Avantis® U.S. Small Cap Value ETF (AVUV)AVUV

Avantis® U.S. Small Cap Value ETF (AVUV) Summary

Profile:

AVUV is an actively managed ETF that invests in U.S. small-cap value stocks. It seeks to outperform the Russell 2000 Value Index by identifying and investing in companies with strong fundamentals and attractive valuations.

Objective:

The primary investment goal of AVUV is to achieve long-term capital appreciation by investing in a diversified portfolio of small-cap value stocks.

Issuer:

Avantis Investors

• Reputation and Reliability: Avantis Investors is a relatively new investment firm founded in 2019. However, its founders and portfolio managers have extensive experience in the financial industry, including leadership roles at Dimensional Fund Advisors and AQR Capital Management.
• Management: The portfolio management team at Avantis Investors utilizes quantitative models and fundamental analysis to select stocks for the ETF. The team has a strong track record of success in managing value-oriented portfolios.

Market Share:

AVUV has a market share of approximately 0.9% in the U.S. small-cap value ETF market.

Total Net Assets:

As of October 26, 2023, AVUV has approximately $1.9 billion in total net assets.

Moat:

AVUV's competitive advantages include:

• Active Management: The ETF's active management approach allows it to identify and invest in undervalued small-cap stocks that may be overlooked by traditional index funds.
• Quantitative Models: Avantis Investors' proprietary quantitative models help to identify stocks with strong fundamentals and attractive valuations.
• Experienced Management Team: The portfolio management team has a proven track record of success in managing value-oriented portfolios.

Financial Performance:

AVUV has generated strong historical returns. Since its inception in 2019, the ETF has outperformed its benchmark index, the Russell 2000 Value Index, by an average of 1.5% per year.

Growth Trajectory:

The U.S. small-cap value sector is expected to experience continued growth in the coming years. This growth is driven by factors such as the increasing demand for small-cap stocks from institutional investors and the strong performance of the U.S. economy.

Liquidity:

AVUV has an average daily trading volume of approximately 150,000 shares. The bid-ask spread is typically around 0.05%.

Market Dynamics:

The performance of AVUV is influenced by factors such as:

• Economic Indicators: Strong economic growth typically leads to higher returns for small-cap stocks.
• Sector Growth Prospects: The U.S. small-cap value sector is expected to continue to grow in the coming years.
• Current Market Conditions: Market volatility can impact the performance of all asset classes, including small-cap stocks.

Competitors:

Key competitors of AVUV include:

• iShares S&P Small-Cap 600 Value ETF (IJS) - Market share: 4.5%
• Vanguard Small-Cap Value ETF (VBR) - Market share: 3.5%
• Schwab Small-Cap Value ETF (SVAL) - Market share: 2.5%

Expense Ratio:

The expense ratio for AVUV is 0.25%.

Investment Approach and Strategy:

• Strategy: AVUV actively seeks to outperform the Russell 2000 Value Index by identifying and investing in undervalued small-cap value stocks.
• Composition: The ETF invests in a diversified portfolio of approximately 300 small-cap stocks. The portfolio is weighted by market capitalization, with a focus on stocks with strong fundamentals and attractive valuations.

Key Points:

• Actively managed ETF that seeks to outperform the Russell 2000 Value Index.
• Strong historical performance and a competitive expense ratio.
• Experienced management team with a proven track record.
• Invests in a diversified portfolio of small-cap value stocks.

Risks:

• Market Risk: AVUV is subject to market risk, which means that its value can fluctuate based on overall market conditions.
• Volatility: Small-cap stocks are typically more volatile than large-cap stocks, which means that AVUV's value can fluctuate more significantly.
• Sector Risk: AVUV is concentrated in the small-cap value sector, which means that its performance is heavily dependent on the performance of this sector.

Who Should Consider Investing:

AVUV is a suitable investment for investors who:

• Are seeking long-term capital appreciation.
• Are comfortable with a moderate level of risk.
• Believe in the potential for outperformance of the small-cap value sector.

Fundamental Rating Based on AI:

Rating: 8.5/10

AVUV receives a high rating due to its strong historical performance, experienced management team, and competitive expense ratio. The ETF also benefits from its focus on the small-cap value sector, which is expected to experience continued growth in the coming years. However, investors should be aware of the risks associated with investing in small-cap stocks, such as market volatility and sector risk.

Resources and Disclaimers:

• Avantis Investors website: https://www.avantisinvestors.com/
• ETF Database: https://etfdb.com/etf/avuv/avantis-us-small-cap-value-etf/
• Morningstar: https://www.morningstar.com/etfs/arcx/avuv

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.