AVXC Profile
The Avantis Emerging Markets ex-China Equity ETF (ticker: AVXC) is designed to provide long-term capital growth by investing in a diversified portfolio of companies from emerging markets, excluding China. The fund focuses on smaller market capitalization firms that demonstrate robust profitability and value attributes. Its investment approach emphasizes identifying companies with favorable financial metrics such as adjusted book-to-price ratios and cash flow relative to book value. This methodology is aimed at capturing opportunities for growth while managing risk.
The fund manager employs a comprehensive analysis of financial data and market conditions to select securities. Key considerations include industry classification, historical performance, and liquidity, ensuring that each investment meets the fund’s criteria for profitability and value. The portfolio is constructed based on market capitalization and the expected return potential of the securities relative to their peers, allowing for a strategic allocation that maximizes growth opportunities while adhering to the fund’s investment objectives.
AVXC maintains flexibility in its investment strategy, with the ability to adjust holdings based on the evolving characteristics of the market and individual securities. This includes the potential to reduce exposure or divest from positions that no longer meet the fund's criteria, taking into account factors such as past performance, projected returns, implementation costs, and tax implications. Such adjustments help in optimizing the portfolio's performance and aligning it with the fund’s growth targets.
In addition to investing in equities, the fund can engage in securities lending to enhance liquidity and potentially generate additional income. It also has the capacity to invest in securities denominated in foreign currencies, broadening its exposure to global markets. The Avantis Emerging Markets ex-China Equity ETF’s strategic focus on emerging markets, combined with its rigorous selection process and flexible management approach, positions it to deliver long-term capital growth while navigating the complexities of international investing.
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