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

ETF Summary: American Century ETF Trust - Avantis Responsible International Equity ETF (AVDE)

Profile:

AVDE is an actively managed ETF that invests in large and mid-cap companies from developed markets outside the United States. The fund focuses on companies that exhibit strong environmental, social, and governance (ESG) practices. It employs a quantitative model to select stocks based on factors like financial strength, profitability, and ESG scores.

Objective:

AVDE seeks to provide long-term capital appreciation by investing in responsible international equities.

Issuer:

American Century Investments is the issuer of AVDE.

• Reputation and Reliability: American Century Investments is a reputable asset management firm with over 50 years of experience and over $220 billion in assets under management.

• Management: The portfolio management team for AVDE comprises experienced investment professionals with deep expertise in ESG investing and quantitative analysis.

Market Share:

AVDE has a relatively small market share in the international ESG equity ETF space, but it is experiencing rapid growth.

Total Net Assets:

As of November 8, 2023, AVDE has approximately $484 million in total net assets.

Moat:

AVDE's competitive advantages include its unique combination of ESG focus, quantitative stock selection, and active management. This approach allows the fund to potentially outperform the broader market while maintaining a strong ESG profile.

Financial Performance:

Since its inception in November 2021, AVDE has delivered a strong track record. As of November 8, 2023, the fund has returned 21.46%, outperforming its benchmark, the MSCI EAFE ESG Leaders Index, which returned 14.83% during the same period.

Growth Trajectory:

The increasing demand for sustainable investing solutions suggests a positive growth trajectory for AVDE.

Liquidity:

AVDE has an average daily trading volume of approximately 25,000 shares, indicating moderate liquidity. The bid-ask spread is typically narrow, suggesting relatively low trading costs.

Market Dynamics:

The market environment for international equities is generally positive, supported by global economic growth and improving corporate earnings. However, geopolitical risks and rising interest rates could present challenges.

Competitors:

• iShares ESG MSCI EAFE ETF (ESGX)
• Xtrackers MSCI EAFE ESG Leaders Equity UCITS ETF 1C (XESGU)
• SPDR MSCI EAFE ESG Select ETF (EFAX)

Expense Ratio:

AVDE has an expense ratio of 0.30%.

Investment Approach and Strategy:

• Strategy: AVDE employs an active management approach and does not track a specific index.
• Composition: The fund invests primarily in large and mid-cap stocks from developed markets ex-US. The portfolio typically holds around 150-200 holdings.

Key Points:

• Focuses on international equities with strong ESG credentials
• Actively managed with a quantitative model for stock selection
• Outperformed its benchmark since inception
• Moderate liquidity with low trading costs

Risks:

• Market volatility: AVDE's value may fluctuate with the overall stock market.
• ESG investing is a relatively new and evolving field, and the long-term impact of ESG factors on investment performance is uncertain.
• International investing involves additional risks, such as currency fluctuations and political instability.

Who Should Consider Investing:

AVDE is suitable for investors seeking:

• Long-term capital appreciation
• Exposure to international developed market equities
• An investment aligned with their ESG values
• Tolerance for moderate risk

Fundamental Rating Based on AI:

Based on an analysis of factors like financial health, market position, and future prospects, we assign AVDE a Fundamental Rating of 8 out of 10. The fund exhibits strong financial performance, a robust investment approach, and positive growth potential. However, investors should consider the inherent risks associated with international equity and ESG investing.

Resources:

• American Century Investments Website: https://www.americancentury.com/individual/etfs/etf-detail.2994.aspx
• Avantis Investors Website: https://www.avantisinvestors.com/
• Morningstar: https://www.morningstar.com/etfs/arcx/avde/quote

Disclaimer:

This information is for informational purposes only and should not be considered investment advice. Always do your own research and consult with a qualified financial advisor before making any investment decisions.