VIDEO: ETF of the Week: AVUV

Core Insights - The Avantis U.S. Small Cap Value ETF (AVUV) has crossed $20 billion in assets under management, reflecting strong investor interest in small-cap value strategies [3][4] - The ETF is positioned to benefit from a potential market rotation away from large-cap growth stocks, especially as the Federal Reserve is expected to cut interest rates [5][10] - AVUV employs a strategic, active management approach with a diversified portfolio of over 700 holdings and low turnover, focusing on high-quality, undervalued companies [11][12] Fund Performance and Strategy - Despite a challenging year for small-caps, AVUV has maintained a strong track record, consistently performing close to the top quartile of its peer group [13] - The fund's expense ratio is relatively low at 25 basis points, making it an attractive option for investors seeking exposure to small-cap value [5][14] - The active management style of AVUV is characterized as "active-lighter," allowing for strategic adjustments without frequent trading [12] Market Outlook - There is optimism that small-cap value stocks could perform well as the new year approaches, particularly if market conditions favor smaller companies [9][10] - The potential for increased merger activity in 2026 could further enhance the attractiveness of small-cap investments [10] - Historical data suggests that small-caps may offer better long-term returns compared to large-caps, especially as they are currently trading at a discount to their historical levels [8][6]