Avantis US Small Cap Value ETF

AVUV

Market cap $21.2B

In my equity watchlist there will not be only the USA, I will closely follow global markets, especially factor strategies. In the bond segment, I really appreciate active management; I think passive ones will remain poorly able to capture the evolutions of 2026. Among the segments with alpha potential, I identify the small cap value segment due to lower valuations and better earnings 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.

Short-term pain for long-term leaders.

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.

This ETF is one of the biggest in the small-cap category. Beyond its large asset base, it has a legacy of outperformance.

Small-cap stocks are highly levered to Fed policy. With another rate cut expected later this month, it could be time for AVUV to get in gear.

There are many good reasons to invest in small-cap stocks, such as their potential for faster growth -- and the potential for them to be bought out at a premium by bigger companies.