Avantis Responsible Emerging Markets Equity ETF (AVSE)

Overview

The Avantis Responsible Emerging Markets Equity ETF (AVSE) seeks long-term capital appreciation by investing in a broad range of emerging market companies while incorporating environmental, social, and governance (ESG) considerations.

Reputation and Reliability

Avantis Investors is known for its systematic, value-oriented investment approach and low-cost ETFs.

Management Expertise

The management team has extensive experience in quantitative investing and portfolio management.

Goal

To achieve long-term capital appreciation.

Investment Approach and Strategy

Strategy: Employs a systematic investment strategy focused on identifying companies with high profitability and value characteristics, while also considering ESG factors.

Composition Primarily holds stocks of companies located in emerging market countries.

Market Share: Data not available to provide accurate market share information.

Total Net Assets (AUM): 341799817

Key Competitors

• iShares Core MSCI Emerging Markets ETF (IEMG)
• Vanguard FTSE Emerging Markets ETF (VWO)
• Schwab Emerging Markets Equity ETF (SCHE)

Competitive Landscape

The emerging markets ETF landscape is highly competitive, with IEMG and VWO dominating in terms of AUM. AVSE differentiates itself through its responsible investing approach and systematic stock selection process. However, its smaller AUM may lead to lower liquidity compared to larger competitors. AVSE might offer a more focused approach compared to broad market ETFs, potentially leading to different performance outcomes.

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

Benchmark Comparison: Benchmark comparison requires accessing specific performance data and comparing it to the MSCI Emerging Markets Index or a similar benchmark.

Expense Ratio: 0.23

Average Trading Volume

The ETF's liquidity is moderate, reflecting its AUM and investor interest.

Bid-Ask Spread

The bid-ask spread is generally tight, suggesting relatively low transaction costs.

Market Environment Factors

Emerging market equities are influenced by global economic growth, commodity prices, currency fluctuations, and geopolitical risks. AVSE's performance is directly tied to the economic and political health of the emerging markets it invests in.

Growth Trajectory

AVSE's growth trajectory depends on investor demand for responsible investing and the performance of emerging market equities. Changes to its strategy and holdings are detailed in its prospectuses.

Competitive Edge

AVSE's competitive advantage lies in its combination of factor-based investing (value and profitability) and ESG considerations. This approach may appeal to investors seeking both financial returns and socially responsible outcomes. The fund's relatively low expense ratio also provides a cost advantage. The systematic approach, coupled with active ESG integration, offers a differentiated offering in the crowded emerging markets ETF space.

Volatility

The ETF's volatility is expected to be high due to the inherent volatility of emerging markets.

Market Risk

The ETF is exposed to emerging market risk, including political instability, currency risk, and regulatory changes.

Ideal Investor Profile

The ideal investor is one seeking long-term capital appreciation with a focus on responsible investing and exposure to emerging markets.

Market Risk

AVSE is suitable for long-term investors who understand the risks associated with emerging markets and are comfortable with higher volatility.

The Avantis Responsible Emerging Markets Equity ETF offers a blend of factor-based and ESG-integrated investing in the emerging markets. It aims to provide long-term capital appreciation while considering environmental, social, and governance factors. Its management team employs a systematic investment strategy, seeking companies with high profitability and value characteristics. This ETF is suitable for long-term investors comfortable with the higher volatility of emerging markets and interested in responsible investing. While competing with established ETFs, AVSE's approach and low expense ratio present a compelling alternative.

Data Sources:

• Avantis Investors Website
• ETF.com
• Morningstar

Disclaimers:

This analysis is for informational purposes only and does not constitute financial advice. Investment decisions should be based on individual circumstances and consultation with a qualified financial advisor. Market share data was unavailable as of generation date.