Avantis Core Fixed Income ETF (AVIG)

Overview

The Avantis Core Fixed Income ETF (AVIG) is designed to provide investors with a core fixed income allocation. It seeks to maximize risk-adjusted returns across the broad investment-grade fixed income market by utilizing a value-based approach and considering relative value across sectors and issuers.

Reputation and Reliability

Avantis Investors is a relatively new but growing firm known for its systematic, value-oriented investment approach and low fees. The firm is affiliated with American Century Investments.

Management Expertise

Avantis' investment team has extensive experience in quantitative and systematic investing, with a focus on factor-based strategies.

Goal

The investment objective of AVIG is to seek high total return, consistent with prudent investment management.

Investment Approach and Strategy

Strategy: AVIG does not strictly track a specific index but seeks to outperform by employing a value-oriented and actively managed approach within the broad investment-grade fixed income market.

Composition The ETF primarily holds a diversified portfolio of investment-grade U.S. dollar-denominated fixed income securities, including corporate bonds, government bonds, and mortgage-backed securities.

Market Share: AVIG's market share within the broad investment-grade fixed income ETF space is moderate and growing as it attracts investors due to its factor-based approach and lower expense ratio.

Total Net Assets (AUM): 116881749

Key Competitors

• iShares Core U.S. Aggregate Bond ETF (AGG)
• Vanguard Total Bond Market ETF (BND)
• Schwab U.S. Aggregate Bond ETF (SCHZ)

Competitive Landscape

The investment-grade fixed income ETF market is dominated by large, established players like iShares and Vanguard. AVIG competes by offering a value-oriented, factor-based approach that aims to outperform traditional index-tracking ETFs. Its lower expense ratio provides a further competitive advantage, but its relatively smaller size and shorter track record are disadvantages.

Historical Performance: Historical performance data needs to be retrieved from financial data providers.

Benchmark Comparison: Benchmark comparison data needs to be retrieved from financial data providers.

Expense Ratio: 0.15

Average Trading Volume

AVIG's average trading volume is moderate, reflecting its size and investor interest in the fund.

Bid-Ask Spread

The bid-ask spread for AVIG is typically tight, indicating good liquidity and lower trading costs.

Market Environment Factors

AVIG's performance is affected by interest rate movements, credit spreads, and overall economic conditions. Changes in monetary policy by the Federal Reserve and shifts in investor sentiment towards risk can significantly impact its returns.

Growth Trajectory

AVIG's growth trajectory is tied to its ability to consistently outperform its benchmark and attract assets from investors seeking a value-oriented fixed income strategy. The firm is increasing the asset base gradually as investors become aware of the ETF

Competitive Edge

AVIG's competitive edge lies in its value-oriented, factor-based approach to fixed income investing, which distinguishes it from traditional index-tracking ETFs. This strategy aims to identify undervalued securities and enhance risk-adjusted returns. Furthermore, Avantis' systematic investment process and relatively low expense ratio can appeal to cost-conscious investors. By targeting a broad range of investment-grade securities, AVIG offers diversification and exposure to various sectors within the fixed income market, making it a compelling choice for core fixed income allocation.

Volatility

AVIG's volatility is generally moderate, consistent with investment-grade fixed income securities. However, interest rate risk (duration) is a key factor affecting its price sensitivity.

Market Risk

AVIG is exposed to market risk related to interest rate fluctuations, credit spreads, and economic downturns, which can negatively impact the value of its holdings. Credit risk is also present, though mitigated by the fund's focus on investment-grade bonds.

Ideal Investor Profile

The ideal investor for AVIG is a long-term investor seeking a core fixed income allocation with potential for outperformance through a value-oriented strategy. Investors seeking diversification and exposure to a broad range of investment-grade fixed income securities may also find AVIG attractive.

Market Risk

AVIG is best suited for long-term investors and passive index followers who are looking to add a bit of active management through the value-oriented strategy, while remaining risk-conscious.

The Avantis Core Fixed Income ETF (AVIG) provides a diversified portfolio of investment-grade fixed income securities, employing a value-oriented strategy to enhance returns. Its competitive advantage lies in its systematic, factor-based approach and low expense ratio. While exposed to interest rate and credit risk, AVIG offers a compelling option for long-term investors seeking a core fixed income allocation with potential for outperformance. However, it is important to note that the historical performance data for the ETF needs to be retrieved from third-party sources. AVIG is suitable for investors who are cost-conscious and want some active risk management in a normally passive bond market.

Data Sources:

• Avantis Investors website
• ETF.com
• Morningstar

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share information might not be exact and can vary based on the source and calculation methodology.