Active Management


EM value small caps

American Century is listing an actively managed EM ETF under its Avantis sub-brand. The Avantis Emerging Markets Equity ETF (AVEM) will try to outperform the MSCI Emerging Market IMI Index. To do this, it will invest in highly profitable value small caps from emerging markets. Value will be assessed by a composite of value metrics, including price-to-book and price-to-cash-flow. While profitability will be judged on operating profits.

The fund charges 0.33%, which is very cheap for its offering.

Franklin enters the core, actively

Franklin Templeton is listing an actively managed core bond ETF, at an ultra low cost. The Franklin Liberty US Core Bond ETF (FLCB) will broadly track (but not attempt to outperform) the Bloomberg Barclays US Aggregate Bond Index, which measures the total US bond market. 

FLCB will use bottom up and top down analyses to pick debt securities from any US issuer. The fund will mostly invest in treasuries, corporate bonds and mortgage backed securities, the prospectus indicates.   

The fund will aim to have market-like duration and sector risks. It charges 0.14% in the first two years, then 0.19% from June 2021.