Avantis has 3 new UCITS ETFs for the US, Europe and the Pacific region.

It’s been very interesting to see their growth since the time I wrote about them.

This is the AUM growth in almost 1 year.

If investors have any reservations about their small AUM size, I think they have been allayed to some extent. The growth of their Global Small Cap and Emerging Markets strategy has been nothing short of astonishing.

The Global Small Cap Value is particularly unique in its positioning, as prior to the listing of Dimensional’s Global Targeted Value, it was the only small cap value ETF in existence. It makes it easier for a fund manager to add that segment to their portfolio than replacing the Global Equity segment with Dimensional.

The Avantis Fund has performed well over the past year

I don’t want to go into too much detail here, because a good systematic fund can underperform its benchmark index in the very short term. And they can do that very well.

I can point out that the international share of 33% of their Global Small Cap Value in 2025 does 52% to accentuate itself, but investors in the fund probably can’t see this in the funds that underperform Global Large Cap Equity’s performance because the fund’s US share was poor in 2025. Still, this stock far outperformed Global Large Cap stocks at the start of the year.

You can refer to my monthly portfolio updates of the Daedalus Income portfolio to see its performance.

Systematically active funds such as Avantis funds help you passively implement a strategy that matches your investment philosophy

Systematically active funds are not suitable for everyone.

If you have an investment philosophy where you just rely on the market but the performance is also good, are broadly diversified, have low costs and have the humility to admit that you don’t know what the future will be or what the market is like, then buying traditional index tracking ETFs or unit trusts that track MSCI World, Emerging Markets or US may be more for you.

If, like me, you prefer to consistently own cheaper companies that are more profitable, perhaps with a better momentum profile, and that have a history of market evidence showing better than market performance, then you may want to consider this fund.

The simplest way I will explain to you is:

1. In a universe of securities, whether it’s the developed world, developed small caps only, emerging markets, Latin America
2. From this universe, I like to continually rank the companies based on certain metrics, such as cheapest to most expensive, or highest momentum to lowest, or highest adjusted operating cash flow to lowest, or other metrics that have shown based on research that you can get a higher expected return if you buy and hold for the long term and continually rebuild.
3. The strategy either weights the high-ranking stocks or chooses the top x number of stocks, after taking into account some limitations in the portfolio allocation, such as a sector or region that is not overweighted.
4. The ETF helps you do this periodically, quarterly, semi-annually or annually. In the case of Avantis, they perform this reconstitution more often.

In the case of Avantis, you can imagine that we profile the universe of stocks into different segments based on their adjusted share value and their adjusted total cash flow relative to their book value:

And we want to focus on owning more securities that have high total cash flow, which tend to trade at fair share value, and those that have high share value regardless of their total cash flow, but at least have positive cash flow.

This may sound strange to you, but deep down I know most of you want to consistently own:

1. Very cheap companies, but at least they are profitable, but inconsistently profitable. If they return to a higher fair value, you make money.
2. You also don’t like owning expensive things.
3. Highly profitable businesses, which you recognize are usually not cheap, and you just want to pay a fair price for them.

If this fits your philosophy more, strategies like Avantis can help you execute.

I think this is something you need to think about because if you don’t know why these are important (like why you don’t want to own expensive things like fxxk that are so big in market cap and so well known), then you might have trouble holding the ETF if they don’t do well.

The 3 new Avantis UCITS ETFs

Okay! We’ve wasted enough time, but here are the ETFs:

The ETFs are listed in London and Germany. You can get the USD, EUR or GBP denominated version.

And you can buy them through a cheap, trusted broker like Interactive real estate agents.

One thing you will notice about all Avantis UCITS ETFs, apart from Global Small Cap value, is that they are compared to a region IMI index.

IMI stands for Investible Market Index, which aimed to measure the performance of large, medium and small capitalization segments. This shows you that the Avantis investment universe for each fund includes not only the generally mid- and large-caps, but also the small-caps. (Avantis Global Equity is compared to World IMI and Emerging Markets is compared to Emerging Markets IMI)

The Russell 3000 includes the largest and smallest companies in the US.

Because they are systematic, they will most likely consider stocks that fall somewhere between value and operating profitability.

Based on what my advisor Isaac and I observe, you are likely to get a basket of securities that are cheaper than the benchmark index, but in terms of expected returns [which is a future not historical return estimation]you won’t be far off.

With this new Avantis UCITS edition you can truly tailor your investment allocation more precisely to your philosophy

Now I really like these additions, because every Tom, Dick and Harry tells me they have their own beliefs:

1. I only want the US
2. I don’t want a shxt place like Europe
3. I don’t believe in emerging markets
4. I want more of Japan!

And these extras can help you express that.

If you want to keep it simple but stay in developed markets, this could be:

1. 100% in Avantis Global Equity

If you want to cover developed and emerging markets:

1. 90% in Avantis Global Equity
2. 10% in Avantis emerging markets shares

If you’ve read about the small cap value frenzy of the last 90 years, have an affinity for it, and want to boost the portfolio, you can:

1. 80% in Avantis Global Equity
2. 10% in Avantis Emerging Markets shares
3. 10% in Avantis Global Small Cap value

If you don’t want to be so concentrated in the US:

1. 50% in Avantis America Equity
2. 25% in Avantis Europe shares
3. 15% in Avantis Pacific Equity
4. 10% in Avantis Emerging Markets shares

The only question is… what is your investment philosophy.

This is what MSCI Europe IMI currently looks like:

Very dominant in the financial, industrial and healthcare sectors. Didn’t know Britain was that big.

This is what the MSCI Pacific IMI currently looks like:

The financial sector, the industrial sector and consumer durables are very dominant. It’s 68% Japan! 20% are in Australia.

This should give you all some ideas.

Epilogue

I personally won’t use these new Avantis ETFs, but if I wanted to buy more of some areas over the next thirty years if they are too depressed or showing momentum, I feel comfortable with Avantis and this would be a way to express them.

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Kyith is the owner and sole writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, more solid wealth foundations, how to pursue a passive investing strategy, learn about investing in REITs, and the basics of active investing.

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Kyith worked as an IT operations engineer from 2004 to 2019. He currently works as a Senior Solutions Specialist at Fee-only Wealth Advisory Firm Providend. All opinions expressed on Investment Moats are his own and do not represent the views of Providend.

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