AVSE Profile
The Avantis Responsible Emerging Markets Equity ETF primarily invests in a diverse array of companies within emerging markets, spanning various market sectors, industry groups, and countries. This fund provides exposure to companies of all market capitalizations, allowing investors to benefit from the growth potential of both large established firms and smaller, rapidly expanding enterprises in emerging economies. The investment strategy focuses on identifying companies that demonstrate strong fundamentals and growth prospects within these dynamic markets.
To align with responsible investing principles, the portfolio management team employs a rigorous screening process based on Environmental, Social, and Governance (ESG) criteria. This process involves evaluating companies on multiple ESG metrics, which helps in identifying firms that adhere to sustainable and ethical business practices. Companies that raise concerns or fail to meet the team's ESG standards are excluded from the investable universe, ensuring that the fund's holdings are consistent with its commitment to responsible investing.
The fund's ESG screening process is comprehensive, encompassing a wide range of factors such as carbon footprint, labor practices, corporate governance, and community impact. By integrating ESG considerations into the investment process, the fund aims to mitigate risks associated with poor corporate practices and enhance long-term returns. This approach not only aligns with the growing demand for responsible investing but also seeks to contribute positively to the sustainability and social well-being of emerging market regions.
In addition to its focus on ESG criteria, the Avantis Responsible Emerging Markets Equity ETF employs a disciplined, data-driven investment strategy. The portfolio managers utilize advanced quantitative models to assess financial health, growth potential, and valuation of prospective investments. This rigorous analysis ensures that the fund maintains a balanced and diversified portfolio, aimed at achieving optimal risk-adjusted returns. By combining responsible investing principles with a robust investment strategy, the fund offers a compelling option for investors seeking exposure to emerging markets while prioritizing sustainability and ethical considerations.
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