ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Energy Infrastructure
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Gold/Silver/Critical Minerals
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Modern Alpha
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
  • Research
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF of the Week Podcast
    • ETF Prime Podcast
    • Video
  • Company
    • About VettaFi
    • Get VettaFi’ed
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Core Strategies Channel
  2. Don’t Miss Small Cap Opportunity With AVUV, AVSC
Core Strategies Channel
Share

Don’t Miss Small Cap Opportunity With AVUV, AVSC

Nick Peters-GoldenFeb 24, 2023
2023-02-24

Are small caps the place to be right now? They look like better value than the S&P 500 itself, which, in an environment that seems to vacillate wildly between soft-landing optimism and hard-landing, Fed-induced recession pessimism, is certainly worth taking a look at. That small cap opportunity may prompt investors to take a look at a duo of ETFs from American Century Investment’s brand Avantis Investors, the Avantis U.S Small Cap Equity ETF (AVSC ) and the Avantis U.S. Small Cap Value ETF (AVUV ).

What is driving small caps’ value moment relative to the big S&P 500? Based on trailing operating earnings, small caps are seeing at a 25% discount to large caps, one of the biggest discounts since the mid-1980s – they’re also trading at 16 times earnings on aggregate based on forecast earnings according to the Leuthold Group. Compare that to 19 times for large caps, for example, too.

Advisors themselves are already showing their hunger for small caps. On a year-to-date basis, meanwhile, small cap value as an equity factor was the second strongest based on returns, while small cap core and small cap growth rounded out the top five. Whether small caps are truly much cheaper, or U.S. large caps are very expensive, there’s a small cap opportunity to check out – and the Avantis duo can play a role.

AVUV has added a whopping $330 million in net inflows over the last month on top of $907 million across the last three months. The ETF has also seen a solid performance, returning 7.7% YTD and charging 25 basis points, according to VettaFi. AVSC meanwhile has added $11.2 million over one month and $56 million over three months, returning 8.4% YTD for a 25 basis point fee.

Both ETFs are priced above both their 200-Day and 50-Day Simple Moving Averages and are actively managed with a value-oriented view. AVSC looks to identify eligible securities with fundamental screens and look for book value, cash flow, and revenues as other notable factors, while AVUV looks to replicate the performance of an index with its active approach.

Small caps are subject to the same challenges of inflation and interest rates as large caps, but they still represent an intriguing option. With their maneuverability and value relative to large caps, they’re an area to watch for those wanting to play a small cap opportunity in both AVSC and AVUV, part of a broader Avantis equity suite that’s worth a look, too.

For more news, information, and analysis, visit the Core Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X