ETF Evaluator: Alpha Architect Global Factor Equity ETF () Follow This ETF

Alpha Architect Global Factor Equity ETF Overview

Alpha Architect Global Factor Equity ETF (AAVM) is an actively managed Nontraditional Equity Equity Hedged exchange-traded fund (ETF). Alpha Architect launched the ETF in 2017.

The investment seeks long term capital appreciation. Under normal circumstances, the fund will invest at least 80% of its net assets (plus any borrowings for investment purposes) in equity securities. The fund is a “fund of funds,” meaning that it primarily invests its assets in the shares of other exchange-traded funds (“ETFs”), rather than in securities of individual companies.

About Alpha Architect Global Factor Equity ETF (AAVM)

There are 2 members of the management team with an average tenure of 9.25 years: Wesley Gray (2017) and John Vogel (2017). Management tenure is more important for actively managed ETFs than passive index ETFs.

The ETF has 3 primary benchmarks: Solactive GBS Glb Mar L&M Cap TR USD index with a weighting of 100%, Solactive GBS United States 1000 TR USD index with a weighting of 50% and Solactive GBS DM ex NA L & M Cap TR USD index with a weighting of 50%. Alpha Architect Global Factor Equity ETF has 6 securities in its portfolio. The top 10 holdings constitute 100.0% of the ETF’s assets. The ETF meets the SEC requirement of being classified as a diversified fund. The ETF is not considered to have an ESG focus with its investment selection and management.

Alpha Architect Global Factor Equity ETF is part of the Equity global asset class and is within the Nontraditional Equity ETF group. Alpha Architect Global Factor Equity ETF has 51.8% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 46.9% There is 51.8% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.0% (0.0% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Alpha Architect Global Factor Equity ETF has 0.8% of the portfolio in cash.

Assets Under Management

The fund has $25 million in total assets, which is below the $294 million average for the Equity Hedged category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

AAVM Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Alpha Architect Global Factor Equity ETF expense ratio is below average compared to funds in the Equity Hedged category. Alpha Architect Global Factor Equity ETF has an expense ratio of 0.38%, which is 50% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Alpha Architect Global Factor Equity ETF has a portfolio turnover rate of 32%, which indicates that it holds its assets around / 0.0 years. By way of comparison, the average portfolio turnover is 97% for the Equity Hedged category.

Recently, in the month of July 2026, Alpha Architect Global Factor Equity ETF returned -0.5%, which earned it a grade of C, as the Equity Hedged category had an average return of -1.4%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all ETFs in that category.

Alpha Architect Global Factor Equity ETF has a trailing yield of 1.81%, which is below the 3.45% category average. The fund normally distributes its income annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Alpha Architect Global Factor Equity ETF Grades

Year to date, the ETF has returned 13.6%, 6.4 percentage points better than the category, which translates into a grade of A. The fund has returned 28.0% over the past year (grade of A), 15.9% over the past three years (grade of A) and 6.4% per year over the past five years (grade of D).

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