Best American Century ETFs for European Investors
American Century and its Avantis brand specialise in US-domiciled active ETFs. For a wider comparison against Vanguard, iShares, SPDR, Invesco and other UCITS providers, see our European ETF providers compared 2026 hub. Additionally, for the UCITS rules that frame whether a European investor can hold these funds, read our complete UCITS ETF guide for European investors.
American Century Investments has emerged as a powerhouse in the ETF market. Notably, it ranks as the fourth-largest active ETF issuer in the United States. For European investors seeking innovative strategies with competitive expense ratios, American Century offers some of the most compelling ETF options available.
Comparing funds is step one — the Masterclass turns it into a complete plan — fund choice, broker setup, YOUR country’s taxes and the first purchase, in 55 text lessons.
The Kansas City-based fund manager combines systematic approaches with active management. Therefore, it revolutionises traditional indexing. Crucially, the Avantis brand alone runs over $54 billion across 28 strategies. Moreover, it delivers consistent outperformance while keeping the tax efficiency and low costs ETF investors demand.
Top-Performing American Century ETFs
American Century Focused Dynamic Growth ETF (FDG)
Performance: 45.65% return in 2024
Methodology: every shortlist on this page applies our fund comparison criteria.
The American Century Focused Dynamic Growth ETF stands as a stellar example of active ETF management done right. In practice, this concentrated portfolio holds 30-45 securities. Furthermore, it focuses on early-stage, rapid-growth companies with significant market opportunities.
Key Features:
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Expense ratio: 0.45%
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Assets under management: $343 million
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Investment style: Large-cap growth with mid-cap exposure
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Active management: Non-transparent quarterly disclosure
The fund’s 45.65% return in 2024 beat the average large-growth fund return of 28.99%. By contrast, over three years FDG delivered 8.69% annual returns. Consequently, that places it in the 31st percentile among peers.
American Century U.S. Quality Growth ETF (QGRO)
Performance: 22.98% year-to-date return
QGRO tracks the proprietary iSTOXX American Century USA Quality Growth Index. This index dynamically allocates to companies with superior growth and quality characteristics. Moreover, the fund emphasises stable growers alongside high-quality, high-growth companies.
Key Features:
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Expense ratio: 0.29%
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Assets under management: $1.75 billion
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Monthly rebalancing: Ensures consistent exposure
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Four-star Morningstar rating
Top holdings include ServiceNow (3.21%), Alphabet (2.84%), and Booking Holdings (2.76%). Notably, these names represent the cream of American innovation and digital transformation.
Avantis U.S. Small Cap Value ETF (AVUV)
Performance: Industry-leading small-cap value exposure
AVUV represents the largest actively managed small-cap value ETF globally. In short, it holds $18.52 billion in assets. Moreover, the fund applies fundamental screening to identify undervalued small-cap companies with strong appreciation potential.
Key Features:
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Expense ratio: 0.25%
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Dividend yield: 1.59%
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Holdings: 772 companies
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Active management: Fundamental security selection
The fund’s disciplined value approach has generated substantial long-term outperformance. Despite that focus, it still keeps broad diversification across small-cap markets.
International Exposure Options
Avantis International Small Cap Value ETF (AVDV)
Performance: 18.30% one-year return
For European investors seeking international diversification, AVDV provides exceptional exposure to developed markets outside the United States. In addition, with 1,515 holdings and a 3.48% dividend yield, this fund offers compelling global value opportunities.
Key Features:
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Expense ratio: 0.36%
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Assets: $12.22 billion
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Geographic diversification: Developed markets excluding US
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Semi-annual distributions
Avantis Emerging Markets Equity ETF (AVEM)
Performance: 9.60% one-year return
AVEM provides targeted exposure to emerging market opportunities. Importantly, active management oversees the process. Furthermore, the fund’s 14.55% three-year return shows the power of mixing emerging market growth potential with disciplined security selection.
Why American Century ETFs Excel
Innovative Investment Approach
American Century’s unique methodology blends the consistency of indexing with active management’s potential for outperformance. Notably, their proprietary indexes and systematic approaches have consistently delivered alpha. Moreover, they maintain cost efficiency at the same time.
Competitive Expense Ratios
American Century offers institutional-quality management at remarkably competitive prices. In short, average expense ratios sit at 0.28% across their ETF lineup. Consequently, this cost advantage becomes particularly significant over long investment horizons.
Proven Track Record
Since entering the ETF market, American Century has demonstrated remarkable growth. In fact, the firm has accumulated over $76 billion in ETF assets. Moreover, their active strategies have consistently outperformed passive alternatives while keeping strict risk controls.
