What Is the AVES ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An actively managed ETF that invests in emerging-market value stocks and highly profitable companies. It aims to outperform the market through a systematic, refined stock selection process.
SubscribeWhat Is This ETF?
The fund uses the MSCI Emerging Markets Value Index as its benchmark and systematically selects and holds stocks with strong value metrics and profitability across the full range of emerging-market companies, from large caps to small caps.
It suits investors who want to bet on the long-term growth of emerging markets while using value investing principles to build downside resilience into their portfolios.
It is an actively managed ETF launched in 2021 by Avantis Investors (Avantis).
How Does It Invest?
| Item | Details |
|---|---|
| Benchmark Index | MSCI EM Value IMI |
| Management Style | Active (systematic) |
| Number of Holdings | Approximately 1,800 or more |
| Dividend Frequency | Semiannual |
| Total Expense Ratio | 0.36% |
The fund gives priority to companies that are inexpensive relative to book value, but assigns higher weights to companies with strong earnings power. This screens out "value trap" stocks that are merely cheap and builds the portfolio around names where real fundamental improvement is expected.
- A factor investing strategy that combines value and profitability
- Broad inclusion of small and mid-cap stocks to maximize diversification
Size and Costs
Assets under management (AUM) stand at $1.5B, and the total expense ratio is 0.36% per year.
Its fee is somewhat lower than that of the similar DFEV, and combining it with AVIV, the developed-markets value ETF from the same issuer, makes it easy to build a global value stock portfolio.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeRecent global value rotation and the undervaluation appeal of emerging markets have supported solid performance, and the rebound of high-quality value stocks in the financial and technology sectors has been a particular tailwind.
As market confidence grows in its low fees and systematic active management, inflows from investors looking to raise their emerging-market allocations continue to expand.
Strengths and Weaknesses
Its main feature is low-cost active access to emerging-market value stocks, while the volatility and currency risk inherent in emerging markets are factors to keep in mind.
💪 Key Strengths
⚠️ Points of Caution
Alternative ETFs and Related Products
DFEV, shown in the table, is a long-established heavyweight with a far larger asset base, while DFIV focuses on developed-markets value stocks. To complement AVES, you could consider VWO or IEMG, which track the broad emerging-market universe. If you want more aggressive returns, pairing it with an emerging-market small-cap ETF or a country-specific product (for example, MCHI or EPI) is also a viable strategy.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 DFIV | Dimensional International Value ETF | $56.22 | -0.1% | $21.9B | 0.27% | 2.77% | +20.1% |
 DFEV | Dimensional Emerging Markets Value ETF | $40.94 | +1.3% | $2.1B | 0.43% | 2.18% | +22.2% |
 AVIV | Avantis International Large Cap Value ETF | $79.63 | -0.1% | $2.1B | 0.25% | 2.85% | +16.2% |
 SFGV | Sequoia Global Value ETF | $35.97 | -0.1% | $1.2B | 0.33% | 2.23% | +14.6% |
 DSTX | Distillate International Fundamental Stability & Value ETF | $35.21 | -0.5% | $72.3M | 0.55% | 3.05% | +13.2% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 MYMK | State Street My2031 Municipal Bond ETF | 0.06% | $24.63 | +0.0% | $0.0M | - | 2.61% |
 MYMI | State Street My2029 Municipal Bond ETF | 0.02% | $24.24 | +0.2% | $0.0M | - | 2.83% |
| ASX | ASE Technology Holding CoLtd ADR | 0.02% | $43.92 | +4.4% | $96.6B | 51.4 | 1.42% |
| VALE | Vale SA ADR | 0.02% | $11.47 | -3.1% | $46.7B | 24.2 | 8.61% |
 WF | Woori Financial Group Inc ADR | 0.01% | $66.50 | +1.9% | $16.3B | 7.7 | 5.17% |
| KB | KB Financial Group Inc ADR | 0.01% | $115.38 | +2.6% | $40.8B | 9.9 | 3.12% |
| SHG | Shinhan Financial Group Co Ltd ADR | 0.01% | $65.62 | +2.0% | $30.4B | 8.4 | 3.47% |
 MYCM | State Street My2033 Corporate Bond ETF | 0.01% | $23.68 | -0.2% | $0.0M | - | 4.9% |
Investor Checkpoints
These are the key points to review before investing in AVES. Your decision should take into account both the characteristics of emerging-market value stocks as an asset class and Avantis's distinctive investment philosophy.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Fee Level | Cost competitiveness among emerging-market active ETFs | Low |
| 🌍 Country Weights | Exposure to major countries such as China, South Korea, and Taiwan | Diversified |
| 📈 Profitability Metrics | Average return on equity (ROE) of the holdings | Solid |
| 💱 Currency Exposure | Impact of emerging-market currency moves against the US dollar | Needs review |
Emerging markets have lower transparency and higher volatility than developed markets, so it is advisable to approach the fund from a long-term asset allocation perspective rather than reacting to short-term results.
For investors who want to get ahead of a rebound in undervalued emerging-market companies, AVES can be an effective tool for benefiting from professional stock selection at a low cost.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
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