Avantis All International Mkts Eq 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 least expensive fee quintile among peers.  

 The strategy’s management team earns an Above Average People Pillar rating. The strategy gets an Average Process Pillar rating.  Low quality exposure is attributed to stocks with higher financial leverage and lower profitability. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. 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 International Equity ETF

Avantis International Large Cap Value ETF

Avantis Emerging Markets Equity ETF

Avantis Emerging Markets Value ETF

Avantis International Small 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 International Mkts Eq ETF earns an Average Process Pillar rating. 

The most significant contributor to the rating is the firm's five-year retention rate of 84% over the period. The size 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 modest success ratio suggests that the firm could do better across its fund lineup.

 This strategy leans toward smaller, deeper value companies than its average peer in the Foreign Large Blend Morningstar Category. Examining additional factor exposure, this strategy tilts consistently toward stocks with lower quality or the shares of companies with more financial leverage and lower profitability, compared with Morningstar Category peers over the past few years. Lacking this ballast, the fund's prospects could rest on its ability to beat peers during economic booms. In the latest month, the strategy was also less exposed to the Quality factor compared with Morningstar Category peers. This strategy has also exhibited a tilt toward high-volatility stocks over these years, meaning it has invested in companies that have a higher historical standard deviation of returns. Such stocks tend to rise faster and fall harder than the broad market. High-volatility exposure contributes to stronger performance during bull markets, but often at the cost of losing more during downturns. Compared with category peers, the strategy also had more exposure to the Volatility factor in the most recent month. Additionally, this strategy's portfolio has held more stocks with high dividend or buyback yields than peers over recent years. High-yield stocks tend to be connected to more mature companies earning enough cash to return some to shareholders. At times, however, extreme market pressure can force them to cut their dividends, which hurts stock performance. In this month, the strategy also had more exposure to the Yield 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 basic materials and energy relative to the category average by 4.6 and 4.2 percentage points, respectively. The sectors with low exposure compared to category peers are healthcare and consumer defensive, underweight the average by 5.6 and 4.1 percentage points of assets, respectively. The strategy has only reported a handful of holdings, and is in a category where 15.7% of assets are typically concentrated in the top 10 holdings. And in closing, 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 International Mkts Eq ETF earns an Above Average People Pillar rating. Daniel C. Ong’s veteran status, with 19 years of listed portfolio management experience, brings a wealth of experience to the table. The average Morningstar Rating of the strategies they currently manage is 3.1 stars, reflecting average risk-adjusted performance in comparison to category peers. Daniel C. Ong has an adequate backdrop of support, drawing on four additional listed managers, averaging seven years of listed portfolio management experience. As a team, they manage 31 investment vehicles together, with solid long-term prospects. The strategies average a Bronze asset-weighted Morningstar Medalist Rating, indicating a position 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 between $10,000 and $50,000. 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 International Markets Equity ETF

AVNM is an actively managed fund-of-funds that invests in international equity portfolios, typically heavily weighted towards developed markets outside the US. It seeks long-term capital appreciation through securities with higher expected returns.

Avantis All International Markets Value ETF

With the expectation of Federal Reserve rate cuts to come this year, global central banks could also follow suit. This could pave the way for international equities to run higher, giving investors upside while also getting diversified exposure.

These 2 ETFs Provide Active, Diversified International Exposure

Avantis All Equity Markets ETF

Avantis All Equity Markets Value ETF

Avantis Moderate Allocation 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 International Markets Equity ETF ETF (AVNM)