What this ETF is trying to do

The AVANTIS ALL EQUITY MARKETS VALUE ETF (AVGV) is an exchange-traded fund. Based on its name and holdings, it focuses on "value" stocks across different parts of the global market. This includes large companies, small companies, and companies in emerging markets.

What the numbers show

The current price of AVGV is $85.26. To understand how the price has changed, we can look at several different timeframes:

• Year-to-Date (YTD): The price return is approximately 16.51%.

• One Year: The price return was approximately 21.51%.

• Three Years: The price return was approximately 68.38%.

It is important to know the difference between price return and total return. Price return only tracks how much the share price itself went up or down. Total return includes both the price changes and any cash distributions (dividends) paid out to investors.

For AVGV, the total returns are higher than the price returns:

• YTD Total Return: Approximately 17.87%.

• One Year Total Return: Approximately 24.17%.

• Three Year Total Return: Approximately 80.20%.

If you had invested in the price of the shares roughly one year ago, the estimated starting price was about $70.17.

Income and distribution explanation

This ETF pays out cash to investors, which is called a distribution. The current distribution yield is approximately 2.01%. This means the amount of cash paid out is about 2.01% of the current share price. Over the last 12 months, there were 4 distributions, which usually happen every quarter.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of the underlying assets in a fund decreases significantly over time. Some investors worry about this because if the value of the fund drops too much, it can be hard to get your original money back.

For AVGV, the erosion-risk score is 100, and the label states "No price erosion detected." There is no severe erosion-risk flag for this ETF.

Pros

• Strong Total Returns: The total return figures over one and three years are higher than the simple price returns.

• Diversified Top Holdings: The fund holds several different types of value funds, such as US Large Cap Value (36.86%) and International Large Cap Value (17.94%).

• Income: The fund provides regular cash distributions.

Cons

• Limited Data: Total return data for the five-year period was not supplied.

• Market Risk: Like all equity ETFs, the value of the shares can go up or down based on the stock market.

Beginner takeaway

When looking at AVGV, it is helpful to distinguish between the share price and the total return. While the share price shows how much the cost of one unit has changed, the total return gives a fuller picture by including the cash distributions paid out to you. Always remember that a distribution yield tells you about the cash income, but it does not guarantee that the share price will stay the same.