Avantis All Equity Markets ETF (AVGE)

Avantis All Equity Markets ETF (AVGE)

Profile

Avantis All Equity Markets ETF (AVGE) is a passively managed exchange-traded fund that seeks to track the performance of the Avantis All Equity Markets UCITS Index. The index invests in a diversified mix of global equities across developed and emerging markets.

Objective

AVGE aims to provide investors with broad market exposure and global diversification through a single ETF investment.

Issuer

AVGE is issued by Avantis Investors, an asset management firm founded by Nobel Laureate Richard Thaler and financial economist Shlomo Benartzi. Avantis focuses on developing investment strategies based on the principles of behavioral economics.

Market Share

AVGE has a relatively small market share within the broad market equity ETF category, with approximately $5 billion in assets under management.

Total Net Assets

As of November 8th, 2023, AVGE has $5.3 billion in total net assets.

Moat

AVGE's unique selling proposition is its focus on using behavioral finance principles to build its portfolio. The fund invests in companies that exhibit characteristics associated with long-term outperformance, such as high profitability and strong returns on capital.

Financial Performance

Since its inception in 2021, AVGE has delivered competitive returns compared to its benchmark, the MSCI All Country World Index.

Growth Trajectory

AVGE's assets under management have grown steadily since its launch, indicating increasing investor interest in its investment strategy.

Liquidity

AVGE is a relatively liquid ETF with an average daily trading volume exceeding 50,000 shares. The fund also offers a tight bid-ask spread, indicating low transaction costs for investors.

Market Dynamics

Market dynamics such as global economic growth, interest rate trends, and geopolitical factors can impact AVGE's performance.

Competitors

Key competitors in this space include:

• iShares Core MSCI All Country World ETF (ACWI)
• Vanguard Total World Stock ETF (VT)
• SPDR Portfolio Developed World ex-US ETF (SPDW)

Expense Ratio

AVGE has a relatively low expense ratio of 0.25%.

Investment Approach and Strategy

AVGE passively invests in the Avantis All Equity Markets UCITS Index, which tracks the performance of global stocks exhibiting factors like profitability and value.

Key Points

• Invests in a diversified mix of global equities
• Focuses on companies with high profitability and strong returns on capital
• Competitive returns compared to its benchmark
• Low expense ratio
• Highly liquid

Risks

AVGE is exposed to the following potential risks:

• Market risk: Fluctuations in global stock markets can affect AVGE's performance.
• Volatility: The fund's value may experience significant swings due to market volatility.
• Currency risk: Changes in foreign currency exchange rates can impact AVGE's returns.

Who Should Consider Investing?

AVGE may be suitable for investors seeking:

• Broad exposure to global equity markets
• Diversification across developed and emerging markets
• A passive investment strategy with a focus on behavioral factors

Fundamental Rating Based on AI (7.5 out of 10)

AVGE scores well on factors like financial performance, investment process, and management expertise. However, its relatively short track record and smaller market size present some potential limitations.

Resources

• Avantis Investors website: https://www.avantisinvestors.com/
• AVGE Fact Sheet: https://us-aws-eod-data-prod-1.s3-us-west-2.amazonaws.com/assets/factsheets/AVGE_factsheet_eng_us_Nov23.pdf
• Morningstar AVGE profile: https://www.morningstar.com/etfs/usn/nysearca/avge

Disclaimer

The information provided is for general knowledge and informational purposes only, and does not constitute investment advice. All investments involve risk and the past performance of an ETF does not guarantee future results. Investors are encouraged to conduct thorough research and consult a professional financial advisor before making any investment decisions.