Avantis U.S. Small Cap Value ETF targets high-quality, attractively valued small-cap stocks, addressing typical small-cap value pitfalls.
AVUV’s portfolio boasts a higher book-to-market (0.63) and profits-to-book (0.31) ratio than its Russell 2000 Value benchmark, signaling cheaper and more profitable holdings.
Small-cap earnings growth is accelerating, with S&P SmallCap 600 Q4 2026 earnings expected to rise 26%, supporting the bullish case for AVUV.
Despite risks from higher interest rates, AVUV is well-positioned to benefit from a potential rotation into small-caps and AI-driven earnings growth.