STOXX Ltd., the operator of Deutsche Boerse Group’s index business, and a global provider of innovative and tradable index concepts, announced that it has licensed its iSTOXX® American Century USA Quality Value Index to American Century Investments as an underlying for an exchange-traded fund (ETF).
Our goal with the launch of American Century® ETFs is to provide innovative strategies that strive to deliver better outcomes for investors,” said Ed Rosenberg, Senior Vice President, Head of ETFs for American Century. “We are excited to be launching our first two ETFs, which we see as ‘core’ investments that can serve as a central, foundational component of a long-term portfolio.
We were pleased to launch this style index together with American Century Investments and to give U.S. investors access to this theme in the form of an exchange-traded fund. The objective of the iSTOXX American Century USA Quality Value Index is to invest in high quality companies in the STOXX USA 900 Index that have sound fundamentals and attractive valuation and in companies with sustainable income that are high dividend payers respectively,” added Matteo Andreetto, chief executive officer, STOXX.
The iSTOXX® American Century USA Quality Value Index concept allocates dynamically to both a value and an income strategy. The allocation of the strategies is governed by a risk-adjusted momentum signal. The value strategy of the index is the iSTOXX® American Century USA Value Index which aims at investing in quality companies with sound fundamentals and attractive valuation. The income strategy is the iSTOXX® American Century USA Income Index which aims at investing in quality companies with sustainable income and are high dividend payers.