AVEM Institutional Surge
Major Financial Institutions Significantly Increase Holdings in Avantis Emerging Markets Equity ETF (AVEM)
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Bank of New York Mellon Corp sharply boosted its stake in the Avantis Emerging Markets Equity ETF (AVEM), increasing its position by 151.4% in the first quarter, according to Watchlist News. The firm now holds 528,977 shares after buying an additional 318,588 shares during the period.
The move is part of a broader wave of institutional buying into AVEM. Bank of America Corp DE made the most dramatic push, growing its position by a staggering 1,271.2% in the second quarter. It now owns 17,544,658 shares worth roughly $1.2 billion, per Watchlist News.
Multiple Big Institutions Rush Into AVEM
The institutional interest in AVEM goes well beyond two buyers. Align Financial LLC entered a brand-new position in AVEM in the fourth quarter, worth $528,227,000, according to Watchlist News. That is a significant first move into the fund. LPL Financial LLC also raised its holdings by 39.6%, adding to an already existing stake.
These moves signal growing confidence in emerging markets exposure among large money managers. AVEM tracks stocks from developing economies around the world. Institutions are buying in at a fast pace, and the dollar amounts involved run into the billions.
Bank of New York Mellon Trims Stakes Elsewhere While Adding AVEM
The AVEM purchase stands out because Bank of New York Mellon was cutting positions across much of its portfolio at the same time. The firm reduced its stake in Hexcel Corporation by 2.5% in the first quarter, according to MarketBeat. It also sold 143,330 shares of Builders FirstSource, cutting that position by 21.1%.
The bank also trimmed holdings in Atlassian by 17.1%, selling 139,426 shares, and cut its Baxter International stake by 13.1%, per MarketBeat. Against that backdrop, the 151.4% increase in AVEM looks like a deliberate shift toward emerging markets exposure.
What AVEM Is and Why Institutions Want It
AVEM is an exchange-traded fund, or ETF. An ETF is a basket of stocks that trades on an exchange like a single share. AVEM focuses on companies in emerging markets — countries like China, Brazil, India, and South Korea. It is managed by Avantis Investors, a subsidiary of American Century Investments.
Emerging market ETFs give large institutions a simple way to spread risk across many countries and companies at once. With Bank of America now holding over $1.2 billion in AVEM alone, the fund is clearly attracting serious institutional capital in 2024.
Bank of New York Mellon Still Buying in Select Spots
Despite the broad trimming, Bank of New York Mellon did add to a handful of positions outside of AVEM. The firm increased its stake in Axis Capital Holdings by 3.5%, picking up 15,839 new shares, according to MarketBeat. It also grew its Flutter Entertainment position by 6.3%, now holding 432,958 shares worth roughly $44 million.
H&R Block was another add, with the firm raising that holding by 6.8% to 1,516,885 shares, per MarketBeat. The selective buying suggests a strategy of rotating out of certain individual stocks while leaning into broader, diversified funds like AVEM.
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