Unlock Value with Avantis’ U.S. Large Cap Value ETF ๐
If you’re concerned about concentration risk in the market, it might be time to explore value-oriented investments. Avantis Investors’ chief investment strategist, Phil McInnis, proposes a diversified approach that goes beyond traditional index funds like the S&P 500. By focusing on companies with low valuations and strong balance sheets, Avantis’ exchange-traded fund strategy aims to deliver superior long-term returns.
Why Consider Avantis’ U.S. Large Cap Value ETF ๐ค
- Less concentration: Avantis’ ETF offers a more diversified portfolio
- Emphasis on companies with low valuations and strong balance sheets
- Potential for better returns in the long run
McInnis explained that Avantis’ U.S. Large Cap Value ETF (AVLV) follows the Russell 1000 Value index but with a unique approach. The fund managers use a profitability overlay to screen stocks, focusing on companies trading at attractive prices while considering their profits.
Distinct Investment Strategy of Avantis ๐
- Stock selection based on profitability in addition to valuations
- Aims to outperform traditional passive instruments
- Focus on a diversified portfolio with profitable companies
Among the top holdings of the Large Cap Value fund are Apple, Meta, JPMorgan, Costco, and Exxon Mobil. Notably, financial services and retail sectors hold significant weight in the portfolio, with energy being the third-largest sector. Avantis ensures a balanced approach by capping sector exposures to avoid overconcentration.
Performance Overview of Avantis’ ETF ๐
- Year-to-date return of 7.7% for the Large Cap Value ETF
- Russell 1000 Value index recorded a 4.5% gain during the same period
Concluding Thoughts on Value Investing with Avantis ๐
Consider exploring Avantis’ U.S. Large Cap Value ETF if you seek diversification, value-oriented investments, and the potential for better long-term returns. By focusing on companies with strong fundamentals and attractive valuations, this ETF offers a distinctive approach to unlocking value in your investment portfolio.
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