Avantis® Emerging Markets Value ETF (AVES)

Overview

The Avantisu00ae Emerging Markets Value ETF (AVEV) seeks long-term capital appreciation by investing in a broad set of emerging market companies believed to be trading at a discount relative to their fundamentals. The fund emphasizes companies with higher profitability ratios and may use derivatives to manage portfolio risk.

Reputation and Reliability

Avantis Investors, a part of American Century Investments, is known for its systematic, value-oriented investment approach and cost-effective ETFs.

Management Expertise

The management team leverages a quantitative research-driven process to identify value opportunities in emerging markets.

Goal

To seek long-term capital appreciation by investing in emerging market companies that are undervalued relative to their fundamentals.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but rather uses a proprietary, quantitative approach to select and weight stocks. It seeks to overweight companies with smaller market capitalizations and higher profitability.

Composition The ETF primarily holds stocks of companies located in emerging market countries. It may also hold derivatives and cash equivalents.

Market Share: AVEV's market share is growing, but specific updated real-time market share data is unavailable. It competes with larger, more established emerging market ETFs.

Total Net Assets (AUM): 1304582050

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 market ETF space is highly competitive. AVEV's advantage lies in its value-oriented, quantitative approach. It differentiates itself by targeting smaller, more profitable companies, potentially leading to higher returns compared to broad market-cap weighted ETFs. A potential disadvantage is its higher expense ratio than some of the largest competitors.

Historical Performance: Historical performance data should be reviewed via financial data providers (e.g., Bloomberg, Morningstar) for different time periods.

Benchmark Comparison: Performance should be compared to a broad emerging market index like the MSCI Emerging Markets Index or the FTSE Emerging Index.

Expense Ratio: 0.33

Average Trading Volume

AVEV's average trading volume is generally moderate, providing sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread for AVEV is typically tight, indicating relatively low trading costs.

Market Environment Factors

Emerging market economic growth, interest rate policies, currency fluctuations, and geopolitical risks influence AVEV's performance.

Growth Trajectory

AVEV's growth depends on its ability to attract assets by delivering competitive returns relative to its peers and its target benchmark. There is no available information about changes to its strategy and holdings.

Competitive Edge

AVEV's competitive edge stems from its distinct quantitative value investment strategy. Its focus on profitability and smaller market capitalizations within emerging markets offers a unique factor exposure. The firm's research-backed approach is intended to deliver superior risk-adjusted returns over the long term. The ETF's expense ratio is lower than some actively managed funds but higher than broad index trackers. Avantis' overall systematic methodology offers a consistent approach.

Volatility

AVEV's volatility is typical of emerging market investments, influenced by global economic events and political risks specific to emerging economies.

Market Risk

The ETF is subject to emerging market risk, including political instability, currency fluctuations, and economic downturns in the countries in which it invests.

Ideal Investor Profile

The ideal investor for AVEV is one seeking long-term capital appreciation from emerging markets and comfortable with the inherent risks of investing in those markets.

Market Risk

AVEV is suitable for long-term investors seeking to diversify their portfolios with a value-oriented approach to emerging markets. It might not be appropriate for risk-averse investors or those seeking short-term gains.

The Avantisu00ae Emerging Markets Value ETF provides exposure to undervalued companies in emerging markets using a quantitative, value-oriented strategy. It targets smaller, more profitable companies, potentially leading to outperformance compared to broad market-cap weighted indexes. Investors should be aware of the risks associated with emerging market investing, including political and economic instability. The ETF is best suited for long-term investors seeking capital appreciation and willing to accept moderate volatility. Its higher expense ratio compared to broad market ETFs should be considered.

Data Sources:

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

Disclaimers:

The information provided is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making investment decisions. Market share data can fluctuate and may not be precise.