Alpha Architect Global Factor Equity ETF · NASDAQ:AAVM
Alpha Architect Global Factor Equity ETF — Alpha Architect — IVAL and IMOM Webinar August 2025
38 slides from Alpha Architect Global Factor Equity ETF's conference presentation, August 2025
Slide 1: What’s driving international stocks in 2025?
Different by design What’s driving international stocks in 2025? International stocks have outperformed. Have IVAL and IMOM captured any of those returns? 1
Slide 2: Standardized returns | as of 3/31/2026
Different by design Standardized returns | as of 3/31/2026 Annualized 3 Yr. Annualized 5 Yr. Annualized 10 yr. Annualized Return 1 Yr. Total Return Total Return Total Return Since Inception Expense Ratios Name Ticker Inception Date NAV Mkt. NAV Mkt. NAV Mkt. NAV Mkt. NAV Mkt. Gross Net Int’l Quant.
Slide 3: The case we made for International equities in March 2025
Different by design The case we made for International equities in March 2025: 1. Attractive relative valuations. U.S. multiple expansion cannot occur indefinitely. There is a threshold where international equity valuations become too attractive to pass on. 2. Market cyclicality. Returns tend to tra
Slide 4: Foreign developed trading at ~38% discount to U.S.
Different by design Foreign developed trading at ~38% discount to U.S. Since March 2025, the discount between U.S. Stocks1 and Foreign Developed Stocks2 stocks has increased from 36% to 38%, based on trailing 12-mo. (TTM) P/E ratio3 50.0 40.0 30.0 U.S. Stocks P/E (TTM) 28.50 ~38% discount 20.0 For.
Slide 5: U.S. concentration near all-time highs… with valuations to match
Different by design U.S. concentration near all-time highs… with valuations to match Foreign developed features higher earnings (q/q) at more attractive valuations Ten largest U.S. stocks3 by market cap Ten largest Foreign Developed stocks4 by market cap P/E1 EBIT Growth2 P/E EBIT Growth Security Ti
Slide 6: Opportunity is global
Different by design Opportunity is global While the U.S. has led for the past 15 years, foreign markets ex-US have still generated positive returns. 248% 180% Total return at NAV International stocks outperformed US stocks outperformed thanks, in part, The shocks of 2020 and 2022 hampered global gro
Slide 7: Real US Dollar down approx. -7% YTD
Different by design Real US Dollar1 down approx. -7% YTD A weakening USD often acts as a tailwind for foreign stocks held by U.S.-based investors 25% 20% 15% % change in index level 10% Real US Dollar has weakened 5% by ~7% since Jan 2025 0% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 201
Slide 8: Foreign stocks outperform U.S. stocks first half of 2025
Different by design Foreign stocks outperform U.S. stocks first half of 2025 IMOM sets pace, up approx. 27.71% through 6/30/2025; IVAL competitive relative to Foreign Large Blend 27.7% 19.6% 17.4% Total return 5.9% US Lg. Blend Fgn. Lg. Blend IMOM IVAL Source: YCharts, Alpha Architect. 1/1/2025 - 6/
Slide 9: IMOM sets pace in first half of the 2025
Different by design IMOM sets pace in first half of the 2025 Top percentile rank in category (Foreign Large Blend) through 6/30/2025 Source: Morningstar. Screenshot taken on 7/24/2025. Values represented are point in time and subject to change. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Inv
Slide 10: European and Japanese Industrial stocks power IVAL returns
Different by design Return drivers European and Japanese Industrial stocks power IVAL returns Source: YCharts, Alpha Architect. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Investing involves risk, including the loss of principal. 10
Slide 11: IVAL entered 2025 tilted toward Industrials and Materials
Different by design IVAL entered 2025 tilted toward Industrials and Materials Regionally, the portfolio was overweight Japan with a secondary allocation in Developed European stocks Regional allocation | January 2025 Largest allocation by section | January 2025 Sector5 IVAL Peer Fgn. Value ETFs4 Aus
Slide 12: Developed European Industrials drive IVAL returns
Different by design Developed European Industrials drive IVAL returns Materials in Developed Europe and Australasia also contribute; Japanese Industrials and Cyclicals boost returns Return contrib. Dev. Eur. Japan Australasia U.K. Other Industrials 6.51% 4.13% 2.37% 0.48% --% -0.49% Materials 3.31%
