AVMV Profile
The American Century ETF Trust - Avantis U.S. Mid Cap Value ETF invests primarily in a diverse group of U.S. mid-cap companies across various market sectors and industry groups. The fund's investment strategy focuses on identifying mid-cap firms that demonstrate strong value characteristics and higher profitability. By targeting companies with solid financial health and sustainable business models, the fund aims to provide investors with exposure to the mid-cap segment of the U.S. equity market, which has the potential for substantial growth and returns.
To achieve its investment objectives, the fund seeks out securities of companies with smaller market capitalizations relative to others within its mid-cap investment universe. This approach allows the fund to capture opportunities in companies that are often overlooked by traditional large-cap focused funds. By investing in smaller yet fundamentally strong companies, the fund aims to capitalize on their growth potential while maintaining a diversified portfolio to manage risk.
The fund's selection process is rigorous and data-driven, employing quantitative models to evaluate a wide range of financial metrics. These metrics include profitability ratios, valuation multiples, and growth indicators. By systematically analyzing these factors, the fund managers can identify stocks that are undervalued by the market yet possess strong fundamentals. This disciplined approach ensures that the fund remains focused on its goal of achieving higher expected returns for its investors.
In addition to its focus on mid-cap value stocks, the Avantis U.S. Mid Cap Value ETF also employs a dynamic risk management strategy. This includes the use of derivatives such as futures and options to hedge against potential market downturns and to enhance portfolio efficiency. By combining traditional equity investments with sophisticated risk management techniques, the fund aims to provide a balanced approach to growth and capital preservation, making it an attractive option for investors seeking mid-cap exposure with a value-oriented investment philosophy.
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