Avantis Credit ETF Stock Price, News & Analysis

Avantis Credit ETF (AVGB) is an actively managed exchange-traded fund offered by Avantis Investors, an investment offering from American Century Investments. According to Avantis Investors, the fund is available on the NASDAQ Exchange and is designed as part of the firm’s fixed income lineup within its broader range of ETFs and mutual funds spanning equities, fixed income and real estate.

The fund’s stated approach is to invest primarily in investment grade quality debt obligations from a diverse group of U.S. and non-U.S. issuers. This focus places AVGB in the area of credit-oriented fixed income investing, with exposure across global bond markets as described by Avantis Investors. The fund is described as an actively managed ETF that does not seek to replicate the performance of a specified index. Instead, portfolio managers consider various fund requirements and standards, economic conditions, alternative investments, interest rates and credit metrics when determining whether to buy or sell securities.

Avantis Investors notes that AVGB is intended to expand its offering of fixed income solutions for investors who use ETFs in their asset allocations. The fund is presented as a tool for investors who want an expanded opportunity set to identify differences in expected returns across global fixed income markets, using information in current market prices and company financials to identify variations in expected returns among securities. The fund’s expense ratio is stated as 0.18% in the launch announcement.

According to the information provided, the Avantis Credit ETF is co-managed by the Chief Investment Officer of Avantis Investors and several Senior Portfolio Managers. Avantis Investors itself was established in 2019 with a focus on providing well-diversified investment solutions intended to fit into asset allocations and to combine the potential for outperformance with the consistency of indexing.

Fund objectives and approach

As described in the launch materials, investors are encouraged to consider the fund’s investment objectives, risks, charges and expenses carefully before investing, and to review the prospectus or summary prospectus for more detailed information. The fund is characterized as an actively managed ETF in which portfolio managers evaluate securities using factors such as economic conditions, interest rates and various credit metrics, alongside fund requirements and standards.

The materials also explain that the fund’s investment return and principal value will fluctuate, and that the value at the time of redemption may be more or less than the original cost. Past performance is explicitly noted as not being a guarantee of future results. The description highlights that diversification does not assure a profit and does not protect against loss of principal.

Risk considerations

The launch information outlines several key risk considerations associated with AVGB’s strategy. It notes that, generally, as interest rates rise, the value of bonds held in the fund will decline, and the opposite is true when interest rates decline. Because AVGB invests in U.S. and non-U.S. issuers, the materials state that international investing involves special risks, such as political instability and currency fluctuations.

The information also states that derivatives may be more sensitive to changes in market conditions and may amplify risks. More broadly, the fund’s performance may suffer if portfolio manager considerations regarding factors such as economic conditions and credit metrics are inaccurate or misapplied.

Relationship to Avantis Investors and American Century Investments

Avantis Credit ETF is part of the Avantis Investors lineup, which is described as an investment offering from American Century Investments. Avantis Investors was established to help clients pursue their investment goals through well-diversified investment solutions that can be used within broader asset allocations. The Avantis lineup includes ETFs and mutual funds that span equities, fixed income and real estate.

American Century Investments is described in the same materials as a global asset manager that focuses on delivering investment results and building long-term client relationships while supporting medical research through its ownership structure. The Avantis Credit ETF is distributed through Foreside Fund Services, LLC, which is stated to be not affiliated with American Century Investment Services, Inc.

How investors might use AVGB

According to Avantis Investors’ description, AVGB is intended to serve investors who are looking to use ETFs within fixed income allocations and who may be seeking diversification benefits by looking beyond the U.S. market. The fund is presented as one of the fixed income strategies within the broader Avantis lineup, offering exposure to investment grade debt obligations from a variety of issuers in U.S. and non-U.S. markets.

The information emphasizes that investors should review the fund’s prospectus or summary prospectus to understand its objectives, risks, charges and expenses before investing, and that there is no guarantee the strategy will be successful or that expected returns will be realized.