ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. Play Emerging Markets Upside With ETF Duo AVSE, AVEM
Core Strategies Channel
Share

Play Emerging Markets Upside With ETF Duo AVSE, AVEM

Nick Peters-GoldenJan 06, 2023
2023-01-06

Entering 2023, markets had reason for a dour perspective — a brutal 2022 market selloff and all kinds of uncertainty have loomed on the horizon for weeks now. But with a new year comes the annual release of predictions, with one notable take from firms like Morgan Stanley and BCA Research suggesting that there may be emerging markets upside to consider.

Yes, global markets will remain impacted by geopolitical risk, with Russia’s war on Ukraine, the fallout of China’s loosened COVID policies, and the U.S.-China trade war among them. But with the U.S. facing the distinct possibility of a recession this year as the Fed funds rate vise tightens around inflation, looking abroad could offer some intriguing opportunities.

For one, EM companies have attractive debt-to-equity ratios at just 1.5 times earnings as of last month, while at the same time a stronger dollar could benefit exporters of commodities. Lower valuations from last year’s selloffs, too, bear mention as a source of possibility for the shrewd investment manager to thrive. The old BRICS countries, minus Russia perhaps due to its excision from many investors’ considerations since its invasion, lead the way in the EM space as areas to watch.

That’s where the emerging markets upside ETF duo, the Avantis Responsible Emerging Markets Equity ETF (AVSE ) and the Avantis Emerging Markets Equity ETF (AVEM B)+ can play a role. The two strategies from American Century Investments’ brand Avantis Investors both use the MSCI Emerging Markets Index as a benchmark, charging 33 basis points for their active investment approaches.

AVSE limits its universe of emerging markets stocks to those that meet multiple ESG criteria based on third party ESG data and scoring merged with a proprietary screening model. The remaining firms are then judged based on fundamentals, with a resulting lean towards small-cap growth stocks.

Meanwhile, AVEM actively invests to outperform the tracked index, also leaning towards small-caps with strong profits and low valuations in emerging markets and underweighting large-caps with low profitability.

AVEM and AVSE have seen one-month net inflows of $229 million and $8.6 million respectively, both outperforming their respective categories over the last three months with 13.3% and 13.12% returns respectively, as well.

Investors may be feeling nervous looking at the U.S. market in the next few months, with developed markets like Europe also bracing for some challenges. Emerging markets upside, meanwhile, may be just what the doctor ordered in AVEM and AVSE, two ETFs to watch in the near term.

For more news, information, and strategy, visit the Core Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X