American Century ETF Trust - Avantis U.S. Large Cap Value ETF (AVLV)

Overview

The American Century ETF Trust - Avantis U.S. Large Cap Value ETF (AVLV) is designed to provide exposure to U.S. large-capitalization companies that are considered undervalued by the market. It focuses on a value investment style, seeking companies with strong fundamentals that are trading at a discount relative to their intrinsic worth.

Reputation and Reliability

American Century Investments is a well-established and reputable investment management firm with a long history of managing assets for institutional and retail investors. They are known for their disciplined investment processes and commitment to client success.

Management Expertise

The ETF is managed by Avantis Investors, a team within American Century Investments known for its quantitative and systematic approach to investing. They leverage research and data-driven insights to construct portfolios.

Goal

The primary investment goal of AVLV is to seek long-term capital appreciation by investing in U.S. large-cap equity securities that the portfolio managers believe are undervalued.

Investment Approach and Strategy

Strategy: AVLV aims to provide exposure to U.S. large-cap value stocks. It is an actively managed ETF that does not track a specific index but rather uses a proprietary methodology to identify and select undervalued companies.

Composition The ETF primarily holds U.S. large-capitalization stocks. The selection process focuses on companies exhibiting value characteristics such as low price-to-earnings ratios, low price-to-book ratios, and high dividend yields.

Market Share: Market share data for individual ETFs can fluctuate and is not always readily available in a static format. AVLV operates within the large-cap value ETF segment.

Total Net Assets (AUM): 11957000000

Key Competitors

• Vanguard Value ETF (VTV)
• iShares Russell 1000 Value ETF (IWD)
• Schwab U.S. Large-Cap Value ETF (SCHV)

Competitive Landscape

The U.S. large-cap value ETF market is highly competitive, dominated by large players with extensive brand recognition and lower expense ratios. AVLV's competitive advantage lies in its active management approach, which aims to identify mispriced opportunities that passive index-tracking ETFs might miss. However, its active management can lead to higher expense ratios compared to passive ETFs, and its performance is subject to the skill of its portfolio managers. Competitors like VTV and IWD offer broad market exposure with lower fees, making them popular choices for passive investors.

Historical Performance: Historical performance data for AVLV can be found through financial data providers. Performance varies by time period and should be reviewed over multiple years to assess consistency.

Benchmark Comparison: AVLV's performance is typically compared against broad large-cap value indices, such as the Russell 1000 Value Index. Its objective is to outperform its benchmark through active management.

Expense Ratio: 0.25

Average Trading Volume

AVLV generally exhibits good liquidity with a substantial average daily trading volume, facilitating efficient buying and selling of shares.

Bid-Ask Spread

The bid-ask spread for AVLV is typically narrow, indicating a liquid market and relatively low transaction costs for investors.

Market Environment Factors

The performance of AVLV is influenced by macroeconomic factors such as interest rate movements, inflation, economic growth, and overall market sentiment. Sector-specific performance within the large-cap value space, such as in financials, energy, or utilities, can also impact its returns.

Growth Trajectory

As an actively managed ETF, AVLV's growth trajectory is dependent on its ability to consistently identify and capitalize on undervalued companies. Changes to strategy and holdings are made by the portfolio managers to adapt to market conditions and opportunities.

Competitive Edge

AVLV's competitive edge stems from its actively managed, systematic approach to value investing. The Avantis team utilizes quantitative research and disciplined execution to identify securities that may be overlooked by traditional passive strategies. This focus on fundamental valuation and a data-driven process allows it to potentially capture alpha by exploiting market inefficiencies in the large-cap value segment.

Volatility

AVLV's historical volatility is generally in line with that of other large-cap value ETFs. Its specific holdings and active management strategy can influence its short-term fluctuations.

Market Risk

The primary market risks for AVLV include general equity market downturns, sector-specific risks (e.g., underperformance of value sectors), and interest rate risk, which can affect the valuation of dividend-paying stocks.

Ideal Investor Profile

The ideal investor for AVLV is someone seeking exposure to U.S. large-cap value stocks with the potential for long-term capital appreciation and who believes in the efficacy of an active management strategy focused on valuation. Investors should be comfortable with equity market volatility.

Market Risk

AVLV is best suited for long-term investors who are looking for a core holding in their portfolio that emphasizes value investing principles. While active, its systematic approach can also appeal to investors who appreciate a disciplined, research-driven strategy.

The American Century ETF Trust - Avantis U.S. Large Cap Value ETF (AVLV) is an actively managed ETF focusing on undervalued U.S. large-cap equities. It leverages a systematic, quantitative approach to identify investment opportunities. With substantial assets under management and good liquidity, AVLV competes in a crowded large-cap value market. Its active management offers the potential for outperformance but also comes with higher expense ratios compared to passive alternatives. Investors seeking long-term growth through value investing principles may find AVLV suitable.

Data Sources:

• American Century Investments Official Website
• Financial Data Providers (e.g., Morningstar, ETF.com)
• SEC Filings

Disclaimers:

This information is for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Investors should conduct their own research and consult with a financial advisor before making investment decisions.