AVDV aims to outperform the MSCI World ex-U.S. Small Cap Index by selecting profitable, undervalued companies within the same universe. The value factor for this fund is more sophisticated than most funds that are supposed to be "value" and the small-cap space as the hunting ground seems promising. The fund has realized a price return of 3.51% per year in the last 3 years, greatly outperforming its benchmark, which reflected negative returns.
Undervalued industries, regions, and equity market segments offer investors the potential for strong, market-beating returns. There are ETFs tracking most of these. An overview of the cheapest sectors, and ETFs tracking these, follows.
Avantis Investors' ETF providing access to international small caps is seeing notable interest. The Avantis International Small Cap Value ETF (AVDV) has seen strong inflows as investors look to add active exposure to non-U.S. developed small-cap companies.
Many investors are considering diversifying away from the U.S. While the domestic stock market remains strong, it is also quite expensive. What's more, concentration risk as the U.S. stock market relies on just a handful of firms puts portfolios and the broader stock market at risk.
Wall Street experienced a robust upswing last month, defying the famous adage "Sell in May". The rally was driven y strong corporate results, and the artificial intelligence craze.