Avantis US Large Cap Equity ETF

AVLC

Market cap $748M

Initiating coverage on Avantis U.S. Large Cap Equity ETF with a Sell rating. AVLC aims to combine elements of passive and active management, but it looks more like an index fund to us. The portfolio management team is also responsible for overseeing multiple other investment vehicles and strategies, weakening their alignment of interests with AVLC investors.

It's easy to get caught up in the dogma of passive funds that provide core exposure to large caps. To get more dynamic exposure to the market that extends beyond rigidity, active funds can be of benefit.