American Century Pitches New ETF Model With $7 Trillion Prize Up for Grabs

The video discusses nontransparent funds, focusing on value and growth strategies, and the importance of protecting alpha generation. It compares the Presidian model's blind trust approach with the proxy basket method, highlighting their merits. The video also covers pricing strategies for ETFs and mutual funds, emphasizing fair pricing. It explores American Century's ETF strategies under the Avantis name and concludes with insights into Vanguard's private equity fund strategy.

What is a key concern for portfolio managers as their portfolios grow larger?

• Decreased market volatility

• Increased transaction costs

• Free-riding and front-running

• Higher management fees

What is the purpose of the Viv in non-transparent funds?

• To hide the portfolio's value from competitors

• To provide complete transparency of holdings

• To offer a proxy basket for investors

• To show the portfolio's value every second

How does American Century's Avantis line differ from traditional approaches?

• It uses a bottom-up stock picking method

• It focuses solely on mutual funds

• It is fundamentally based with fewer holdings

• It employs an academically tested approach with many holdings

What is a key factor in pricing ETFs according to the transcript?

• Pricing at the highest possible point

• Matching the price of mutual funds

• Ensuring the price reflects the value offered

• Setting a price lower than competitors

What might be Vanguard's strategy in launching a private equity fund?

• To test the market and see what works

• To focus on small individual investors

• To reduce their overall market presence

• To compete directly with American Century