Avantis® Emerging Markets Value ETF (AVES)

Overview

The Avantis Emerging Markets Value ETF (AVEV) seeks long-term capital appreciation by investing in a broad range of emerging market companies, focusing on those with smaller market capitalizations and higher relative value characteristics. It employs a disciplined, valuation-sensitive approach.

Reputation and Reliability

Avantis Investors is known for its evidence-based investment strategies and low-cost ETFs. They are a relatively newer entrant but have gained traction for their value-oriented approach.

Management Expertise

Avantis Investors' team has extensive experience in quantitative and factor-based investing.

Goal

To provide long-term capital appreciation by investing in emerging market companies with value characteristics.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. Instead, it uses a proprietary process to select and weight securities based on relative value and profitability.

Composition Primarily holds stocks of emerging market companies. The fund emphasizes smaller capitalization and higher relative value stocks.

Market Share: AVEV's market share in the emerging market value ETF sector is growing but remains smaller than established competitors.

Total Net Assets (AUM): 110400000

Key Competitors

• SPDRu00ae Portfolio Emerging Markets ETF (SPEM)
• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)

Competitive Landscape

The emerging market ETF space is highly competitive, dominated by large players like Vanguard and BlackRock. AVEV differentiates itself through its value-oriented and factor-based approach, which may outperform market-cap weighted indexes. However, this strategy may underperform during growth-led emerging market rallies.

Historical Performance: Historical performance data is essential to evaluate the ETF. (This information requires live data and cannot be provided in this static JSON response.)

Benchmark Comparison: Comparing AVEV's performance against a broad emerging market index (e.g., MSCI Emerging Markets Index) provides insights into its effectiveness. (This information requires live data and cannot be provided in this static JSON response.)

Expense Ratio: 0.33

Average Trading Volume

AVEV's average trading volume is moderate, which may affect the ease of executing large trades.

Bid-Ask Spread

The bid-ask spread for AVEV is generally competitive, reflecting its liquidity and market depth.

Market Environment Factors

Emerging market growth rates, currency fluctuations, commodity prices, and geopolitical risks significantly affect AVEV's performance.

Growth Trajectory

AVEV's growth depends on the increasing adoption of value investing strategies in emerging markets and the continued interest in factor-based ETFs.

Competitive Edge

AVEV's competitive edge lies in its value-oriented and factor-based approach, diverging from traditional market-cap weighted ETFs. This strategy targets companies with strong fundamentals and attractive valuations, potentially leading to superior long-term returns. The fund's disciplined investment process and low expense ratio further enhance its appeal. However, its performance is closely tied to the value factor's performance in emerging markets.

Volatility

AVEV's volatility is typical of emerging market equity ETFs, reflecting the inherent risks associated with these markets.

Market Risk

AVEV faces risks associated with emerging market equities, including political instability, currency fluctuations, and regulatory changes.

Ideal Investor Profile

The ideal investor for AVEV is one seeking long-term capital appreciation and diversification in emerging markets, with a preference for value-oriented investment strategies.

Market Risk

AVEV is suitable for long-term investors who understand the risks associated with emerging market equities and factor-based investing.

AVEV offers a value-oriented approach to investing in emerging market equities, targeting companies with strong fundamentals and attractive valuations. Its factor-based strategy distinguishes it from traditional market-cap weighted ETFs, potentially leading to superior long-term returns. The fund's low expense ratio and disciplined investment process make it an attractive option for investors seeking diversified emerging market exposure. However, its performance is closely tied to the value factor's performance in emerging markets, making it a potentially volatile investment.

Data Sources:

• Avantis Investors website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and should not be considered investment advice. All investments involve risk, including the loss of principal. Past performance is not indicative of future results. Market data is dynamic and may change.