American Century Core Plus Income ETF (ABND)

Overview

The fund operates within the fixed income market, leveraging a diversified investment approach. It targets various sectors of the market to ensure a balanced portfolio that can mitigate risks while aiming for steady returns. By investing in a wide range of fixed-income instruments, the fund seeks to maintain a flexible investment strategy aligned with its objectives. The inclusion of derivative instruments, within regulatory and strategic boundaries, further diversifies its investment capabilities, enhancing its ability to respond to market changes and opportunities.

Products and Services

• Corporate Bonds and Notes

  This category includes debt securities issued by corporations to fund their operations, expansions, or projects. These instruments offer investors a fixed or variable interest rate in return for lending their money to the issuing company for a predefined period.

• Government Securities

  Investments in government-issued debt securities provide a way to lend money to government entities. These can range from treasury bills and notes to bonds, offering relatively low-risk fixed income returns, depending on the country and its current economic status.

• Securitized Credit Instruments

  These are financial securities that are created by pooling various types of debt, including mortgages, car loans, or credit card debt, and then selling pieces of that pool to investors. This diversifies investment risk and gives investors access to a broader range of credit opportunities.

• Emerging Markets Debt Securities

  This segment involves investing in debt instruments issued by developing countries. While typically offering higher yields than more developed market instruments, they come with an increased level of risk due to economic variability, political instability, and less liquid markets.

• Derivative Instruments

  The fund may use derivatives - financial contracts whose value is linked to the performance of an underlying asset, index, or interest rate. These can include futures, options, and swaps. Properly used, derivatives can help in hedging against risks, enhancing liquidity, or even speculating on future price movements, provided these actions align with the fund’s overall investment objectives.