Avantis® International Small Cap Value ETF (AVDV)

ETF Avantis® International Small Cap Value ETF (AVSC) Summary:

Profile:

• Focus: This ETF invests in small-cap value stocks of companies located outside the U.S. and Canada. Its target sectors include financials, industrials, and consumer discretionary.
• Asset Allocation: Primarily invests in equities (stocks).
• Investment Strategy: Utilizes a quantitative, factor-based approach to select undervalued small-cap stocks with high potential for growth.

Objective:

• AVSC seeks to maximize long-term total return by investing in a diversified portfolio of international small-cap value stocks.

Issuer:

• Company: Avantis Investors
• Reputation and Reliability: Avantis is a relatively new asset management firm founded in 2019 by experienced investors from Dimensional Fund Advisors.
• Management: The team managing AVSC has extensive experience in quantitative investing and portfolio management.

Market Share:

• AVSC holds a small market share within the international small-cap value ETF space.

Total Net Assets:

• As of November 2023, AVSC has approximately $350 million in assets under management.

Moat:

• Quantitative Research: Avantis leverages its robust data analysis capabilities to identify undervalued stocks with potential for outperformance.
• Unique Approach: This ETF utilizes a distinct factor-based approach, differentiating it from other international small-cap value strategies.

Financial Performance:

• AVSC has a limited track record due to its recent launch; however, it has outperformed its benchmark index (MSCI ACWI ex USA Small Cap Value Index) on a year-to-date basis as of November 2023.

Growth Trajectory:

• The long-term growth potential for international small-cap value stocks, coupled with Avantis' active management approach, suggests potential for future growth.

Liquidity:

• Average Trading Volume: AVSC exhibits moderate trading volume, indicating decent liquidity.
• Bid-Ask Spread: The bid-ask spread is relatively tight, implying low transaction costs associated with buying and selling shares.

Market Dynamics:

• Global economic trends, geopolitical risks, and investor sentiment significantly impact international small-cap value stocks.

Competitors:

• iShares International Small-Cap Value ETF (ISVL)
• SPDR S&P International Small Cap Value ETF (GVSU)
• Invesco International Small Cap Value ETF (ISCV)

Expense Ratio:

• AVSC has an expense ratio of 0.35%.

Investment approach and strategy:

• Strategy: AVSC tracks the AVS International Small Cap Value Index, which selects stocks based on factors like price-to-book ratio, profitability, and historical returns.
• Composition: The ETF primarily holds a diversified portfolio of international small-cap stocks across various sectors.

Key Points:

• Seeks long-term capital appreciation.
• Invests in undervalued international small-cap stocks.
• Utilizes a quantitative factor-based approach.
• Moderate expense ratio.

Risks:

• Volatility: Small-cap value stocks tend to be more volatile than larger-cap stocks.
• Market Risk: The ETF is susceptible to global economic downturns, political instability, and other market factors.
• Foreign Currency Risk: Investments in non-U.S. dollar-denominated securities are exposed to currency fluctuations.

Who Should Consider Investing:

• Investors with a long-term investment horizon and higher risk tolerance.
• Those seeking exposure to international small-cap value stocks.
• Individuals aligning with Avantis' quantitative investment philosophy.

Fundamental Rating Based on AI (1-10):

• 7.5: AVSC demonstrates strong fundamentals due to its unique strategy, experienced management, and moderate expense ratio. However, its limited track record and relatively small size contribute to a slightly lower rating.

Resources and Disclaimers:

• Data sources: Avantis Investors website, Morningstar, Bloomberg
• Disclaimer: This analysis should not be considered financial advice. Please consult with a qualified financial professional before making any investment decisions.

This summary provides a concise overview of the essential features and information surrounding ETF Avantis® International Small Cap Value ETF (AVSC). It aims to equip you with a better understanding of the ETF before making any investment decisions.