Slide 13: IVAL tilts toward Japanese stocks
Different by design IVAL tilts toward Japanese stocks At ~52%, our Japanese equity exposure is among the highest in the Foreign Value and Blend categories % Weighting Dev. Eur. Japan U.K. Australasia Dev. Asia N. Am. (ex-US) Em. Mkt. Other Fgn. Lg. Blend 41.2% 19.8% 12.5% 5.7% 7.6% 6.1% 4.4% 2.7% Fg
Slide 14: IVAL tilts toward Industrials
Different by design IVAL tilts toward Industrials % Weighting | Foreign Large Blend | Foreign Large Value | IVAL 35% 30% Industrial stocks are the 25% Without financials, IVAL largest allocation may be less sensitive to % weighting 20% market cyclicality 15% 10% 5% 0% Cons. Cycl. Finance Materials E
Slide 15: Top-10 Holdings by P/E ratio
Different by design Top-10 Holdings by P/E ratio IVAL targets smaller, less-represented stocks trading at attractive valuations and holds them at higher weightings Mkt. Cap.3 IVAL Fgn. Lg. Blend4 Country Sector1 Name P/E Ratio2 ($ bil) Weighting Weighting Switzerland Materials Holcim Ltd 2.42 $47,35
Slide 16: IVAL | Summary of Benefits
Different by design IVAL | Summary of Benefits Use IVAL to potentially enhance a Foreign Large Blend allocation with the less-represented, attractively-priced stocks Foreign Peer Int’l Large Blend2 Value ETFs3 IVAL What makes IVAL different? Consistently targeting less-represented stocks can increas
Slide 17: European and Japanese Industrial stocks power IMOM returns
Different by design Return drivers European and Japanese Industrial stocks power IMOM returns Source: YCharts, Alpha Architect. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Investing involves risk, including the loss of principal. 17
Slide 18: IMOM entered 2025 tilted toward Industrials and Tech
Different by design IMOM entered 2025 tilted toward Industrials and Tech Regionally, the portfolio was well-diversified amongst Developed Europe, Japan, and Australian/New Zealand stocks Regional allocation | January 2025 Largest allocation by section | January 2025 Other Mid. 1.9% East/Africa3 Sect
Slide 19: Developed European stocks drive IMOM returns
Different by design Developed European stocks drive IMOM returns European Industrials and Financial stocks contributed most to our returns; Japanese tech stocks add Return contrib. Dev. Eur. Japan Australasia U.K. Other Industrials 11.51% 9.56% 0.83% --% 1.56% -0.44% Technology 4.11% 0.59% 2.65% 0.5
Slide 20: IMOM races ahead as peers largely track Fgn. Lg. Blend
Different by design IMOM races ahead as peers largely track Fgn. Lg. Blend Total return at NAV | IMOM | Fgn. Lg. Blend | Fgn. Momentum peers IMOM 30% 25.35% Fgn. Lg. Blend 20% 17.97% Fgn. Mmtm. Total return 17.52% 10% 0% Jan Feb Mar Apr May Jun Jul Aug -10% Source: YCharts, Alpha Architect. 1/1/2025
Slide 21: Israeli stocks stand out following rebalance
Different by design Israeli stocks stand out following rebalance IMOM remains overweight Japanese stocks relative to peers % weighting Significant Israeli exposure Dev. Eur. Japan U.K. Australasia Dev. Asia Israel N. Am. (ex-US) Em. Mkt. Other Fgn. Lg. Blend 41.2% 19.8% 12.5% 5.7% 7.6% 0.8% 6.1% 4.4
Slide 22: Industrials and Tech exposure sets IMOM apart
Different by design Industrials and Tech exposure sets IMOM apart % Weighting | Foreign Large Blend | Foreign Momentum | IMOM 35% 30% Finance stocks are the 25% largest allocation % weighting 20% 15% 10% 5% 0% Cons. Cycl. Finance Materials Energy Industrials Services Tech. Telecom. Cons. Non- Health
Slide 23: Top-10 Holdings by momentum score
Different by design Top-10 Holdings by momentum score IMOM targets smaller, less-represented stocks with strong momentum and holds them at higher weightings Momentum Mkt. Cap. IMOM Fgn. Lg. Blend4 Ticker Sector1 Name Score2 ($ bil)3 Weighting Weighting Germany Industrials Siemens Energy AG 318.0% $8
Slide 24: IMOM | Summary of Benefits
Different by design IMOM | Summary of Benefits Use IMOM to potentially enhance a Foreign Large Blend allocation with less-represented, highest momentum stocks Foreign Peer Int’l Large Blend Momentum ETFs IMOM What makes IMOM different? Consistently targeting less-represented stocks can increase Weig
Slide 25: Why consider IVAL and IMOM now?
