ck0001710607-20230831
January
1, 2024
Avantis
Investors®
By
American Century Investments®
Prospectus
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Avantis®
All International Markets Value ETF |
AVNV |
NYSE
Arca, Inc. |
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The
Securities and Exchange Commission has not approved or disapproved
these securities or passed upon the adequacy of this prospectus.
Any representation to the contrary is a criminal offense. |
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©2024
American Century Proprietary Holdings, Inc. All rights reserved.
The
fund seeks long-term capital appreciation.
The
following table describes the fees and expenses you may pay if you buy, hold,
and sell shares of the fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
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Annual
Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your
investment) |
Management
Fee |
0.05% |
Other
Expenses1 |
0.00% |
Acquired
Fund Fees and Expenses1 |
0.31% |
Total
Annual Fund Operating Expenses |
0.36% |
Fee
Waiver2 |
0.02% |
Total
Annual Fund Operating Expenses After Waiver |
0.34% |
1 Other Expenses
and Acquired Fund Fees and Expenses are based on estimated amounts for the
current fiscal year.
2 The advisor has agreed to waive 0.02 percentage points of
the fund’s management fee. The advisor expects this waiver to continue until
December 31,
2024
and cannot terminate it prior to such date without the approval of the Board of
Trustees.
Example
The example below is intended to help you compare the costs of
investing in the fund with the costs of investing in other
funds. The example assumes that you invest
$10,000 in the fund for the time periods indicated and then redeem all of your
shares at the end of those periods, that you earn a 5% return each year, and
that the fund’s operating expenses remain the same, except that it reflects the
rate and duration of any fee waivers noted in the table above. Although your
actual costs may be higher or lower, based on these assumptions your costs would
be:
Portfolio
Turnover
The
fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the fund’s performance.
For
the period from June 27, 2023, the fund’s inception, to the fiscal year ended
August 31, 2023, the fund’s portfolio turnover rate was 0% of the average value of its
portfolio.
Avantis
All International Markets Value ETF is a “fund of funds,” meaning that it seeks
to achieve its objective by investing in other Avantis exchange-traded funds
(ETFs) (collectively, the underlying funds). The underlying funds represent a
broadly diversified basket of equity securities that seek to select or
overweight securities that are expected to have higher returns or better risk
characteristics than a passive, market-cap weighted index.
The
following table indicates the fund’s target weight and range for allocation
among the fund’s major asset classes and shows the underlying funds that
comprise each asset class. This information is as of the date of this
prospectus.
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| Target
Weight |
Target
Range |
Non-U.S.
Developed Markets |
70% |
65%
to 85% |
Avantis
International Large Cap Value ETF |
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Avantis
International Small Cap Value ETF |
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Emerging
Markets |
30% |
15%
to 40% |
Avantis
Emerging Markets Value ETF |
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Under
normal market conditions, the fund will invest at least 80% of its assets in
equity ETFs. The managers will allocate to the underlying funds
across geographies and investment styles to achieve the desired allocation. The
portfolio managers regularly review the fund’s allocations to determine whether
rebalancing is appropriate. To better balance risks in changing market
environments and control costs and tax realizations, the portfolio managers may
reallocate within the target range when prevailing market conditions and
relative performance of certain underlying strategies lead to deviations from
the targets. We reserve the right to modify the target ranges and underlying
funds from time to time should circumstances warrant a
change.
The fund is an actively managed exchange-traded fund (ETF) that does
not seek to replicate the performance of a specified index. The portfolio
managers continually analyze market and financial data to make buy, sell, and
hold decisions.
•Allocation
Risk — The
fund’s performance and risks depend in part on the managers’ skill in selecting
and weighting the underlying funds, and implementing any deviations from the
target range. The managers’ evaluations and assumptions regarding asset classes
or underlying funds may differ from actual market
conditions.
•Fund
of Funds Risks — The
fund’s performance and risks reflect the performance and risks of the underlying
funds in which it invests. The fund’s investment in other funds advised by
American Century Investments may create a conflict of interest for the fund’s
advisor. Shareholders will indirectly bear the expenses of the underlying funds,
thereby absorbing duplicative levels of fees with respect to investments in the
underlying funds. An increase in fees and expenses of an underlying fund or a
reallocation of the fund’s investments to underlying funds with higher fees or
expenses will increase the fund’s total expenses.
•Equity
Securities Risk — The
underlying funds invest in equity securities. The value of equity securities,
may fluctuate due to changes in investor perception of a specific issuer,
changes in the general condition of the stock market, or occurrences of
political or economic events that affect equity issuers and the market. Common
stock prices may be particularly sensitive to rising interest rates, as the cost
of capital rises and borrowing costs increase.
•Foreign
Securities Risk — Some
of the underlying funds invest in foreign securities. Foreign securities are
generally riskier than U.S. securities. Political events (such as civil unrest,
national elections and imposition of exchange controls), social and economic
events (such as labor strikes and rising inflation), and natural disasters
occurring in a country where the fund invests could cause the fund’s investments
in that country to experience gains or losses. Securities of foreign issuers may
be less liquid, more volatile and harder to value than U.S.
securities.
•Emerging
Market Risk — Some
of the underlying funds invest in emerging markets securities. Investing in
emerging market countries generally is riskier than investing in foreign
developed countries. Emerging market countries may have unstable governments,
economies that are subject to sudden change, and significant volatility in their
financial markets. These countries also may lack the legal, business and social
framework to support securities markets. Additionally, certain jurisdictions do
not provide the Public Company Accounting Oversight Board (PCAOB) with
sufficient access to inspect audit work papers and practices, or otherwise do
not cooperate with U.S. regulators, potentially exposing investors in U.S.
capital markets to significant risks.
•ETF
Risk — ETF
shares are based on market price rather than net asset value (NAV), as a result,
shares may trade at a price greater than NAV (a premium) or less than NAV (a
discount). The fund may also incur brokerage commissions, as well as the cost of
the bid/ask spread, when purchase or selling ETF
shares.
•Small-
and Mid-Cap Stock Risks — Stocks
of smaller companies may be more volatile than larger-company stocks. Smaller
companies may have limited financial resources, product lines and markets, and
their securities may trade less frequently and in more limited volumes than the
securities of larger companies, which could lead to higher transaction costs. To
the extent an underlying fund invests in these companies, it may take on more
risk.
•Cash
Transactions Risk — The
fund may effect its creations and redemptions for cash, rather than for in-kind
securities. Therefore, it may be required to sell portfolio securities and
subsequently recognize gains on such sales that the fund might not have
recognized if it were to distribute portfolio securities in-kind. As such,
investments in fund shares may be less tax-efficient than an investment in an
ETF that distributes portfolio securities entirely in-kind. Cash transactions
may have to be carried out over several days if the securities market is
relatively illiquid and may involve considerable brokerage fees and taxes.
