American Century Focused Dynamic Growth ETF (FDG)
First actively managed ETFs with quarterly disclosure debut
With an inception just making the cutoff for March, American Century Investments rolled out the first actively managed ETFs to disclose their holdings on a quarterly basis, something the ETF industry has awaited for roughly a decade.
The American Century Focused Dynamic Growth ETF (FDG) is one of a pair of such ETFs, and comes with an expense ratio of 0.45%. It lists on Cboe Global Markets, the parent company of ETF.com.
FDG holds a concentrated portfolio of 30-45 mostly large cap names believed to be in “early and rapid stage growth.” It really is a stock pickers’ fund, with securities selected based on fundamental analysis of each company. Close attention is paid to growth of earnings, revenue and cash flow, according to the prospectus.
FDG is very similar to an existing American Century mutual fund. Interestingly, the mutual fund version charges 0.67% in expense ratio for its institutional class shares, its lowest-cost share class, meaning the ETF version is cheaper by more than 20 basis points.
The ACI funds rely on the Precidian model, in which a representative of a fund’s authorized participant (AP) acts as an intermediary between the AP and the ETF, subject to a duty of nondisclosure.
Source: ETF.com. Data and information as of 3/31/2020.
ETF Filings sidebar covers launches and closures for the month of March 2020.