The past year has seen significant challenges, from persistently high inflation to increasing evidence of climate change to the war in Ukraine. But there was some good news sprinkled throughout the year. Jobs remain plentiful. President Joseph R. Biden signed the biggest climate bill into law. And shareholders are demanding that companies commit to reducing their carbon emissions and making a positive social impact.
According to American Century Investment’s second annual Mid Cap Growth Impact ETF Impact Report, the American Century Mid Cap Growth Impact ETF (MID) invests in innovative businesses believed to have strong balance sheets, are making a positive societal impact, and may grow as a consequence of durable investment themes.
“We believe our investment decisions can make the world a better place and offer compelling financial returns. These goals are not mutually exclusive,” according to American Century. “We believe change and challenge can bring wonderful purpose to human lives and often are the engine for growing businesses. We endeavor to add long-term outperformance by investing in innovative companies at the nexus of profit and purpose.”
Per its product website, MID uses proprietary fundamental research to:
- Identify mid-cap stocks that managers believe will increase in value over time.
- Identify companies that, according to the United Nations Sustainable Development Goals (SDG), generate, or could generate, ESG impact alongside a financial return.
“Planetwide disruption is occurring at a quickening pace. Geopolitical conflict, inflation, and an energy crisis have joined the fray that already included supply chain friction, climate change, and a pandemic,” said Rob Brookby, senior portfolio manager at American Century Investments. “We frame our investment opportunities more than ever in terms of problems and solutions.”
Brookby added: “Against these problems, we look to invest in companies whose solutions deliver innovation, resilience, and sustainability, each with measurable impact. In doing so, we can find the intersection of investing for growth and purpose.”
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