KANSAS CITY, MO – May 28, 2026 – American Century Investments, a global asset manager overseeing $330 billion, today announced the launch of the American Century Securitized Credit ETF (ticker: ASEC) on the NASDAQ Exchange. The new actively-managed fund is engineered to provide an alternative source of income and diversification for investors navigating a fixed-income landscape where traditional assets may no longer suffice.
As investors increasingly search for returns beyond the conventional corporate bond market, ASEC aims to fill a crucial gap. The fund provides access to the vast and often complex world of securitized credit—a market comprising trillions of dollars in assets backed by loans for everything from cars and homes to commercial properties and corporate debt.
“Investors seeking income and diversification are looking beyond traditional corporate credit and we’re eager to provide a low-cost offering that applies our active management expertise to high-quality securitized credit through a disciplined process,” said Senior Portfolio Manager Paul Norris in the company’s announcement. He highlighted the fund’s goal to “outyield similarly rated corporates while maintaining lower duration and strong credit quality.”
ASEC’s debut marks a significant step in making this specialized asset class more accessible, packaging it within the transparent and tax-efficient structure of an exchange-traded fund.
The Quest for Yield in a Shifting Market
The launch of ASEC arrives at a time when many investors and financial advisors are rethinking the composition of their fixed-income portfolios. With spreads on traditional investment-grade corporate bonds tightening in recent periods, the search for attractive, risk-adjusted yield has intensified. This has pushed allocators to explore less conventional corners of the debt markets.
The securitized credit market, with a U.S. footprint of over $2 trillion in non-agency securities alone, represents a massive segment of the economy that is often underrepresented in typical investor portfolios. These assets, which include asset-backed securities (ABS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), and collateralized loan obligations (CLOs), offer a different risk and return profile compared to government and corporate debt.
One of the primary appeals is the potential for higher income. Securitized products frequently offer a yield premium over corporate bonds with similar credit ratings, compensating investors for their complexity. Furthermore, many of these assets, particularly those with floating-rate coupons like CLOs, exhibit lower sensitivity to interest rate fluctuations, a desirable characteristic in an uncertain rate environment. This lower duration can act as a valuable buffer against the price volatility that has impacted longer-term bond portfolios.
Navigating the Complexities of Securitized Assets
While the potential rewards of securitized credit are compelling, the asset class is not without its challenges. Its complexity is a significant barrier to entry, requiring deep analytical expertise to understand the intricate structures and diverse underlying collateral. Each segment carries its own unique risks.
For instance, the CMBS market has recently seen a rise in delinquency rates, particularly within the office sector, which hit a record high of 11.08% in mid-2025. Similarly, certain consumer-focused ABS sectors, like subprime auto loans, have shown signs of stress. These pockets of weakness underscore the importance of careful security selection.
This is where ASEC’s active management strategy becomes central to its value proposition. Rather than passively tracking an index, the fund’s managers, Paul Norris and Michael Waggaman, will employ proprietary analytics and fundamental research to navigate these risks. The goal is to identify market inefficiencies and mispriced securities, focusing primarily on investment-grade U.S. securitized debt. The fund’s active approach allows for the flexibility to avoid troubled sectors and capitalize on opportunities across the securitization landscape, from non-traditional ABS to RMBS and CLOs.
By actively managing credit, interest rate, and prepayment risks—the risk that borrowers will repay loans early, forcing reinvestment at potentially lower rates—the fund aims to deliver a more stable and differentiated return stream for investors.
A Strategic Expansion for an Active ETF Leader
The introduction of ASEC is a calculated move in American Century’s broader strategy to dominate the active ETF space. The firm, which launched its first ETFs in 2018, has rapidly ascended to become the fourth-largest issuer of active ETFs in the United States by assets under management, boasting one of the fastest organic growth rates in the industry, according to Morningstar data.
ASEC joins a robust and growing family of fixed-income ETFs, including the American Century Diversified Corporate Bond ETF (KORP), American Century Multisector Income ETF (MUSI), and American Century Short Duration Strategic Income ETF (SDSI), among others. This latest addition demonstrates the firm’s commitment to building out a comprehensive suite of actively managed solutions that address specific investor needs.
The fund itself is positioned as a low-cost option, with a gross expense ratio of 0.29%. This fee structure is competitive for an actively managed product in such a specialized area, reflecting the broader industry trend toward more affordable active strategies. The fund is managed by American Century’s fixed-income team, which oversees $40 billion in assets and draws on over 50 years of investment experience.
This launch not only expands the firm’s product shelf but also reinforces its unique corporate structure. As a leading global asset manager, American Century directs over 40% of its dividends to the Stowers Institute for Medical Research, its controlling owner. This philanthropic model, which has resulted in over $2 billion in contributions to medical research since 2000, provides a distinctive backdrop to the firm’s continued commercial expansion and product innovation.