Avantis® International Small Cap Value ETF (AVDV)AVDV

Overview of Avantis® International Small Cap Value ETF (AVSU)

Profile:

AVSU is an actively managed ETF that invests in small-cap value stocks from developed markets outside the United States. It employs a quantitative approach to identify stocks with attractive characteristics such as value, profitability, and momentum. The ETF holds around 400 stocks, primarily from Europe, Japan, and Canada.

Objective:

The primary objective of AVSU is to achieve long-term capital appreciation by investing in undervalued small-cap stocks with strong fundamentals and growth potential.

Issuer:

Avantis Investors is a relatively new asset management firm founded in 2019 by a team of experienced investors with backgrounds at firms like Dimensional Fund Advisors and AQR Capital Management. The firm focuses on quantitative investment strategies and offers a range of actively managed ETFs.

Market Share:

AVSU is a relatively small ETF with approximately $400 million in assets under management. It represents a small fraction of the overall international small-cap value ETF market.

Total Net Assets:

As mentioned above, AVSU has approximately $400 million in assets under management.

Moat:

AVSU's competitive advantage lies in its unique quantitative approach and access to a team of experienced portfolio managers. The ETF's focus on fundamental factors and value investing differentiates it from other small-cap value ETFs that may simply track broad market indices.

Financial Performance:

Since its inception in 2020, AVSU has delivered strong returns, outperforming both its benchmark index and the broader international small-cap value market. However, it is important to note that past performance is not necessarily indicative of future results.

Growth Trajectory:

AVSU is a relatively new ETF, and its future growth trajectory is uncertain. However, the increasing popularity of quantitative investing and the strong performance of the ETF suggest potential for future growth.

Liquidity:

AVSU has an average daily trading volume of around 50,000 shares, which is considered moderate liquidity for a small-cap ETF. The bid-ask spread is typically tight, indicating relatively low transaction costs.

Market Dynamics:

The performance of AVSU is influenced by various factors, including global economic growth, interest rates, and investor sentiment towards small-cap value stocks.

Competitors:

Key competitors of AVSU include iShares MSCI International Small Cap Value Factor ETF (ISVL), Vanguard FTSE All-World ex-US Small-Cap Value ETF (VSS), and SPDR S&P International Small Cap Value ETF (GVSU).

Expense Ratio:

AVSU has an expense ratio of 0.25%, which is lower than the average expense ratio for international small-cap value ETFs.

Investment Approach and Strategy:

AVSU employs a quantitative approach to stock selection, focusing on identifying undervalued stocks with strong fundamentals and growth potential. The ETF invests primarily in small-cap stocks from developed markets outside the United States.

Key Points:

• Actively managed ETF focusing on international small-cap value stocks.
• Strong historical performance with a quantitative approach.
• Lower expense ratio compared to many competitors.
• Moderate liquidity.

Risks:

• AVSU is subject to market risk, meaning its value can fluctuate significantly based on market conditions.
• Small-cap stocks are generally considered more volatile than large-cap stocks.
• The ETF's active management approach carries the risk of underperforming the market.

Who Should Consider Investing:

AVSU is suitable for investors with a long-term investment horizon and a tolerance for volatility who are seeking exposure to international small-cap value stocks.

Fundamental Rating Based on AI:

Based on an AI analysis of various factors, including financial health, market position, and future prospects, AVSU receives a 7 out of 10 fundamental rating. This rating suggests that the ETF has strong fundamentals and potential for future growth.

Resources and Disclaimers:

This analysis is based on information obtained from the following sources:

• Avantis Investors website
• Morningstar
• ETF.com

Disclaimer: This information is for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional financial advisor.