AVSG
Avantis Global Small Cap Value UCITS ETF
The investment objective of Avantis Global Small Cap Value UCITS ETF is to seek long-term capital appreciation through investment in an actively managed portfolio of equity and equity-related securities issued by small capitalisation companies in developed countries.
Please can you add this?
Interesting ETF, I hadn’t come across it until now so I know next to nothing about it.
At a glance, 0.39% seems reasonable assuming there’s no performance fee. About £100m in size, so you’d think it should be relatively liquid.
We’re seeing more and more active ETFs.
The big concern I’d have with this one in particular is the small cap focus.
As the Woodford crisis showed, it can be dangerous to hold less liquid investments in open-ended funds.
So, I would take a thorough look at the liquidity of what this ETF holds before investing.
Eventually, what happened with Woodford will repeat with one of these active ETFs.
Woodford was a very different scenario, he started moving into speculative and illiquid assets - making big bets on low quality biotech stocks.
Avantis are not just investors but academics, following a very specific criteria to capitalise on known risk premiums that come with small cap value stocks (think Fama & French). The CIO of Avantis previously worked as the CIO / CEO at Dimensional Fund Advisors - another large and reputable firm. Ben Felix and the Rational Reminder podcast have covered small cap value investing and have interviewed both companies, I would definitely check it out.
Personally I can’t wait for this fund to become live on Freetrade as it will be one of the only ways to apply a small cap value tilt in the UK as a retail investor.
Fair point. I would just want to satisfy myself about precisely what the ETF holds to be safe.
As say, I don’t know much about Avantis. I’ll have to read more, it sounds really interesting.
Yes, I agree, small-cap value can be a difficult to access for UK investors aside from a handful of investment trusts.
@Viktor, I haven’t seen any ETF requests go through lately, can we get some focus on this?