KORP, American Century's active corporate bond ETF, nears $1 billion

American Century's actively managed corporate bond ETF is closing in on $1 billion. KORP, which buys U.S. corporate debt for income, held $917 million in the latest ETF Database figures cited by ETF Trends. That is nearly $200 million more than six months ago. Year to date the gain is above $250 million. The fund charges 29 basis points for running the portfolio.

Jason Greenblath, American Century's head of corporate credit, oversees the fund. It holds mostly investment-grade debt but may take selective risk to lift income. ETF Trends argues that active management fits a corporate market split between giant borrowers and a broad range of smaller opportunities. Passive funds must follow index rules; an active manager can react to events and search where rules cannot reach. That might mean weighing capital structures, such as perpetual bonds whose terms require hands-on analysis. The market's shape leaves passive portfolios weighted to the largest issuers; an active fund can avoid that.

The income side is concrete. KORP's 30-day SEC unsubsidized yield was 5.48% on July 31, according to American Century. The fund is about $83 million short of $1 billion. Recent inflows have run roughly $33 million a month. At that pace, the gap closes in about two and a half months, assuming no slowdown. ETF Trends expects the milestone to fall this year.

A $1 billion base can change how platforms and gatekeepers treat a fund. It also gives actively managed fixed income a visible example. ETF Daily's midyear review of FactSet data found a growing minority of investors paying up for active bond managers. KORP suggests that willingness reaches a plain corporate bond strategy priced at 29 basis points. The fund's growth runs against recent bond ETF flows, which favored high-quality, short-duration bonds over credit risk, according to ETF Daily's weekly flow report. For issuers weighing what belongs in the wrapper, that is a useful answer.