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

Overview

The Avantis U.S. Large Cap Value ETF (AVUV) seeks long-term capital appreciation by investing primarily in a broad range of U.S. large-cap value companies, emphasizing those with smaller market capitalizations and higher profitability and value characteristics.

Reputation and Reliability

American Century Investments is a well-established investment management firm with a long history and a strong reputation for research-driven investment strategies.

Management Expertise

The management team at Avantis Investors, a subsidiary of American Century, is comprised of experienced professionals with a focus on systematic, evidence-based investing.

Goal

The fund aims for long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index. It employs a multi-factor model that emphasizes value, profitability, and smaller market capitalizations within the U.S. large-cap universe.

Composition The ETF holds a diversified portfolio of U.S. large-cap value stocks. It emphasizes companies with strong financials and attractive valuations.

Market Share: AVUV has a growing market share within the large-cap value ETF category.

Total Net Assets (AUM): 3890000000

Key Competitors

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

Competitive Landscape

The large-cap value ETF market is highly competitive, with several established players. AVUV distinguishes itself through its active, multi-factor approach, which may offer the potential for outperformance but also comes with higher risk and fees than passive, index-tracking funds. Competitors like VTV and IWD offer broad market exposure at a lower cost, while SCHV offers a similar approach to AVUV at a lower cost.

Historical Performance: Historical performance data is readily available from financial websites. Investors should consult these sources to review AVUV's performance over various time periods.

Benchmark Comparison: Investors should compare AVUV's performance to the Russell 1000 Value Index to assess its effectiveness.

Expense Ratio: 0.15

Average Trading Volume

AVUV has a healthy average trading volume, facilitating easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread is generally tight, indicating efficient trading and minimal transaction costs.

Market Environment Factors

Economic growth, interest rate policies, and sector valuations within the U.S. equity market all influence AVUV's performance. Value stocks may outperform during periods of economic recovery or rising interest rates.

Growth Trajectory

AVUV's growth is dependent on its ability to deliver competitive returns compared to its peers and its ability to attract assets from investors seeking value-oriented exposure.

Competitive Edge

AVUV's competitive advantage lies in its multi-factor approach, which combines value, profitability, and size factors to identify potentially undervalued companies with strong financials. This approach differentiates it from passive, index-tracking ETFs. The fund's active management allows it to adjust its holdings based on changing market conditions, providing flexibility in navigating the value market. This, along with its focus on smaller, more profitable value stocks, creates potential for outperformance.

Volatility

AVUV's volatility may be higher than broader market ETFs due to its focus on value stocks and smaller market capitalizations. Historical data can be used to assess its specific volatility.

Market Risk

AVUV is subject to the general risks associated with investing in the U.S. equity market, including economic downturns, geopolitical events, and changes in investor sentiment. Value stocks may underperform during periods of growth stock dominance.

Ideal Investor Profile

The ideal investor for AVUV is someone seeking long-term capital appreciation through value investing, willing to accept moderate levels of volatility, and comfortable with active management.

Market Risk

AVUV is suitable for long-term investors seeking value exposure and who are comfortable with the fund's active management style.

Avantis U.S. Large Cap Value ETF (AVUV) is a compelling choice for investors looking for actively managed exposure to U.S. large-cap value stocks, particularly those with smaller market caps and higher profitability. AVUV's multi-factor approach may provide the potential for outperformance compared to passive value funds. However, investors should be aware of the higher expense ratio and potential for increased volatility associated with its active strategy. Its success depends on the fund's ability to effectively identify and capitalize on undervalued companies within the U.S. large-cap universe.

Data Sources:

• American Century Investments Website
• ETF.com
• Morningstar

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Market conditions are subject to change, and past performance is not indicative of future results. Investors should consult with a qualified financial advisor before making any investment decisions.