Avantis Responsible Emerging Markets Equity ETF (AVSE)

Overview

The Avantis Responsible Emerging Markets Equity ETF (AVSE) aims to provide long-term capital appreciation by investing in a broad range of emerging market companies that meet specific ESG criteria, emphasizing a value-oriented and profitability-focused approach.

Reputation and Reliability

Avantis Investors is known for its systematic, value-oriented investment strategies and a commitment to low costs, backed by the financial strength of its parent company, American Century Investments.

Management Expertise

The management team is experienced in quantitative investing, factor-based strategies, and responsible investing, providing a solid foundation for managing emerging market equities.

Goal

The primary investment goal is long-term capital appreciation.

Investment Approach and Strategy

Strategy: AVSE does not aim to track a specific index. It employs a market-cap-weighted approach with tilts towards companies that are smaller, more profitable, and have higher value characteristics, while also considering ESG factors.

Composition The ETF holds a portfolio of stocks from emerging market companies, focusing on those that demonstrate value, profitability, and responsible business practices.

Market Share: Data unavailable.

Total Net Assets (AUM): 171500000

Key Competitors

• Vanguard FTSE Emerging Markets ETF (VWO)
• iShares Core MSCI Emerging Markets ETF (IEMG)
• iShares ESG Aware MSCI EM ETF (ESGE)
• Xtrackers MSCI Emerging Markets Equity ETF (DBEM)

Competitive Landscape

The emerging market ETF landscape is highly competitive, with established players like Vanguard and iShares dominating market share. AVSE distinguishes itself through its combination of value and profitability factor tilts with ESG considerations. Advantages include potential for higher returns through factor exposure and responsible investing; disadvantages include the fund's relatively smaller size and shorter track record compared to larger competitors.

Historical Performance: Historical performance data is available on the Avantis Investors website and other financial data providers, and is continuously updated. Data unavailable to insert.

Benchmark Comparison: Performance should be compared against broad emerging market indices like the MSCI Emerging Markets Index to assess its effectiveness in delivering alpha.

Expense Ratio: 0.29

Average Trading Volume

The ETF's average trading volume is moderate, indicating sufficient liquidity for most investors.

Bid-Ask Spread

The bid-ask spread is typically tight, reflecting reasonable trading costs.

Market Environment Factors

Economic growth in emerging markets, trade policies, currency fluctuations, and geopolitical risks significantly impact AVSE's performance.

Growth Trajectory

AVSE's growth depends on increasing investor interest in factor-based and ESG-focused emerging market investments, as well as its ability to consistently deliver competitive returns.

Competitive Edge

AVSE's competitive edge lies in its unique combination of value, profitability, and ESG factors within the emerging market equity space. This differentiates it from purely market-cap-weighted or standard ESG ETFs. The systematic, rules-based approach, combined with the experienced management team at Avantis, provides a disciplined framework for navigating the complexities of emerging markets. The lower expense ratio compared to some actively managed peers further enhances its appeal to cost-conscious investors.

Volatility

Emerging market equities are inherently volatile, and AVSE is subject to this volatility. Investors should expect price fluctuations.

Market Risk

Specific risks include political instability, currency risk, regulatory changes, and varying accounting standards within emerging markets.

Ideal Investor Profile

The ideal investor is a long-term investor seeking exposure to emerging market equities with a focus on value, profitability, and ESG considerations. They are comfortable with the inherent volatility of emerging markets and are seeking potential outperformance through factor-based investing.

Market Risk

AVSE is best suited for long-term investors seeking capital appreciation. It is less suitable for active traders due to its focus on long-term holdings and potentially moderate trading volume.

Avantis Responsible Emerging Markets Equity ETF (AVSE) offers investors exposure to emerging market equities through a unique blend of value, profitability, and ESG factors. The ETF's systematic approach and experienced management team seek to deliver long-term capital appreciation. While subject to emerging market volatility, AVSE's competitive edge lies in its differentiated investment strategy. It is a suitable option for long-term investors comfortable with emerging market risks and seeking a responsible and potentially higher-returning investment vehicle.

• VWO
• IEMG
• ESGE
• EEM
• SPEM
• DEM

Data Sources:

• Avantis Investors Website
• ETF.com
• Morningstar
• FactSet

Disclaimers:

This data is for informational purposes only and does not constitute investment advice. Past performance is not indicative of future results. Investors should conduct their own due diligence before making any investment decisions.