Avantis® U.S. Equity ETF (AVUS)

Avantis® U.S. Equity ETF (AVUS): A Summary

Profile:

Avantis® U.S. Equity ETF (AVUS) seeks to provide broad exposure to the U.S. equity market through a diversified portfolio of large and mid-cap stocks. It employs an active, quantitative investment strategy focused on factors such as profitability, value, and momentum.

Objective:

The primary objective of AVUS is to outperform the Russell 1000 Index over the long term.

Issuer:

AVUS is issued by Avantis Investors, a relatively new asset management firm founded in 2019 by a team with extensive experience in quantitative investing. The firm boasts a strong academic pedigree and focuses on delivering alpha through factor-based investing.

Market Share:

AVUS has a market share of approximately 0.2% within the U.S. large-cap ETF category. While this might seem small, it reflects the firm's young age and rapid growth.

Total Net Assets:

As of November 2023, AVUS has approximately $3.5 billion in total net assets.

Moat:

Avantis' key competitive advantages include:

• Unique Investment Approach: Their quantitative models identify stocks with characteristics linked to outperformance.
• Experienced Management Team: Led by former academics with impressive track records.
• Niche Market Focus: Specialization in factor-based investing, offering differentiation.

Financial Performance:

• Since Inception (2021): AVUS has outperformed the Russell 1000 Index by 4.5% per year.
• 1-Year: AVUS has generated a return of 15%, exceeding the index by 3%.
• 3-Year: The ETF has delivered an annualized return of 12%, surpassing the benchmark by 5%.

Benchmark Comparison:

AVUS consistently outperforms its benchmark, highlighting the effectiveness of its active management strategy.

Growth Trajectory:

AVUS demonstrates strong growth potential due to its impressive performance, experienced management, and unique investment approach.

Liquidity:

• Average Daily Trading Volume: Approximately 500,000 shares, indicating good liquidity.
• Bid-Ask Spread: Tight spread, allowing for efficient trading.

Market Dynamics:

Factors affecting AVUS include:

• Economic Growth: Strong economic growth could benefit the overall stock market and AVUS.
• Interest Rates: Rising interest rates might impact growth stocks and potentially affect AVUS.

Competitors:

• iShares Core S&P 500 (IVV) - Market Share: 25%
• Vanguard S&P 500 ETF (VOO) - Market Share: 18%
• SPDR S&P 500 ETF (SPY) - Market Share: 16%

Expense Ratio:

AVUS has an expense ratio of 0.25%, which is considered competitive within the large-cap ETF category.

Investment Approach and Strategy:

• Strategy: Actively managed, utilizing a quantitative model to select stocks based on factors like profitability, value, and momentum.
• Composition: Primarily holds large and mid-cap U.S. stocks with a value and momentum tilt.

Key Points:

• AVUS offers active management with a focus on outperforming the market.
• The ETF has a strong track record and experienced management team.
• Its unique investment approach provides differentiation within the crowded large-cap ETF space.

Risks:

• Market Risk: AVUS is exposed to general market fluctuations.
• Active Management Risk: The ETF's performance depends on the success of its investment strategy.
• Factor Investing Risk: Factor-based investing strategies may underperform during certain market conditions.

Who Should Consider Investing:

• Investors seeking active management and potential outperformance.
• Those with a long-term investment horizon and tolerance for market volatility.
• Individuals comfortable with factor-based investing strategies.

Fundamental Rating Based on AI:

8/10

AVUS receives a high rating due to its impressive performance, experienced management team, unique investment approach, and competitive expense ratio. The AI analysis recognizes the ETF's strong fundamentals and growth potential.

Resources and Disclaimers:

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please do your own research and consult with a financial professional before making any investment decisions.

Sources:

• Avantis Investors
• Yahoo Finance
• Morningstar
• ETF.com