Avantis US Large Cap Value ETF

AVLV

Market cap $10.6B

Avantis US Large Cap Value ETF (AVLV) blends value and profitability screens, resulting in a balanced sector mix with material allocations to technology and industrials. AVLV trades at a 24% P/E discount to the Russell 1000, maintains moderate sector rotation, and seeks profitability while limiting downside risk. The fund's 3-year total return of 19.3% outpaces value peers, with a Sharpe ratio of 0.83, though it lags the Russell 1000 in strong bull markets.

Avantis US Large Cap Value ETF is an actively managed large-cap value fund with a 0.15% expense ratio and $10.65B in assets under management. Managers focus on producing a well-diversified portfolio with strong value and quality characteristics, which I was able to confirm through a comprehensive factor-based analysis. AVLV differs from VTV, Vanguard's passive large-cap value ETF, because it features superior capital efficiency ratios, suggesting it's more resilient in market downturns.

Most value ETFs simply screen for cheap stocks. The Avantis U.S. Large Cap Value ETF takes a different approach: it filters for stocks that are both cheap and profitable, a distinction that historically separates durable value from value traps.

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The Avantis U.S. Large Cap Value ETF offers strong value and profitability exposure with a diversified portfolio of 262 U.S. stocks. AVLV has outperformed its benchmark IWD since inception, with higher risk-adjusted returns but slightly higher volatility. The ETF maintains low expenses (0.15%) and turnover, while delivering robust value metrics and decent growth rates.

Avantis US Large Cap Value ETF is managed actively, focusing on undervalued U.S. large caps with robust profitability. In terms of value, growth, and quality characteristics, AVLV is stronger than IWD in nearly every aspect. In part thanks to its quality screens, AVLV has outperformed IWD and RPV since its inception in September 2021.