Avantis All Equity Markets Value ETF’s Process Pillar rating is Average, but a strong management team still helps this strategy retain its Morningstar Medalist Rating of Bronze. The portfolio maintains a cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy merits an Average Process Pillar rating.  High liquidity exposure is attributed to stocks with a high trading volume, lending managers more flexibility. And momentum exposure is rooted in holding stocks currently on a winning streak. The strategy's parent organization earns the firm an Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Avantis US Large Cap Value ETF

Avantis International Large Cap Value ETF

Avantis U.S. Small Cap Value ETF

Avantis International Small Cap Value ETF

Avantis Emerging Markets Value ETF

American Century ETF Trust - Avantis U.S. Mid Cap Value ETF

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Avantis ALL Equity Markets Value ETF earns an Average Process Pillar rating. 

The main contributor to the rating is the firm's five-year retention rate of 84% over the period. The depth of the portfolio management team also reinforces the process. With five portfolio managers, the fund is well-staffed. Lastly, the process is limited by the parent firm's five-year risk-adjusted success ratio of 51%. The measure indicates the percentage of a firm's funds that survived and outperformed their respective category's median Morningstar Risk-Adjusted Return for the period. The parent's relatively low success ratio suggests that the firm could do better across its fund lineup.

 This strategy skews toward smaller, deeper value companies than its average peer in the Global Large-Stock Value Morningstar Category. Analyzing additional factors, this fund has constantly tilted toward stocks with higher trading volumes than its Morningstar Category Peers over the past few years. More-liquid assets are easier to buy and sell without adversely moving their prices and tend to provide some ballast during market selloffs. They also are easier to sell to meet redemptions if a host of investors decide to leave the fund in a short period of time. In recent months, the strategy was more exposed to the Liquidity factor compared with its Morningstar Category peers as well. This strategy has also had more exposure to high-momentum stocks in recent years. Momentum strategies wager that market outperformers will continue to outperform, and laggards will continue to lag. Higher exposure to the former could mean the managers are overweighting stocks on winning streaks. Compared with category peers, the strategy also had more exposure to the Momentum factor in the most recent month. During the last few years, this strategy has also tilted in favor of high-quality stocks, those that have demonstrated low financial leverage and solid return on equity. High exposure to the quality factor means holding companies that are consistently profitable, growing, and have solid balance sheets. In this month, the strategy also had more exposure to the Quality factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section. 

 The portfolio is overweight in consumer cyclical and industrials relative to the category average by 9.0 and 6.1 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and real estate, underweight the average by 9.4 and 5.6 percentage points of assets, respectively. The strategy has only reported a handful of holdings, and is in a category where 14.2% of assets are typically concentrated in the top 10 holdings. And finally, in terms of portfolio turnover, looking at year-over-year movements, 0% of the fund's holdings have turned over, whether through increasing, decreasing, or changing a position.

Average

Process

Avantis ALL Equity Markets Value ETF earns an Above Average People Pillar rating. The team is backed by Daniel C. Ong, the longest-tenured manager on the strategy, who provides 19 years of listed portfolio management experience. The average Morningstar Rating of the strategies they currently manage is 3.1 stars, reflecting average risk-adjusted performance versus category peers. Daniel C. Ong draws on a supporting cast of four additional listed managers. Together they average seven years of listed portfolio management experience. As a team, they manage 31 investment vehicles together, with a Bronze asset-weighted average Morningstar Medalist Rating, indicating the potential to deliver positive alpha in aggregate. Portfolio managers have made only a small personal investment in the fund, with the maximum investment by any one manager being less than $10,000. That isn't sufficient to align their interests with those of the strategy's investors. 

 Note: The People Pillar rating is indirectly assigned by an analyst. The longest-tenured manager of the fund also manages a different product rated by an analyst. Their analyst-assigned People Pillar rating is combined here with the People scores (algorithmic or analyst-assigned) for the fund’s other managers on a tenure-weighted basis.

Above Average

People

An evolution is taking hold at American Century, but some pluses and minuses continue, supporting a continued Parent rating of Average.
The firm entered the ETF market in 2019 by launching Avantis Investors, led by former executives from Dimensional, a strong firm that manages semi-passive strategies with value tilts and low fees. Avantis is now running roughly a dozen ETFs with similar features, while American Century’s in-house teams manage another 16 active ETFs. This effort is still fairly new and small as a percentage of assets under management, as most ETFs have been launched since 2019, but they help American Century compete with lower-cost passive and strategic-beta funds.
The bulk of the firm’s assets remain in U.S. mutual funds run by its internal boutiques. The U.S. value team has long been a standout, with tenured, stable management and good long-term results, but other investment teams haven’t produced consistently distinctive portfolios or performance, and some have continued to endure investment-professional turnover.
The firm’s ownership structure is noteworthy and supports a long-term strategy. While the firm has worked with a few large minority shareholders, including current 41% stakeholder Nomura, The Stowers Institute for Medical Research owns 45% of the firm but holds 70% of the equity voting rights. Employees own the rest, which should encourage retention.

Parent

Avantis All Equity Markets Value ETF

AVGV is an actively managed fund-of-funds that invests in global equity portfolios, weighted by geography. It seeks long-term capital appreciation through factor-investing, focusing on securities with value characteristics and higher expected returns.

Avantis value ETFs are some of the best-performing value ETFs in the market. AVGV invests in six different Avantis value ETFs, with exposure to the most relevant equity market segments, industries, and regions. It provides investors with a simple, effective way to invest in global value stocks.

AVGV: Diversified Global Equity Value ETF, Cheap Valuation, Strong Performance

Avantis All Equity Markets ETF

Avantis Moderate Allocation ETF

Avantis All International Markets Equity ETF

Avantis All International Markets Value ETF

Avantis Investors has listed four new active ETFs on the New York Stock Exchange today. Each fund seeks long-term capital appreciation.

Avantis Launches 4 New Active ETFS

KANSAS CITY, Mo. , June 29, 2023 /PRNewswire/ -- Today, Avantis Investors ®, a $25 billion* investment offering from global asset manager American Century Investments®, expands its exchange traded fund (ETF) platform with the listing of four new actively managed ETFs: Avantis All Equity Markets Value ETF (AVGV), Avantis All International Markets Equity ETF (AVNM), Avantis All International Markets Value ETF (AVNV) and Avantis Moderate Allocation ETF (AVMA).

News for Avantis All Equity Markets Value ETF ETF (AVGV)