Avantis Investors, an investment offering from American Century Investments, has expanded its exchange traded fund platform with the listing of two new transparent active strategies: the Avantis Inflation Focused Equity ETF (AVIE ) and the Avantis All Equity Markets ETF (AVGE ). Both funds seek long-term capital appreciation and will trade on the New York Stock Exchange.
“Avantis exists to take commonsense investment principles and incorporate the latest academic research to build investment strategies,” said Avantis CIO Eduardo Repetto in a news release. “This framework determines how we build our strategies, but the tremendous relationships we’ve formed with our clients over the last three years sets the direction for what we build.”
AVIE focuses on equity investments that are expected to appreciate during inflationary periods, prioritizing industries with historical or future long-term correlation to inflation such as financial services, petroleum and natural gas, metal, and non-metallic mining, among others.
AVGE, Avantis’ first “fund of funds,” invests in other Avantis equity ETFs, maintaining a strategic allocation across geographies and a home bias toward the U.S.
The underlying funds will provide broad diversification and aims to offer greater emphasis on companies with higher expected returns than a passive, market-cap-weighted index.
Repetto added: “With a focus on clients and their goals, we built AVIE to address the needs of investors who are sensitive to inflation but still want equity-like returns, and AVGE, as our first fund of funds, to fill a gap for clients looking for a single option for total-market equity exposure with an emphasis on higher expected returns.”
Repetto, senior portfolio managers Mitchell Firestein, Daniel Ong, and Ted Randall, and associate portfolio manager Matthew Dubin will co-manage the funds. The two new strategies add to Avantis Investors’ lineup of ETFs and mutual funds spanning equities, fixed income, and real estate.
“In just three short years, Avantis successfully crashed the ongoing ETF party and has become a leading providing of actively managed ETFs with $11 billion,” said Todd Rosenbluth, head of research at VettaFi. “The new offerings further build out its diverse lineup and provide more tools for advisors with asset allocation objectives for a modest fee.”
The total annual operating expenses for AVIE and AVGE are 0.25% and 0.23%, respectively.
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