At a glance
AFSC charges 0.65% a year, above the 0.04% average of the 2 funds most like it (the most expensive of 3). It has $10.0M in assets, the 3rd largest of that group; it paid 0.05% of its price in distributions over the past 12 months, annual. Over the past year it returned +19.3% with distributions reinvested (S&P 500: +11.5%), the weakest of those 3 funds. Its ten largest positions make up 30.1% of the fund, out of 43 in all.
The short version
abrdn Focused U.S. Small Cap Active ETF (AFSC) is an actively managed fund holding about 35 to 45 smaller U.S. companies that abrdn's team judges high-quality but underappreciated. It may appeal to investors who want a hand-picked small-cap portfolio instead of an index fund. The trade-offs: a 0.65% yearly expense ratio, versus 0.03% to 0.06% for small-cap index funds SPSM and IJR, and bigger swings from owning so few stocks.
Price history
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AFSC +19.3% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| AFSC official prospectus, to Dec 31, 2025 | — | +11.90% | — | +6.94% | +10.40% | — |
| Russell 3000® Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +17.15% | — | +13.15% | +14.28% | — |
| Custom abrdn Focused U.S. Small Cap Active ETF Index (reflects no deduction for fees, expenses or taxes) index, same period | — | +12.81% | — | +7.59% | +8.85% | — |
| AFSC price data to Oct 27, 2026 | +20.3% | +19.3% | — | — | — | +13.3% |
- Over the year to Oct 27, 2026, AFSC returned +19.3%, 3rd of 3 among similar funds.
- The deepest fall in its price history was 21.7% (Feb 18, 2025 to Apr 8, 2025), recovered by Aug 22, 2025.
Show as a table
| Year | Price data | Prospectus (official) |
|---|---|---|
| 2026 (to date) | +20.3% | — |
| 2025 | — | +11.90% |
| 2024 | — | +19.50% |
| 2023 | — | +10.00% |
| 2022 | — | -26.12% |
| 2021 | — | +28.74% |
| 2020 | — | +27.06% |
| 2019 | — | +35.02% |
| 2018 | — | -3.38% |
| 2017 | — | +13.21% |
| 2016 | — | +2.46% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Before this security existed |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Before this security existed |
Dividends and income
No distribution history is available for this fund.
Distributions through Oct 27, 2026.What's inside
As of Jul 31, 2026, the fund held 43 securities; the ten largest made up 30.13% of assets, and 3.73% sat in cash and money-market holdings.
| Holding | Weight | |
|---|---|---|
| American Healthcare REIT Inc | 3.47% | |
| Brinker International Inc | 3.18% | |
| Kiniksa Pharmaceuticals International Plc | 3.18% | |
| Merit Medical Systems Inc | 3.15% | |
| Quaker Chemical Corp | 3.13% | |
| Seacoast Banking Corp of Florida | 3.00% | |
| Ameris Bancorp | 2.86% | |
| Wintrust Financial Corp | 2.86% | |
| Q2 Holdings Inc | 2.69% | |
| Boot Barn Holdings Inc | 2.60% | |
| AZZ Inc | 2.57% | |
| JFrog Ltd | 2.50% | |
| StoneX Group Inc | 2.49% | |
| PJT Partners Inc | 2.47% | |
| Impinj Inc | 2.45% |
By country
United States 86.9%Israel 4.7%United Kingdom 3.18%Bahamas 2.18%By asset type
Stocks 96.95%What changed recently
- Over the three months to Jul 31, 2026, investors withdrew a net $928K (creations minus redemptions, per the N-PORT report).
- Monthly total returns reported for that quarter: +1.40%, +10.60%, -3.19%.
How it works
AFSC does not track an index. Managers at abrdn choose the stocks, aiming for long-term growth. Under normal conditions, at least 80% of net assets go into U.S. small-cap stocks: companies with market values similar to those in the Russell 2000 Index when purchased. Companies in that index ranged from $5.61 million to $24.89 billion in market value as of December 31, 2025. The fund may also own non-U.S. companies; 86.9% of assets were in U.S. companies as of July 31, 2026.
The managers rely on fundamental research: close study of each company's business and finances. They judge every company on five quality tests: the durability of its business model, the appeal of its industry, the strength of its finances, the ability of its management, and its most material environmental, social and governance (ESG) issues. A team vets each idea through peer review, aiming to find quality companies the market hasn't fully recognized.
The fund is “focused,” typically holding 35 to 45 companies; it held 43 as of July 31, 2026, with the 10 largest making up 30.13% of assets. It may also concentrate in one sector. Managers trade as their views of companies change. Portfolio turnover, the share of holdings replaced over a year, was 72%, which can add trading costs.
What it really costs
- AFSC charges 0.65% a year, versus an average of 0.04% for the similar funds below (3rd of 3, cheapest first).
