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/Critical Minerals
    • 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. Recession or Not, Here Is a Pair of Active ETFs
Core Strategies Channel
Share

Recession or Not, Here Is a Pair of Active ETFs

Ben HernandezAug 22, 2022
2022-08-22

Forecasting a recession seems to be the primary talk swirling in the capital markets these days, but whether economic growth stagnates or not, getting active management can benefit any portfolio whether markets trend higher or lower.

A pair of funds to consider: the Avantis U.S. Large Cap Value ETF (AVLV B-) and the Avantis U.S. Equity ETF (AVUS A). Active management doesn’t have to be an expensive option, especially when both funds come with a low 0.15% expense ratio.

Under the supervision of experienced portfolio managers, active ETFs like AVLV and AVUS give investors dynamic exposure to the markets. Holdings can be adjusted on the fly when market conditions warrant a change, offering flexibility as opposed to rigidity from a passive approach.

Broad-Based Options With Defined Exposure

Both ETFs offer broad-based exposure to large-cap equities in the U.S., but one primary discerning feature is AVLV’s obvious tilt towards value. Value has been outperforming growth for much of the year amid inflation fears, but as markets become more emboldened as recession talks dissipate, growth could make a comeback.

Nonetheless, value can still capture the upside when markets continue to rally. On the flip side, should a recession hit, value-oriented equities with bigger market capitalizations can help mute the impact with less volatile market movements.

For more diversified exposure, AVUS fits the bill. It spreads its holdings across a wide spectrum of market capitalizations so investors get varied exposure to capture upside in mid- and small-cap equities, which can make amplified moves compared to their larger-cap peers.

Either way, both funds can slot into any portfolio for investors seeking active management. More specifically, active management at a low cost.

Benefits of AVLV:

  • Invests in a broad set of U.S. large-cap companies and is designed to increase expected returns by focusing on firms trading at what are believed to be low valuations with higher profitability ratios.
  • Pursues the benefits associated with indexing (diversification, low turnover, transparency of exposures), but with the ability to add value by making investment decisions using information in current prices.
  • Efficient portfolio management and trading process that is designed to enhance returns while seeking to reduce unnecessary risks and costs for investors.
  • Built to fit seamlessly into an investor’s asset allocation.

Benefits of AVUS:

  • Invests in a broad set of U.S. companies across all market capitalizations and is designed to increase expected returns by overweighting securities that are believed to be trading at lower valuations and with higher profitability ratios.
  • Pursues the benefits associated with indexing (diversification, low turnover, transparency of exposures), but with the ability to add value by making investment decisions using information in current prices.
  • Efficient portfolio management and trading process that is designed to enhance returns while seeking to reduce unnecessary risks and costs for investors.
  • Built to fit seamlessly into an investor’s asset allocation.

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


Content continues below advertisement

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