Avantis Investors’ ETFs have led the way among active equity strategies over the last several months. One of the brand’s emerging markets ETFs hit a big AUM milestone last week, now joined by a U.S.-focused strategy. The actively managed ETF, the (AVUS ), hit $4 billion in AUM earlier this week. That may merit a look at how AVUS hit $4 billion and its prospects for the rest of 2023.
What has contributed to AVUS’ AUM growth so far this year? Taking a look at AVUS’ page on ETF Database, investors can check the “price vs. flows AUM influence” tab. Per VettaFi, AVUS started the year with some net positive price influence, but it’s the flows that bear mentioning. AVUS’ AUM has seen just about $20 million in outflows over the last three months, suggesting ongoing investor support.
What Can AVUS Do for the Rest of 2023?
The actively managed ETF charges just 15 basis points (bps) for its active approach and hit its three-year milestone just last year. While it is allowed to invest in U.S. equities across all market caps, AVUS does have a small-cap bias. It leans towards value or profit-employing fundamentals like cash flow, outstanding shares, and price to book on certain holdings.
Despite a gloomy outlook for U.S. equities, a much-discussed recession has yet to materialize. Investors would be right to approach expensive U.S. equities with caution, given inflation and rate-related challenges. However, a low-fee active ETF could be one option for an equities allocation should risks hit the market.
Looking at the ETF’s holdings, it offers an intriguing mix of growthier and defense-focused stocks. While its top areas include finance (14.4%) and technology services (12.2%), it includes health tech (9.8%) and energy minerals (6.9%).
The Avantis Investors suite from American Century had a notable end to last year. With its new liquidity milestone in hand, investors may be taking another look at AVUS.
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