- The fee includes a 0.44% waiver from the adviser, which may end.
- Using the prospectus's standard example, $10,000 invested would cost about $66 in the first year and $1,289 over 10 years (assuming a 5% annual return).
| Cost of $10,000 (SEC example) | 1 yr | 3 yrs | 5 yrs | 10 yrs |
|---|---|---|---|---|
| AFSC | $66 | $303 | $558 | $1,289 |
In a retirement portfolio
AFSC is a concentrated, actively managed small-cap fund with a fee well above index peers and a short ETF history, so it fits better as a small add-on than a foundation.
AFSC could add focused small-company exposure alongside broader holdings. It has moved more than the market: its beta, a gauge of sensitivity to market swings, was 1.1 over the year to October 27, 2026. The ETF's own record misses the 2008, 2020 and 2022 downturns. Its deepest drop, 21.7%, ran from its February 18, 2025 launch to April 8, 2025, and took 4.5 months to recover. Prospectus figures, which include years before the ETF existed, show a 26.12% loss in 2022, the worst calendar year shown. Drawing cash after such a fall locks in losses.
Income is negligible: the 12-month yield was 0.05% as of October 27, 2026, paid once a year. Costs are steep: 0.65% a year, versus 0.03% to 0.06% for index peers SPSM and IJR. Past results don't predict future ones, and a plan needs to look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Investors who want a hand-picked portfolio of 35 to 45 smaller U.S. companies chosen on business quality, rather than a broad small-cap index.
- Holders of a small-cap index fund seeking different stocks: AFSC's holdings overlap only about 7% with IJR or SPSM.
- Long-term investors who can tolerate steep drops, like its 21.7% slide after launch in February 2025 and a 26.12% prospectus-reported loss for 2022.
Look elsewhere if
- Cost-focused investors: SPSM and IJR charge 0.03% and 0.06% versus AFSC's 0.65%, and each returned slightly more over one year to late October 2026.
- Anyone needing income: the 12-month yield was 0.05% as of October 27, 2026, and distributions arrive only once a year.
- Those wary of very small funds: net assets were about $10 million as of July 31, 2026, which can mean thin trading and closure risk.
Close alternatives
Matched by closest holdings overlap from the latest N-PORT reports (no similar fund shares 20% or more of its holdings).
Net assets from each fund's latest N-PORT or annual report where available. Returns through Oct 27, 2026.Questions investors ask
What does AFSC invest in?
AFSC invests in a concentrated mix of smaller, mostly U.S. companies picked by abrdn's managers. As of July 31, 2026, it held 43 companies, with the 10 largest making up 30.13% of assets. The biggest was American Healthcare REIT (3.47%), a real estate investment trust, followed by Brinker International (3.18%), Kiniksa Pharmaceuticals (3.18%), Merit Medical Systems (3.15%) and Quaker Chemical (3.13%). Three banks—Seacoast Banking Corp of Florida, Ameris Bancorp and Wintrust Financial—also ranked in the top 10. Cash was 3.73%.
What's the difference between AFSC and IJR?
The biggest differences are approach, cost and size. IJR, the iShares Core S&P Small-Cap ETF, is an index fund that charges 0.06% a year and had about $111.3 billion in net assets as of June 30, 2026. AFSC is actively managed, charges 0.65% and held 43 stocks and about $10 million in net assets as of July 31, 2026. Their holdings overlap by only about 7%. IJR returned 20.8% over one year through October 30, 2026; AFSC returned 19.3% through October 27, 2026.
Does AFSC pay dividends?
Yes, but very little. AFSC pays distributions once a year, and its 12-month yield was 0.05% ($0.02 per share) as of October 27, 2026. The fund's stated goal is long-term capital appreciation, meaning growth in share value, not income. For retirees who rely on portfolio cash flow, income-focused funds are worth comparing.
What is AFSC's expense ratio?
AFSC's expense ratio is 0.65% a year after a 0.44% fee waiver, according to its prospectus filed February 27, 2026. In the SEC's standard example ($10,000 invested, 5% yearly return, shares cashed out at the end of each period), costs total $66 after one year, $303 after three, $558 after five and $1,289 after 10. The later figures exceed what 0.65% alone would produce, suggesting the waiver may not last. Index peers SPSM and IJR charge 0.03% and 0.06%.
How has AFSC performed over time?
It has lagged the broad U.S. market over longer periods. Through December 31, 2025, the prospectus shows average annual returns of 11.9% over one year, 6.94% over five and 10.4% over 10, versus 17.15%, 13.15% and 14.28% for the Russell 3000 Index, a broad U.S. stock benchmark. It trailed its custom abrdn benchmark over one and five years but beat it over 10 (8.85%). Those figures include years before the ETF's February 18, 2025 launch. Over one year through October 27, 2026, it returned 19.3%.