Avantis U.S. Small Cap Value ETF

Avantis U.S. Small Cap Value ETF (AVUV), from American Century Investments, is an actively managed fund holding 795 small U.S. stocks as of May 31, 2026. It doesn't copy an index. Instead it leans toward companies that look cheap relative to their balance-sheet value and produce strong cash flow. Its 0.25% yearly cost is below the 0.28% average of similar funds, though Vanguard Russell 2000 Value ETF (VTWV) charges 0.10%.

• Over the year to Nov 2, 2026, AVUV returned +28.4%, 1st of 9 among similar funds.
• Its 5-year annualized return was +10.9%.
• In the 2020 COVID crash it fell 46.9% and regained its old high 7.8 months after the low.
• Its worst full calendar year was 2022 (-4.9%); its best was 2021 (+42.2%).
• The deepest fall in its price history was 49.4% (Dec 19, 2019 to Mar 23, 2020), recovered by Nov 23, 2020.

As of Aug 31, 2026, the fund held 796 securities; the ten largest made up 8.14% of assets.

• Over the three months to Aug 31, 2026, investors added a net $2.96B (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +4.33%, +0.42%, -0.23%.

AVUV is actively managed and does not copy an index, though it measures itself against the Russell 2000 Value Index. At least 80% of assets normally go into small U.S. companies. These are companies outside the 1,000 largest U.S. firms, in the bottom 10% of U.S. market value, or in the Russell 2000 Value Index. As of September 30, 2025, the largest company that qualified was worth about $22.0 billion.

Managers look for two traits. “Value” mainly means a low price relative to adjusted book value (what a company owns minus what it owes). “Profitability” mainly means strong cash flow from operations relative to book value. They also weigh past price performance, how easily a stock trades, and costs. Each stock starts at a weight based on its market value, then is nudged up or down based on those traits. A stock can be dropped if it grows too large or stops looking cheap or profitable.

There's no fixed rebalancing date. Managers review the portfolio regularly and weigh trading costs and taxes. The prospectus reports portfolio turnover (the share of holdings replaced in a year) of just 6%. The fund may use futures to keep cash invested and may lend out its securities. One catch: large traders can create and redeem shares for cash rather than stocks. That may force the fund to realize gains and make it less tax-efficient than some ETFs.

• AVUV charges 0.25% a year, versus an average of 0.28% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $26 in the first year and $319 over 10 years (assuming a 5% annual return).

Its spread across 795 small value stocks can complement a core fund, but drops like the 49.4% fall in early 2020 make it a higher-risk slice.

AVUV could add a tilt toward small, cheap U.S. companies, though its swings have been sharp. It launched in September 2019, so it has no record from 2008. In the 2020 COVID crash it fell 46.9% in about a month. Its deepest drop, 49.4% from a December 2019 peak, took about 8 months to recover. In 2022 it fell 20% and recovered in 4.2 months, and it ended that calendar year down only 4.8%, its worst year. Anyone drawing money in March 2020 would have locked in losses of nearly half. Cash or bonds held elsewhere can cover spending during stretches like that.

Income is modest: a 1.22% yield over the 12 months to October 29, 2026, paid quarterly. In the SEC's standard example, costs on $10,000 come to $26 for one year and $319 over 10 years. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.