Avantis Responsible US Equity ETF

AVSU

Market cap $424M

Avantis Responsible U.S. Equity ETF is a broad market ESG-focused fund offered by Avantis Investors. Its expense ratio is cheap at 0.15% and the ETF has $300 million in assets under management. Avantis takes an exclusions-based approach to portfolio management, excluding companies with significant revenue derived from oil and gas, civilian firearms, nuclear weapons, palm oil production, tobacco, and gambling, among others. As is typical for the firm, AVSU also offers investors an attractive 15.44x forward P/E ratio, which represents a 16% discount compared to its Russell 3000 Index benchmark.

It's hard to ignore that ESG has taken some hits over the last few years. Frothy returns from tech names following geopolitical and bank-related tumult have, to some degree, overshadowed ESG narratives.