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Benzinga
Benzinga
Business
Chandrima Sanyal

American Century Bets Big On Small Caps With Two New Active ETFs

Etf,Exchange-traded,Fund,Stock,Market,Trading,Investment,Financial,Concept.

American Century Investments, the $300 billion international asset manager, expanded its ETF family with the launch of two core active small-cap funds: the American Century Small Cap Growth Insights ETF (BATS:ACSG) and the American Century Small Cap Value Insights ETF (BATS:ACSV).

• See what is driving ACSG stock here.

The new funds aim to provide investors with benchmark-consistent exposure to small-cap stocks, blending the firm's long history of successful stock selection with the flexibility and efficiency of ETFs. ACSG and ACSV provides strong, repeatable and resilient avenues for pursuing alpha, said Victor Zhang, chief investment officer at American Century.

Drawing on American Century’s experienced small-cap equity groups, the ETFs employ a bottom-up stock selection methodology based on proprietary fundamental research.

ACSG seeks companies with growth rates accelerating and business fundamentals strengthening, and ACSV seeks higher-quality businesses sold at below their perceived fair value. Both funds integrate systematic, risk-sensitive portfolio construction designed to address the liquidity, tax efficiency and pricing requirements of the ETF marketplace.

Also Read: Navitas Ignites 400% ETF Explosion—AI Mania Hits The Chip Sector

The American Century small-cap equities team has $48 billion in combined assets under management.

“Small caps offer ample opportunities for price discovery,” said Senior Portfolio Manager Stephen Quance. “ACSG and ACSV combine the deep, bottom-up research experience of American Century’s seasoned small cap growth and small cap value teams with quantitative tools to optimize portfolio construction, enhance tax efficiency and minimize transaction costs through efficient ETF execution.”

With the introduction of these ETFs, American Century further enhances its leadership in the active ETF arena, providing investors with focused access to small-cap growth and value strategies through the transparency, flexibility and tax benefits inherent in ETF structures.

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Photo: Family Stock via Shutterstock

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