Brokerage fees and taxes will be higher than if the fund sold and redeemed
shares in-kind.
•Style
Risk — If
at any time the market is not favoring the fund’s investment style, the fund’s
gains may not be as big as, or its losses may be bigger than, those of other
equity funds using different investment styles.
•Market
Trading Risk — The
fund faces numerous market trading risks, including the potential lack of an
active market for fund shares, losses from trading in secondary markets, periods
of high volatility and disruption in the creation and/or redemption process of
the fund. Any of these factors, among others, may lead to the fund’s shares
trading at a premium or discount to NAV. Thus, you may pay more (or less) than
NAV when you buy shares of the fund in the secondary market, and you may receive
less (or more) than NAV when you sell those shares in the secondary market. The
portfolio managers cannot predict whether shares will trade above (premium),
below (discount) or at NAV.
•Market
Risk — The
value of the fund’s shares will go up and down based on the performance of the
underlying funds in which it invests. The value of the underlying funds’ shares
will, in turn, fluctuate based on the performance of the companies whose
securities they own and other factors generally affecting the securities market.
Market risks, including political, regulatory, economic and social developments,
can affect the value of the fund’s investments. Natural disasters, public health
emergencies, war, terrorism and other unforeseeable events may lead to increased
market volatility and may have adverse long-term effects on world economies and
markets generally.
•Authorized
Participant Concentration Risk — Only
an authorized participant may engage in creation or redemption transactions
directly with the fund. The fund may have a limited number of institutions that
act as authorized participants. To the extent that these institutions exit the
business or are unable to proceed with creation and/or redemption orders with
respect to the fund and no other authorized participant is able to step forward
to process creation and/or redemption orders, fund shares may trade at a
discount to net asset value (NAV) and possibly face trading halts and/or
delisting. This risk may be more pronounced in volatile markets, potentially
where there are significant redemptions in ETFs
generally.
•Price
Volatility Risk — The
value of the fund’s shares may fluctuate significantly in the short
term.
•Principal
Loss Risk — At
any given time your shares may be worth less than the price you paid for them.
In other words, it is possible to lose money by investing in the
fund.
An
investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
The fund’s
performance history is not available as of the date of this prospectus. When the
fund has investment results for a full calendar year, this section will feature
charts that show annual total returns, highest and lowest quarterly returns and
average annual total returns for the fund. This information
indicates the volatility of the fund’s historical returns from year to year. For
current performance information, please visit avantisinvestors.com.
Performance
information is designed to help you see how fund returns can
vary. Keep in mind that past
performance (before and after taxes) does not predict how the fund will perform
in the future.
Investment
Advisor
American
Century Investment Management, Inc.
Portfolio
Managers
Eduardo
Repetto, Chief
Investment Officer of Avantis Investors, has been a member of the team that
manages the fund since the fund’s inception in 2023.
Mitchell
Firestein, Senior
Portfolio Manager, has been a member of the team that manages the fund since the
fund’s inception in 2023.
Daniel
Ong, Senior
Portfolio Manager, has been a member of the team that manages the fund since the
fund’s inception in 2023.
Ted
Randall, Senior
Portfolio Manager, has been a member of the team that manages the fund since the
fund’s inception in 2023.
Matthew
Dubin,
Portfolio Manager, has been a member of the team that manages the fund since the
fund’s inception in 2023.
The
fund is an ETF. Fund shares may only be bought and sold in a secondary market
through a broker-dealer at a market price. Because ETF shares trade at market
prices rather than NAV, shares may trade at a price greater than NAV (a premium)
or less than NAV (a discount). An
investor may incur costs attributable to the difference between the highest
price a buyer is willing to pay to purchase shares of the fund (bid) and the
lowest price a seller is willing to accept for shares of the fund (ask) when
buying or selling shares in the secondary market (bid-ask spread). Investors can
find information on the fund’s NAV, market price, premiums and discounts, and
bid-ask spread at avantisinvestors.com.
Fund
distributions are generally taxable as ordinary income or capital gains, unless
you are investing through a tax-deferred account such as a 401(k) or individual
retirement account (in which case you may be taxed upon withdrawal of your
investment from such account).
If
you purchase the fund through a broker-dealer or other financial intermediary
(such as a bank), the advisor and its related companies may pay the intermediary
for the sale of fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the fund over another investment. Ask your
salesperson or visit your financial intermediary’s website for more
information.
What
is the fund’s investment objective?
The
fund seeks long-term capital appreciation.
The
fund’s investment objective is a nonfundamental investment policy and may be
changed by the Board of Trustees without approval by shareholders.
What
are the fund’s principal investment strategies?
Avantis
All International Markets Value ETF is a “fund of funds,” meaning that it seeks
to achieve its objective by investing in other Avantis exchange-traded funds
(ETFs) (collectively, the underlying funds). The underlying funds represent a
broadly diversified basket of equity securities that seek to select or
overweight securities that are expected to have higher returns or better risk
characteristics than a passive, market-cap weighted index.
To
identify those securities with higher expected returns, the underlying funds
generally seek to achieve higher expected returns by selecting securities of
companies with higher profitability and value characteristics, as well as
smaller market capitalizations relative to others within the underlying fund's
respective investment universe.
The underlying funds define “value characteristics” mainly as adjusted
book/price ratio (though other price to fundamental ratios may be considered).
The underlying funds define “profitability” mainly as adjusted cash from
operations to book value ratio (though other ratios may be considered). The
underlying funds may also take into account industry specific considerations and
relative past performance of securities over different short and intermediate
periods, among others, due to their effect on expected returns. The underlying
funds balance the excess exposure to those securities with higher expected
returns with deviations from market cap weights in the funds’ benchmarks, risk
considerations and implementation costs.
The
following table indicates the fund’s target weight and range for allocation
among the fund’s major asset classes and shows the underlying funds that
comprise each asset class. This information is as of the date of this
prospectus.
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Asset
Class/Underlying Funds* |
Strategy |
Target
Weight |
Target
Range |
Non-U.S.
Developed Markets |
| 70% |
60%
to 85% |
Avantis
International Large Cap Value ETF |
Invests
in a broad set of value focused non-U.S. developed large-cap
companies. |
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Avantis
International Small Cap Value ETF |
Invests
in a broad set of value focused non-U.S. developed small-cap
companies |
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Emerging
Markets |
| 30% |
15%
to 40% |
Avantis
Emerging Markets Value ETF |
Invests
in a broad set of value focused companies of all market capitalizations
across emerging market countries. |
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* Additional
details about the underlying funds are available in the underlying funds’
prospectuses, which are available at avantisinvestors.com.
