TAXF Profile
American Century Diversified Municipal Bond ETF is an exchange-traded fund focused on providing investors with exposure to a diversified portfolio of municipal and debt securities. The fund's primary objective is to offer income that is exempt from federal income taxes by investing in municipal securities. Under normal market conditions, the portfolio managers allocate at least 80% of the fund's net assets, including any borrowings for investment purposes, to municipal securities that provide tax-exempt interest payments.
The fund’s investment strategy emphasizes investment-grade municipal bonds, which are issued by state and local governments or their agencies to finance public projects. These bonds are known for their relatively low credit risk and tax advantages. However, the fund retains the flexibility to invest in high-yield securities, commonly referred to as junk bonds, if the portfolio managers believe these investments offer attractive risk-adjusted returns. This approach allows the fund to seek additional yield while maintaining a core focus on high-quality municipal debt.
American Century Diversified Municipal Bond ETF is designed to provide investors with a stable income stream while minimizing federal tax liabilities. By focusing on municipal bonds, the fund benefits from the tax-exempt status of the interest payments, which can be particularly advantageous for investors in higher tax brackets. The inclusion of high-yield securities in the portfolio offers the potential for higher returns, though it also introduces an element of increased risk.
Managed by American Century Investments, the ETF leverages the firm's extensive experience in fixed-income investing and municipal markets. American Century employs a disciplined approach to bond selection and portfolio management, combining fundamental credit analysis with market insights to construct a diversified and tax-efficient portfolio. The American Century Diversified Municipal Bond ETF provides investors with a strategic tool for achieving tax-exempt income and managing fixed-income exposure in a balanced manner.
|
