AVLV: Low-Cost Value ETF With High-Quality Holdings

Summary

• AVLV is actively managed, with the benchmark being the Russell 1000 Value index; the strategy revolves around the large-size, value, and quality factors.
• AVLV's returns were robust in the past, yet a few peers like RPV and VFVA still did better.
• I reckon this vehicle might appeal to quality-oriented investors who would like to own a portfolio of cheaper names with a minimal risk of the presence of value traps.
• I highlight a large share of stocks with a D+ Valuation grade and worse despite an appealing earnings yield as a major risk worth paying attention to.

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Continuing my foray into the value ETF universe, I would like to provide an in-depth assessment of the Avantis U.S. Large Cap Value ETF (NYSEARCA:AVLV), an actively managed investment vehicle with a portfolio

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.