Avantis CIBC U.S. Small Cap Value ETF (CAUV)

Overview

Avantis CIBC US Small Cap Value ETF is an exchange-traded fund designed for Canadian investors seeking exposure to U.S. small-cap value stocks through an actively managed strategy. This partnership between CIBC Asset Management Inc. and Avantis Investors by American Century Investments aims for long-term capital appreciation by overweighting securities expected to yield higher returns, assessed based on current market prices, company financials, book equity, and profitability-to-book ratios. The fund targets small-cap companies that display value characteristics, such as lower price-to-book ratios and anticipated growth, utilizing the Russell 2000 Value Index as its primary universe. Active security selection is implemented to enhance the ETF's potential investment outcomes.

The portfolio emphasizes sectors such as financial services, consumer discretionary, energy, industrials, and technology. Among the top holdings are Macy's, GATX, and Five Below, which showcase the ETF's diversified approach to small-cap value investing. Additionally, the fund maintains a competitive net expense ratio of 0.25%, making it an accessible option for Canadian investors looking to incorporate U.S. small-cap value allocations into their portfolios. The ETF is structured to balance volatility with valuation-driven opportunities historically connected with the small-cap segment.

Products and Services

• Avantis CIBC US Small Cap Value ETF

  This ETF provides Canadian investors targeted access to the U.S. small-cap value market, aimed at achieving long-term appreciation through an actively managed portfolio focused on value-oriented stocks.

• Active Security Selection

  The fund employs an active management strategy that emphasizes the selection of securities believed to have higher expected returns based on detailed analyses of market conditions and company fundamentals.

• Diversified Sector Exposure

  The ETF's portfolio is diversified across several key sectors including financial services, consumer cyclical, energy, industrials, and technology, offering a comprehensive approach to small-cap investing.

• Cost-Effective Investment

  With a net expense ratio of 0.25%, the ETF presents a cost-effective way for investors to gain exposure to small-cap value stocks, helping to maximize potential returns while managing investment costs.

• Focus on Value Characteristics

  The investment strategy centers on identifying small-cap stocks with value characteristics, such as attractive price-to-book ratios and strong growth forecasts, allowing investors to capitalize on undervalued opportunities.

• Top Holdings

  The ETF includes notable holdings like Macy's, GATX, and Five Below, reflecting its commitment to investing in diverse small-cap companies with potential for growth and value realization.