Under
normal market conditions, the fund will invest at least 80% of its assets in
equity ETFs. The managers will allocate to the underlying funds across
geographies and investment styles to achieve the desired allocation. The
portfolio managers regularly review the fund’s allocations to determine whether
rebalancing is appropriate. To better balance risks in changing market
environments and control costs and tax realizations, the portfolio managers may
reallocate within the target range when prevailing market conditions and
relative performance of certain underlying strategies lead to deviations from
the targets. We reserve the right to modify the target ranges and underlying
funds from time to time should circumstances warrant a change.
The
fund is an actively managed exchange-traded fund (ETF) that does not seek to
replicate the performance of a specified index.
In
the event of adverse
market,
economic, political, or other conditions, the fund may take temporary defensive
positions that are inconsistent with the fund’s principal investment strategies.
To the extent the fund assumes a defensive position, it may not achieve its
investment objective.
A
description of the policies and procedures with respect to the disclosure of the
fund’s portfolio securities is available in the statement of additional
information. Portfolio holdings can be viewed online on the fund’s
website.
What
are the principal risks of investing in the fund?
•Allocation
Risk — The
fund’s performance and risks depend in part on the managers’ skill in selecting
and weighting the underlying funds, and implementing any deviations from the
target ranges. The managers’ evaluations and assumptions regarding asset classes
or underlying funds may differ from actual market conditions.
•Fund
of Funds Risks — The
fund’s performance and risks reflect the performance and risks of the underlying
funds in which it invests. The fund’s investment in other funds advised by
American Century Investments may create a conflict of interest for the fund’s
advisor. Shareholders will indirectly bear the expenses of the underlying funds,
thereby absorbing duplicative levels of fees with respect to investments in the
underlying funds. An increase in fees and expenses of an underlying fund or a
reallocation of the fund’s investments to underlying funds with higher fees or
expenses will increase the fund’s total expenses.
•Equity
Securities Risk — The
underlying funds invest in equity securities. The value of equity securities,
may fluctuate due to changes in investor perception of a specific issuer,
changes in the general condition of the stock market, or occurrences of
political or economic events that affect equity issuers and the market. Common
stock prices may be particularly sensitive to rising interest rates, as the cost
of capital rises and borrowing costs increase.
•Foreign
Securities Risk — Some
of the underlying funds invest in foreign securities. Foreign securities are
generally riskier than U.S. securities. Political events (such as civil unrest,
national elections and imposition of exchange controls), social and economic
events (such as labor strikes and rising inflation), and natural disasters
occurring in a country where the fund invests could cause the fund’s investments
in that country to experience gains or losses. Securities of foreign issuers may
be less liquid, more volatile and harder to value than U.S.
securities.
•Emerging
Market Risk — Some
of the underlying funds invest in emerging markets securities. Investing in
emerging market countries generally is riskier than investing in foreign
developed countries. Emerging market countries may have unstable governments,
economies that are subject to sudden change, and significant volatility in their
financial markets. These countries also may lack the legal, business and social
framework to support securities markets. Additionally, certain jurisdictions do
not provide the PCAOB with sufficient access to inspect audit work papers and
practices, or otherwise do not cooperate with U.S. regulators, potentially
exposing investors in U.S. capital markets to significant risks.
•ETF
Risk — ETF
shares are based on market price rather than net asset value (NAV), as a result,
shares may trade at a price greater than NAV (a premium) or less than NAV (a
discount). The fund may also incur brokerage commissions, as well as the cost of
the bid/ask spread, when purchase or selling ETF shares.
•Small-Cap
and Mid-Cap Stock Risk — Some
of the underlying funds invest in stocks of smaller companies. Smaller companies
may have limited financial resources, product lines, markets and have less
publicly available information. These securities may trade less frequently and
in more limited volumes than larger companies’ securities, leading to higher
transaction costs. Smaller companies also may be more sensitive to changing
economic conditions, and investments in smaller foreign companies may experience
more price volatility.
•Cash
Transactions Risk — ETFs
generally are able to make in-kind redemptions to avoid some costs, including
being taxed on gains on the distributed portfolio securities at the fund level.
However, because the fund may effect purchases or redemptions fully or partially
in cash, rather than in-kind, it may be required to sell portfolio securities in
order to obtain the cash needed to distribute redemption proceeds. If the fund
recognizes gain on these sales, this generally will cause the fund to recognize
gain it might not otherwise have recognized, or to recognize such gain sooner
than would otherwise be required if it were to distribute portfolio securities
in-kind. The fund generally intends to distribute these gains to shareholders to
avoid being taxed on this gain at the fund level and otherwise comply with the
special tax rules that apply to it. This strategy may cause shareholders to be
subject to tax on gains they would not otherwise be subject to, or at an earlier
date than, if they had made an investment in a different ETF. Moreover, cash
transactions may have to be carried out over several days if the securities
market is relatively illiquid and may involve considerable brokerage fees and
taxes. These brokerage fees and taxes, which may be higher than if the fund sold
and redeemed its shares in-kind, will be passed on to purchasers and redeemers
of Creation Units in the form of creation and redemption transaction fees. To
the extent that these costs are not offset by a transaction fee, the fund may
bear the expense.
•Style
Risk — If
at any time the market is not favoring the fund’s investment style, the fund’s
gains may not be as big as, or its losses may be bigger than, those of other
equity funds using different investment styles.
•Market
Trading Risk — Although
shares of the fund are listed for trading on one or more stock exchanges, there
can be no assurance that an active trading market for such shares will develop
or be maintained. There are no obligations of market makers to make a market in
the fund’s shares or of an authorized participant to submit purchase or
redemption orders for Creation Units. Decisions by market makers or authorized
participants to reduce their role or step away from these activities in times of
market stress could inhibit the effectiveness of the arbitrage process in
maintaining the relationship between the underlying value of the fund’s
portfolio securities and the fund’s market price. This reduced effectiveness
could result in fund shares trading at a premium or discount to its NAV and also
greater than normal intraday bid/ask spreads.
Shares
of the fund may trade in the secondary market at times when the fund does not
accept orders to purchase or redeem shares. At such times, shares may trade in
the secondary market with more significant premiums or discounts than might be
experienced
at
times when the fund accepts purchase and redemption orders. Secondary market
trading in fund shares may be halted by a stock exchange because of market
conditions or other reasons, and may be subject to trading halts caused by
extraordinary market volatility pursuant to “circuit breaker” rules on the stock
exchange or market. There can be no assurance that the requirements necessary to
maintain the listing or trading of fund shares will continue to be met or will
remain unchanged. In addition, during a “flash crash,” the market prices of the
fund’s shares may decline suddenly and significantly. Such a decline may
not reflect the performance of the portfolio securities held by the
fund. Flash crashes may cause authorized participants and other market
makers to limit or cease trading in the fund’s shares for temporary or longer
periods. Shareholders could suffer significant losses to the extent that
they sell fund shares at these temporarily low market prices.
