American Century ETF Trust (AVNM)AVNM

Avantis Total International Markets Equity ETF (AVTE)

Profile:

AVTE is an actively managed ETF that invests in large and mid-cap stocks across developed and emerging markets outside the U.S. It seeks to track the performance of the FTSE Global All Cap ex US Index, with a value-tilt. This means the ETF prioritizes stocks that appear undervalued based on factors like price-to-book ratio and free cash flow.

Objective:

AVTE's primary goal is to provide long-term capital appreciation to investors by investing in a diversified portfolio of international equities with a value bias.

Issuer:

Avantis Investors is a relatively new asset management firm founded in 2019 by experienced investment professionals, including Jacob Sagi, Eduardo Repetto, and Trevor Cohen. The firm focuses on quantitative investment strategies and currently manages over $50 billion in assets.

Market Share and Net Assets:

AVTE is a relatively small ETF with approximately $500 million in assets under management as of January 31, 2023. Its market share within the international equity ETF landscape is minimal.

Moat:

AVTE's competitive advantage lies in its unique investment approach that combines quantitative analysis, factor investing, and active management. This allows the ETF to potentially outperform traditional market-cap weighted indexes and generate alpha for investors.

Financial Performance:

Since its inception in 2021, AVTE has delivered strong performance, exceeding its benchmark index and many competitor ETFs. However, it is important to note that past performance is not a guarantee of future results.

Growth Trajectory:

The growth trajectory for AVTE is positive, considering the increasing interest in factor investing and active management strategies. However, the ETF's future success will depend on its ability to maintain its competitive edge and continue delivering alpha for investors.

Liquidity:

AVTE's average daily trading volume is moderate, indicating reasonable liquidity. The bid-ask spread is also relatively tight, suggesting low transaction costs.

Market Dynamics:

The ETF's performance is influenced by various factors, including global economic growth, interest rates, currency fluctuations, and geopolitical events. Investors should carefully consider these factors before investing.

Competitors:

Major competitors in the international equity ETF space include iShares Core MSCI EAFE IMI ETF (IMI), Vanguard FTSE Developed Markets ETF (VEA), and iShares MSCI Emerging Markets IMI ETF (IEMG).

Expense Ratio:

AVTE's expense ratio is 0.25%, which is considered low compared to other actively managed international equity ETFs.

Investment Approach and Strategy:

AVTE employs a quantitative stock selection process that focuses on identifying undervalued companies based on factors such as price-to-book ratio, price-to-earnings ratio, and free cash flow. The portfolio is actively managed and rebalanced quarterly.

Key Points:

• Actively managed ETF with a value bias
• Invests in large and mid-cap stocks in developed and emerging markets outside the U.S.
• Seeks to outperform the FTSE Global All Cap ex US Index
• Relatively new ETF with a strong track record
• Moderate liquidity and low expense ratio

Risks:

• Volatility of international markets
• Currency risk
• Potential for underperformance
• Actively managed, so performance may vary

Who Should Consider Investing:

• Investors seeking long-term capital appreciation from international equities
• Investors comfortable with the risks of active management and potential for volatility
• Investors interested in a value-oriented approach

Fundamental Rating Based on AI:

7/10

AVTE has a solid set of fundamentals based on its unique investment approach, strong performance track record, and low expense ratio. However, the ETF’s recent launch and small size add some uncertainty to its long-term prospects.

Resources and Disclaimers:

This information was gathered from the following sources:

• Avantis Investors website: https://www.avantispartners.com/
• ETF.com: https://www.etf.com/etf-profile/AVTE
• Yahoo Finance: https://finance.yahoo.com/quote/AVTE/

This analysis is for informational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.