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Avantis Investors, by American Century Investments, launched its five, inaugural low-cost, broadly diversified ETFs on Thursday. They are designed to fit into investors’ asset allocations seamlessly.
The five new ETFs are listed on NYSE Arca:
- Avantis International Small Cap Value ETF (AVDV)
- Avantis International Equity ETF (AVDE)
- Avantis Emerging Markets Equity ETF (AVEM)
- Avantis U.S. Equity ETF (AVUS)
- Avantis U.S. Small Cap Value ETF (AVUV)
As a unique feature designed to benefit various types of investors, gross expense ratios for these ETFs are expected to have the same objectives: 0.36% international small-cap value, 0.23% international equity, 0.33% emerging markets equity, 0.15% US equity, and 0.25% US small-cap value.
“While we know investors have a lot of choices available to them in the marketplace, we believe there is still considerable demand for broadly diversified solutions that seek low rebalancing costs, capital gains, and fees,” said Avantis’ Chief Investment Officer Eduardo Repetto, Ph.D.
“We are excited to speak with clients about these capabilities and learn what else we can do to help them meet their financial goals.”
These Avantis ETFs share a common approach built upon an academically-supported, market-tested framework aiming to identify securities with expected high returns based on market prices and other company information. Relying on trading and portfolio management processes, the Avantis team analyzes whether the perceived benefits of a trade overcome its associated costs and risk.
This approach should harness return premiums while seeking to control implementation costs and mitigate portfolio risk, generating enhanced returns over time.
A Closer Look At This Suite
Here is information concerning the five ETFs, which all seek long-term capital appreciation:
- Avantis International Small Cap Value ETF (AVDV) – The fund mainly invests in a broad group of non-US small-cap value companies believed to have higher expected returns across developed market countries, sectors, and industries.
- Avantis International Equity ETF (AVDE) – The fund primarily invests in a diverse group of companies of all market capitalizations, across non-US developed market countries, sectors and industries, emphasizing investment in companies believed to have higher expected returns.
- Avantis Emerging Markets Equity ETF (AVEM) – The fund mostly invests in a diverse group of companies of all market capitalizations, across emerging market countries, sectors and industries, emphasizing investment in companies believed to have higher expected returns.
- Avantis U.S. Equity ETF (AVUS) – The fund invests primarily in a diverse group of US companies of all market capitalizations, across sectors and industries, emphasizing investment in companies believed to have higher expected returns.
- Avantis U.S. Small Cap Value ETF (AVUV) – The fund mainly invests in a broad group of U.S. small-cap value companies believed to have higher expected returns across sectors and industries.
Related: American Century’s Avantis Launches ETF Sub-Brand
The portfolios for each of these funds are designed to help investors achieve higher expected returns by investing the way they are intended to do while seeking broad diversification across companies and industrial sectors to mitigate concentration risk.
This article originally appeared on our sister site, ETF Trends.
