American Century has expanded its European ETF offering with the launch of an active emerging market strategy.
The Avantis Emerging Markets Equity UCITS ETF (AVEM) is listed on Deutsche Borse with a total expense ratio (TER) of 0.35%.
AVEM invests primarily in large, mid and small-cap companies from emerging markets with the aim of achieving long-term capital growth.
Actively managed, AVEM invests in emerging market stocks, Chinese H-shares, P-chips and red chips, convertible bonds, subscription rights and equity warrants.
AVEM may also invest up to 10% of its NAV in Eligible Collective Investment Schemes.
Its current top three holdings are Taiwan Semiconductor (9%), Tencent (5.4%) and the Franklin FTSE India UCITS ETF (2.7%).
AVEM is benchmarked against the MSCI Emerging Markets IMI index, but for “comparative purposes only”.
In October, American Century made its European debut with two active ETFs capturing global equities and small caps.
All three ETFs have been launched by Avantis Investors, the firm’s quantitative investment unit.
American Century joins other US asset managers in launching strategies in Europe’s nascent active ETF market, including Janus Henderson debuting Japanese and European active equity strategies in Q4 2024.
Avantis Investors currently boasts $55bn assets under management (AUM) across 28 products in the US in little over five years since coming to market.
