American Century International, Value ETFs Draw Investor Interest

Core Insights - International equities and value-oriented strategies are gaining investor interest, particularly highlighted by the inflows into the American Century Quality Diversified International ETF (QINT) [3][5] - The QINT fund has attracted over $27 million in the last month and nearly $88 million year-to-date, indicating strong demand for international exposure [4] - American Century manages nearly $6 billion across more than 15 ETFs, with the largest being the American Century U.S. Quality Growth ETF (QGRO) at over $2 billion [4] International Equities - The appeal of QINT is attributed to its international exposure, as non-U.S. markets have outperformed recently, prompting advisors to seek diversification outside the U.S. [5][6] - Testani noted that 70% of companies are located outside the U.S., while the U.S. accounts for nearly two-thirds of global market capitalization but only 25%-30% of global GDP, suggesting significant opportunities abroad [6] Value Investing - As investors become disillusioned with the concentration of the "Magnificent Seven" stocks in U.S. indexes, there is a growing interest in value investments [7][8] - The top 10 names in U.S. growth indexes represent almost 60% of the index, while in the S&P 500, they account for nearly 40%, indicating a high concentration risk [7] - Funds like the Focused Large Cap Value ETF (FLV) are gaining traction by providing broader exposure to sectors such as healthcare and financials [8][9] Municipal Bonds - The American Century Diversified Municipal Bond ETF (TAXF) is attracting interest, having pulled in approximately $38 million year-to-date, with a total of $582 million in assets [11] - Municipal bonds offer tax exemptions and have a low default rate, with some bonds classified as high yield due to lack of ratings, presenting opportunities for active managers [12][13] - Nearly 13% of TAXF's portfolio consists of high-yield municipal bonds, indicating a fertile ground for value addition in the municipal bond space [13]