American Century Investments is branching away from its six-decade history of managing traditional open-end mutual funds and launched its first two exchange traded funds.

On Tuesday, American Century added the American Century STOXX U.S. Quality Value ETF (NYSEArca: VALQ) and American Century Diversified Corporate Bond ETF (NYSEArca: KORP), which have a 0.29% and 0.45% expense ratio, respectively.

“Our goal with the launch of American Century ETFs is to provide innovative strategies that strive to deliver better outcomes for investors,” Edward Rosenberg, senior vice president and head of ETFs for American Century, said in a note. “We are excited to be launching our first two ETFs, which we see as ‘core’ investments that can serve as a central, foundational component of a long-term portfolio.”

The STOXX U.S. Quality Value ETF will try to reflect the performance of the iSTOXX American Century USA Quality Value Index, which is made up of 900 largest publicly traded U.S. equity securities screened and weighted by fundamental measures of quality, value and income, according to a prospectus sheet.

The quality factor screens out the bottom companies based on profitability, earnings quality, management quality and earnings estimate revisions. The valuation score is calculated by the attractiveness of each stock relative to peers in the same industry group based on value, earnings yield and cash flow yield metrics. Lastly, income sustainability is based on dividend growth and dividend coverage applied to eliminate the bottom of the universe of dividend-paying stocks, along with an income score based on dividend-yield computed for the remaining stocks.

The Diversified Corporate Bond ETF is actively managed. Portfolio managers include Kevin Akioka, Vice President and Senior Portfolio Manager, Jeffrey L. Houston, Vice President and Senior Portfolio Manager, Gavin Fleischman, Vice President and Portfolio Manager, and Le Tran, Portfolio Manager.

KORP will seek to provide current income by investing in corporate debt securities and corporate debt investments, according to a prospectus sheet. The fund invests in U.S. dollar-denominated corporate debt securities issued by U.S. and foreign entities, but may also hold securities issued by supranational entities. Additionally, up to 35% of the fund’s net assets may be invested in high-yield securities or junk bonds. The fund may also invest in derivative instruments such as futures contracts and swap agreements. The weighted average duration of the fund’s portfolio is expected to be between three and seven years.

For more information on new fund products, visit our new ETFs category.