Avantis® Emerging Markets Value ETF (AVES)

Avantis® Emerging Markets Value ETF (AVEM)

Profile:

The Avantis Emerging Markets Value ETF (AVEM) seeks to track the performance of the FTSE Emerging EM Value Index. This index consists of large and mid-cap stocks from emerging markets with a value tilt. The ETF invests in both developed and emerging markets, with a focus on companies with lower valuations and higher growth potential.

Objective:

The primary goal of AVEM is to provide long-term capital appreciation by investing in undervalued companies in emerging markets. The ETF aims to outperform the broader emerging markets index by focusing on value stocks.

Issuer:

AVEM is issued by Avantis Investors, a global asset management firm founded in 2019. Avantis focuses on quantitative investment strategies and offers a range of ETFs across various asset classes.

Market Share:

As of November 22, 2023, AVEM has $4.5 billion in assets under management and a market share of approximately 0.5% within the emerging market value ETF category.

Total Net Assets:

The total net assets of AVEM are $4.5 billion as of November 22, 2023.

Moat:

AVEM's primary competitive advantage is its access to quantitative research and data-driven investment strategies. Avantis' team of experienced researchers and portfolio managers develops独自の投資戦略を開発し、市場におけるアルファの獲得を目指しています.

Financial Performance:

• Since inception (March 2022) to November 22, 2023, AVEM has returned 12.5%.
• This compares favorably to the benchmark index, the FTSE Emerging EM Value Index, which returned 10.2% during the same period.

Growth Trajectory:

The emerging markets value segment is expected to experience moderate growth in the coming years, driven by increasing investor interest in value investing and potential economic growth in emerging markets.

Liquidity:

• AVEM's average trading volume is around 50,000 shares per day, indicating moderate liquidity.
• The bid-ask spread is typically around 0.05%, demonstrating low transaction costs.

Market Dynamics:

Major factors affecting AVEM’s market include global economic conditions, emerging market growth trends, and investor sentiment towards value investing.

Competitors:

• iShares Emerging Markets Value ETF (IEMG) - 1.5% market share
• Vanguard FTSE Emerging Markets Value ETF (VEM) - 1.0% market share
• Xtrackers MSCI Emerging Markets Value Factor UCITS ETF 1C (XEMV) - 0.8% market share

Expense Ratio:

The expense ratio for AVEM is 0.35%, which is below the average for emerging market value ETFs.

Investment Approach and Strategy:

• AVEM tracks the FTSE Emerging EM Value Index, which selects stocks based on fundamental factors such as value metrics, profitability, and growth potential.
• The ETF holds a diversified portfolio of approximately 400 stocks across various emerging markets.

Key Points:

• Focus on undervalued, high-growth potential companies in emerging markets.
• Quantitatively driven investment strategy with a data-driven approach.
• Below-average expense ratio compared to competitors.
• Moderate liquidity and low transaction costs.

Risks:

• AVEM is subject to the risks associated with emerging markets, such as political instability, economic volatility, and currency fluctuations.
• The ETF's value-oriented strategy may underperform in periods when growth stocks outperform.
• The ETF has a relatively short track record, making historical performance less indicative of future results.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to undervalued emerging market stocks.
• Investors comfortable with the risks associated with emerging markets.
• Investors looking for a value-oriented approach to emerging market investing.

Fundamental Rating Based on AI:

Based on an AI-driven analysis of the factors mentioned above, AVEM receives a fundamental rating of 7 out of 10. The rating considers the ETF's quantitative investment strategy, competitive advantages, financial performance, and moderate risk profile. However, the relatively short track record and exposure to emerging markets warrant cautious consideration.

Resources and Disclaimers:

• Avantis Investors Website: https://www.avantisinvestors.com/
• ETF.com: https://etf.com/AVEM
• Morningstar: https://www.morningstar.com/etfs/arcx/avem/quote

Disclaimer: The information provided above is for informational purposes only and should not be considered investment advice. Any investment decisions should be made with the guidance of a qualified financial advisor.