AVES ETF

Emerging markets have been challenging for passive investors due to China's weakness, making a case for active management like AVES. AVES is an actively managed ETF launched in 2021 with promising results, focusing on undervalued stocks in emerging markets. AVES has a well-diversified portfolio with a focus on profitability and value, outperforming passive indices like EEM and offering exposure to emerging market potential.

Investing in foreign markets offers great advantages, but basic passive tactics may not be suitable. A passive strategy focused on U.S. stocks invests in some of the most closely monitored companies globally.

Avantis Emerging Markets Value ETF holds about 1500 stocks listed in emerging markets and showing value and profitability characteristics. AVES is well diversified across holdings and sectors, shows attractive valuation metrics, and has performed quite well relative to peers. However, investors willing to limit geopolitical and regulatory risks would likely prefer ETFs excluding China.

Avantis Emerging Markets Value ETF is an actively managed emerging markets value ETF with a cheap valuation and above-average dividends. The fund focuses on China, Taiwan, India, and South Korea, but overweighting China poses significant risks. AVES has a subpar performance track record but is managed by Avantis, a firm with a proven strategy in value investing.

As fund managers rethink their strategy on emerging markets (EM), one consideration advisors and retail investors can consider is tilting toward value if they want to add EM assets to their portfolio. In particular, one exchange traded fund (ETF) worthy of consideration is the Avantis Emerging Markets Value ETF (AVES).

Avantis Emerging Markets Value ETF holds about 1400 stocks with value and profitability characteristics. It is well diversified across holdings and sectors. Exposure to geopolitical and regulatory risks related to China is very high.