Avantis Reaches Three-Year Anniversary
This week, Avantis Investors® , an investment offering from global asset manager American Century Investments®, reached the three-year anniversary of bringing its first five equity ETFs to the market. Each of the five initial Avantis ETFs has surpassed $1 billion in assets under management at the three-year mark, and Avantis collectively now manages nearly $14 billion* across 16 strategies.
Ticker | ETF | AUM ($M) as of 8/31/22 | Net Expense Ratio (%) |
|---|---|---|---|
AVUS | Avantis U.S. Equity ETF | $2,521 | 0.15 |
AVUV | Avantis U.S. Small Cap Value ETF | $3,631 | 0.25 |
AVDE | Avantis International Equity ETF | $1,505 | 0.23 |
AVDV | Avantis International Small Cap Value ETF | $1,669 | 0.36 |
AVEM | Avantis Emerging Markets ETF | $1,322 | 0.33 |
Avantis helps clients achieve their investment goals through a persistent focus on providing well-diversified investment solutions that fit seamlessly into asset allocations and combine the potential for added value with the reliability of indexing. Chief Investment Officer Eduardo Repetto, Ph.D. and Chief Operating Officer Patrick Keating, CFA, CPA have led Avantis since its start.
Avantis Investors continues to expand its investment lineup to serve a broader set of investor goals
Today, Avantis expands its exchange traded fund (ETF) platform with the listing of two new transparent active strategies: the Avantis Inflation Focused Equity ETF (AVIE) and Avantis All Equity Markets ETF (AVGE) . Both funds seek long-term capital appreciation.
“Avantis exists to take commonsense investment principles and incorporate the latest academic research to build investment strategies. 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,” said Repetto. “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.”
Avantis Inflation Focused Equity ETF and Avantis All Equity Markets ETF serve specific needs
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,”¹ 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.
Both AVIE and AVGE will trade on the New York Stock Exchange (NYSE Arca, Inc.). The total annual fund operating expenses for AVIE are 0.25% and for AVGE are 0.23%². 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. Current Avantis strategies include:
Avantis Core Fixed Income ETF (AVIG) and mutual fund (AVIGX) ;
Avantis Core Municipal Fixed Income ETF (AVMU) and mutual fund (AVMUX);
Avantis Emerging Markets Equity ETF (AVEM) and mutual fund (AVEEX) ;
Avantis International Equity ETF (AVDE) and mutual fund (AVDEX) ;
Avantis International Small Cap Value ETF (AVDV) and mutual fund (AVDVX) ;
Avantis Short-Term Fixed Income ETF (AVSF) and mutual fund (AVSFX) ;
Avantis U.S. Large Cap Value ETF (AVLV) and mutual fund (AVLVX) ;
Avantis U.S. Small Cap Value ETF (AVUV) and mutual fund (AVUVX)
About American Century Investments
Who We Are
American Century Investments is a leading global asset manager focused on delivering investment results and building long-term client relationships while supporting breakthrough medical research.
Quick Facts
Founded in 1958, American Century Investments' 1,400 employees serve financial professionals, institutions, corporations and individual investors from offices in Kansas City, Missouri; New York; Los Angeles; Santa Clara, California; Portland, Oregon; London; Frankfurt, Germany; Hong Kong; and Sydney.
Management
Jonathan S. Thomas is president and chief executive officer, and Victor Zhang serves as chief investment officer.
Giving Back
Delivering investment results to clients enables American Century Investments to distribute over 40% of its dividends to the Stowers Institute for Medical Research, a 500-person, nonprofit basic biomedical research organization. The Institute owns more than 40% of American Century Investments and has received dividend payments of more than $2 billion since 2000.
Assets under supervision as of 8/31/2022.
The fund's performance and risks reflect the performance and risks of the underlying funds in which it invests. By investing in underlying funds, the primary fund becomes a shareholder of the underlying fund and bears its proportionate share of the underlying fees and expenses.
Returns or yields for the fund would have been lower if .02% of the fund's management fee had not been waived. The advisor expects this waiver to continue until December 31, 2024, and cannot terminate it prior to such date without the approval of the Board of Trustees. Review the annual or semiannual report for the most current information.
You should consider the fund's investment objectives, risks, charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained by visiting avantisinvestors.com or calling 1-833-928-2684, contains this and other information about the fund, and should be read carefully before investing. Investments are subject to market risk.
Exchange Traded Funds (ETFs) are bought and sold through exchange trading at market price (not NAV), and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
These funds are actively managed ETFs that do not seek to replicate the performance of a specified index. To determine whether to buy or sell a security, the portfolio managers consider, among other things, various fund requirements and standards, along with economic conditions, alternative investments, interest rates and various credit metrics. If the portfolio manager considerations are inaccurate or misapplied, the fund's performance may suffer.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
AVIE:
The fund's investments are designed to correlate with inflation. There is no guarantee, however, that the value of the fund's securities will increase over time or that the future investment performance will correlate with inflation. Purchasing power decreases as inflation increases, and the future value of the fund's assets could decline. Further, to the extent the fund's investments do correlate with inflation, the value of the fund's investments could decline if inflation or inflation expectations recede. In addition, the fund invests primarily in a diverse group of U.S. equity companies in market sectors and industry groups the portfolio managers expect to appreciate in value if the U.S. inflation rate rises or is believed to be rising. The fund seeks to focus its investments in those industries that historically have had, or are expected to have, better performance in periods of rising inflation, which generally includes financial services, oil and gas, metals and mining, healthcare, and consumer staples companies. The prospectus contains very important information about the different risks associated with those types of industries and companies.
AVGE:
Historically, small- and/or mid-cap stocks have been more volatile than the stock of larger, more-established companies. Smaller companies may have limited resources, product lines and markets, and their securities may trade less frequently and in more limited volumes than the securities of larger companies.
International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.
Exchange Traded Funds (ETFs): Foreside Fund Services, LLC - Distributor, not affiliated with American Century Investment Services, Inc.
Mutual Funds: American Century Investment Services, Inc., Distributor.
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