of two new small-cap funds: the American Century Small Cap Growth Insights ETF (ACSG) and the American Century Small Cap Value Insights ETF (ACSV). These new ETFs leverage the firm's proprietary fundamental research and a disciplined bottom-up stock selection process, targeting companies with accelerating growth and improving business fundamentals. This move reinforces American Century's commitment to active management within the ETF landscape.

The launch follows a period of significant success for American Century's active ETF lineup, which has collectively attracted over $1 billion in net inflows year-to-date. Notably, the Avantis Emerging Markets Equity ETF (AVEM), also managed by the firm, has garnered more than $4 billion in inflows during the same period, underscoring the firm's strong market presence and investor confidence in its active strategies. VettaFi's head of research, Todd Rosenbluth, acknowledges American Century's established leadership in active ETFs.

These new small-cap strategies are positioned to potentially benefit from a declining interest rate environment, as highlighted by industry analysts. The introduction of ACSG and ACSV provides investors with additional active approaches to gain exposure to the promising small-cap space, offering both growth and value perspectives within a segment that is increasingly attracting attention. The firm's deep fundamental expertise is cited as a key differentiator for these new offerings.

Key Decisions for Investors

• Investors should evaluate the American Century Small Cap Growth Insights ETF (ACSG) and American Century Small Cap Value Insights ETF (ACSV) for potential alpha generation and diversification within small-cap allocations, particularly given the firm's established track record in active ETFs.
• Consider the broader implications of declining interest rates on small-cap performance, as these new funds are specifically positioned to benefit from such a macroeconomic shift.
• Monitor American Century's overall active ETF inflows and performance, as the firm has demonstrated strong market traction with over $1 billion in net inflows year-to-date across its ETF lineup, indicating robust investor interest.