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2021 Distribution Calendar
Seeks to provide high current income.
The fund is an actively managed Exchange Traded Fund (ETF) that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer. Generally, as interest rates rise, the value of the securities held in the fund will decline. The opposite is true when interest rates decline. The lower rated securities in which the fund invests are subject to greater credit risk, default risk and liquidity risk.
Actively invests primarily in BB and B-rated debt issues in pursuit of high current income and risk-adjusted returns.
The fund is subadvised by a veteran team at Nomura Corporate Research and Asset Management, a firm that has specialized in the high yield market since its founding in 1991.
The managers apply a research-intensive process that seeks to identify companies they believe can:
A top-down macro overlay establishes duration and ratings distribution.
Sector allocations are determined through bottom-up security selection.
Price to Book Ratio: The price per share divided by book value per share.
Price/Earnings Ratio: The price per share divided by earnings per share.
Weighted Average Market Cap: The weighted average market value of a company's outstanding shares.
Equity Beta: Beta is a measure of the tendency of securities to move with the market as a whole. A beta of 1 indicates that the security's price will move with the market. A beta less than 1 indicates the security tends to be less volatile than the market, while a beta greater than 1 indicated the security is more volatile than the market. Calculated vs. STOXX®.
Number of Holdings: The number of holdings in the fund excluding cash positions and derivatives such as futures and currency forwards.
Option Adjusted Duration (OAD): OAD is the effective duration. It is a duration calculation for bonds that have embedded options. This measure of duration takes into account the fact that expected cash flows will fluctuate as interest rates change. The effective duration measures the percentage change in price for a 100 basis points parallel shift in the yield curve. Positive duration means that as rates rise, the price decreases, and negative duration means that as rates rise, the price increases.
Weighted Average Coupon: The weighted average interest rate paid by the securities in the pool.
Option Adjusted Spread (OAS): The measurement of the spread (in Basis Points) of a fixed-income security rate and the risk-free rate of return, which is adjusted to take into account an embedded option.
Bid Ask Midpoint:
The midpoint between the highest bid and the lowest offer on the primary listing exchange, as of the time that the Fund's NAV is calculated, generally around 4 p.m. (Eastern time).
The price of the last reported trade on the fund's primary exchange.
Average annual returns illustrate the annual compounded returns that would have produced the cumulative total return if the fund's performance had remained constant throughout the period indicated. Returns for periods less than one year are not annualized.
ETF Market Performance (Inception to Date):
The fund's per share Net Asset Value (NAV) is the value of one share of the fund. Market Price is determined by using the midpoint between the highest bid and the lowest offer on the primary stock exchange on which the shares of the fund are listed for trading, as of the time that the fund's NAV is calculated. The NAV Return is based on the NAV of the fund, and the Market Price Return is based on the market price per share of the fund. Since shares of the fund did not trade in the secondary market until after the fund's inception, for the period from inception to the first day of secondary market trading in shares of the fund, the NAV of the fund is used as a proxy for the Market Price to calculate market returns. Market Price and NAV returns assume that dividends and capital gain distributions have been reinvested in the fund at Market Price and NAV, respectively.
30-Day SEC Unsubsidized Yield: Represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund's share price at the end of the 30-day period. Unsubsidized yield does not adjust for any fee waivers and/or expense reimbursements in effect.
12 Month Distribution Rate: The sum of a fund's total trailing 12-month interest and dividend payments divided by the most recent day's ending share price (NAV).
Yield to Maturity: The internal rate of return of the security based on the given market price—it is the single discount rate that equates a security price (inclusive of accrued interest) with its projected cashflows.
Yield to Worst: Lowest yield possible for a security given the current price, taking into account both call dates and maturity.
Maturity: Describes the portfolio of the fund in terms of the different maturities of the securities it holds.
Weighted average life to maturity (WALM) is a measure of the sensitivity of a fixed income portfolio to interest rate changes. WALM is the average time in years to receive the principal repayments. Accordingly, WALM reflects how a portfolio would react to deteriorating credit or tightening liquidity conditions.
Managing Director, Portfolio Manager
Executive Director, Portfolio Manager
President, Chief Executive Officer, Chief Investment Officer, and Managing Director
Vice President, Portfolio Manager
Index performance does not represent the fund's performance. It is not possible to invest directly in an index.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
This fund is an actively managed ETF that does not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.
Generally, as interest rates rise, the value of the securities held in the fund will decline. The opposite is true when interest rates decline.
The lower rated securities in which the fund invests are subject to greater credit risk, default risk and liquidity risk.
The gross expense ratio is the fund's total annual operating costs, expressed as a percentage of the fund's average net assets for a given time period. It is gross of any fee waivers or expense reimbursement. The net expense ratio is the expense ratio after the application of any waivers or reimbursement. This is the actual ratio that investors paid during the fund's most recent fiscal year. Please see the prospectus for more information.
Nomura Corporate Research and Asset Management (NCRAM) is affiliated with American Century Investments. NCRAM is not affiliated with Foreside Fund Services, LLC.
For detailed descriptions of indices or investing terms referenced above, refer to our glossary.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investments Services, Inc.