Avantis All International Markets Value ETF (AVNV)

AVNV (Avantis All International Markets Value ETF) is the international cousin of the Avantis U.S. value funds. It holds stocks from all developed and emerging markets outside the United States but applies a significant tilt toward value — stocks trading at low prices relative to earnings and book value. The fund is sponsored by American Century Investments and listed on the NASDAQ under ticker AVNV.

The fund sits at an intersection of two investment ideas. The first is that U.S. stocks are not the only worthwhile place to invest; the rest of the world’s stock markets offer opportunity, diversification, and sometimes better valuations. The second is that value — the practice of buying cheaper, more profitable companies — has historically been a source of outperformance. AVNV combines both ideas into a single portfolio.

The fund’s holdings are drawn from a global pool of stocks — Europe, Japan, Australia, Canada, and emerging markets in Asia, Latin America, and elsewhere — that meet American Century’s value criteria. These are firms trading cheaply relative to their profit and assets, and showing signs of profitability and financial stability. The largest individual holdings are likely to be from the biggest markets: Japanese banks, European energy companies, Chinese industrial firms — but the tilt toward value means the fund does not simply hold the index weights. It tilts away from expensive, high-growth stocks toward cheaper, mature, often cyclical businesses.

This has important consequences. In environments where expensive, fast-growing technology firms or other high-flying sectors are dominating returns, AVNV will lag. The fund has lived through years of underperformance, particularly when global growth was strong and investors paid premium prices for future earnings. But in other years — when value was in favor, or when international markets benefited from stronger currency movements or regional rebounds — the fund thrived.

The value characteristics that AVNV screens for are the same ones that have historically been associated with outperformance over very long periods: low price-to-earnings multiples, low price-to-book ratios, higher dividend yields, and higher returns on capital. These are not guarantees, but they reflect the principle that starting from a cheap valuation offers a better margin of safety and often better long-term returns. The fund applies these screens across all markets equally, so it does not depend on any one country or region.

Because the fund spans so many countries and applies such a broad value screen, it captures value wherever it exists globally. Japan, which has had cheap valuations on average for decades, is a large piece of the fund. Europe, which has had periods of deep undervaluation, also weighs meaningfully. Even emerging markets — where individual stocks are often cheaper than developed-market peers — contribute. The geographic mix shifts with market movements and valuations, but the fund’s structure ensures it is never a concentrated bet on any single country or economic region.

The fund is unhedged, meaning it does not protect against currency fluctuations. An investor holding AVNV is exposed to movements in the euro, the yen, the pound, the Chinese yuan, and dozens of other currencies. This adds uncertainty — some years a weak dollar boosts returns from international investing; other years, a strong dollar is a headwind. Over very long periods, currency movements tend to average out, but they can create meaningful year-to-year volatility. An investor comfortable with this kind of complexity, or one who believes international diversification is worth the currency risk, will find AVNV a natural fit. For an investor seeking maximum stability, a hedged alternative might feel better.

The fund follows a rules-based index maintained by American Century, so composition and rebalancing happen on a predetermined schedule. This transparency and consistency keep costs low and make the fund’s behavior predictable. Turnover is driven by valuation changes and index maintenance, not by manager opinion. The expense ratio reflects the low cost of passive management across multiple markets and asset classes.

AVNV appeals to investors who view value as a durable factor — a way of structuring an international portfolio that has historically delivered better returns over decades — and who want geographic diversification without betting on a particular country or region. It is not for market-timers or those seeking quick gains. It is a long-term, low-cost vehicle for capturing global value in a diversified way. As with all equity funds, it will rise and fall with stock markets, currency movements, and economic conditions. The prospectus and fact sheet, available from American Century, provide detailed information on the fund’s composition and costs.