The ETF landscape is continuously evolving, with active ETF launches emerging as a significant trend this year. Among these, active small-cap ETFs are gaining traction, offering distinct advantages that contribute to their rising popularity. Investors now have a plethora of active options to choose from, thanks to the ongoing introduction of new funds. Recently, American Century Investments has expanded this category by launching two new active ETFs focused on growth and value strategies.
See more: American Century’s Greenblath Talks Corporate Bonds, Yields
This week, the firm introduced the American Century Small Cap Growth Insights ETF (ACSG) and the American Century Small Cap Value Insights ETF (ACSV). These funds leverage the expertise of the firm’s small-cap growth and value teams, utilizing a bottom-up stock selection process. The ETFs focus on the company’s proprietary fundamental research, aiming to identify stocks with accelerating growth and improving business fundamentals.
Active Small-Cap ETFs to Watch
“We’re delighted to launch two Small Cap Insights ETFs today. ACSG and ACSV combine our deep fundamental expertise with disciplined portfolio construction to offer robust, repeatable, and resilient paths to seeking alpha,” stated Victor Zhang, chief investment officer. “These offerings marry our long history of successful stock selection in small caps with the attributes of ETFs that many investors prefer.”
This launch comes at a time when American Century Investments has experienced significant inflows this year. In total, five of their ETFs have garnered over $1 billion in net inflows year-to-date. Leading the pack is the Avantis Emerging Markets Equity ETF (AVEM), which has attracted more than $4 billion in inflows this year.
“American Century has quickly established a leadership presence with their active ETF lineup,” remarked Todd Rosenbluth, head of research at VettaFi. “It is great to see them expand their lineup with small-cap strategies that can benefit as interest rates decline.”
Looking ahead, these funds could serve as intriguing additions to an existing equity allocation. Active ETFs are increasingly playing a vital role for both investors and advisors. As the economic landscape shifts, these funds provide valuable growth and value perspectives within the promising small-cap sector.
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