Avantis® Emerging Markets Equity ETF (AVEM)

Overview

The Avantisu00ae Emerging Markets Equity ETF (AVEM) seeks long-term capital appreciation by investing in a broad range of equity securities of companies located in emerging market countries, emphasizing those with higher profitability and value characteristics.

Reputation and Reliability

Avantis Investors is a relatively new firm but is led by experienced investment professionals with a strong track record in quantitative investing. They are known for their low-cost, value-tilted strategies.

Management Expertise

The management team has extensive experience in factor-based investing and utilizes a disciplined, quantitative approach.

Goal

The primary investment goal is long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index, but instead employs a proprietary investment strategy focused on identifying companies with high profitability and value characteristics.

Composition The ETF primarily holds stocks of companies located in emerging market countries.

Market Share: AVEM has a growing market share in the emerging markets equity ETF space, but it is still smaller than the largest competitors.

Total Net Assets (AUM): 4630000000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF space is highly competitive, dominated by low-cost, passively managed funds. AVEM differentiates itself through its active, factor-based approach which targets companies with higher profitability and value. Advantages include the potential for outperformance, while disadvantages include a slightly higher expense ratio and the risk of underperformance relative to broad market benchmarks.

Historical Performance: Historical performance data should be sourced from official fund fact sheets and investment platforms.

Benchmark Comparison: Comparison with MSCI Emerging Markets Index would be relevant, though performance data should come from official sources.

Expense Ratio: 0.23

Average Trading Volume

AVEM exhibits good liquidity with a healthy average daily trading volume.

Bid-Ask Spread

The bid-ask spread is generally tight, reflecting the ETF's liquidity.

Market Environment Factors

Economic growth in emerging markets, currency fluctuations, trade policies, and geopolitical events can significantly impact AVEM's performance.

Growth Trajectory

AVEM's growth trajectory is tied to the increasing interest in factor-based investing and the overall performance of emerging markets. Changes may be made to holdings based on profitability and value scores.

Competitive Edge

AVEM's competitive advantage lies in its factor-based approach, specifically targeting companies with high profitability and value characteristics. This active strategy aims to outperform traditional market-cap weighted emerging market ETFs. The experienced management team and low cost (relative to other actively managed ETFs) also contribute to its competitive edge. This differentiated approach provides potential for superior returns and attracts investors seeking more than just passive index tracking.

Volatility

AVEM's volatility is generally comparable to other emerging market equity ETFs.

Market Risk

AVEM is subject to emerging market risk, including political instability, currency fluctuations, and economic downturns in emerging market countries. Specific risks include those linked to Chinese market fluctuations, as the Chinese market tends to make up a significant portion of the ETF.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation with a tolerance for the higher volatility associated with emerging markets. They are comfortable with an active, factor-based approach and are looking for potential outperformance compared to passive strategies.

Market Risk

AVEM is suitable for long-term investors who understand the risks of emerging markets and are looking for a potentially higher return through active management.

The Avantisu00ae Emerging Markets Equity ETF (AVEM) offers investors access to emerging market equities through a factor-based strategy that emphasizes profitability and value. Its active approach differentiates it from passive index-tracking ETFs, offering potential for outperformance but also carrying the risk of underperformance. The ETF is managed by an experienced team and has a relatively low expense ratio for an actively managed fund. It is suitable for long-term investors with a higher risk tolerance seeking exposure to emerging markets with potential for enhanced returns.

Data Sources:

• Avantis Investors Website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investors should consult with a financial advisor before making any investment decisions. Past performance is not indicative of future results.