Holistically Managed Credit Portfolio

Corporate bonds are an important component of most fixed income portfolios. Many investors choose cap-weighted index funds for efficient exposure to this segment, often allocating separately to investment grade and high-yield ETFs to ensure they're invested across the quality spectrum.

Yet many don't realize that doing so may expose their portfolios to unseen risks:

  • Fixed income indexes typically overweight the most indebted companies and industries, which typically can mean increased credit risk.1
  • These indexes also tend to have relatively long durations, which can make them more vulnerable to rising interest rates.1
  • Changes to the interest rate and credit environment can affect the relative attractiveness of investment-grade versus high-yield bonds.

Rules-Based Approach, Enhanced by Fundamental Insights

American Century® Diversified Corporate Bond ETF (KORP) integrates fundamental and quantitative expertise in a systematically managed portfolio. By emphasizing investment grade credits while dynamically allocating a portion of the portfolio to high yield, the portfolio's holistic approach strives to offer enhanced return potential versus passive cap-weighted portfolios.

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

Why Consider KORP? View Fund Details

Interest Rate Risk Concerns

Investors concerned that a cap-weighted index approach to corporate bonds could expose their portfolios to unwanted interest rate risk

Risk-Adjusted Return Potential

Investors seeking enhanced risk-adjusted return potential from their corporate bond allocation

Market Condition Adjustments

Investors who would like a corporate bond solution that adjusts to changing market conditions

Discover KORP

Learn more about the KORP fund characteristics and performance.

Fund Details

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KORP Flyer

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 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.