Developed world All Cap - Avantis Global Equity

raghav.raman

Avantis Global Equity UCITS ETF USD Acc

I have been looking at this ETF.

• (seems) Developed world All cap is the investment universe
• Reasonable TER
• Well diversified
• MSCI World IMI as benchmark.

I do realise

• relatively new fund, Inception/Listing Date: 25 September 2024, but look at the AUM 214M in only 3 months, they have been successful in attracting investors (retail or institutional difficult to say) 
• Actively managed, most Active managers fail to beat the broad market
• Traded daily volume is less, perhaps expected for a new fund?

For someone looking for a simple, one fund equity strategy, covering all cap, at a reasonable TER, this looks like a good choice, right?

Your thoughts and reviews are gratefully received.

Thanks

raghav.raman

The forum is not letting me post links.

You can lookup the ETF using ticker "AVCG"

cloud_dog

https://www.morningstar.co.uk/uk/etf/snapshot/snapshot.aspx?id=0P0001UBZW

Just to note, it is an actively managed ETF, albeit with an apparent very reasonable fund charge (0.22%).  I haven't delved in to transactions costs etc.

kinger101

Personally, I don't see the point of this over an MCSI world index tracker.

MSCI already excludes emerging markets.

Is there a reason you'd want this over an albeit only slightly cheaper index tracker?  Seems to me the only point of a managed fund is specialization.

cloud_dog

It is rare to find 'all cap' ETFs.

Alexland

I'd rather hold a non all-cap developed world tracker at almost half the cost with a low market spread and a history of at least 5 years. Ideally from one of the world's biggest asset managers Vanguard, State Street, Etc.

raghav.raman

kinger101 said:

Personally, I don't see the point of this over an MCSI world index tracker.

MSCI already excludes emerging markets.

Is there a reason you'd want this over an albeit only slightly cheaper index tracker?  Seems to me the only point of a managed fund specialization.

The main reasons are that this ETF is

• a Developed world All Cap fund
• P/E, P/B valuations are slightly better than a standard MSCI World tracker
• Going by KIID, slightly less riskier at 5 than a MSCI World tracker at 6
• given it is Actively managed, I am hoping, rebalancing, etc. will be quick than a passive tracker

The only closest Passive tracker I found is Vanguard ESG Developed World All Cap Equity Index Fund at TER 0.2

cloud_dog

Alexland said:

I'd rather hold a non all-cap developed world tracker at almost half the cost with a low market spread and a history of at least 5 years. Ideally from one of the world's biggest asset managers Vanguard, State Street, Etc.

Ah yes, but what you or I might prefer, or prefer to prioritise is irrelevant to another who is looking for this type of funds allocation.

Linton

raghav.raman said:

Avantis Global Equity UCITS ETF USD Acc

I have been looking at this ETF.

• (seems) Developed world All cap is the investment universe
• Reasonable TER
• Well diversified
• MSCI World IMI as benchmark.

I do realise

• relatively new fund, Inception/Listing Date: 25 September 2024, but look at the AUM 214M in only 3 months, they have been successful in attracting investors (retail or institutional difficult to say) 
• Actively managed, most Active managers fail to beat the broad market
• Traded daily volume is less, perhaps expected for a new fund?

For someone looking for a simple, one fund equity strategy, covering all cap, at a reasonable TER, this looks like a good choice, right?

Your thoughts and reviews are gratefully received.

Thanks

I like the fact that you are looking for funds that meet your objectives with allocations apparently being an important factor and that you want to invest in AllCap.

On the good side:
 - Only 60% is invested in the largest companies leaving plenty of room for medium and small companies
 - The allocation to the large and in my view overvalued US techs is significantly lower than in a global tracker
 - the sector allocation is spread more evenly than in a global tracker


However the fund is too unbalanced geographically  in my view holding about 71% US and 1% Asia (excluding Japan).    Given the increasingly dominant position of Asia in the world economy this seems completely unjustifiable and would preclude my investing in it.

kinger101

raghav.raman said:

kinger101 said:

Personally, I don't see the point of this over an MCSI world index tracker.

MSCI already excludes emerging markets.

Is there a reason you'd want this over an albeit only slightly cheaper index tracker?  Seems to me the only point of a managed fund specialization.

The main reasons are that this ETF is

• a Developed world All Cap fund
• P/E, P/B valuations are slightly better than a standard MSCI World tracker
• Going by KIID, slightly less riskier at 5 than a MSCI World tracker at 6
• given it is Actively managed, I am hoping, rebalancing, etc. will be quick than a passive tracker

The only closest Passive tracker I found is Vanguard ESG Developed World All Cap Equity Index Fund at TER 0.2

From where I'm sitting, it all seems very much alike.  Nothing is radically different and the slight differences you've pointed out are based on the very small timeframe the ETF has existed.

Linton

kinger101 said:

raghav.raman said:

kinger101 said:

Personally, I don't see the point of this over an MCSI world index tracker.

MSCI already excludes emerging markets.

Is there a reason you'd want this over an albeit only slightly cheaper index tracker?  Seems to me the only point of a managed fund specialization.

The main reasons are that this ETF is

• a Developed world All Cap fund
• P/E, P/B valuations are slightly better than a standard MSCI World tracker
• Going by KIID, slightly less riskier at 5 than a MSCI World tracker at 6
• given it is Actively managed, I am hoping, rebalancing, etc. will be quick than a passive tracker

The only closest Passive tracker I found is Vanguard ESG Developed World All Cap Equity Index Fund at TER 0.2

From where I'm sitting, it all seems very much alike.  Nothing is radically different and the slight differences you've pointed out are based on the very small timeframe the ETF has existed.

The Vanguard is 75% large companies and 27% tech so there are significant differences to the OPs fund.