Fund Evaluator:

American Century Real Estate Y Overview

American Century Real Estate Y (ARYEX) is an actively managed Sector Equity Real Estate fund. American Century Investments launched the fund in 2017.

The investment seeks high total investment return through a combination of capital appreciation and current income. Under normal market conditions, the fund invests at least 80% of its net assets in equity securities issued by real estate investment trusts (REITs) and other companies engaged in the real estate industry. The portfolio managers look for real estate securities they believe will provide superior returns, focusing on companies with the potential for stock price appreciation, plus sustainable growth of cash flow to investors. The fund is non-diversified.

About American Century Real Estate Y (ARYEX)

There are 3 members of the management team with an average tenure of 16.22 years: Steven Rodriguez (2009), Vishal Govil (2011), Steven Brown (2008). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: Russell 3000 TR USD index with a weighting of 100% and FTSE Nareit All Equity REITs TR USD index with a weighting of 100%. American Century Real Estate Y has 38 securities in its portfolio. The top 10 holdings constitute 59.7% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

American Century Real Estate Y is part of the Equity global asset class and is within the Sector Equity fund group. American Century Real Estate Y has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 99.2%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). American Century Real Estate Y has 0.8% of the portfolio in cash.

Assets Under Management

The fund has $8 million in total assets, which is below the $657 million average for the Real Estate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

ARYEX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The American Century Real Estate Y expense ratio is high compared to funds in the Real Estate category. American Century Real Estate Y has an expense ratio of 0.81%, which is 34% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. American Century Real Estate Y has a portfolio turnover rate of 113%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 80% for the Real Estate category.

Recently, in the month of June 2026, American Century Real Estate Y returned 1.6%, which earned it a grade of C, as the Real Estate category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

American Century Real Estate Y has a trailing yield of 1.89%, which is below the 2.17% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

American Century Real Estate Y Grades

Year to date, the fund has returned 13.5%, 0.7 percentage points worse than the category, which translates into a grade of C. The fund has returned 14.1% over the past year (grade of C), 10.5% over the past three years (grade of B) and 4.1% per year over the past five years (grade of B) and 5.4% per year over the past 10 years (grade of C).

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