Different by design Why consider IVAL and IMOM now? Diversify your foreign portfolio with consistent value and momentum exposure Source: YCharts, Alpha Architect. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS. Investing involves risk, including the loss of principal. 25
Slide 26: IVAL and IMOM consistently target smaller stocks
Different by design IVAL and IMOM consistently target smaller stocks Smaller stocks often receive less institutional coverage, which can increase the probability of identifying true mispricing opportunities. IVAL and IMOM consistently hold smaller, less represented stocks. $175 Fgn. Mmtm. Current: $
Slide 27: IVAL and IMOM consistently target attractively priced stocks
Different by design IVAL and IMOM consistently target attractively priced stocks Consistently buying attractively-priced stocks improves expected returns, assuming positive mean reversion. 45.0 Fgn. Lg. Growth Current: 24.2 40.0 Avg.: 23.5 35.0 IMOM Current: 22.2 IMOM’s trailing P/E is closer Avg.:
Slide 28: IVAL and IMOM hold different stocks than the benchmark
Different by design IVAL and IMOM hold different stocks than the benchmark High overlap implies the strategy is not meaningfully different from the benchmark, which can limit diversification benefits. 6.7% Foreign 9.4% IVAL IMOM Overlap Lg. Blend Overlap Source: FactSet, YCharts, Alpha Architect. PA
Slide 29: Stylebox diversification doesn’t ensure portfolio diversification
Different by design Stylebox diversification doesn’t ensure portfolio diversification A market cap.-weighted strategy exposes higher correlation1 to core equity allocation, regardless of stylebox. US Lg. Blend Fgn. Lg. Blend Fgn. Lg. Value Fgn. Lg. Growth Fgn. Mmtm. IVAL IMOM US Lg. Blend -- Fgn. Lg
Slide 30: IVAL or IMOM have outperformed Foreign Lg. Blend 6 of 10 years
Different by design IVAL or IMOM have outperformed Foreign Lg. Blend1 6 of 10 years We can’t predict if the blend, value, or momentum be in favor in a given year. In our view, combine all three to optimize diversification. '16 '17 '18 '19 '20 '21 '22 '23 '24 ’25 YTD IVAL IMOM FGN. LG. BLEND FGN. LG.
Slide 31: Alpha Architect Model Portfolio
Different by design Alpha Architect Model Portfolio • Globally diversified. 65% U.S. stocks, 30% foreign developed, 5% in emerging markets. • Market direction. 62% in global index funds to track the general direction of global markets. • Value and momentum. 38% in Alpha Architect’s value and momentu
Slide 32: Additional resources
Different by design Additional resources Optimize your portfolio. If you’d like to use IVAL and/or IMOM but you’re not Keep learning. sure where it fits in your portfolio, schedule an evaluation with Jack Vogel, PhD. Click here for availability or email at jack@alphaarchitect.com. Stay ahead. Receiv
Slide 33: IMPORTANT INFORMATION
Different by design IMPORTANT INFORMATION This material has been distributed for informational purposes only and should not be considered investment advice or a recommendation of any particular security, strategy, or investment product. Information contained herein has been obtained from sources bel
Slide 34: Note on category average methodology
Different by design Note on category average methodology Constituents of a given category are determined by YCharts. As of 4/30/2024, the calculation method used to determine the category average’s returns changed to account for potentially different inception dates. Previously, a straight average o
Slide 35: Note on momentum category
Different by design Note on momentum category There is no explicit “momentum” category. Generally, momentum funds tend to fall into the “growth” category, however, that standard is not uniformly applied by third party data provides such as FactSet, Morningstar, YCharts, or others. Our goal is to ide
Slide 36: Category averages referenced
Different by design Category averages referenced US Large Blend (“U.S. Stocks”, “US Lg Blend”) represented by an average of the 50 largest ETFs in the Large Blend category based on assets under management (AUM). These portfolios tend to invest across the spectrum of US industries, and owing to their
Slide 37: RBICS Sector Definitions
Different by design RBICS Sector Definitions Business Services is composed of companies that offer services targeted toward businesses, including administrative, support, janitorial, and professional services. Consumer Cyclicals is composed of companies that offer products targeted toward individual
Slide 38: Regional definitions; Characteristics and Risk Definitions
Different by design Regional definitions Australasia includes stocks incorporated in the developed countries of Australia and New Zealand. Developed Europe includes stocks incorporated in advanced European economies such as Germany, France, Switzerland, and the Netherlands. Emerging Markets includes