Avantis International Large Cap (AVIV)

Overview

The Avantis International Large Cap Equity ETF (AVDE) seeks long-term capital appreciation by investing in a broad portfolio of large-cap international developed market companies, emphasizing companies with higher profitability and value characteristics.

Reputation and Reliability

Avantis Investors is a relatively new but reputable firm with a strong emphasis on evidence-based investing and low costs, backed by American Century Investments.

Management Expertise

Avantis is led by experienced investment professionals with a proven track record in quantitative and factor-based investing.

Goal

To provide long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF employs a market-cap-weighted strategy with tilts towards companies exhibiting higher profitability and value characteristics within the international large-cap space.

Composition The ETF primarily holds stocks of large-cap companies in developed international markets, excluding the United States.

Market Share: Data unavailable.

Total Net Assets (AUM): 8170000000

Key Competitors

• VEA
• IFA
• VXUS
• SCHF

Competitive Landscape

The international large-cap ETF market is highly competitive, dominated by large, established ETFs like VEA and VXUS. AVDE differentiates itself through its factor-based approach, focusing on profitability and value. A potential advantage is its targeted factor exposure, while a disadvantage may be its smaller size and shorter track record compared to larger competitors.

Historical Performance: Historical performance data is readily available from ETF providers and financial data vendors. Investors should check the fund fact sheet.

Benchmark Comparison: The ETF's performance should be compared to relevant benchmarks such as the MSCI EAFE Index or the FTSE Developed ex US Index.

Expense Ratio: 0.15

Average Trading Volume

AVDE's average trading volume is generally sufficient for most investors, allowing for easy buying and selling of shares.

Bid-Ask Spread

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

Market Environment Factors

Global economic growth, interest rate policies, currency fluctuations, and geopolitical events influence AVDE's performance, as it invests in international markets.

Growth Trajectory

AVDE's growth trajectory depends on its ability to attract assets through consistent performance and investor interest in factor-based international equity investing.

Competitive Edge

AVDE's competitive advantage lies in its factor-based approach, which aims to outperform market-cap-weighted indices by focusing on profitable and value-oriented companies. The fund's low expense ratio also contributes to its appeal. Avantis' experienced management team and commitment to evidence-based investing further strengthen its position. This approach may lead to enhanced returns over the long term, though there is no guarantee of outperformance.

Volatility

AVDE's volatility will be influenced by the volatility of the underlying international equity markets.

Market Risk

AVDE is subject to market risk, currency risk, and political risk associated with investing in international markets. These risks can impact the fund's returns.

Ideal Investor Profile

AVDE is suitable for investors seeking long-term capital appreciation through international equity exposure, particularly those who believe in the efficacy of factor-based investing.

Market Risk

AVDE is best suited for long-term investors with a diversified portfolio, who are comfortable with international market risks.

The Avantis International Large Cap Equity ETF (AVDE) offers exposure to international large-cap stocks with a focus on profitability and value factors, seeking long-term capital appreciation. Managed by Avantis Investors, the fund boasts a low expense ratio and a disciplined, factor-based investment approach. While the ETF faces stiff competition from larger, more established international ETFs, its unique factor tilts may appeal to investors seeking potential outperformance. Investors should consider the inherent market, currency, and political risks associated with international investing before investing in AVDE.

Data Sources:

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

Disclaimers:

This analysis is for informational purposes only and should not be considered financial advice. Investment decisions should be made based on individual circumstances and after consulting with a qualified financial advisor. Market data is subject to change.