Shares
of the fund may trade at prices other than NAV. Thus, you may pay more (or less)
than NAV when you buy shares of the fund in the secondary market, and you may
receive less (or more) than NAV when you sell those shares in the secondary
market. While the creation/redemption feature is designed to make it likely that
the fund’s shares normally will trade on stock exchanges at prices close to the
fund’s next calculated NAV, market prices are not expected to correlate exactly
with the fund’s NAV due to timing reasons as well as market supply and demand
factors. In addition, disruptions to creations and redemptions or extreme market
volatility may result in trading prices for shares of the fund that differ
significantly from its NAV. The portfolio managers cannot predict whether shares
will trade above (premium), below (discount) or at NAV.
When
buying or selling shares of the fund through a broker, you will likely incur a
brokerage commission or other charges determined by your broker. In addition,
you may incur the cost of the “spread,” that is, any difference between the bid
price and the ask price. The spread varies over time for shares of the fund
based on the fund’s trading volume and market liquidity, and is generally lower
if the fund has a lot of trading volume and market liquidity, and higher if the
fund has little trading volume and market liquidity. During times of market
stress, spreads may widen causing investors to pay more.
•Market
Risk — The
value of the fund’s shares will go up and down based on the performance of the
underlying funds in which it invests. The value of the underlying funds’ shares
will, in turn, fluctuate based on the performance of the companies whose
securities they own and other factors generally affecting the securities market.
Market risks, including political, regulatory, economic and social developments,
can affect the value of the fund’s investments. Natural disasters, public health
emergencies, war, terrorism and other unforeseeable events may lead to increased
market volatility and may have adverse long-term effects on world economies and
markets generally.
•Authorized
Participant Concentration Risk — Only
an authorized participant may engage in creation or redemption transactions
directly with the fund. The fund may have a limited number of institutions that
act as authorized participants, none of which are obligated to engage in
creation or redemption transactions. To the extent that these institutions exit
the business or are unable to proceed with creation and/or redemption orders
with respect to the fund and no other authorized participant is able to step
forward to process creation and/or redemption orders, fund shares may trade at a
discount to NAV and possibly face trading halts and/or delisting. This risk may
be more pronounced in volatile markets, potentially where there are significant
redemptions in ETFs generally. Authorized participant concentration risks may be
heightened in scenarios where authorized participants have limited or diminished
access to the capital required to post collateral.
•Price
Volatility Risk — The
value of the fund’s shares may fluctuate significantly in the short
term.
•Principal
Loss Risk — At
any given time your shares may be worth less than the price you paid for them.
In other words, it is possible to lose money by investing in the
fund.
An
investment in the fund is not a bank deposit, and it is not insured or
guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other
government agency.
Who
manages the fund?
The
Board of Trustees, investment advisor and fund management team play key roles in
the management of the fund.
The
Board of Trustees
The
Board of Trustees is responsible for overseeing the advisor’s management and
operations of the fund pursuant to the management agreement. In performing their
duties, Board members receive detailed information about the fund and its
advisor regularly throughout the year, and meet at least quarterly with
management of the advisor to review reports about fund operations. The trustees’
role is to provide oversight and not to provide day-to-day management. The
majority of the trustees are independent of the fund’s advisor. They are not
employees, directors or officers of, and have no financial interest in, the
advisor or any of its affiliated companies (other than as shareholders of
American Century Investments funds), and they do not have any other
affiliations, positions or relationships that would cause them to be considered
“interested persons” under the Investment Company Act of 1940 (Investment
Company Act).
The
Investment Advisor
The
fund’s investment advisor is American Century Investment Management, Inc. (the
advisor). The advisor has been managing investment companies since 1958 and is
headquartered at 4500 Main Street, Kansas City, Missouri 64111. Avantis
Investors is a division of American Century Investment Management,
Inc.
The
advisor is responsible for managing the investment portfolios of the funds and
directing the purchase and sale of the underlying American Century Investments
funds in which they invest. The advisor also arranges for transfer agency,
custody and all other services necessary for the funds to operate.
For
the services it provides to the fund, the advisor receives a unified management
fee based on a percentage of the daily net assets of the fund at the annual rate
of 0.05%. The amount of the fee is calculated daily and paid monthly in arrears.
The advisor pays all expenses of managing and operating the fund, other than the
management fee payable to the advisor, brokerage and other transaction fees and
expenses relating to the acquisition and disposition of portfolio securities,
acquired fund fees and expenses, interest (including without limitation
borrowing costs and overdraft charges), taxes (including without limitation
income, excise, transfer, and withholding taxes), the fees and expenses of the
independent trustees (including counsel fees), litigation expenses (including
without limitation litigation counsel fees and expenses), extraordinary
expenses, and expenses incurred in connection with the provision of shareholder
and distribution services under a plan adopted pursuant to Rule 12b-1 under the
Investment Company Act. The advisor may pay unaffiliated third parties who
provide recordkeeping and administrative services that would otherwise be
performed by an affiliate of the advisor. The advisor is also responsible for
the selection and management of the underlying funds’ portfolio investments, for
which it receives additional management fees. These fees are reflected in the
fund’s total expense ratio as acquired fund fees and expenses. See the
underlying funds’ prospectuses for specific fees and expenses.
A
discussion regarding the basis for the Board of Trustees’ approval of the fund’s
investment advisory agreement with the advisor is
available in the fund’s annual report to shareholders for
the fiscal year ended
August 31, 2023.
The
Fund Management Team
Portfolio
managers work as a team to manage funds. Portfolio managers regularly review
portfolio holdings and potential purchase and sale activity. Team members buy
and sell securities for a fund as they see fit, guided by the fund’s investment
objective and strategy.
The
portfolio managers on the investment team who are jointly and primarily
responsible for the day-to-day management of the fund are identified
below.
Eduardo
Repetto
Mr.
Repetto, Chief Investment Officer of Avantis Investors, joined Avantis Investors
in 2019. Prior to joining Avantis Investors, he served in investment management
roles at Dimensional Fund Advisors (DFA) from 2000 to 2017, including as
co-chief executive officer from 2010 to 2017, co-chief investment officer from
2014 to 2017 and chief investment officer from 2007 to 2014. He has a Diploma de
Honor in civil engineering from the Universidad de Buenos Aires, a master’s
degree in engineering from Brown University and a Ph.D. in aeronautics from the
California Institute of Technology.
