American Century Investments has transferred its first two semi-transparent ETFs to hit the market to a new exchange. The American Century Focused Dynamic Growth ETF (NYSE Arca: FDG) and the American Century Focused Large Cap Value ETF (NYSE Arca: FLV) have moved from the Cboe BZX Exchange to the NYSE Arca.
No shareholder action is expected because of this change, according to the fund manager. Nor is the transfer expected to affect the trading of fund shares.
FDG is a high-conviction, large-cap growth portfolio that seeks out companies with opportunities to sustain their above-average growth. Top stocks among its 38 holdings as of Oct. 23 were Amazon.com Inc. (at 8.58%), NVIDIA Corp. (7.65%), and Tesla Inc. (7.30%).
FLV, meanwhile, invests in a high-conviction portfolio of high-quality, large-cap companies that the managers believe are undervalued.
Both funds are actively managed.
See more: “Semi-Transparent ETFs Are Alive and Well”
The Semi-Transparent Approach
Launched in 2020, FDG and FLV were the first ever semi-transparent ETFs to be launched. Rene Casis, head of portfolio solutions, recently explained to VettaFi when taking the semi-transparent approach works best.
“The semi-transparent approach is appropriate for strategies where we feel doing so will ensure the maximum alpha potential to our clients will not be compromised through daily publication of holdings,” Casis said.
American Century’s head of ETF product & strategy Sandra Testani said that the increase in active ETF offerings and awareness has given investors more options when making their allocation decisions.
“Active ETFs, in general, offer improved cost and tax efficient structures to provide time-tested strategies that have not previously been available in what has become investors preferred investment vehicle,” Testani said.
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