For investors who prefer global exposure to regionally concentrated exposures, Avos Capital Management believes that market cap-weighed approaches are sub-optimal; they too often leave investors holding maximum sized positions in stocks when they are at their most expensive and minimum allocations to cheap companies after they have already fallen out of favor.

This is the opposite of what an investor would want to do if they believed that one of the most important determinants of long-term returns is how much you pay for an asset. Furthermore, the strategy underlying this ETF’s active management was designed by a team of senior investors with several decades of combined experience at the global macro hedge fund, Bridgewater Associates. Avos seek to convert what they believe is a competitive advantage across the disciplines of portfolio construction, global macro analysis, and risk management into superior long term returns for any investors wanting to allocate to global stocks.