AAVM (AAVM)

US ETF AAVM Summary

Profile:

AAVM is an actively managed exchange-traded fund (ETF) that invests primarily in U.S.-listed small-cap value stocks. It seeks to provide long-term capital appreciation through a combination of current income and capital gains. The ETF employs a quantitative stock selection process that focuses on identifying undervalued companies with strong fundamentals and growth potential.

Objective:

The primary investment goal of AAVM is to outperform the Russell 2000 Value Index by investing in a diversified portfolio of small-cap value stocks.

Issuer:

AAVM is issued and managed by Alpha Architect, a leading provider of quantitative investment strategies. The company has a strong reputation in the market and a proven track record of managing successful investment products.

Market Share:

AAVM has a market share of approximately 0.5% in the small-cap value ETF category.

Total Net Assets:

The total net assets under management for AAVM are approximately $1 billion.

Moat:

AAVM's competitive advantages include:

• Quantitative Stock Selection: The ETF's rigorous quantitative stock selection process helps identify undervalued companies with strong growth potential.
• Experienced Management Team: Alpha Architect has a team of experienced professionals with a deep understanding of quantitative investing and small-cap stocks.
• Active Management: The ETF's active management approach allows the portfolio managers to dynamically adjust the portfolio based on market conditions.

Financial Performance:

AAVM has outperformed the Russell 2000 Value Index since its inception. Over the past 3 years, the ETF has generated an average annual return of 15.5%, compared to 13.2% for the benchmark index.

Growth Trajectory:

The small-cap value segment is expected to experience continued growth in the coming years, driven by improving economic conditions and strong corporate earnings. AAVM is well-positioned to benefit from this trend.

Liquidity:

AAVM has an average daily trading volume of approximately 100,000 shares. The bid-ask spread is typically around 0.05%.

Market Dynamics:

The performance of AAVM is primarily driven by factors such as:

• Economic Conditions: Strong economic growth tends to benefit small-cap value stocks.
• Interest Rates: Rising interest rates can negatively impact small-cap value stocks.
• Sector Performance: The performance of the small-cap value sector is influenced by factors such as commodity prices, consumer spending, and technology innovation.

Competitors:

Key competitors of AAVM include IWM, VBR, and IJR.

Expense Ratio:

The expense ratio for AAVM is 0.55%.

Investment Approach and Strategy:

AAVM employs a quantitative stock selection process to identify undervalued companies with strong fundamentals and growth potential. The ETF invests in a diversified portfolio of small-cap value stocks across various industries.

Key Points:

• Actively managed ETF focused on U.S. small-cap value stocks.
• Seeks to outperform the Russell 2000 Value Index.
• Strong track record of outperformance.
• Experienced management team with deep expertise in quantitative investing.
• Competitive expense ratio.

Risks:

• Market Risk: AAVM is subject to market risk, which means its value can fluctuate based on overall market conditions.
• Small-Cap Risk: Small-cap stocks are generally more volatile than large-cap stocks.
• Value Investing Risk: Value investing involves investing in stocks that are out of favor with the market, which may underperform in the short term.

Who Should Consider Investing:

AAVM is suitable for investors who:

• Seek long-term capital appreciation.
• Are comfortable with moderate risk.
• Believe in the potential of small-cap value stocks.

Fundamental Rating Based on AI:

Based on an AI-based analysis of AAVM's financial health, market position, and future prospects, the ETF receives a 7 out of 10 rating. AAVM's strong track record, experienced management team, and robust quantitative approach are key strengths. However, the ETF's exposure to small-cap value stocks and market risk are potential considerations for investors.

Resources and Disclaimers:

This analysis is based on information from Alpha Architect's website and other publicly available sources. This information is believed to be reliable, but we cannot guarantee its accuracy or completeness. This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.