What is the underlying index that the SDGA ETF aims to track?

The SDGA ETF seeks to track the performance of the American Century U.S. Quality Value Index, which is a rules-based index maintained by American Century Investment Management, Inc. This index selects undervalued or income-sustaining large- and mid-cap U.S. companies.

What types of companies are included in the SDGA ETF?

The SDGA ETF includes large- and mid-cap U.S. companies that demonstrate sustainable dividend growth characteristics. These companies are selected based on measures of quality, value, and income, with an emphasis on profitability, earnings quality, management quality, leverage, momentum, and dividend yield.

How does the SDGA ETF work?

The SDGA ETF operates by investing at least 80% of its assets in component securities of the American Century U.S. Quality Value Index. It may use a "representative sampling" strategy when replication is impractical or costly. The ETF's portfolio aims to mirror the investment profile of the underlying index through quantitative analytical procedures.

What are the advantages of investing in the SDGA ETF?

Investing in the SDGA ETF offers exposure to sustainable dividend growth companies in the U.S., which may provide attractive long-term income potential. Additionally, the ETF utilizes a rules-based approach to select companies, and it focuses on quality, value, and income metrics for potential risk and return balance.

4 min read

By Ron Koren, ETF Insider

What is the SDGA ETF ?

In today's fast-paced financial world, Exchange-Traded Funds (ETFs) have become increasingly popular among investors. One prominent ETF worth discussing is the SDGA ETF. In this article, we will delve into the key aspects of SDGA ETF, including its overview, underlying assets and exposure, benefits of investing in this ETF, and essential considerations before investing.

SDGA ETF: Overview

The SDGA ETF, short for Sustainable Development Goals Advancement ETF, is a unique investment vehicle that aims to align its portfolio with the United Nations Sustainable Development Goals (SDGs). This ETF is designed to attract socially responsible investors who seek to support companies actively contributing to sustainable development and addressing global challenges. By investing in SDGA ETF, individuals can contribute to positive change while potentially generating financial returns.

SDGA ETF: Underlying and Exposure

To understand the SDGA ETF's underlying assets and exposure, we need to explore what it tracks and how it achieves its objectives. The fund typically invests in a diverse range of companies that have demonstrated commitment to SDGs, such as renewable energy providers, eco-friendly businesses, and entities fostering gender equality and social inclusion. By analyzing the ETF's prospectus and holdings, investors can gain insight into the specific companies and sectors in which their money is being allocated.

SDGA overlap What is the SDGA ETF ?

SDGA ETF: Benefits of Investing

Investing in the SDGA ETF offers several advantages for both investors and the broader society. Firstly, it allows individuals to align their investment strategies with their values, promoting environmental and social progress. Secondly, the ETF's focus on sustainable businesses can contribute to long-term economic stability and mitigate environmental risks. Moreover, the SDGA ETF provides diversification across multiple sustainable sectors, potentially reducing overall investment risk.

SDGA ETF: Considerations Before Investing

As with any investment, there are essential considerations to bear in mind before investing in the SDGA ETF. Investors should evaluate the ETF's expense ratio, as lower expenses can lead to higher returns over time. Additionally, they should assess the fund's historical performance, examining how it has fared during different market conditions. Furthermore, it is crucial to understand the ETF's specific sustainability criteria and how they align with individual investment objectives.

Conclusion:

The SDGA ETF offers investors a unique opportunity to combine financial growth with positive societal impact. By investing in this ETF, individuals can actively contribute to sustainable development while potentially reaping the benefits of long-term financial growth. However, like any investment decision, it is essential to conduct thorough research and consider individual financial goals and risk tolerance.

Disclaimer: Please note that the information provided in this article is for educational purposes only and should not be construed as investment advice. It does not constitute a recommendation to buy or sell any securities. Investors are advised to consult with a qualified financial advisor before making any investment decisions.

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FAQ

What is the SDGA ETF?
The SDGA ETF, also known as the American Century Sustainable Dividend Growth ETF, is an exchange-traded fund that aims to provide investors with exposure to U.S. large- and mid-cap companies that have sustainable dividend growth characteristics.
What is the underlying index that the SDGA ETF aims to track?
The SDGA ETF seeks to track the performance of the American Century U.S. Quality Value Index, which is a rules-based index maintained by American Century Investment Management, Inc. This index selects undervalued or income-sustaining large- and mid-cap U.S. companies.
What types of companies are included in the SDGA ETF?
The SDGA ETF includes large- and mid-cap U.S. companies that demonstrate sustainable dividend growth characteristics. These companies are selected based on measures of quality, value, and income, with an emphasis on profitability, earnings quality, management quality, leverage, momentum, and dividend yield.
How does the SDGA ETF work?
The SDGA ETF operates by investing at least 80% of its assets in component securities of the American Century U.S. Quality Value Index. It may use a "representative sampling" strategy when replication is impractical or costly. The ETF's portfolio aims to mirror the investment profile of the underlying index through quantitative analytical procedures.
What are the advantages of investing in the SDGA ETF?
Investing in the SDGA ETF offers exposure to sustainable dividend growth companies in the U.S., which may provide attractive long-term income potential. Additionally, the ETF utilizes a rules-based approach to select companies, and it focuses on quality, value, and income metrics for potential risk and return balance.

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