Five years on since the arrival of the ETF rule, ETFs have made huge leaps and strides. Increasingly competitive with mutual funds thanks to their tax efficiency, flexibility, transparency, and tradability, ETFs are worth considering. Avantis Investors, a brand by American Century Investments, also launched five years ago, with its rise as an ETF shop emblematic of ETFs’ new position in the investing landscape.
Avantis Investors has launched 28 strategies since the firm came onto the scene. With more than $54 billion in AUM as of Sept. 20 in ETFs, funds, and separate accounts, the shop has entered into an upper tier. While part of American Century Investments, Avantis offers a separate brand focusing on combining the benefits of index strategies with active attributes.
Avantis Investors on the Rise
The managers at Avantis believe that ETFs are the future for wealth management, which coincides with significant inflows into Avantis funds. The Avantis U.S. Small Cap Value ETF (AVUV ) has added half a billion in AUM in just one month. In foreign equities, AVDE, the Avantis International Equity ETF, launched as one of Avantis’ starting funds, recently crossed $5 billion in AUM.
Perhaps most significant, however, is that Avantis Investors has risen above $50 billion in AUM in less than five years, as emphasized by Chief Investment Officer Eduardo Repetto.
“Fifty billion dollars in less than five years doesn’t happen by accident. It means a lot of hard work by our team members to create and deliver a very attractive value proposition for clients,” he said.
“We work very hard to fulfill the expectations of all those clients who have placed their trust in us. I‘m thankful to be part of this amazing group and to get to work with so many of our incredible clients,” Repetto added.
Looking at Avantis form the outside, it’s hard not to notice that the firm has gathered those assets even amid a global pandemic.
“American Century’s impressive organic ETF growth in a short 5 years, which happened despite a global pandemic, shows us that good active management works well in ETFs,” said TMX VettaFi Investment Strategiest Cinthia Murphy. “The firm’s unique focus on quality fundamentals across its active security selection and portfolio building has delivered a lot of value to investors everywhere across market environments.”
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