American Century Diversified Corporate Bond ETF

American Century Diversified Corporate Bond ETF (KORP) is an actively managed fund. It holds mostly higher-rated (investment-grade) US dollar corporate bonds and can put up to 35% in high-yield, or “junk,” bonds. It pays income monthly, with a yield of 5.28% over the 12 months to October 27, 2026. Its 0.29% expense ratio is well above the 0.07% average of similar funds.

• Over the year to Oct 27, 2026, KORP returned -1.5%, 6th of 8 among similar funds.
• Its 5-year annualized return was +1.4%.
• In the 2020 COVID crash it fell 12.7% and regained its old high 3 months after the low.
• Its worst full calendar year was 2022 (-10.1%); its best was 2019 (+10.1%).
• The deepest fall in its price history was 14.9% (Aug 3, 2021 to Oct 20, 2022), recovered by Aug 2, 2024.

As of Aug 31, 2026, the fund held 316 securities; the ten largest made up 8.09% of assets, and 4.58% sat in cash and money-market holdings.

The bonds mature in 12.8 years on average (weighted by size), with an average coupon of 5.54%.

• Over the three months to Aug 31, 2026, investors added a net $129.6M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.32%, -1.73%, +0.49%.

KORP is an actively managed ETF from American Century Investments, so it does not follow an index. Its managers must keep at least 80% of net assets in corporate debt. That can mean the bonds themselves or derivatives tied to them. Most holdings are investment-grade, US dollar bonds from US and foreign companies. Up to 35% can go into high-yield, or “junk,” bonds, which pay more because the companies behind them are financially weaker. The managers aim for a duration of three to seven years. Duration measures how much a bond's price moves when interest rates change. The higher it is, the bigger the swing.

When deciding what to buy or sell, the managers weigh economic conditions, interest rates, credit measures, other options, trading costs and taxes. They trade often. The prospectus reports 176% portfolio turnover, which means trades over the year added up to more than the value of the whole portfolio. That can raise costs and lead to taxable capital gains payouts. The fund may also use futures and swaps to manage duration or hedge risks.

As of August 31, 2026, the fund held 316 holdings, and the top 10 made up just 8.09% of assets. The largest were bonds from Morgan Stanley, JPMorgan Chase, Goldman Sachs and Duke Energy Florida, each about 1% of assets or less. Preferred stock, including a perpetual HSBC issue, made up 8.28%. US issuers made up 76.65%.

• KORP charges 0.29% a year, versus an average of 0.07% for the similar funds below (8th of 8, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $30 in the first year and $369 over 10 years (assuming a 5% annual return).

The fund's stated goal is current income, which it pays monthly from a portfolio of mostly investment-grade corporate bonds.

KORP could fill an income role. It pays monthly, and its yield over the 12 months to October 27, 2026 was 5.28%. In the 2020 COVID crash it fell 12.7% in March 2020, then recovered by June. The 2022 rate shock lasted longer. 2022 was its worst calendar year, down 10.04%. Its deepest drop, 14.9% from August 2021 to October 2022, took until August 2024 to recover, about 21 months. The fund launched in 2018, so it has no record from 2008. A retiree who had to sell shares during that stretch could have locked in losses for close to two years. Fees add up too: on $10,000, the SEC's standard example puts costs at $30 in year one and $369 over ten years. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

Matched by bond funds with the closest average maturity and issuer mix (N-PORT).