Avantis Emerging Markets Equity ETF Experiences Big Inflow

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Avantis Emerging Markets Equity ETF (Symbol: AVEM) where we have detected an approximate $732.6 million dollar inflow — that’s a 8.5% increase week over week in outstanding units (from 134,100,000 to 145,450,000). Among the largest underlying components of AVEM, in trading today Alibaba Group Holding Ltd (Symbol: BABA) is off about 1.6%, NetEase, Inc (Symbol: NTES) is off about 1.7%, and ICICI Bank Ltd (Symbol: IBN) is higher by about 0.4%. For a complete list of holdings, visit the AVEM Holdings page »

The chart below shows the one year price performance of AVEM, versus its 200 day moving average:

Avantis Emerging Markets Equity ETF 200 Day Moving Average Chart

Looking at the chart above, AVEM’s low point in its 52 week range is $52.52 per share, with $66.3099 as the 52 week high point — that compares with a last trade of $64.41. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique — learn more about the 200 day moving average ».

Exchange traded funds (ETFs) trade just like stocks, but instead of ”shares” investors are actually buying and selling ”units”. These ”units” can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.

For decades, the investment world has eagerly anticipated a revolutionary technology comparable to the advent of the internet. Enter artificial intelligence (AI) – a game-changer that promises to reshape corporate landscapes. AI harnesses software and systems to execute tasks autonomously, continuously learning and evolving, unfettered by human intervention.

Image source: Getty Images.

A Multi-Trillion Dollar Opportunity

Projections vary, but PwC's analysts estimate AI could inject a staggering $15.7 trillion into the global economy by 2030. This vast addressable market presents substantial growth possibilities for numerous companies. However, success is not as simple as randomly picking from a list of AI stocks.

The Nvidia Phenomenon

Currently, Nvidia (NASDAQ: NVDA) is a front-runner in the AI realm. With its AI-driven GPUs driving high-compute data centers, Nvidia's stock has escalated dramatically, adding $3 trillion in market value since 2023. The recent 10-for-1 stock split underscores Nvidia's meteoric rise, fueled by insatiable demand for its chips.

Yet, history has shown that overhyping nascent innovations often leads to early-stage setbacks, and AI is no exception. As AI matures, companies like Nvidia could face challenges.

Meta Platforms: A Hidden Gem

Meta Platforms (NASDAQ: META), a social media titan, is a hidden gem for investors seeking AI exposure. Boasting a revenue stream heavily reliant on advertising, Meta cleverly leverages AI to enhance user experiences. With Zuckerberg at the helm and a robust operating model, Meta continues to reel in billions of users daily, making it a top choice for advertisers.

Despite its stock surging fivefold since its 2022 low, Meta's current valuation at less than 14 times estimated cash flow for 2025 offers an attractive entry point, signaling a potential bargain compared to previous years.

Image source: Getty Images.

Alibaba: China's AI Powerhouse

Alibaba (NYSE: BABA), the e-commerce giant, is another AI stock poised for growth. Dominating China's online retail space, Alibaba's platforms, Taobao and Tmall, capture over half of China's e-commerce market. Bolstered by Alibaba Cloud, China's top cloud service platform by revenue, Alibaba offers cutting-edge AI solutions to drive business innovation and growth.

The Rise of Bargain AI Stocks in 2024The Rise of Bargain AI Stocks in 2024

Click here to find out which 9 other ETFs had notable inflows »

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