Sandra Testani, CFA, CAIA, Head of ETF Product and Strategy at American Century Investments, examines the rapid growth of active ETFs and why experience in active management remains important in The Active ETF Boom Is Real. So Is the Experience Gap.
With more than two decades of financial services experience, Testani leads ETF product and strategy at American Century Investments. The firm ranks among the top five active ETF issuers by AUM* and offers more than 50 actively managed strategies with distinct investment philosophies and processes.
Since launching its first active ETFs in 2018, American Century Investments has built a lineup in which two-thirds of its strategies feature a three-year track record. Testani emphasizes that this experience can help investment teams navigate market cycles, manage risk and pursue specific investment outcomes, capabilities she views as increasingly important as active ETF adoption accelerates.
Testani notes that active ETFs have amassed more than $1.7 trillion in assets and attracted $459 billion in new investments in 2025, accounting for 31% of total ETF flows despite representing only 10% of ETF assets. She highlights their ability to combine active decision-making with potential benefits of the ETF structure, including lower fees, tax efficiency and intraday trading flexibility. Against a backdrop of market volatility, Testani emphasizes that active ETFs can support tactical allocation, risk management and diversification.
Despite their growth, Testani highlights persistent misconceptions around ETF liquidity. She explains that liquidity is driven by the underlying securities and creation and redemption mechanisms, not simply an ETF’s daily trading volume. For larger trades, she encourages advisors to leverage their custodian’s block desk, while limit orders can help investors manage execution price.
WEBCAST REPLAY – Pursuing Income in an Uncertain Environment: Rethinking the Short End
After years of watching the Fed for guidance, investors are entering a period where future interest rate policy may be less predictable. For advisors, this creates a practical challenge: How do you keep client assets working without taking unnecessary duration risk or sitting entirely in cash? Join American Century Investments’ Global Fixed Income team as they:
- Read the rate backdrop: Review what today’s market backdrop suggests about inflation, growth and the Fed’s next move.
- Rethink cash allocations: Explain why cash may still have a role, but may not be the only answer, for clients seeking income.
- Reveal opportunity at the short end: Illustrate how actively managed ultrashort fixed income can help investors seek attractive income while maintaining flexibility in an uncertain rate environment.
The short end of the bond market can play an important role in client portfolios. Join to hear where American Century Investments sees opportunities.
Accepted for 1 CFP / IWI / CFA CE Credit
*Source: Morningstar data out of 420 ETF issuers overall and 381 active ETF issuers as of July 31st, 2026.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
The opinions expressed are those of American Century Investments (or the fund manager) and are no guarantee of the future performance of any American Century Investments fund. This information is for educational purposes only and is not intended as investment advice.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
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