American Century® Select High Yield ETF's Average Process Pillar and People Pillar ratings result in a Morningstar Medalist Rating of Neutral. The portfolio maintains a sizable cost advantage over competitors, priced within the least expensive fee quintile among peers.  

 The strategy gets an Average Process Pillar. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in corporate bonds and B rated bonds compared with category peers. The strategy’s management team earns an Average People Pillar rating. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Morningstar's style-agnostic investment process evaluation looks for strategies that should be able to outperform their Morningstar Category index on a risk-adjusted basis over time. American Century® Select High Yield ETF earns an Average Process Pillar rating.    The most important driver of the rating is the firm's five-year retention rate of 83% over the period. The depth of the portfolio management team also supports the rating. With five portfolio managers, the fund is well-staffed. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 51%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's subpar success ratio suggests that the firm could do better across its fund lineup.

 Compared with other funds in the High Yield Bond Morningstar Category, this fund's cash position and interest-rate sensitivity are historically in line with peers over the past few years. 

 This strategy's 12-month yield is 5.4%, lower than its average peers' 6.4%. Plus, its 30-day SEC yield (a measure similar to yield-to-maturity) sits at 6.7%. While a lower yield may deliver less income, it also tends to indicate lower credit risk. But that isn't always the case. Over the past 12 months, the average yield of the fund has been lower than the average yield of its Morningstar Category peers. The portfolio's average surveyed credit quality is on par with peers, with both the fund and the average being rated B.

Average

Process

American Century® Select High Yield ETF earns an Average People Pillar rating. Stephen S. Kotsen’s veteran status, with over 25 years of listed portfolio management experience, brings a wealth of experience to the table. The average Morningstar Rating of the strategies they manage is 3.6 stars, demonstrating above-average risk-adjusted performance. Stephen S. Kotsen is supported by an experienced team, being able to draw on four additional listed managers, who average 16 years of listed portfolio management experience.  

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

People

An evolution is taking hold at American Century, but some pluses and minuses continue, supporting a continued Parent rating of Average.
The firm entered the ETF market in 2019 by launching Avantis Investors, led by former executives from Dimensional, a strong firm that manages semi-passive strategies with value tilts and low fees. Avantis is now running roughly a dozen ETFs with similar features, while American Century’s in-house teams manage another 16 active ETFs. This effort is still fairly new and small as a percentage of assets under management, as most ETFs have been launched since 2019, but they help American Century compete with lower-cost passive and strategic-beta funds.
The bulk of the firm’s assets remain in U.S. mutual funds run by its internal boutiques. The U.S. value team has long been a standout, with tenured, stable management and good long-term results, but other investment teams haven’t produced consistently distinctive portfolios or performance, and some have continued to endure investment-professional turnover.
The firm’s ownership structure is noteworthy and supports a long-term strategy. While the firm has worked with a few large minority shareholders, including current 41% stakeholder Nomura, The Stowers Institute for Medical Research owns 45% of the firm but holds 70% of the equity voting rights. Employees own the rest, which should encourage retention.

Parent

American Century Select High Yield ETF

AHYB is an actively managed portfolio of high-yield corporate bonds with typically 3 to 10 years maturity.

American Century Emerging Markets Bond ETF

The recent pause in interest rate hikes by the Federal Reserve could finally signal an end to monetary policy tightening. But fixed income investors can keep on reaching for high yield opportunities with a pair of active ETFs from American Century.

Reach for High Yield With These 2 Active ETFs

American Century Multisector Floating Income ETF

The capital markets expect the U.S. Federal Reserve to eventually pivot from its tight monetary policy options. Therefore, fixed income investors should take advantage of yield while it's available.

Looking for Yield? 3 Active ETF Options to Consider

A recent Fed pause on interest rates could put pressure on lower yields. However, fixed income investors can dial up the yield with active exchange traded funds (ETFs) like the American Century Select High Yield (AHYB).

Fixed Income Investors Can Dial Up the Yield With This ETF

American Century Diversified Corporate Bond ETF

Investors are diving into bonds once again after a forgettable year for the fixed income market. Getting active exposure via exchange-traded funds (ETFs) could help ease any anxiety for unknowns in 2023.

As Large Investors Head Back Into Bonds, Consider These 2 Active ETFs

Have you heard? Bonds are back, with rising rates positioning debt securities from all sorts of subsectors to provide notable yields and long term stability for portfolios beleaguered by the prospect of a looming recession.

Play American Century Bond Trio as FI Rebounds

After a rough first half for the bond market, there could be some value to attain for savvy investors, including opportunities in high yield. Getting in the way of more capital into the high-yield bond market is, of course, recession fears.

Reach for Higher Yield and Active Management With This ETF

The bond market has already been tricky to navigate, especially given the overall weakness in prices amid rising inflation and a tightening Federal Reserve policy. This is especially the case for fixed income investors who are opting to chase yield via riskier assets.

Take an Active Approach to High Yield With American Century's AHYB

With interest rates rising and the Federal Reserve putting the pedal to the metal on that front, fixed income investors are enduring trying times in 2022. On that note, it's likely to surprise some market participants that high-yield corporate bonds could prove durable amid the Fed's latest tightening cycle.

Consider This ETF if High-Yield Bonds Surprise

KANSAS CITY, Mo., Nov. 18, 2021 /PRNewswire/ -- Global investment managers American Century Investments and Nomura Asset Management announced the launch of a new exchange traded fund (ETF): American Century Select High Yield (AHYB). The new transparent active ETF will be listed on the New York Stock Exchange (NYSE Arca, Inc.).

American Century Investments And Nomura Launch Active ETF For High Yield Bonds

American Century Investments has partnered with Nomura Asset Management to launch a new active ETF, the American Century Select High Yield (AHYB), which follows an investment strategy that aligns with an American Century mutual fund focused on high income, according to the press release. The fund focuses on high-yield corporate bonds that are rated BB [.

News for American Century Select High Yield ETF ETF (AHYB)