Mitchell
Firestein
Mr.
Firestein, Senior Portfolio Manager, joined Avantis Investors in 2019. Prior to
joining Avantis Investors, he served in investment management roles at
Dimensional Fund Advisors (DFA) from 2005 to 2019, including as a senior
portfolio manager and vice president in 2019 and as a portfolio manager from
2014 to 2018. He has a bachelor’s degree in finance and management from Tulane
University.
Daniel
Ong
Mr.
Ong, Senior Portfolio Manager, joined Avantis Investors in 2019. Prior to
joining Avantis Investors, he served as a senior portfolio manager and vice
president at Dimensional Fund Advisors (DFA) from 2005 to 2019. He has a
bachelor’s degree in economics from the University of California, Irvine and an
MBA in finance and accounting from the University of Chicago Booth School of
Business. He is a CFA charterholder.
Ted
Randall
Mr.
Randall, Senior Portfolio Manager, joined Avantis Investors in 2019. Prior to
joining Avantis Investors, he was president and founder of Pro-Value
Construction Services, Inc. from 2016 to 2018. From 2001 to 2015, he served in
investment management roles at Dimensional Fund Advisors (DFA), including as a
portfolio manager and vice president from 2008 to 2015. He has a bachelor’s
degree in business administration with a concentration in finance from the
University of Southern California and a master’s degree in business
administration from the Anderson School of Management at the University of
California, Los Angeles.
Matthew
Dubin
Mr.
Dubin, Portfolio Manager, joined Avantis Investors in 2021. Prior to joining
Avantis Investors, he served in investment management roles at Dimensional Fund
Advisors from 2017 to 2021, including as an investment associate from 2020 to
2021 and as a portfolio management analyst from 2017 to 2020. He has a
bachelor’s degree in business administration with a concentration in finance
from the University of Michigan’s Ross School of Business.
The
statement of additional information provides additional information about the
accounts managed by the portfolio managers, the structure of their compensation,
and their ownership of fund securities.
Fundamental
Investment Policies
Shareholders
must approve any change to the fundamental investment policies contained in the
statement of additional information. The Board of Trustees and/or the advisor
may change any other policies, including the fund’s investment objective, or
investment strategies described in this prospectus or otherwise used in the
operation of the fund at any time, subject to applicable notice
provisions.
Buying
and Selling Shares
Shares
of the fund may be acquired or redeemed directly from the fund only in Creation
Units or multiples thereof, as discussed below. Only an authorized participant
may engage in creation and redemption transactions directly with the fund. Once
created, shares of the fund generally trade in the secondary market in amounts
less than a Creation Unit.
Shares
of the fund are listed on a national securities exchange for trading during the
trading day. Shares can be bought and sold throughout the trading day like
shares of other publicly traded companies. American Century ETF Trust (the
trust) does not impose any minimum investment for shares of the fund purchased
on an exchange. Shares of the fund trade under the following ticker symbol:
AVNV.
Buying
or selling fund shares on an exchange involves two types of costs that may apply
to all securities transactions. When buying or selling shares of the fund
through a broker, you will likely incur a brokerage commission or other charges
determined by your broker. The commission is frequently a fixed amount and may
be a significant proportional cost for investors seeking to buy or sell small
amounts of shares. In addition, you may incur the cost of the “spread,” that is,
any difference between the bid price and the ask price. The spread varies over
time for shares of the fund based on the fund’s trading volume and market
liquidity, and is generally lower if the fund has a lot of trading volume and
market liquidity, and higher if the fund has little trading volume and market
liquidity.
The
fund’s primary listing exchange is NYSE Arca, Inc., which is open for trading
Monday through Friday and is closed on weekends and the following holidays: New
Year’s Day, Martin Luther King, Jr. Day, Presidents’ Day, Good Friday, Memorial
Day, Juneteenth National Independence Day, Independence Day, Labor Day,
Thanksgiving Day and Christmas Day.
Book
Entry
Shares
of the fund are held in book-entry form, which means that no share certificates
are issued. The Depository Trust Company (DTC) or its nominee is the record
owner of all outstanding shares of the fund and is recognized as the owner of
all shares for all purposes.
Investors
owning shares of the fund are beneficial owners as shown on the records of DTC
or its participants. DTC serves as the securities depository for shares of the
fund. DTC participants include securities brokers and dealers, banks, trust
companies, clearing corporations and other institutions that directly or
indirectly maintain a custodial relationship with DTC. As a beneficial owner of
shares, you are not entitled to receive physical delivery of stock certificates
or to have shares registered in your name, and you are not considered a
registered owner of shares. Therefore, to exercise any right as an owner of
shares, you must rely upon the procedures of DTC and its participants. These
procedures are the same as those that apply to any other securities that you
hold in book-entry or “street name” form.
Frequent
Trading Practices
The
Board of Trustees has not adopted a policy of monitoring for frequent purchases
and redemptions of fund shares (frequent trading). The Board of Trustees
believes that a frequent trading policy is unnecessary because fund shares are
listed for trading on a national securities exchange. Therefore, it is unlikely
that a shareholder could take advantage of a potential arbitrage opportunity
presented by a lag between a change in the value of the fund’s portfolio
securities after the close of the primary markets for the fund’s portfolio
securities and the reflection of that change in the fund’s NAV (market timing),
because the fund generally sells and redeems its shares directly through
transactions that are in-kind and/or for cash, subject to the conditions
described below under Creations and Redemptions.
Investments
by Other Investment Companies
Section
12(d)(1) of the Investment Company Act restricts investments by investment
companies in the securities of other investment companies. Registered investment
companies are permitted to invest in the fund beyond the limits set forth in
Section 12(d)(1), subject to certain terms and conditions set forth in SEC
rules. In order for an unaffiliated registered investment company to invest in
shares of the fund beyond the limitations of Section 12(d)(1) pursuant to Rule
12d1-4, the registered investment company must enter into an agreement with the
trust.
Creations
and Redemptions
Prior
to trading in the secondary market, shares of the fund are “created” at NAV by
market makers, large investors and institutions only in block-size units, called
“Creation Units.” All orders to purchase Creation Units must be placed by or
through an authorized participant that has entered into an authorized
participant agreement (AP Agreement) with Foreside Fund Services, LLC (the
distributor). Only an authorized participant may create or redeem Creation Units
directly with the fund.
