AVEM Profile
The Avantis Emerging Markets Equity ETF primarily invests in a diverse array of companies operating in emerging markets, spanning various market sectors, industry groups, and countries. This broad exposure allows the fund to capture growth opportunities in regions that are experiencing rapid economic expansion and industrialization. By focusing on emerging markets, the fund aims to provide investors with access to high-growth potential investments that are often underrepresented in traditional portfolios.
Under normal market conditions, the fund commits to investing at least 80% of its assets in equity securities of companies related to emerging market countries. These countries include, but are not limited to, China, India, Brazil, South Africa, and other nations classified as emerging markets by major index providers. The fund may invest in companies of all market capitalizations, from small-cap firms to large multinational corporations, ensuring a comprehensive approach to capturing growth across different segments of the market.
The fund’s investment strategy involves a rigorous selection process to identify companies with strong growth potential and attractive valuations. This includes analyzing financial metrics such as earnings growth, return on equity, and cash flow generation, as well as considering macroeconomic factors and market trends specific to each country. By focusing on companies with robust fundamentals and favorable growth prospects, the fund seeks to deliver long-term capital appreciation for its investors.
In addition to direct investments in equity securities, the Avantis Emerging Markets Equity ETF may employ derivative instruments such as futures contracts, currency forwards, and swap agreements. These derivatives are used to manage risk, enhance liquidity, and improve overall portfolio efficiency. By leveraging these financial instruments, the fund can hedge against currency fluctuations, gain targeted exposure to specific sectors or markets, and optimize its investment strategy. This comprehensive approach ensures that the fund remains adaptable to changing market conditions while striving to achieve its investment objectives.
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