Updated

Updated · The White Coat Investor · Jun 18

Avantis Executive Outlines 2019 Factor Strategy as Firm Nears $137 Billion in Assets

Updated

Updated · The White Coat Investor · Jun 18

Avantis Executive Outlines 2019 Factor Strategy as Firm Nears $137 Billion in Assets

2 articles · Updated · The White Coat Investor · Jun 18

Jeromey Thornton said on the White Coat Investor podcast that Avantis, launched in 2019 within American Century, built low-cost ETF and mutual-fund portfolios to compete with index funds while seeking higher expected returns.
Thornton argued factor investing works best through broad diversification and flexible implementation rather than rigid index tracking, with portfolios tilted toward attractively priced, profitable companies instead of simply the cheapest stocks.
He said investors should treat any factor tilt cautiously because tracking error can last 10 years or longer, making conviction and risk tolerance more important than chasing historical outperformance alone.
Avantis has grown rapidly to about $137 billion in assets and nearly 50 ETFs and mutual funds, according to Thornton, who said more than 40% of American Century profits support the Stowers medical research institute.

Sources

Does funding medical research give Avantis a more patient investment culture, immune to the market's short-term pressures?

How does blending value and profitability help investors avoid the 'value traps' that have historically plagued factor investing strategies?

If factor investing can underperform for a decade, is the strategy's real benefit simply a test of an investor's psychological discipline?

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