Discover a New Approach to Investing: Avantis’ U.S. Large Cap Value ETF
If you’re concerned about concentration risk in the market and seeking a value-oriented investment strategy, Avantis Investors may have the solution for you. Their U.S. Large Cap Value ETF (AVLV) offers a unique approach to investing that goes beyond traditional index funds like the S&P 500.
Chief investment strategist Phil McInnis believes that a diversified approach focusing on companies with low valuations and strong balance sheets can lead to better returns in the long run. By incorporating a profitability overlay when screening stocks, Avantis’ ETF strategy aims to identify companies that are not only attractively priced but also have solid profitability potential.
Unlike passive instruments that simply classify companies as value or growth based on a single variable, Avantis’ approach considers a combination of factors to select stocks with the most promise. This methodology has resulted in the Large Cap Value fund outperforming the broader market, with a 7.7% return in 2024 compared to the Russell 1000 Value index’s 4.5% gain during the same period.
When looking at the top holdings in the Large Cap Value ETF, you’ll find familiar names like Apple, Meta, JPMorgan, Costco, and Exxon Mobil. These companies represent a diverse mix of sectors, with financial services and retail leading the way, followed by energy.
One of the key benefits of investing in Avantis’ ETF is the level of diversification it offers. By capping sector weights and avoiding over-concentration in any one industry, investors can reduce their exposure to individual company risk and potentially enhance their portfolio’s stability.
If you’re ready to explore a new approach to investing that prioritizes value and profitability, consider adding Avantis’ U.S. Large Cap Value ETF to your portfolio. With its proven track record of delivering solid returns and its unique methodology, this ETF could be the key to unlocking greater investment success in the long term.