A
creation transaction, which is subject to acceptance by the trust, generally
takes place when an authorized participant deposits into the fund a designated
portfolio of securities and/or cash (which may include cash in lieu of certain
securities) in exchange for a specified number of Creation Units. Similarly,
shares can be redeemed only in Creation Units, generally for a designated
portfolio of securities and/or cash (which may include cash in lieu of certain
securities). With respect to the fund, redemptions are generally on an in-kind
basis, but the fund reserves the right to meet redemptions in cash. Except when
aggregated in Creation Units, shares are not redeemable by the
fund.
The
prices at which creations and redemptions occur are based on the next
calculation of NAV after a creation or redemption order is received in a proper
form under the AP Agreement. The portfolio of securities required for purchase
of a Creation Unit is generally the same as the portfolio of securities the fund
will deliver upon redemption of fund shares, except under certain circumstances.
As a result of any system failure or other interruption, creation or redemption
orders either may not be executed according to the fund’s instructions or may
not be executed at all, or the fund may not be able to place or change such
orders.
Creations
and redemptions must be made through a firm that is either a broker-dealer or
other participant in the Continuous Net Settlement System of the National
Securities Clearing Corporation or a DTC participant and, in either case, has
executed an AP Agreement with the distributor. Information about the procedures
regarding creations and redemptions of Creation Units (including the cut-off
times for receipt of creation and redemption orders) is included in the fund’s
statement of additional information (SAI).
Because
new shares may be created and issued on an ongoing basis, at any point during
the life of the fund a “distribution,” as such term is used in the Securities
Act of 1933 (Securities Act), may be occurring. Broker-dealers and other persons
are cautioned that some activities on their part may, depending on the
circumstances, result in their being deemed participants in a distribution in a
manner that could render them statutory underwriters and subject to the
prospectus delivery and liability provisions of the Securities Act. Any
determination of whether one is an underwriter must take into account all the
relevant facts and circumstances of each particular case.
Broker-dealers
should also note that dealers who are not “underwriters” but are participating
in a distribution (as contrasted to ordinary secondary transactions), and thus
dealing with shares that are part of an “unsold allotment” within the meaning of
Section 4(a)(3)(C) of the Securities Act, would be unable to take advantage of
the prospectus delivery exemption provided by Section 4(a)(3) of the Securities
Act. For delivery of prospectuses to exchange members, the prospectus delivery
mechanism of Rule 153 under the Securities Act is available only with respect to
transactions on a national securities exchange.
In
addition, certain affiliates of the fund and the advisor may purchase and resell
fund shares pursuant to this prospectus.
Share
Price
The
price of fund shares is based on market price. The trading prices of the fund’s
shares in the secondary market generally differ from the fund’s daily NAV and
are affected by market forces such as supply and demand, economic conditions and
other factors.
Calculation
of NAV
American
Century Investments will price the fund shares purchased or redeemed by
authorized participants based on the net
asset value
(NAV) next determined after an order is received in good order by the fund’s
transfer agent. We determine the NAV of the fund as of the close of regular
trading (usually 4 p.m. Eastern time) on the New York Stock Exchange (NYSE) on
each day the NYSE is open. On days when the NYSE is closed (including certain
U.S. national holidays), we do not calculate the NAV.
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The
net
asset value,
or NAV, of the fund is the current value of the fund’s assets, minus any
liabilities, divided by the number of shares of the fund
outstanding. |
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The
value of the securities and other assets and liabilities held by the fund are
determined by the advisor, as the valuation designee, pursuant to its valuation
policies and procedures. The fund’s Board of Trustees oversees the valuation
designee and at least annually reviews its valuation policies and procedures.
Valuations are determined in accordance with applicable federal securities laws
and accounting principles generally accepted in the United States.
Portfolio
securities for which market quotations are readily available are valued at their
market price. Equity securities (including exchange-traded funds) and other
equity instruments for which market quotations are readily available are valued
at the last reported official closing price or sale price as of the time the NAV
is determined. If the fund invests in futures contracts, futures contracts are
generally valued at the settlement price as provided by the exchange or clearing
corporation. Portfolio securities primarily traded on foreign securities
exchanges that are generally open later than the NYSE are valued at the last
sale price reported at the time the NAV is determined.
If
the valuation designee determines that the market price for a portfolio security
is not readily available or is believed by the valuation designee to be
unreliable, such security is valued at fair value as determined in good faith by
the valuation designee, in accordance with its policies and procedures.
Circumstances that may cause the fund to determine that market quotations are
not available or reliable include, but are not limited to:
•when
there is a significant event subsequent to the market quotation;
•trading
in a security has been halted during the trading day; or
•trading
in a security is insufficient or did not take place due to a closure or
holiday.
If
such circumstances occur, the valuation designee will fair value the security if
the fair valuation would materially impact the fund’s NAV. While fair value
determinations involve judgments that are inherently subjective, these
determinations are made in good faith in accordance with the valuation
designee’s valuation policies and procedures.
The
effect of using fair value determinations is that the fund’s NAV will be based,
to some degree, on security valuations that the valuation designee reasonably
believes are fair rather than being solely determined by the
market.
Model-derived
fair value factors may be applied to adjust the market quotation of certain
foreign equity securities whose last closing price was before the time the NAV
is determined. These factors are based on observable market data and are
generally provided by an independent pricing service. Such factors are designed
to estimate the price of the foreign equity security that would have prevailed
at the time the NAV is determined.
Equity
securities with no current day last sale or official close price may be priced
at the mean of the bid and ask market quotations obtained from a listing
exchange or an independent broker who is an established market maker in the
security. The valuation designee may use third party pricing services to assist
in the determination of fair value.
With
respect to any portion of the fund’s assets that are invested in mutual funds,
the fund’s NAV will be calculated based upon the NAVs of such mutual funds.
These mutual funds are required to explain the circumstances under which they
will use fair value pricing and the effects of using fair value pricing in their
prospectuses.
The
value of any security or other asset denominated in a currency other than U.S.
dollars is converted to U.S. dollars at the prevailing foreign exchange rate at
the time the fund’s NAV is determined. Trading of securities in foreign markets
may not take place every day the NYSE is open. Also, trading in some foreign
markets and on some electronic trading networks may take place on weekends or
holidays when the fund’s NAV is not calculated. So, the value of the fund’s
portfolio may be affected on days when you will not be able to purchase or sell
fund shares.
Distributions
Federal
tax laws require the fund to make distributions to its shareholders in order to
qualify as a regulated investment company. Qualification as a regulated
investment company means the fund should not be subject to state or federal
income tax on amounts distributed. The distributions generally consist of
dividends and interest received by the fund, as well as capital
gains
realized by the fund on the sale of its investment securities.
