14 important things you should know about American Century Investments BTTTX mutual fund

Updated: June 28, 2020
27

Before we start: if you’re looking for BTTTX “stock” price, you can quickly find it out by visiting Finny and typing "BTTTX quote". If you’re looking for a quick scoop on BTTTX "stock" (price chart, key stats, buy or sell analysis and holdings), go to Finny and look for "BTTTX". You’ll get all this info in one place.

Are you looking to buy or sell BTTTX? Or perhaps you’re looking for BTTTX fact sheet, and learn about its alternatives? If so, you came to the right place.

In this BTTTX mutual fund review, we’ll address key questions our readers have been asking us about this fund, above and beyond what you can find in its prospectus, and on Morningstar or Yahoo Finance.

Here is what you’ll be able to find in this review:

  • Fact Sheet: BTTTX performance, returns, expense ratio, holdings and dividend yield;
  • Analysis: BTTTX buy or sell; the pros and cons of investing in BTTTX mutual fund;
  • Alternatives: other ETFs and mutual funds you should consider as alternatives to BTTTX.

And here is the list of questions we’ll answer:

  1. Describe American Century Target Maturities Trust: Zero Coupon 2020 Fund; Investor Class Shares (BTTTX).
  2. What are BTTTX holdings?
  3. What is BTTTX performance? What are BTTTX historical returns?
  4. How many up and down years did BTTTX have historically?
  5. What is BTTTX dividend yield?
  6. What is BTTTX minimum initial investment amount?
  7. What is BTTTX expense ratio?
  8. Does BTTTX have any sales loads or 12b-1 distribution expenses?
  9. What is BTTTX tax efficiency (tax-cost ratio)?
  10. What is BTTTX beta? How would you assess BTTTX risk?
  11. What is BTTTX Sharpe ratio?
  12. What is BTTTX Finny Score? BTTTX buy or sell?
  13. What are the pros of investing in BTTTX? What are BTTTX buy reasons?
  14. What are the cons of investing in BTTTX? What are BTTTX sell reasons?

So let’s start. Scroll down to the question that interests you the most.

Fact Sheet

1. Describe American Century Target Maturities Trust: Zero Coupon 2020 Fund; Investor Class Shares (BTTTX).

The Fund seeks the highest return consistent with investment in U.S. Treasury securities. The Fund will invest at least 80% of its assets in zero-coupon securities. Typically, other than during the funds target maturity year, the fund intends to exceed this 80% requirement and be fully invested in zero-coupon securities.

2. What are BTTTX top holdings?

BTTTX has 0 stock holdings and 12 bond holdings.

The top 7 holdings represent 54.91% of total assets. Here are the top holdings:

Name Symbol % Assets
U.S. Treasury Security Stripped Interest Security 0.01% N/A 31.27%
Resolution Funding Corp 0.01% N/A 7.87%
Government Loan Trust 0.01% N/A 5.45%
United States Treasury Bills 0.01% N/A 3.23%
Federal National Mortgage Association 0.01% N/A 2.80%
U.S. Treasury Bond Stripped Principal Payment 0% N/A 2.57%
U.S. Treasury Bond Stripped Principal Payment 0.01% N/A 1.72%

3. What is BTTTX performance? What are BTTTX historical returns?

BTTTX has generated the following returns:

  • 1-month return is 0.07%;
  • 3-month return is 0.87%;
  • 1-year return is 2.60%;
  • 3-year return is 1.49%;
  • 5-year return is 1.42%;
  • 10-year return is 3.86%;
  • 15-year return is 6.42%.

4. How many up and down years did BTTTX have historically?

In the last 10 years, BTTTX had 9 up years and 1 down year.

5. What is BTTTX dividend yield?

BTTTX yield is 4.07%.

6. What is BTTTX minimum initial investment amount?

BTTTX minimum initial investment amount is $3.00K.

7. What is BTTTX expense ratio?

BTTTX expense ratio is 0.55%. The expense ratio of a fund is the total percentage of fund assets used for administrative, management, and all other expenses.

8. Does BTTTX have any sales loads or 12b-1 distribution expenses?

BTTTX 12b-1 distribution fee is 0. BTTTX front-end sales load is 0. BTTTX back-end sales load is 0.

9. What is BTTTX tax efficiency (tax-cost ratio)?

  • 1-year ax cost ratio is 1.6%;
  • 3-year ax cost ratio is 1.58%.

10. What is BTTTX beta? How would you assess BTTTX risk?

  • 3-year beta is 0.23;
  • 5-year beta is 0.44;
  • 10-year beta is 1.27;
  • 15-year beta is 1.74.

11. What is BTTTX Sharpe ratio?

  • 3-year Sharpe ratio is -0.22;
  • 5-year Sharpe ratio is 0.05;
  • 10-year Sharpe ratio is 0.69.

Analysis

12. What is BTTTX Finny Score? BTTTX buy or sell?

BTTTX Finny Score is 27. Our quantitative analysis shows 3 reasons to buy BTTTX and 8 reasons to sell it, resulting in the Finny Score of 27.

13. What are the pros of investing in BTTTX? What are BTTTX buy reasons?

The following are BTTTX strengths from our perspective:

  • Good news: this fund does not have 12b1, front-end or back-end sales fees.
  • BTTTX 3-year Beta is 0.23, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.
  • BTTTX 5-year Beta is 0.44, which is inversely correlated with the index (BBgBarc US Agg Bond TR USD). The could be good if you're trying to hedge your portfolio.

14. What are the cons of investing in BTTTX? What are BTTTX negatives?

The following are BTTTX weaknesses from our perspective:

  • BTTTX net assets are $134.40 million. This fund is not a popular choice with retail investors.
  • BTTTX 3-year return is 1.49%, which is lower than the 3-year return of the benchmark index (ICE BofA 10+ Year US Treasury), 12.91%.
  • BTTTX 5-year return is 1.42%, which is lower than the 5-year return of the benchmark index (ICE BofA 10+ Year US Treasury), 8.36%.
  • BTTTX 10-year return is 3.86%, which is lower than the 10-year return of the benchmark index (ICE BofA 10+ Year US Treasury), 8.16%.
  • BTTTX 15-year return is 6.42%, which is lower than the 15-year return of the benchmark index (ICE BofA 10+ Year US Treasury), 7.43%.
  • BTTTX expense ratio is 0.55%, which is not negligible. Is the fund expensive to you, and does it align to your investment strategy?
  • BTTTX 10-year Beta is 1.27, which is higher than the index (BBgBarc US Agg Bond TR USD) 10-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 10 years.
  • BTTTX 15-year Beta is 1.74, which is higher than the index (BBgBarc US Agg Bond TR USD) 15-year beta, 1.00. The fund is perceived to be riskier than the comparable index based on the previous 15 years.
In the BTTTX review, we covered BTTTX key stats (return, performance, yield, expense ratio, and holdings), buy and sell analysis, and alternative investments. If this review was helpful to you, feel free to check out other mutual fund and ETF reviews.
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