Accessing American Century ETFs in Europe
European investors can access American Century ETFs through Freedom24. This regulated broker offers comprehensive access to US markets. Specifically, Freedom24 provides:
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Low-cost trading: €0.02 per share minimum
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Comprehensive access: Over one million tradeable instruments
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Regulatory compliance: CySEC licensed and MiFID II compliant
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Welcome bonus: Up to 20 free shares for new accounts
Open your Freedom24 account to start investing in American Century ETFs today.
European Market Expansion
American Century is actively expanding into European markets through Avantis Investors. In 2024, the firm launched UCITS-compliant ETFs on Deutsche Börse. As a result, European investors can now access these strategies directly.
The Avantis Global Small Cap Value UCITS ETF (AVWS) and Avantis Global Equity UCITS ETF (AVWC) represent American Century’s commitment to European investors. Notably, both share the same high-quality strategies that have proven successful in US markets.
Investment Considerations for European Investors
Currency Hedging
Most American Century ETFs trade in US dollars. Consequently, that creates currency exposure for European investors. In practice, consider your risk tolerance and potential hedging strategies when building your portfolio allocation.
Tax Implications
European investors should consult tax advisors about the implications of holding US-domiciled ETFs. Importantly, withholding taxes and reporting requirements vary by jurisdiction.
Portfolio Allocation
American Century ETFs work exceptionally well as core portfolio holdings. In practice, consider allocating 20-40% of your equity exposure to these funds. The exact share depends on your risk profile and investment objectives.
Future Outlook
American Century Investments continues expanding their ETF offerings. Notably, their innovative strategies address evolving market needs. Therefore, their commitment to active management excellence positions them favourably for continued growth and outperformance.
The firm’s expansion into European markets through UCITS structures shows dedication to global investors. Moreover, this trend will likely accelerate as European demand for active ETF strategies continues growing.
Get started with Freedom24 and access the full range of American Century ETFs to enhance your investment portfolio.
UCITS Access vs US-Listed Reality for European Investors
The single most important point for any European retail investor evaluating the American Century lineup is jurisdictional access. Funds such as FDG, QGRO, AVUV, AVDV and AVEM are US-listed 40 Act ETFs, not UCITS funds. Under the PRIIPs Regulation enforced by ESMA and national regulators including BaFin in Germany and CySEC in Cyprus, EU retail investors generally cannot buy US-listed ETFs through standard EU-passported brokers. Specifically, the issuer does not publish an EU-compliant KID. However, workarounds exist – professional client classification, US-options-based entry, or brokers operating outside MiFID II scope. Importantly, each route carries real risk that should be weighed before committing capital.
The cleaner long-term route for European retail investors is to use the UCITS-wrapped Avantis vehicles. In short, American Century has launched these on Deutsche Boerse. The Avantis Global Small Cap Value UCITS ETF (AVWS) and Avantis Global Equity UCITS ETF (AVWC) replicate the same systematic process used in AVUV and AVDV. Crucially, they include full PRIIPs KID coverage. Therefore, cross-check the live UCITS share class fact sheets on justETF and the analyst notes on Morningstar UK before placing an order.
Active ETF Methodology: How American Century and Avantis Build Portfolios
American Century inherited its systematic-factor approach by acquiring the team that previously built Dimensional Fund Advisors’ research process. The Avantis framework tilts toward the academically documented value, profitability and size premia. By contrast, it avoids relying on a manager-discretion stock picking model. This matters for European investors because the strategy stands on decades of peer-reviewed evidence on factor investing. Moreover, that evidence aligns well with a Bogleheads-style philosophy. For extended discussion of factor tilts inside an indexing core, see the Bogleheads.org community.
The Focused Dynamic Growth ETF (FDG), by contrast, is a genuinely concentrated active strategy with non-transparent quarterly disclosure. That structure offers manager flexibility but limits transparency relative to a traditional UCITS ETF. For an investor used to daily basket disclosure on ETF.com screeners, this is a real behavioural difference. Notably, independent fund-quality assessments from Morningstar UK can help triangulate whether the active premium is worth the extra opacity.
How These Funds Fit a Bogleheads-Style European Portfolio
For a long-horizon European investor running a Bogleheads-style core-and-explore portfolio, the practical roles for American Century / Avantis funds are narrow but useful:
- Use a low-cost UCITS all-world or S&P 500 fund such as VWCE or SXR8 as the core. For the core sleeve discussion, see our VWCE vs all-world comparison hub.
- Add a small-cap-value tilt via the UCITS Avantis AVWS share class rather than the US-listed AVUV. This stays inside PRIIPs and Ireland-tax-treaty territory.
- Avoid overlap by checking that your core plus tilt does not double-count US large caps. In practice, justETF portfolio composition tools make this easy to verify.
