Avantis rolls out two new actively managed multi-factor ETFs

Oct 3rd, 2022 | By | Category: Equities

Avantis Investors, a subsidiary of American Century Investments, has launched two new actively managed ETFs that are based on the firm’s hallmark multi-factor investment approach.

Eduardo Repetto, Chief Investment Officer of Avantis Investors

Eduardo Repetto, Chief Investment Officer of Avantis Investors.

The Avantis Inflation Focused Equity ETF (AVIE US) and Avantis All Equity Markets ETF (AVGE US) have been listed on NYSE Arca with expense ratios of 0.25% and 0.23%, respectively.

AVIE comprises US-listed equities that are expected to appreciate during inflationary periods, prioritizing industries such as consumer staples, financial services, healthcare, metal & non-metallic mining, and petroleum & natural gas.

In a bid to enhance returns compared to a market cap-weighted approach, the portfolio tilts its constituent weights in favour of companies with exposure to size, profitability, and value risk premia.

AVGE, meanwhile, invests in Avantis’s existing line-up of multi-factor equity ETFs, maintaining a strategic allocation across geographies with a bias toward the US which will have a target weight of 70%. Developed markets outside of the US will have a target weight of 17%, emerging markets will have a target weight of 10%, while the firm’s global real estate ETF will make up the remaining 3%.

Eduardo Repetto, Chief Investment Officer of Avantis Investors, said: “Avantis exists to take common sense 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.

“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.”

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