Avantis® Emerging Markets Value ETF (AVES)

Overview

The Avantisu00ae Emerging Markets Value ETF (AVEM) seeks long-term capital appreciation by investing in a broad set of emerging market companies with relatively high profitability and low valuation ratios. It employs a value-oriented, market-cap weighted approach, tilting towards smaller companies.

Reputation and Reliability

Avantis Investors is known for its systematic, research-driven investment approach and factor-based ETFs. They are considered a reputable and reliable issuer.

Management Expertise

The management team has extensive experience in quantitative investing and factor-based portfolio construction.

Goal

To seek long-term capital appreciation.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but follows a proprietary investment strategy focused on value and profitability factors.

Composition Primarily invests in stocks of companies located in emerging market countries.

Market Share: The ETF has a moderate market share within the emerging market value ETF category.

Total Net Assets (AUM): 2665000000

Key Competitors

• IEMG
• VWO
• EEM
• SPEM

Competitive Landscape

The emerging market ETF space is highly competitive, dominated by large, broad-based ETFs like IEMG and VWO. AVEM differentiates itself with its value-oriented approach, potentially offering higher returns than market-cap weighted ETFs but with potentially higher volatility. AVEM's focus on profitability and smaller companies can provide an edge, while its higher expense ratio compared to some competitors may be a disadvantage.

Historical Performance: Historical performance data is readily available from financial data providers, with return data typically including 1-year, 3-year, 5-year, and 10-year annualized returns.

Benchmark Comparison: The performance can be compared to broad emerging market indices such as the MSCI Emerging Markets Index or the FTSE Emerging Index to assess its relative performance.

Expense Ratio: 0.33

Average Trading Volume

The ETF generally has moderate trading volume, providing sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting its decent liquidity and trading activity.

Market Environment Factors

Economic growth in emerging markets, global trade policies, currency fluctuations, and commodity prices all influence the ETF's performance.

Growth Trajectory

The ETF's growth depends on the performance of emerging market value stocks and the continued adoption of factor-based investing.

Competitive Edge

AVEM's competitive edge lies in its systematic, value-oriented approach that focuses on profitability and valuation factors. This differentiates it from passive, market-cap weighted emerging market ETFs. The ETF's rules-based approach and relatively low tracking error make it attractive to investors seeking a transparent and efficient way to access emerging market value stocks. Avantis' rigorous research process also contributes to its competitive advantage. This approach potentially offers higher risk-adjusted returns over the long term.

Volatility

Emerging market equities are inherently more volatile than developed market equities. AVEM's value tilt may also increase volatility compared to broad emerging market ETFs.

Market Risk

Specific risks include political instability, currency risk, economic downturns, and regulatory changes in emerging market countries.

Ideal Investor Profile

The ideal investor is a long-term investor with a moderate to high risk tolerance seeking exposure to emerging market value stocks.

Market Risk

Best suited for long-term investors seeking capital appreciation and who are comfortable with emerging market risk and value investing.

Avantis Emerging Markets Value ETF (AVEM) provides exposure to emerging market companies with attractive value characteristics. Its systematic approach, focusing on profitability and valuation, differentiates it from broad-based emerging market ETFs. The ETF is suitable for long-term investors seeking capital appreciation and comfortable with the inherent risks of emerging markets and value investing. While its expense ratio is slightly higher than some competitors, the potential for higher risk-adjusted returns may justify the cost. Overall, AVEM offers a targeted and potentially rewarding approach to emerging market investing.

Data Sources:

• Avantis Investors Website
• ETF.com
• Morningstar
• Bloomberg

Disclaimers:

The data and analysis provided are for informational purposes only and do not constitute investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Market share data are estimates and may vary depending on the source and methodology.