Avantis Investors, a division of American Century Investments, listed three new actively managed ETFs dedicated to the American, European, and Pacific equity markets on the London Stock Exchange this morning.
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By ETFWorld.co.uk
Richard Adams, Head of EMEA, American Century Investments
The new strategies, which bring the number of UCITS ETFs available to European investors to five, have also been launched on Deutsche Börse’s Xetra platform.
The three instruments share a systematic approach that combines typical elements of indexing—such as diversification and transparency—with the ability to overweight stocks deemed most attractive based on current prices and company fundamentals.
Avantis America Equity UCITS ETF (AVUS)
The fund (ISIN: IE000OW54ZX1) invests in a diversified portfolio of large, mid, and small-cap US companies, with limited exposure to Canada. The active process aims to increase expected returns by overweighting stocks with lower valuations and high profitability. The current expenses ratio (TER) is set at 0.20% per annum. The benchmark for comparison purposes is the Russell 3000 Index.
| Product Name | Avantis America Equity UCITS ETF |
| ISIN | IE000OW54ZX1 |
| SEDOL | BNBQKL8 |
| Currency | GBP |
| Management Fee | 0.20% |
| Product Name | Avantis America Equity UCITS ETF |
| ISIN | IE000OW54ZX1 |
| SEDOL | BVPJY73 |
| Currency | USD |
| Management Fee | 0.20% |
Avantis Europe Equity UCITS ETF (AVEU)
The European sub-fund (ISIN: IE000SDFJUU0) replicates the same philosophy in developed European markets. The portfolio includes stocks of all capitalizations and applies the same selection criteria based on value and profitability. The TER is 0.25%. Performance can be compared to the MSCI Europe IMI Index.
| Product Name | Avantis Europe Equity UCITS ETF |
| ISIN | IE000SDFJUU0 |
| SEDOL | BNBQKM9 |
| Currency | GBP |
| Management Fee | 0.25% |
| Product Name | Avantis Europe Equity UCITS ETF |
| ISIN | IE000SDFJUU0 |
| SEDOL | BVPJY84 |
| Currency | USD |
| Management Fee | 0.25% |
Avantis Pacific Equity UCITS ETF (AVPE)
The fund dedicated to the Pacific region (ISIN: IE000T62NEO6) operates in the region’s developed markets using the same strategy as its two sister ETFs. Again, the annual cost is 0.25% and the benchmark index is the MSCI Pacific IMI.
| Product Name | Avantis Pacific Equity UCITS ETF |
| ISIN | IE000T62NEO6 |
| SEDOL | BNBQKP2 |
| Currency | GBP |
| Management Fee | 0.25% |
| Product Name | Avantis Pacific Equity UCITS ETF |
| ISIN | IE000T62NEO6 |
| SEDOL | BVPJYB7 |
| Currency | USD |
| Management Fee | 0.25% |
Strategy and positioning
The three ETFs are part of a line of products launched in Europe starting in October 2024. According to the company, the goal is to offer investors instruments that maintain the benefits of passive investing (low turnover, transparency, diversification) while adding potential excess returns through daily portfolio decisions based on market prices.
Corporate context
Avantis Investors manages approximately $110 billion in assets within American Century Investments, which in turn controls $320 billion in assets. The parent company is known for its connection to the Stowers Institute for Medical Research, to which it has distributed over $2 billion in dividends since 2000.
All three ETFs are domiciled in Ireland, with the base currency being US dollars and available for trading in euros. Income is accumulated
Source: ETFWorld.co.uk
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