- For broader portfolio construction principles, see our balanced ETF portfolio guide for European investors.
Cost discipline still matters. The TERs quoted in this article (0.25% to 0.45%) sit higher than the cheapest broad-market UCITS index ETFs. Those cheaper funds run in the 0.05%-0.20% band. That extra cost is the price you pay for active or factor-tilted exposure. Crucially, it is only worth it if the premium is structural and persistent.
Frequently Asked Questions
Can EU retail investors buy American Century or Avantis US-listed ETFs?
In most cases, no. Under PRIIPs, EU-passported brokers require an EU-compliant KID, which US-listed funds typically do not publish. Some brokers route around this via professional client classification or US-options entry. However, for most European retail investors the practical answer is to use the UCITS-wrapped Avantis ETFs (AVWS, AVWC) listed on Deutsche Boerse instead.
What is the difference between American Century and Avantis?
Avantis Investors is a wholly-owned subsidiary of American Century Investments. Specifically, it focuses on systematic factor-tilted ETFs. American Century also runs more traditional active ETFs such as FDG and QGRO. Notably, both brands share the same parent firm but follow distinct investment processes.
Are Avantis UCITS ETFs available on European brokers?
Yes. The Avantis Global Small Cap Value UCITS ETF (AVWS) and Avantis Global Equity UCITS ETF (AVWC) are listed on Deutsche Boerse Xetra. Moreover, they are available on most EU-passported brokers including Interactive Brokers, Trade Republic and XTB. Always confirm availability and live fees on justETF before opening a position.
What tax treatment applies to a European investor in these ETFs?
A UCITS share class held through an EU broker follows your local capital gains regime. For example, InvStG 2018 applies with 30% Teilfreistellung in Germany. By contrast, a US-listed share class held through a non-EU professional route faces 30% US dividend withholding on the fund’s distributions. That rate drops to 15% only via an effective W-8BEN. Consult a local tax adviser before deciding – we do not provide personalised tax advice.
How do American Century active ETFs compare against passive UCITS index ETFs?
Headline TERs of 0.25%-0.45% sit 2x to 5x higher than the cheapest broad-market UCITS index ETFs. Historical outperformance for funds such as FDG (45.65% return in 2024) is genuine. However, past performance does not predict future results. For a buy-and-hold core, low-cost passive UCITS funds remain the Bogleheads-aligned default. By contrast, active or factor-tilted ETFs are a satellite-sleeve decision.
Is FDG suitable as a core holding for European investors?
FDG is a concentrated 30-45 stock active growth strategy with non-transparent quarterly disclosure. In practice, it suits investors who specifically want concentrated US large-cap growth exposure with active management. However, it is not appropriate as a single core holding. Crucially, concentration risk and transparency limitations rule that out.
Where can I verify live TERs, holdings and tracking data for these funds?
Use justETF for UCITS share class data, Morningstar UK for analyst-rated qualitative reviews, and ETF.com for US-listed fund screeners. Importantly, always cross-check against the issuer’s own factsheet before trading.
Kestutis Balciunas wrote this analysis. He is a self-taught European ETF and dividend investor with 11+ years of personal experience building Bogleheads-style portfolios. It reflects publicly available data from American Century, Avantis Investors, justETF and Morningstar as of the review date above. Notably, TERs and AUM figures cited in this article are point-in-time snapshots. Therefore, always confirm live values on the issuer fact sheet before trading. The article is general financial education, not personalised investment advice. The author holds no authorisation from the FCA or any EU competent authority. ESMA oversees UCITS regulatory context at EU level. Additionally, national regulators such as BaFin (Germany) and CySEC (Cyprus) supervise at country level. For full methodology and compensation disclosures, see our editorial process and affiliate disclosure.
Conclusion
American Century ETFs represent exceptional value for European investors seeking actively managed, cost-effective exposure to US and global markets. Notably, their proven track record of outperformance combines well with competitive fees and innovative strategies. Consequently, they form essential components of modern investment portfolios.
Whether you seek growth exposure through FDG, quality companies via QGRO, or value opportunities through AVUV and AVDV, American Century delivers best-in-class solutions for every investment objective.
Key things to know about best american century
Start investing today through Freedom24 and join the growing number of European investors benefiting from American Century’s investment expertise.
In short, the combination of proven performance, innovative strategies, and expanding European accessibility makes American Century ETFs must-consider options for serious investors in 2026 and beyond.
Sources and further reading
- justETF — European UCITS ETF screener
- Morningstar UK ETF rankings
- ESMA — European Securities and Markets Authority
- Bogleheads wiki — EU investing
- ETF.com industry data
