Avantis launched new ETFs on November 9, 2023 – AVMC, AVMV, and AVEE. I briefly summarize them here.
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Avantis launched 3 new ETFs to provide narrow exposure to corners of the market that they previously didn't have dedicated funds for.
AVMC – Avantis U.S. Mid Cap Equity ETF
AVMC, the Avantis U.S. Mid Cap Equity ETF, provides exposure to the arguably under-appreciated segment of the stock market known as mid cap stocks, in between large caps and small caps, in this instance specifically in the United States. This is the first dedicated mid cap offering from Avantis. AVMC is considered a mid cap blend fund and slightly tilts toward factors like Value and Profitability.
AVMC has an expense ratio of 0.18%.
AVMV – Avantis U.S. Mid Cap Value ETF
AVMV goes one step further and hones in on U.S. mid cap value stocks that exhibit robust profitability. In some instances, market timers may prefer the more attractive valuations of mid cap value stocks versus small cap value stocks, in which case AVMV may be useful.
AVMV has a fee of 0.20%.
AVEE – Avantis Emerging Markets Small Cap Equity ETF
AVEE is the Avantis Emerging Markets Small Cap Equity ETF, providing broad small cap exposure within Emerging Markets and targeting stocks with greater expected returns.
Remember Avantis doesn't have an explicit Emerging Markets small cap value fund, so the first question many probably have is how this new fund compares to AVES, which is effectively a mid cap value fund for Emerging Markets. AVEE is holding smaller stocks than AVES, but AVES will be holding stocks that exhibit more Value than AVEE. We'll have to wait and see where factor loadings specifically come in at. I'll return and update this post at that point.
AVEE aims to hold companies with market capitalizations no greater than $25 billion.
The fund has an expense ratio of 0.42%.
What do you think of these new funds from Avantis? Let me know in the comments.
Disclosures: None.
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Hey John, would love an update on these mid-cap ETFs in terms of factor loadings and performance now that they’ve been out for a little while!
I’m really optimistic about avee. Going off morningstar’s says, it’s smaller and more valuey than dgs, and nearly as valuey as aves. I expect similarly minor profitability and investment exposure to aves. It has over 60% in 2 countries though, so very concentrated. Time will tell though.
(https://www.morningstar.com/etfs/arcx/avee/portfolio)
Jeremy, thanks for your comment and thoughts and the link. Your summary is exactly what I expected from AVEE. Good point about the geo concentration. Indeed, we’ll see what the future holds for it and I’ll probably have to seriously consider replacing DGS with it.