America Century lists opaque active value and growth ETFs
American Century, the mutual funds giant, is listing two actively managed ETFs that hide their holdings.
- American Century Focused Dynamic Growth ETF (FDG)
- American Century Focused Large Cap Value ETF (FLV)
Both funds are fairly biscuit tin and will be benchmarked against Russell 1000 growth and value indexes.
FLV buys companies with strong fundamentals that look temporarily mispriced given their profits and competitive position. It holds 30 – 50 companies at any time. It charges 0.42%.
FDG buys companies expected to experience rapid share price growth. It picks stocks with the view that stock price growth follows earnings growth. It holds 30 – 45 companies and charges 0.45%.
Taiwan cyber security
Cyber security has been a popular theme for ETFs all around the world. And now it’s coming to Taiwan, thanks to the Cathay Cyber Security ETF (008725).
The new fund will track the Nasdaq ISE Cyber Security Index, which is made of companies that build antivirus software, firewalls, VPN technology, remote video, and privileged account management. This is the same index tracked by the $1.1 billion HACK ETF listed in the US.
The fund charges 1.1%.
E Fund, one of the largest asset managers in China, is listing a Chinese technology ETF. The E Fund CSI Technology 50 ETF (159807) will track the CSI Technology 50 Index, which gives the Chinese equivalent of the GICS technology sector, as expressed in big ETFs like State Street’s XLK.
The fund holds 90% of its assets, potentially more, in the stocks in the index. The fund is strictly actively managed, which allows the portfolio managers more discretion over cash holdings and rebalances.
No expense ratio is provided at this stage.