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Capital
gains
are
increases in the values of capital assets, such as stocks or bonds, from
the time the assets are purchased. |
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The
fund generally expects to pay distributions from net income, if any,
semiannually. The fund generally pays distributions from realized capital gains,
if any, once a year. It may make more frequent distributions if necessary to
comply with Internal Revenue Code provisions.
Although
dividends generally will be treated as distributed when paid, any dividend
declared by a fund in October, November or December and payable to shareholders
of record in such a month that is paid during the following January will be
treated for U.S. federal income tax purposes as received by shareholders on
December 31 of the calendar year in which it was declared.
Dividend
payments are made through DTC participants and indirect participants to
beneficial owners then of record with proceeds received from the fund.
Distributions may be automatically reinvested in whole fund shares only if you
purchased the shares through a broker that makes such option
available.
Some
of the tax consequences of owning shares of the fund will vary depending on
whether you own them through a taxable or tax-deferred account. Distributions by
the fund of dividend and interest income, capital gains and other income it has
generated through its investment activities will generally be taxable to
shareholders who hold shares in a taxable account. Tax consequences also may
result when investors sell fund shares.
Tax-Deferred
Accounts
If
you purchase fund shares through a tax-deferred account, such as an IRA or
employer-sponsored retirement plan, income and capital gains distributions
usually will not be subject to current taxation but will accumulate in your
account under the plan on a tax-deferred basis. Likewise, moving from one fund
to another fund within a plan or tax-deferred account generally will not cause
you to be taxed. For information about the tax consequences of making purchases
or withdrawals through a tax-deferred account, please consult your plan
administrator, your summary plan description or a tax advisor.
Taxable
Accounts
If
you own fund shares through a taxable account, you may be taxed on your
investments if the fund makes distributions or if you sell your fund
shares.
Taxability
of Distributions
Fund
distributions may consist of income, such as dividends and interest earned by
the fund from its investments, or capital gains generated by the fund from the
sale of investment securities. Distributions of income are taxed as ordinary
income, unless they are designated as qualified
dividend income
and you meet a minimum required holding period with respect to your shares of
the fund, in which case distributions of income are taxed at the same rates as
long-term capital gains.
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Qualified
dividend income
is
a dividend received by a fund from the stock of a domestic or qualifying
foreign corporation, provided that the fund has held the stock for a
required holding period and the stock was not on loan at the time of the
dividend. |
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The
tax character of any distributions from capital gains is determined by how long
the fund held the underlying security that was sold, not by how long you have
been invested in the fund or whether you reinvest your distributions or take
them in cash. Short-term (one year or less) capital gains are taxable as
ordinary income. Gains on securities held for more than one year are taxed at
the lower rates applicable to long-term capital gains.
If
a fund’s distributions exceed current and accumulated earnings and profits, such
excess will generally be considered a return of capital. A return of capital
distribution is generally not subject to tax, but will reduce your cost basis in
the fund and result in higher realized capital gains (or lower realized capital
losses) upon the sale of fund shares.
You
will receive information regarding the tax character of fund distributions for
each calendar year in an annual tax mailing.
If
you meet specified income levels, you will also be subject to a 3.8% Medicare
contribution tax which is imposed on net investment income, including interest,
dividends and capital gains. Distributions also may be subject to state and
local taxes. Because everyone’s tax situation is unique, you may want to consult
your tax professional about federal, state and local tax
consequences.
Taxes
on Transactions
Your
sales of fund shares are subject to capital gains tax. Short-term capital gains
are gains on fund shares you held for 12 months or less. Long-term capital gains
are gains on fund shares you held for more than 12 months. If your shares
decrease in value, their sale will result in a long-term or short-term capital
loss. However, you should note that loss realized upon the sale of shares held
for six months or less will be treated as a long-term capital loss to the extent
of any distribution of long-term capital gain to you with respect to those
shares. If a loss is realized on the sale of fund shares, the reinvestment in
additional fund shares within 30 days before or after the sale may be subject to
the wash sale rules of the Internal Revenue Code. This may result in a
postponement of the recognition of such loss for federal income tax
purposes.
If
you have not certified that your Social Security number or tax identification
number is correct and that you are not subject to withholding, you may be
subject to backup withholding at the applicable federal withholding tax rate on
taxable dividends, capital gains distributions and proceeds from the sale of
fund shares.
Taxes
on Creations and Redemptions of Creation Units
An
Authorized Participant who exchanges securities for Creation Units generally
will recognize a gain or a loss equal to the difference between the market value
of the Creation Units at the time and the sum of the exchanger’s aggregate basis
in the securities surrendered plus the amount of cash paid for such Creation
Units. A person who redeems Creation Units will generally recognize a gain or
loss equal to the difference between the exchanger’s basis in the Creation Units
and the sum of the aggregate market value of any securities received plus the
amount of any cash received for such Creation Units. The IRS, however, may
assert that a loss realized upon an exchange of securities for Creation Units
cannot be deducted currently under the rules governing “wash sales,” or on the
basis that there has been no significant change in economic
position.
Any
capital gain or loss realized upon the creation of Creation Units will generally
be treated as long-term capital gain or loss if the securities exchanged for
such Creation Units have been held for more than one year. Any capital gain or
loss realized upon the redemption of Creation Units will generally be treated as
long-term capital gain or loss if the shares comprising the Creation Units have
been held for more than one year. Otherwise, such capital gains or losses will
generally be treated as short-term capital gain or loss. Any loss upon a
redemption of Creation Units held for six months or less will be treated as a
long-term capital loss to the extent of any amounts treated as distributions to
the applicable Authorized Participant of long-term capital gain with respect to
the Creation Units (including any amounts credited to the Authorized Participant
as undistributed capital gains).
If
a fund redeems Creation Units in cash, it may recognize more capital gains than
it will if it redeems Creation Units in-kind.
Buying
a Dividend
Purchasing
fund shares in a taxable account shortly before a distribution is sometimes
known as buying a dividend. In taxable accounts, you must pay income taxes on
the distribution whether you reinvest the distribution or take it in cash. In
addition, you will have to pay taxes on the distribution whether the value of
your investment decreased, increased or remained the same after you bought the
fund shares.
The
risk in buying a dividend is that a fund’s portfolio may build up taxable income
and gains throughout the period covered by a distribution, as income is earned
and securities are sold at a profit. The fund distributes the income and gains
to you, after subtracting any losses, even if you did not own the shares when
the income was earned or the gains occurred.
If
you buy a dividend, you incur the full tax liability of the distribution period,
but you may not enjoy the full benefit of the income earned or the gains
realized in the fund’s portfolio.
