American Century ETF Trust - Avantis Responsible International Equity ETF (AVSD)

Overview

The Avantis Responsible International Equity ETF (AVSD) seeks long-term capital appreciation by investing in a broad set of non-U.S. developed and emerging market companies, emphasizing those with higher profitability and lower relative price while considering environmental, social, and governance (ESG) factors.

Reputation and Reliability

American Century Investments has a long history and solid reputation in the investment management industry, known for its disciplined investment processes.

Management Expertise

Avantis Investors, a subsidiary of American Century, has a team of experienced investment professionals with expertise in quantitative and factor-based investing.

Goal

To achieve long-term capital appreciation by investing in a broad portfolio of international equities, emphasizing profitability, value, and sustainability.

Investment Approach and Strategy

Strategy: The ETF does not track a specific index but utilizes a systematic, multi-factor approach to select and weight securities based on profitability, value, and ESG characteristics.

Composition The ETF holds a diversified portfolio of stocks from developed and emerging markets, excluding the United States.

Market Share: AVSD's market share in the international equity ETF sector is growing but still relatively small compared to larger, more established competitors.

Total Net Assets (AUM): 460313280

Key Competitors

• Vanguard FTSE Developed Markets ETF (VEA)
• iShares Core MSCI EAFE ETF (IEFA)
• Schwab International Equity ETF (SCHF)

Competitive Landscape

The international equity ETF market is highly competitive, with several large players offering broad market exposure. AVSD differentiates itself through its factor-based approach and focus on ESG considerations. Its advantage lies in potentially higher returns through factor tilts. Disadvantages include a shorter track record compared to established ETFs and potentially higher volatility.

Historical Performance: Due to its relative newness, extensive historical performance data is limited. Refer to fund factsheet for performance data.

Benchmark Comparison: Performance should be compared against a broad international equity benchmark like the MSCI EAFE Index or the FTSE Developed ex US Index.

Expense Ratio: 0.23

Average Trading Volume

AVSD's average trading volume is moderate, which is typical for newer and smaller ETFs; investors should be mindful of potential price impacts when trading larger quantities.

Bid-Ask Spread

The bid-ask spread for AVSD is generally competitive but may widen during periods of market volatility or low trading volume, which slightly increases trading costs.

Market Environment Factors

Global economic growth, international trade policies, currency fluctuations, and geopolitical events can all affect AVSD's performance.

Growth Trajectory

AVSD's growth trajectory is tied to increasing investor interest in factor-based and ESG-focused international equity strategies. Changes in strategy or holdings are disclosed in fund prospectuses and factsheets.

Competitive Edge

AVSD's competitive edge lies in its systematic, multi-factor approach that combines value, profitability, and sustainability factors. This differentiates it from traditional market-cap-weighted international equity ETFs. The emphasis on ESG considerations appeals to socially conscious investors. Avantis's experienced management team further contributes to its competitive advantage. The ETF strives to offer a responsible investment choice.

Volatility

AVSD's volatility is comparable to other international equity ETFs. It may experience fluctuations due to market sentiment, economic events, and geopolitical risks.

Market Risk

AVSD is subject to market risk, currency risk, and political risk associated with investing in international equities. Emerging markets may introduce higher volatility and geopolitical uncertainty.

Ideal Investor Profile

The ideal investor for AVSD is one seeking long-term capital appreciation through diversified international equity exposure with a focus on factor-based investing and ESG considerations.

Market Risk

AVSD is suitable for long-term investors who are comfortable with international equity risk and seek a responsible investment option.

The Avantis Responsible International Equity ETF (AVSD) offers exposure to a broad range of international equities, emphasizing companies with higher profitability, lower relative price, and positive ESG characteristics. Its systematic, multi-factor approach aims to deliver long-term capital appreciation while aligning with responsible investment principles. AVSD presents a growing choice for investors seeking a more nuanced international equity allocation. However, it is important to consider its relatively shorter track record and potential liquidity considerations. Its total expense ratio is 0.23%.

Data Sources:

• American Century Investments Website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

The information provided is for informational purposes only and should not be considered investment advice. Investment decisions should be made based on individual circumstances and consultation with a qualified financial advisor. Past performance is not indicative of future results.