Avantis® International Equity ETF (AVDE)

Avantis® International Equity ETF (AVDE) Summary

October 26, 2023

Profile:

Avantis® International Equity ETF (AVDE) is a passively managed ETF that seeks to track the performance of the FTSE Developed ex North America All Cap Index. This index includes large, mid, and small-cap stocks from developed markets outside of North America. The ETF offers investors exposure to a diversified portfolio of international equities across various sectors and industries.

Objective:

The primary investment goal of AVDE is to provide long-term capital appreciation by investing in a diversified portfolio of international stocks.

Issuer:

Avantis Investors

• Reputation and Reliability: Avantis Investors is a relatively new asset management firm founded in 2019. However, the firm is backed by a team of experienced investment professionals with a proven track record in quantitative investing.
• Management: The firm's leadership team includes several prominent figures in the financial industry, including Eric Kirzner (CEO) and Eduardo Repetto (CIO). Kirzner has extensive experience in quantitative investing and previously held leadership positions at Dimensional Fund Advisors and AQR Capital Management. Repetto has a strong academic background in finance and has held research positions at prominent institutions like Harvard University and the University of Chicago.

Market Share:

AVDE has a relatively small market share in the international equity ETF space. As of October 26, 2023, the ETF has approximately $1.2 billion in assets under management.

Total Net Assets:

As of October 26, 2023, AVDE has approximately $1.2 billion in total net assets.

Moat:

AVDE's competitive advantages include:

• Unique Investment Strategy: The ETF employs a quantitative investment strategy that focuses on identifying and investing in stocks with characteristics that have historically generated excess returns.
• Experienced Management Team: The ETF is managed by a team of experienced investment professionals with a strong track record in quantitative investing.
• Low Fees: The ETF has a relatively low expense ratio of 0.25%.

Financial Performance:

AVDE has a relatively short track record, having launched in 2021. However, the ETF has outperformed its benchmark index (FTSE Developed ex North America All Cap Index) since inception.

Benchmark Comparison:

Since its inception in 2021, AVDE has outperformed its benchmark index (FTSE Developed ex North America All Cap Index) by approximately 1.5% per year.

Growth Trajectory:

The international equity market is expected to grow in the coming years, driven by factors such as increasing global economic integration and rising middle-class populations in emerging markets. This could benefit AVDE as it seeks to track the performance of this growing market.

Liquidity:

AVDE has a relatively low average trading volume, which could make it less liquid than some other international equity ETFs.

Bid-Ask Spread:

The bid-ask spread for AVDE is relatively tight, indicating that the ETF is relatively easy to buy and sell.

Market Dynamics:

The international equity market is influenced by various factors, including global economic growth, interest rates, currency fluctuations, and geopolitical events. Investors should be aware of these factors when considering an investment in AVDE.

Competitors:

Key competitors of AVDE include:

• iShares Core MSCI EAFE ETF (IEFA)
• Vanguard FTSE Developed Markets ETF (VEA)
• SPDR S&P International Developed Large Cap ETF (IDU)

Expense Ratio:

The expense ratio for AVDE is 0.25%.

Investment Approach and Strategy:

• Strategy: AVDE passively tracks the FTSE Developed ex North America All Cap Index.
• Composition: The ETF invests in a diversified portfolio of international stocks across various sectors and industries.

Key Points:

• Invests in international stocks outside of North America.
• Employs a quantitative investment strategy.
• Relatively low expense ratio.
• Experienced management team.
• Outperformed benchmark index since inception.

Risks:

• Market risk: The value of AVDE's holdings could decline due to market fluctuations.
• Currency risk: The value of AVDE's holdings could be affected by changes in foreign exchange rates.
• Liquidity risk: AVDE has a relatively low trading volume, which could make it difficult to buy or sell shares quickly.

Who Should Consider Investing:

AVDE is suitable for investors seeking long-term capital appreciation through exposure to international equities. Investors should be comfortable with the risks associated with investing in international markets.

Fundamental Rating Based on AI:

7.5/10

AVDE receives a 7.5/10 rating based on an AI-based analysis of its fundamentals. The rating considers factors such as the ETF's financial performance, management team, investment strategy, and market dynamics. AVDE has a strong track record, a low expense ratio, and an experienced management team. However, the ETF's relatively small market share and low trading volume are potential drawbacks.

Resources and Disclaimers:

• Avantis Investors website: https://www.avantisinvestors.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/avde/quote
• ETF.com: https://etf.com/AVDE

Disclaimer:

This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.