The KORP Corporate Bond ETF is approaching a major milestone as assets under management rise toward $1 billion. The actively managed bond ETF currently holds about $917 million in assets after adding almost $200 million over the past six months and more than $250 million since the beginning of 2026. Managed by American Century Investments, KORP primarily invests in U.S. investment-grade corporate bonds while retaining flexibility to take selective additional credit risk. The fund reported an unsubsidized 30-day SEC yield of 5.48% as of July 31 and charges an annual management fee of 0.29%.
Key Overview
KORP has grown to approximately $917 million in assets under management, putting the fund within reach of the $1 billion AUM threshold. Its growth comes as investors continue to seek income from corporate bonds amid elevated interest rates. The actively managed ETF combines a predominantly investment-grade portfolio with flexibility to pursue opportunities across the corporate credit market.
KORP Corporate Bond ETF Approaches $1 Billion
The KORP Corporate Bond ETF is closing in on $1 billion in assets under management after attracting substantial investor capital during 2026.
According to ETF Database data, KORP currently manages approximately $917 million.
That leaves the fund about $83 million short of the $1 billion threshold.
Assets have increased by almost $200 million during the past six months and by more than $250 million since the beginning of the year, putting the ETF on track to potentially cross $1 billion before the end of 2026 if its recent growth continues.
Reaching that level would represent an important milestone for an actively managed fixed-income ETF competing in a market where passive index-tracking products traditionally control significant assets.
What Is the KORP Corporate Bond ETF?
KORP is an actively managed exchange-traded fund designed primarily to generate income through investments in U.S. corporate debt.
Unlike a passive ETF that simply attempts to replicate a predetermined bond index, KORP’s managers can adjust the portfolio based on their assessment of credit quality, valuations and opportunities across the corporate bond market.
Most of the portfolio is allocated to investment-grade securities.
However, the fund’s active mandate gives portfolio managers flexibility to selectively take additional credit risk when they believe the potential return adequately compensates investors.
This approach aims to combine the relative stability of higher-quality corporate bonds with opportunities to improve income and total returns through active security selection.
KORP Offers 5.48% SEC Yield
Income is one of the central attractions of the strategy.
According to American Century Investments data, KORP generated an unsubsidized 30-day SEC yield of 5.48% as of July 31.
The SEC yield is a standardized measure designed to make income comparisons between bond funds easier by estimating the income generated by the portfolio over a recent 30-day period.
It should not, however, be interpreted as a guaranteed future return.
The yield investors ultimately receive can change as bonds mature, portfolio holdings change, market interest rates move and credit conditions evolve.
Still, a yield above 5% can be attractive to income-focused investors, particularly when compared with the much lower yields that prevailed across many developed-market fixed-income securities before the global interest-rate tightening cycle.
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Active Corporate Bond Strategy Comes at 29 Basis Points
KORP charges an expense ratio of 29 basis points, equivalent to 0.29% annually.
For every $10,000 invested, that corresponds to approximately $29 in annual fund expenses, assuming the fee remains unchanged.
Investors are effectively paying for active management rather than simply gaining mechanical exposure to a corporate bond index.
Whether that fee represents good value ultimately depends on the fund’s ability to deliver competitive risk-adjusted performance after costs.
Active management can potentially create value through credit selection, duration positioning and adjustments between different segments of the corporate debt market.
But it can also underperform passive alternatives, meaning active management itself does not guarantee superior returns.
Why Investors Are Turning to Corporate Bonds
The growth of KORP comes during an unusually active period for the U.S. corporate bond market.
Higher benchmark interest rates have pushed yields on newly issued bonds substantially above levels available during much of the previous decade.
That has improved the income proposition for bond investors.
Corporate bonds typically offer higher yields than comparable U.S. Treasury securities because investors require compensation for assuming corporate credit risk.
For investment-grade companies, that additional risk is generally lower than for high-yield issuers, although losses remain possible if a company’s financial position deteriorates.
Funds such as KORP allow investors to spread that credit exposure across multiple issuers rather than buying individual bonds.
Active Management Could Matter in Credit Markets
The distinction between passive and active management becomes particularly important when credit conditions vary significantly across companies and industries.
A conventional corporate bond index may allocate capital based partly on the amount of debt an issuer has outstanding.
That can create an unusual characteristic: companies issuing the most debt can become some of the largest constituents.
An active manager does not necessarily have to follow those weightings.
KORP’s portfolio managers can instead assess factors such as company balance sheets, cash flows, credit ratings, bond valuations and economic conditions before deciding how much exposure to take.
The flexibility can also allow managers to reduce exposure to companies where they believe credit deterioration is not adequately reflected in bond prices.
However, those decisions introduce manager risk because incorrect credit or interest-rate calls can hurt performance.
What $1 Billion AUM Could Mean for KORP
Crossing $1 billion AUM would primarily represent evidence of growing investor adoption rather than a fundamental change in the fund’s investment strategy.
Larger ETFs can potentially benefit from greater market visibility and trading activity.
The milestone could also bring KORP onto the radar of more financial advisers and institutional investors evaluating fixed-income products.
Yet AUM growth should not be confused with investment performance.
ETF assets can increase because of investor inflows, market appreciation or a combination of both.
Investors evaluating KORP therefore need to consider performance, credit quality, duration, portfolio composition, liquidity and fees rather than using fund size alone as an indication of quality.
Outlook for the KORP Corporate Bond ETF
With approximately $917 million already under management, the KORP Corporate Bond ETF needs relatively modest additional growth to cross the $1 billion mark.
Continued demand for fixed-income investments could help the fund reach that milestone during 2026.
Its 5.48% 30-day SEC yield, predominantly investment-grade portfolio and active approach provide a combination that may appeal to investors seeking corporate credit exposure without selecting individual bonds.
However, future returns will remain sensitive to interest rates, credit spreads and the financial strength of the companies whose bonds the ETF owns.
KORP’s rapid growth therefore highlights not only investor interest in the fund but also the broader resurgence of income opportunities across the U.S. fixed income market.
FAQs
What is the KORP Corporate Bond ETF?
KORP is an actively managed exchange-traded fund from American Century Investments that primarily invests in U.S. corporate bonds. Most of its portfolio is allocated to investment-grade debt, although its active mandate gives managers flexibility to take selective additional credit exposure.
How much does KORP have in assets under management?
KORP currently has approximately $917 million in assets under management, according to ETF Database data. That leaves the fund roughly $83 million away from reaching the $1 billion AUM milestone.
What is the yield on the KORP Corporate Bond ETF?
KORP reported an unsubsidized 30-day SEC yield of 5.48% as of July 31, according to American Century Investments. The SEC yield can change over time and should not be interpreted as a guaranteed future return.
How much does KORP charge investors?
KORP charges an annual expense ratio of 0.29%, or 29 basis points. That is equivalent to approximately $29 annually for every $10,000 invested, although investors should also consider trading costs, market risks and other factors when evaluating the ETF.
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