MSFT - AVLC: Overly Diverse Factor-Based Fund Doesn't Meet Our High Bar
2024-06-12 06:33:21 ET
Summary
- Initiating coverage on Avantis U.S. Large Cap Equity ETF with a Sell rating.
- AVLC aims to combine elements of passive and active management, but it looks more like an index fund to us.
- The portfolio management team is also responsible for overseeing multiple other investment vehicles and strategies, weakening their alignment of interests with AVLC investors.
We are initiating coverage on the Avantis U.S. Large Cap Equity ETF ( AVLC ) with a Sell rating.
Managed by a team of ex-Dimensional Fund Advisors (DFA) portfolio managers, AVLC aims to invest in a broad range of US Large-Cap companies with an orientation toward stocks with lower valuations and higher profitability metrics....
AVLC: Overly Diverse, Factor-Based Fund Doesn't Meet Our High Bar