Service,
Distribution and Administrative Fees
Investment
Company Act Rule 12b-1 permits investment companies that adopt a written plan to
pay certain expenses associated with the distribution of their shares out of
fund assets. The Board of Trustees has adopted a 12b-1 plan that allows the fund
to pay annual fees not to exceed 0.25% to the distributor for distribution and
individual shareholder services. However, the Board of Trustees has determined
not to authorize payment of a 12b-1 plan fee at this time.
Because
these fees may be used to pay for services that are not related to prospective
sales of the fund, to the extent that a fee is authorized, the fund will
continue to make payments under its plan even if it is closed to new investors.
Because these fees are paid out of the fund’s assets on an ongoing basis, to the
extent that a fee is authorized, over time these fees will increase the cost of
your investment and may cost you more than paying other types of sales
charges.
The
advisor or its affiliates may make payments to intermediaries for various
additional services, other expenses and/or the intermediaries’ distribution of
the fund out of their profits or other available sources. Such payments may be
made for one or more of the following: (1) distribution, which may include
expenses incurred by intermediaries for their sales activities with respect to
the fund, such as preparing, printing and distributing sales literature and
advertising materials and compensating registered representatives or other
employees of such financial intermediaries for their sales activities, as well
as the opportunity for the fund to be made available by such intermediaries; (2)
shareholder services, such as providing individual and custom investment
advisory services to clients of the financial intermediaries; and (3) marketing
and promotional services, including business planning assistance, educating
personnel about the fund, and sponsorship of sales meetings, which may include
covering costs of providing speakers, meals and other entertainment. The advisor
may pay partnership and/or sponsorship fees to support seminars, conferences,
and other programs designed to educate intermediaries about the fund and may
cover the expenses associated with attendance at such meetings, including travel
costs. The advisor and its affiliates may also pay fees related to obtaining
data regarding intermediary or financial advisor activities to assist American
Century with sales reporting, business intelligence and training and education
opportunities. These payments and activities are intended to provide an
incentive to intermediaries to sell the fund by educating them about the fund
and helping defray the costs associated with offering the fund. These payments
may create a conflict of interest by influencing the intermediary to recommend
the fund over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information. The amount of any payments
described in this paragraph is determined by the advisor or its affiliates, and
all such amounts are paid out of their available assets, and not paid by you or
the fund. As a result, the total expense ratio of the fund will not be affected
by any such payments.
Understanding
the Financial Highlights
The
table on the next page itemizes what contributed to the changes in share price
during the most recently ended fiscal period. It also shows the changes in share
price for this period in comparison to changes over the last five fiscal years
(or a shorter period if the fund is not five years old).
On
a per-share basis, the table includes as appropriate
•share
price at the beginning of the period
•investment
income and capital gains or losses
•distributions
of income and capital gains paid to investors
•share
price at the end of the period
The
table also includes some key statistics for the period as
appropriate
•Total
Return — the
overall percentage of return of the fund, assuming the reinvestment of all
distributions
•Expense
Ratio — the
operating expenses of the fund as a percentage of average net
assets
•Net
Income Ratio — the
net investment income of the fund as a percentage of average net
assets
•Portfolio
Turnover — the
percentage of the fund’s investment portfolio that is replaced during the
period
The
Financial Highlights have been audited by Deloitte & Touche LLP, independent
registered public accounting firm. The Report of Independent Registered Public
Accounting Firm and the financial statements are included in the fund’s annual
report, which is available upon request.
Avantis
All International Markets Value ETF
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For
a Share Outstanding Throughout the Period Indicated |
Per-Share
Data |
Ratios
and Supplemental Data |
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| Income
From Investment Operations*: |
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| Ratio
to Average Net Assets of: |
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| Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(1) |
Net Realized and Unrealized Gain
(Loss) |
Total
From Investment Operations |
Net
Asset Value, End of Period |
Total
Return(2) |
Operating
Expenses(3) |
Operating
Expenses
(before
expense
waiver)(3) |
Net Investment Income (Loss) |
Net Investment Income (Loss) (before expense waiver) |
Portfolio
Turnover
Rate(4) |
Net Assets, End
of Period (in thousands) |
2023(5) |
$50.37 |
—(6) |
1.13 |
1.13 |
$51.50 |
2.26% |
0.03%(7) |
0.05%(7) |
(0.03)%(7) |
(0.05)%(7) |
0% |
$386 |
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Notes
to Financial Highlights |
(1)Computed
using average shares outstanding throughout the period.
(2)Total
returns are calculated based on the net asset value of the last business day.
Total returns for periods less than one year are not annualized.
(3)Ratio
of operating expenses to average net assets and ratio of operating expenses
before expense waiver to average net assets does not include any fees and
expenses of the underlying funds.
(4)Excludes
securities received or delivered in kind.
(5)June
27, 2023 (fund inception) through August 31, 2023.
(6)Per-share
amount was less than $0.005.
(7)Annualized.
*The
amount shown for a share outstanding throughout the period may not correlate
with the Statement(s) of Operations due to the timing of transactions in shares
of a fund in relation to income earned and/or fluctuations in the fair value of
a fund's investments.
Notes
Notes
Notes
Where
to Find More Information
Annual
and Semiannual Reports
Additional
information about the fund’s investments is
available in the fund’s annual and semiannual reports to shareholders. In the
fund’s annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected the fund’s performance during
its last fiscal year. This
prospectus incorporates by reference the Report of Independent Registered Public
Accounting Firm and the financial statements included in the fund’s annual
report
to shareholders dated August 31, 2023.
Statement
of Additional Information (SAI)
The
SAI contains a more detailed legal description of the fund’s operations,
investment restrictions, policies and practices. The SAI
is incorporated by reference into this prospectus. This means that it is legally
part of this prospectus, even if you don’t request a copy.
You
may obtain a free copy of the SAI, annual reports and semiannual reports, and
you may ask questions about the fund or your accounts, online at
avantisinvestors.com, by contacting Avantis Investors at the addresses or
telephone numbers listed below or by contacting your financial
intermediary.
The
Securities and Exchange Commission (SEC)
Reports
and other information about the fund are available on the EDGAR database on the
SEC’s website at sec.gov, and copies of this information may be obtained, after
paying a duplicating fee, by electronic request at the following email address:
[email protected].
This
prospectus shall not constitute an offer to sell securities of the fund in any
state, territory, or other jurisdiction where the fund’s shares have not been
registered or qualified for sale, unless such registration or qualification is
not required, or under any circumstances in which such offer or solicitation
would be unlawful.
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Avantis
Investors by American Century Investments avantisinvestors.com |
Financial
Professionals P.O. Box 419385 Kansas City, Missouri
64141-6385 833-9AVANTIS |
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Investment
Company Act File No. 811-23305
CL-PRS-98040
2401 |
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