Avantis® International Equity ETF (AVDE)

Overview

The Avantisu00ae International Equity ETF (AVEM) seeks long-term capital appreciation by investing in a broad range of international equities. It emphasizes companies with smaller market capitalizations and higher profitability, seeking to outperform traditional market-cap weighted indexes.

Reputation and Reliability

Avantis Investors is a relatively newer firm, but with a strong reputation due to its evidence-based investment approach and experienced team. It is backed by American Century Investments.

Management Expertise

The management team consists of experienced portfolio managers and researchers with a focus on quantitative and systematic investment strategies.

Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF uses a market-cap weighted approach adjusted by profitability and value characteristics to select and weight securities.

Composition Primarily holds stocks of companies located outside the United States, focusing on developed and emerging markets.

Market Share: AVEM holds a moderate market share within the international equity ETF category.

Total Net Assets (AUM): 4960000000

Key Competitors

• VEA
• VXUS
• SCHF

Competitive Landscape

The international equity ETF market is highly competitive, dominated by large, established funds like VEA and VXUS. AVEM differentiates itself through its emphasis on profitability and value factors, which may lead to outperformance in certain market environments. However, this strategy may underperform during growth-oriented markets. A disadvantage is AVEM's smaller AUM compared to its larger competitors.

Historical Performance: Historical performance data would need to be sourced from financial data providers and presented in a structured array. This includes total return for various periods (e.g., 1-year, 3-year, 5-year, 10-year, since inception).

Benchmark Comparison: Benchmark comparison requires access to the performance data of the MSCI ACWI ex USA Index. The ETF's performance should be compared against this benchmark.

Expense Ratio: 0.23

Average Trading Volume

The average daily trading volume of AVEM indicates good liquidity, allowing investors to easily buy and sell shares.

Bid-Ask Spread

The bid-ask spread for AVEM is typically tight, reflecting its liquidity and efficient trading.

Market Environment Factors

Economic growth in developed and emerging markets, currency fluctuations, and geopolitical events all impact AVEM's performance. Investor sentiment towards international equities also plays a significant role.

Growth Trajectory

AVEM's growth trajectory is dependent on its ability to attract assets by delivering competitive performance relative to its benchmark and peers. Changes to the fund's strategy or holdings are disclosed in its prospectuses and regulatory filings.

Competitive Edge

AVEMu2019s competitive advantage lies in its factor-based approach that tilts towards profitable and value-oriented companies, potentially leading to higher risk-adjusted returns. This approach is backed by academic research suggesting that these factors outperform over the long term. The ETF's relatively low expense ratio also enhances its appeal to cost-conscious investors. The experience and quantitative expertise of the Avantis management team further supports its competitive standing.

Volatility

AVEM's historical volatility can be assessed by calculating its standard deviation of returns over various time periods.

Market Risk

AVEM is subject to market risk inherent in equity investing, including fluctuations in stock prices and broader economic downturns. It also faces currency risk and political risk associated with investing in international markets.

Ideal Investor Profile

The ideal investor for AVEM is one seeking long-term capital appreciation through international equities and who believes in the potential for factor-based investing to generate superior returns. Investors should have a moderate to high risk tolerance.

Market Risk

AVEM is best suited for long-term investors who are comfortable with the volatility of international equity markets and understand the potential benefits of a factor-based approach.

Avantis International Equity ETF (AVEM) offers a diversified portfolio of international equities with a focus on profitability and value. Its factor-based approach aims to outperform traditional market-cap weighted indices, making it attractive to investors seeking enhanced returns. However, it's crucial to acknowledge the risk of underperformance in growth markets. With a reasonable expense ratio and backing by a reputable firm, AVEM presents a compelling option for long-term investors with a moderate risk tolerance looking for international equity exposure.

Data Sources:

• Avantis Investors Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

This analysis is based on publicly available information and should not be considered investment advice. Market share data are estimates and may vary depending on the source and methodology. Financial performance data is not included and requires further research.