The fund's core portfolio consists of investment-grade bonds issued by US companies, and it may allocate a portion of assets to high-yield bonds to enhance returns. Rather than tracking an index, it uses active management based on the manager's judgment, aiming to outperform the market.

It suits investors who want stable interest income but also want to tap the varied opportunities of the bond market through professional active management.

It is an actively managed ETF launched by American Century in 2018.

The fund combines qualitative and quantitative research to uncover undervalued bonds. It focuses primarily on investment-grade assets, but depending on market conditions it can raise its high-yield exposure up to a set limit, using a flexible strategy to maximize income.

• Flexible blend of investment-grade and high-yield bonds
• Active management of duration and credit risk

Assets under management (AUM) stand at $955.6M, and the expense ratio is 0.29% per year.

Compared with pure investment-grade ETFs such as LQD or USIG shown in the table, its high-yield allocation offers the potential for higher returns, while compared with HYG it is a hybrid with better credit quality stability.

With tighter credit spreads and stabilizing corporate earnings supporting the broader corporate bond market, the fund has posted solid results by managing default risk through active security selection. It has also defended asset value with flexible responses during periods of interest rate swings.

Stable inflows have been coming in, as investors highlight the ability to get professional bond management at a relatively low fee. It is especially popular with pension investors looking to reduce the volatility of their income.

By combining stable high-quality bonds with higher-yielding high-yield bonds, the fund boosts income, but investors should be aware of performance dispersion that comes with active management.

LQD and USIG, both shown in the table, are stable alternatives focused on large issuers, and if you want a higher high-yield weighting, you could also consider USHY or HYG. If you want a middle level of stability, VCIT or IGIB are also good options, and if you prefer short-term bonds, IGSB is worth reviewing as well.

Before investing in KORP, which actively takes advantage of return opportunities in the high-quality corporate bond market, please carefully review the following key points against your own investment profile.

Because it includes high-yield bonds, it may be more volatile than a typical investment-grade fund, and it can come under strong bond price pressure during periods of rising interest rates.

It is an active solution suited to investors who want to entrust security selection to professionals and pursue both alpha from the corporate bond market and stable income. It works well as a medium-risk, medium-return asset in a portfolio.