Avantis Investors launched the Avantis International Small Cap Equity ETF (NYSE Arca: AVDS) on the New York Stock Exchange today. The active fund invests in a diverse group of non-U.S. small-cap companies across market sectors, industry groups, and countries.
AVDS seeks long-term capital appreciation and selects securities of companies expected to have higher returns. The fund emphasizes profitability and value characteristics. Conversely, it underweights or excludes securities expected to have lower returns based on lower profitability and less attractive value characteristics.
See more: “Avantis Launches 4 New Active ETFs”
Avantis chief investment strategist Phil McInnis said that AVDS complements the Avantis U.S. Small Cap Equity ETF (AVSC). “It applies the same principles, but now to international markets,” he added.
Avantis CIO Eduardo Repetto will co-manage AVDS with portfolio managers Mitchell Firestein, Daniel Ong, Ted Randall, and Matthew Dubin. Firestein said that AVDS provides efficient “exposure to small-cap companies in international markets at an attractive expense ratio.” That expense ratio is 0.30%.
Avantis, which is an American Century Investments brand, has been rapidly expanding its suite of ETFs. Last month, Avantis launched four “fund of funds” ETFs that use existing Avantis ETFs to build out multi-region and multi-asset class solutions.
“American Century has quickly emerged as a leading manager of active ETFs,” said Todd Rosenbluth, head of research at VettaFi. “Through the Avantis brand, they have offered a strong suite of low-cost products that can easily fit into asset allocation strategies.”
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