Is Avantis Emerging Markets Equity Fund’s 6-Month Surge Just the Beginning of a Game-Changing Investment Opportunity?
Your returns will eventually be based on the securities holdings in your fund, which is ultimately based on the strategy. If it is an indexing strategy, then its based on the index weighing. If it is a systematic active strategy like Dimensional’s, EMVL or AVEM, then it is based around the systematic securities selection in the strategy.
AVEM higher weightage to the profitability factor (which tends to show up in growth companies) and greater number of small, mid size companies may have improved their performance relative to Dimensional’s. Despite value doing better in the first 3 months, and growth doing better in the last 3 months, AVEM did well in both half of the half-year. It is remarkable that AVEM managed to capture the return in the systematic manner.
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