American Century Investments’ Avantis Investors brand has performed well over the last several weeks with a suite ranging from its flows dynamos the Avantis U.S. Small Cap Value ETF (AVUV) to the duo of the Avantis® Real Estate ETF (AVRE) and the Avantis® Core Fixed Income ETF (AVIG) both of which hit key buy signals on Friday.
AVRE reached $44.7 Friday, surpassing its $44.3 200-Day Simple Moving Average (SMA), while AVIG reached $42.27 compared to its $42.2 200-Day SMA. The latter strategy is also closing in on a golden crossover in which its 50-Day SMA, currently at $41.6, rises above its 200-Day SMA.
AVRE is actively managed and invests in real estate stocks around the world, including REITs and REIT-like entities. The strategy considers a firm to be a real estate company if it derives at least 50% of its revenues from the ownership, construction, management, or sale of real estate. The strategy charges 17 basis points and has seen one-month net inflows of $27 million, while also outperforming the Factset Segment Average over the last three months.
AVIG meanwhile charges 15 basis points for its active exposures to a broad range of U.S. and non-U.S. issuers of debt securities, looking for high expected returns. AVIG’s managers categorize the portfolios universe based on industry sector, credit rating, duration, and more, outperforming both its ETF Database Category Average and its Factset Segment Average over three months with returns of 6.9%. It’s also taken in $27 million in net inflows over one month.
The duo of ETFs hitting their key buy signals could be attributed to investors looking outside of equities given the looming challenges posed by rising rates and a possible earnings recession. Real estate has had a tough time over the last few months but could be well poised once rates settle, while a broad bond strategy like AVIG may be able to navigate across bond types in such an uncertain fixed income landscape.
As such, investors may want to keep an eye on both to see how they progress in the days to come given the technical indicators they’ve reached.
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