Kansas City-based American Century Investments is about to start a new chapter in its 59-year history, planning to launch its series of actively managed exchange-traded funds.
American Century hired Edward Rosenberg to the new position of senior vice president and head of ETFs. He has nearly 20 years of experience working with ETFs for providers such as Vanguard, Russell Investments and Northern Trust. American Century hopes to launch new ETFs in early 2018.
ETFs are securities that typically track a specific market index or investment category. They are similar to index mutual funds but with the trading flexibility of individual stocks and lower trading fees. They also offer greater tax efficiency as an investment. When mutual funds sell off the stocks within their funds at a gain, it triggers capital gains taxes that are distributed among all of the mutual fund’s investors. Exchange-traded funds don’t have those embedded capital gains.
MacEwen said American Century’s ETFs probably won’t mirror its existing mutual funds. That said, the ETFs will leverage the investing experience at American Century.