Avantis U.S. Small-Cap Value ETF delivers superior risk-adjusted returns by targeting small-cap stocks that are both cheap and profitable. AVUV's rules-based, actively managed process filters for value and profitability, largely avoiding unprofitable companies and minimizing stock-specific risk through broad diversification. The fund's unique adjustments to valuation and profitability metrics, along with disciplined transaction cost management, underpin its performance edge over peers.
There's a lot of buzz about the opportunity in US small cap stocks this year. There's a confluence of factors that seem aligned just right for the segment, chief amongst them earnings growth expectations.
Avantis US Small Cap Value ETF is rated 'Strong Buy' due to its superior factor loading, positive alpha, and attractive valuation. The current value-growth valuation spread exceeds levels seen since the Great Depression, signaling a historic opportunity for small-cap value exposure. AVUV offers a compelling risk-reward profile with a 0.25% expense ratio and recent outperformance versus the S&P 500, despite higher volatility.
On this episode of the “ETF of the Week” podcast, VettaFi's Head of Research, Todd Rosenbluth, discussed the Avantis U.S. Small Cap Value ETF (AVUV) with Chuck Jaffe of Money Life. The pair discussed several topics related to the fund to give investors a deeper understanding of the ETF.
VettaFi's Head of Research Todd Rosenbluth discussed the Avantis US Small Cap Value ETF (AVUV) on this week's “ETF of the Week” podcast with Chuck Jaffe of “Money Life.” For more news, information, and strategy, visit the Core Strategies Content Hub.
Avantis Investors, a shop within American Century Investments, saw its suite of strategies recently crossed $100 billion in total AUM. The firm hit that threshold just as its largest ETF by AUM, AVUV, spiked over $20 billion in AUM in the last week, itself.
A hawkish Fed cut sparks shifts in markets. Small-cap value AVUV, mid-cap value RFV, banks KBE and cash-cow plays COWZ look poised to gain.
Diving headfirst into bonds isn't the only option.
Investors are very familiar with tariff uncertainty by now, hunkering down when tariff vol takes its toll. Tariffs look set to be an important trend for the next few years, but how might investors take advantage?
In yet another milestone for the ETF space, American Century Investments saw its suite surpass $75 billion in total AUM. The firm, which also offers ETFs under the Avantis Investors brand, offers ETFs like its largest, the Avantis U.S. Small Cap Value ETF (AVUV).
Value investing thrives on buying quality companies at below-average valuations, which mathematically leads to long-term outperformance. Avantis US Small Cap Value ETF offers reasonable diversification and lower-than-market P/E ratios, but its holdings are mostly average-quality, cyclical small caps with erratic earnings. While the fund has outperformed other small-cap ETFs since inception, its business quality doesn't justify expectations of outsized double-digit returns.
I remain bullish on Avantis US Small Cap Value ETF due to consistent factor exposure, low fees, and credible management from Avantis. U.S. Small Cap Value ETFs like AVUV are still undervalued relative to history and broader equities, despite recent gains. I see opportunities for value investing in ETFs when their relative returns lag historical averages or other asset classes.