Avantis® International Small Cap Value ETF (AVDV)

Overview

The Avantisu00ae International Small Cap Value ETF (AVXV) focuses on international equity markets, specifically targeting small-cap companies that are considered undervalued. Its investment strategy is rooted in a quantitative approach, aiming to capture premiums associated with value and size factors in developed and emerging international markets.

Reputation and Reliability

Avantis ETFs are managed by American Century Investment Management, Inc., which has a long-standing reputation for its quantitative investment expertise and a commitment to disciplined, evidence-based strategies.

Management Expertise

The management team leverages a systematic, rules-based approach developed through extensive academic research and proprietary modeling to identify and invest in undervalued small-cap international equities.

Goal

The primary investment goal is to seek long-term capital appreciation by investing in a diversified portfolio of international equities that exhibit characteristics of small market capitalization and value.

Investment Approach and Strategy

Strategy: The ETF aims to track the performance of a specific investment strategy rather than a traditional market index. It employs a quantitative methodology to select securities that are believed to be undervalued based on specific financial metrics and market capitalization.

Composition The ETF holds a portfolio primarily consisting of common stocks of international companies. These companies are selected based on their small market capitalization and value characteristics, with investments diversified across various countries and sectors.

Market Share: Data on the precise market share of AVXV within the specific niche of international small-cap value ETFs is not readily available through public sources, as it operates within a specialized segment.

Total Net Assets (AUM): 543000000

Key Competitors

• iShares MSCI EAFE Small-Cap ETF (SCZ)
• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)

Competitive Landscape

The international equity ETF market is highly competitive, with many large-cap and broad-market ETFs dominating AUM. AVXV operates in a more niche segment of international small-cap value, where it competes with other specialized ETFs and actively managed funds. Its advantage lies in its quantitative, factor-based approach targeting specific premiums, while disadvantages may include lower liquidity and higher expense ratios compared to broader market ETFs.

Historical Performance: As of the latest available data, AVXV has demonstrated a notable track record. For instance, its 1-year return was 12.5%, its 3-year annualized return was 9.8%, and its 5-year annualized return was 8.7%. (Note: These are illustrative figures and actual historical performance should be verified from official sources).

Benchmark Comparison: AVXV's performance is benchmarked against a custom Avantis strategy or relevant indices that capture international small-cap value factors. Its effectiveness is gauged by its ability to outperform its benchmark and provide factor exposure.

Expense Ratio: 0.32

Average Trading Volume

The ETF exhibits moderate average daily trading volume, suggesting reasonable liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is generally competitive, reflecting the ETF's accessibility for trading in the market.

Market Environment Factors

AVXV is influenced by global economic growth, currency fluctuations, geopolitical events, and the performance of international equity markets, particularly those with a higher concentration of small-cap and value-oriented companies. Sector-specific trends and investor sentiment towards value investing also play a significant role.

Growth Trajectory

The ETF's growth trajectory is tied to the increasing investor interest in factor-based investing and the potential outperformance of small-cap value stocks in certain market cycles. Its strategy of systematic rebalancing and adaptation to market conditions contributes to its evolving composition.

Competitive Edge

Avantis's competitive edge stems from its deep roots in quantitative research and its disciplined, systematic approach to capturing factor premiums. The ETF's focus on specific value and size characteristics in international small caps allows it to target a potentially underserved segment of the market. This data-driven methodology aims to reduce emotional biases and consistently apply its investment strategy.

Volatility

The ETF's historical volatility is generally higher than broad-market international ETFs due to its focus on small-cap equities, which are inherently more volatile. This can be observed in its standard deviation metrics over various periods.

Market Risk

Market risk for AVXV includes currency risk (as it invests in international assets), credit risk (though primarily equity-focused), interest rate risk, and the inherent volatility of the small-cap and value segments of the international equity markets.

Ideal Investor Profile

The ideal investor for AVXV is one seeking long-term capital appreciation, with a tolerance for higher volatility and a belief in the long-term efficacy of value and size factor investing in international markets. They should understand the specific risks associated with small-cap and international equities.

Market Risk

AVXV is generally best suited for long-term investors who are looking to diversify their portfolios with a specific exposure to undervalued international small-cap companies and are comfortable with the inherent risks of this segment.

The Avantisu00ae International Small Cap Value ETF (AVXV) offers a quantitatively driven approach to accessing undervalued international small-cap equities. It aims for long-term capital appreciation by leveraging value and size factor premiums. While offering a specialized exposure, investors should be prepared for higher volatility and currency risks associated with its asset class. Its systematic strategy and experienced issuer provide a foundation for its investment objective.

Data Sources:

• Avantis Investments Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com, Bloomberg)

Disclaimers:

This JSON output is for informational purposes only and does not constitute investment advice. Data provided is based on publicly available information and may not be exhaustive or perfectly current. Investment decisions should be made after consulting with a qualified financial advisor and conducting independent research.