Why Avantis Global Small Cap Value ETF’s Insane 23% Cash Flow Yield Could Be the Hidden Goldmine Investors Are Missing Right Now
If you recall from my post, Avantis starts their process by asking what would help us find stocks with higher expected returns in the future:
And the research triangulates to smaller companies that ranks higher in operating cash flow (less interest) that don’t trade too expensive.
By that virtue, it eliminates a key downside: Companies that potentially are more value traps with low profitability.
It at least moves us closer to companies with FCF but questionable growth. But is the FCF attractive enough?
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