Avantis Emerging Markets Value ETF

Avantis Emerging Markets Value ETF (AVES) is an actively managed American Century Investments fund. As of May 31, 2026, it held 1,876 emerging-market stocks, tilted toward cheaper, more profitable and smaller companies. Its 0.36% expense ratio is below the 0.38% average of similar funds, and it pays income quarterly. Over the one and three years to October 27, 2026, however, it trailed all three similar funds.

• Over the year to Oct 27, 2026, AVES returned +8.6%, 6th of 7 among similar funds.
• Its 5-year annualized return was +7.6%.
• Its worst full calendar year was 2022 (-16.0%); its best was 2025 (+30.4%).
• The deepest fall in its price history was 27.4% (Jan 12, 2022 to Oct 24, 2022), recovered by Apr 8, 2024.

As of Aug 31, 2026, the fund held 1,948 securities; the ten largest made up 10.87% of assets.

• Over the three months to Aug 31, 2026, investors added a net $103.0M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -2.84%, -4.57%, +6.73%.

AVES is an actively managed ETF, so it does not try to copy an index. Its managers invest at least 80% of assets in stocks of companies tied to emerging markets, which the fund defines as any country not classed as developed. They focus on the countries in its benchmark, the MSCI Emerging Markets Value IMI Index. As of September 30, 2025, those included Taiwan, Korea, China, India, Brazil, Saudi Arabia and South Africa, among others.

The managers favor three traits. The first is value, measured mainly by adjusted book-to-price ratio. Book value is a company's net worth on its balance sheet, so a higher ratio means a cheaper stock. The second is profitability, measured mainly by cash from operations relative to book value. The third is smaller size. Each stock starts at its market-value weight and is then overweighted or underweighted based on these traits. Stocks that no longer fit may be dropped, with trading costs and taxes weighed first. The criteria are reviewed regularly rather than on a fixed schedule, and portfolio turnover was 12%.

Some details for holders: the fund can own American and Global Depositary Receipts and securities priced in foreign currencies, so exchange rates affect returns. It may lend securities. It may also create and redeem shares for cash, which can force it to realize gains and make it less tax-efficient than ETFs that trade stocks in kind. As of May 31, 2026, the top 10 holdings made up 12.31% of assets.

• AVES charges 0.36% a year, versus an average of 0.32% for the similar funds below (4th of 7, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $37 in the first year and $456 over 10 years (assuming a 5% annual return).

It adds a focused, value-tilted bet on emerging markets, with nearly half its assets in Taiwan and South Korea and stock-like swings.

AVES could add emerging-market and value exposure that a US-focused portfolio lacks, but the ride has been bumpy. It launched in September 2021, so it has no record in the 2008 or 2020 crashes. In 2022 it fell 27.4% from its January 12 peak to its October 24 low. It took about 17.5 months to recover, by April 8, 2024. Its worst calendar year was 2022, at -15.93%. Anyone forced to sell shares near that low would have locked in a deep loss. The trailing 12-month yield was 3.63% as of October 27, 2026, paid quarterly, though emerging-market dividends can rise and fall with profits and currencies. Under the SEC's standard example, costs on $10,000 come to $37 for the first year and $456 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).