American Century ETF Trust - Avantis U.S. Large Cap Value ETF (AVLV)

American Century ETF Trust - Avantis U.S. Large Cap Value ETF (AVLV)

Profile:

AVLV is an actively managed ETF that invests in large-cap U.S. value stocks. It seeks to achieve long-term capital appreciation by investing in a portfolio of undervalued companies with attractive fundamentals and strong growth potential.

Objective:

The primary investment goal of AVLV is to outperform the Russell 1000 Value Index by employing a quantitative investment approach focused on identifying undervalued stocks with positive long-term earnings growth potential.

Issuer:

American Century Investments is the issuer of AVLV.

• Reputation and Reliability: American Century Investments is a well-established and reputable asset management firm with a long history of success. It manages over $280 billion in assets across various investment products.
• Management: The ETF is managed by Avantis Investors, a quantitative investment management firm specializing in factor-based investing. The team has extensive experience in developing and implementing quantitative investment strategies.

Market Share:

AVLV has a market share of approximately 0.2% in the U.S. large-cap value ETF space.

Total Net Assets:

As of November 9, 2023, AVLV has approximately $2.5 billion in total net assets.

Moat:

• Active Management: AVLV benefits from active management by Avantis Investors, which employs a proprietary quantitative model to identify undervalued stocks. This approach can potentially generate alpha and outperform the benchmark index.
• Quantitative Approach: The quantitative approach removes human biases and ensures consistent application of the investment strategy.
• Focus on Value: AVLV's focus on undervalued stocks with strong growth potential can offer attractive long-term returns.

Financial Performance:

• Since Inception (12/28/2021): AVLV has delivered a total return of 1.76%, outperforming the Russell 1000 Value Index by 0.47%.
• Year-to-Date (as of November 9, 2023): AVLV has returned -9.69%, underperforming the Russell 1000 Value Index by 0.88%.

Growth Trajectory:

The long-term growth trajectory for AVLV is positive, supported by its active management approach, quantitative investment strategy, and focus on undervalued value stocks. However, short-term performance may fluctuate due to market volatility and economic factors.

Liquidity:

• Average Trading Volume: Approximately 250,000 shares per day.
• Bid-Ask Spread: Around 0.05%.

Market Dynamics:

• Economic Indicators: Economic growth, interest rates, and inflation can significantly impact AVLV's performance.
• Sector Growth Prospects: The performance of the value investing style and the overall stock market can influence the ETF's returns.
• Current Market Conditions: Market volatility and investor sentiment can create short-term fluctuations in AVLV's price.

Competitors:

• iShares S&P 500 Value ETF (IVE): 0.36% market share.
• Vanguard Value ETF (VTV): 0.32% market share.
• Schwab U.S. Large-Cap Value ETF (SCHV): 0.28% market share.

Expense Ratio:

AVLV's expense ratio is 0.25%.

Investment Approach and Strategy:

• Strategy: AVLV employs an active management approach based on a quantitative model that identifies undervalued large-cap U.S. stocks with strong growth potential.
• Composition: The ETF primarily invests in large-cap U.S. stocks across various sectors, with a focus on value characteristics such as low price-to-book ratios and high dividend yields.

Key Points:

• Actively managed ETF focused on U.S. large-cap value stocks.
• Seeks to outperform the Russell 1000 Value Index through a quantitative investment approach.
• Managed by Avantis Investors, a specialist in quantitative factor-based investing.
• Attractive long-term growth potential with a focus on undervalued stocks.

Risks:

• Market Risk: AVLV's performance is directly tied to the U.S. stock market, which can experience significant volatility and downturns.
• Value Investing Style Risk: Value investing may underperform growth investing during certain market cycles.
• Active Management Risk: The ETF's success relies heavily on the effectiveness of Avantis Investors' quantitative model and portfolio management team.
• Expense Ratio: The expense ratio of 0.25% is slightly higher than some passive large-cap value ETFs.

Who Should Consider Investing:

• Investors seeking long-term capital appreciation through exposure to U.S. large-cap value stocks.
• Investors comfortable with active management and a quantitative investment approach.
• Investors who believe in the potential of value investing over the long term.

Fundamental Rating Based on AI:

7/10

AVLV receives a strong rating based on AI analysis. The ETF benefits from a reputable issuer, experienced management team, low expense ratio, and a unique quantitative investment approach focused on value investing. However, the ETF's short track record and potential for market volatility require careful consideration.

Resources:

• American Century ETF Trust - Avantis U.S. Large Cap Value ETF website: https://www.americancentury.com/individual/etfs/etf-detail.aspx?ticker=avlv
• Avantis Investors website: https://www.avantisinvestors.com/
• Morningstar ETF report for AVLV: https://www.morningstar.com/etfs/avlv

Disclaimer:

This information is provided for educational purposes only and should not be considered investment advice. All investment decisions should be made with the help of a professional and after conducting thorough due diligence.