The American Century Quality Convertible Securities ETF primarily allocates its capital, dedicating a minimum of 80% of its net assets—along with any borrowed funds—to convertible securities under typical market circumstances. These instruments are unique, blending features of both traditional bonds and common equities. They generally take the form of debt or preferred shares that grant the holder the option to exchange them for a pre-determined quantity of common stock or other equity, from either the same or a different entity, at a specific price and within a set timeframe.
