Avantis Investors Launches AVDS ETF to Capitalize on Valuation Spread in International Small Cap Stocks

Avantis Investors, a specialist in active ETFs with $25 billion assets under management across 22 funds, has unveiled the Avantis International Small Cap Equity ETF (AVDS). The actively managed ETF aims to leverage the growing valuation gap between U.S. and international stocks, focusing on small cap companies outside the United States. Operating as a systematic active ETF, AVDS doesn’t follow a specific index but relies on quantitative rules rather than traditional stock picking.

In recent years, large cap stocks have outperformed small cap stocks, and U.S. equities have surpassed international markets, with this trend being further amplified by a handful of mega-cap companies during this year’s market rally.

While investing in smaller companies was once believed to carry a return premium, subsequent research has cast doubts on the existence of a size premium, challenging the Fama-French three-factor model. Phil McInnis, the chief investment strategist at Avantis, shares this view, stating that the firm doesn’t find a theoretical basis for a size premium. The AVDS ETF presents investors with an opportunity to take advantage of the potential value in international small cap stocks in the context of evolving market dynamics.

Heavily Traded ETFs
SPDR S&P 500 - SPY
Invesco QQQ
Vanguard S&P 500 - VOO
Vanguard Total Market - VTI
Energy Select Sector - XLE

BNP Paribas Launches Sustainable Corporate Bond ETFs

BNP Paribas Asset Management has introduced two new exchange-traded funds (ETFs) focused on sustainable corporate bonds. The BNP...

BMO Launches Innovative Structured Outcome ETFs on Cboe Canada

BMO has partnered with Cboe Canada to introduce four new Exchange Traded Products (ETPs) catering to various investment...

ProShares Launches Groundbreaking Ether Strategy ETF and Dual Bitcoin-Ether ETFs

ProShares, a global leader in crypto-linked ETFs, is set to launch the ProShares Ether Strategy ETF (EETH), marking...

Bitwise Launches Ethereum Futures ETFs Amid Ethereum’s Surging Growth

Bitwise Asset Management, a leading crypto index fund manager in the United States, has announced the upcoming launch...