4 Active Factor ETFs Launch

Avantis Investors, a subsidiary of American Century Investors, followed up the launch of its first ETF earlier this month with the rollout of four funds with similar methodologies. The new products and their expense ratios are:

• Avantis International Equity ETF (AVDE), 0.23%
• Avantis International Small Cap Value ETF (AVDV), 0.36%
• Avantis U.S. Equity ETF (AVUS), 0.15%
• Avantis U.S. Small Cap Value ETF (AVUV), 0.25%

All four list on the NYSE Arca.

The funds all have an active factor strategy as an investment approach that targets companies exhibiting value characteristics and high profitability. And although two of the funds are small cap in focus, the other two funds tend to target smaller-sized companies as well.

AVDE uses the Russell 3000 Index as its benchmark, while AVUV uses the Russell 2000 Value Index, focusing on companies with market capitalizations below $5.8 billion. And while AVDE’s prospectus does not indicate the fund relies on a benchmark, AVDV uses the MSCI World ex USA Small Cap Index, according to its prospectus.

American Century launched Avantis Investors this year, with former Dimensional Fund Advisors head Eduardo Repetto at the helm as chief investment officer. DFA has been a pioneer in actively managed factor investing. Avantis rolled out its first fund, the Avantis Emerging Markets Equity ETF (AVEM) roughly a week ago.

Contact Heather Bell at [email protected]