American Century® Diversified Corporate Bond ETF (KORP)

Designed to Adapt to Changing Markets

Opportunities in corporate bonds continually change with the ups and downs of markets, interest rates, and economic conditions. See how these changes have meant both higher highs and lower lows for high yield versus investment grade bonds.

That's why you may want to consider a portfolio that can adapt when markets shift.

KORP: Dynamic Adjustments Designed to Seize Opportunities

American Century Diversified Corporate Bond ETF (KORP) seeks to take advantage of changing opportunities with a holistic investment process that actively manages duration and dynamically adjusts high yield and investment grade allocations to pursue:

  • Enhanced yield versus investment grade credit
  • Reduced downside versus high yield
  • Less exposure to interest rate risk

View KORP's fund details including current yield and duration.

  • Holistic Investment Process
  • Adjusts to Changing Markets

KORP integrates fundamental and quantitative expertise in a systematically managed portfolio. The investment process combines three key components that are designed to balance interest rate and credit risk and provide enhanced returns versus passive strategies.

Investment Grade and High-Yield Allocations

Dynamically adjusts investment grade and high yield components in an effort to balance interest rate and credit risk

Company Analysis and Bond Selection

Screens individual credits to seek those with sound fundamentals, reduced default risk, and attractive valuations

Industry and Duration Exposures

Adjusts industry and duration exposures as risks and opportunities emerge

History has demonstrated that allocating an average of 15 percent high yield to an investment grade portfolio has lowered its overall volatility*. Yet high yield performance can vary. To take advantage of these changes, KORP dynamically adjusts its high yield allocation based on market conditions.

1. High Spread Differential

High yield has historically outperformed during periods with consistently low volatility and high spread differential.* Under these conditions, the portfolio overweights high yield.

2. Low Spread Differential

High yield has historically underperformed during periods with low spread differential.* Under these conditions, the portfolio underweights high yield.

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High Yield: Higher Highs and Lower Lows Versus Investment Grade

Annualized Returns 2007 - 2017

KORP Materials

Discover KORP

Discover KORP

Learn more about the KORP fund characteristics and performance.

Share with Your Clients

Share with Your Clients

Download our client-ready flyer  to share with your clients.

Additional Resources

market chart

Tools of the ETF Trade

Understanding ETF liquidity and trading.

Total Cost of Ownership

Total Cost of Ownership

Always remember to look under the hood.

Our Growing ETF Lineup

Our Growing ETF Lineup

Learn more about our ETF products.

* Historical analysis based from January 1993 to July 2017. Source: FactSet, American Century Investments

Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price, not Net Asset Value (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.

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.

Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investments Services, Inc.