ETFdb Logo
  • ETF Database
  • Channels
    • Themes
      • Active ETF
      • Alternatives Channel
      • Artificial Intelligence
      • China Insights
      • Climate Insights
      • Core Strategies
      • Crypto
      • Disruptive Technology
      • Energy Infrastructure
      • ETF Building Blocks
      • ETF Education
      • ETF Investing
      • ETF Strategist
      • Faith-Based Investing
      • Financial Literacy
      • Fixed Income
      • Free Cash Flow
      • Innovative ETFs
      • Invest Beyond Cash
      • Leveraged & Inverse
      • Modern Alpha
      • Portfolio Strategies
      • Tax Efficient Income
    • Asset Class
      • Equity
        • U.S. Equity
        • Int'l Developed
        • Emerging Market Equities
      • Alternatives
        • Gold/Silver/Critical Materials
        • Crypytocurrency
        • Currency
        • Volatility
      • Fixed Income
        • Investment Grade Corporates
        • US Treasuries & TIPS
        • High Yield Corporates
        • Int'l Fixed Income
    • ETF Ecosystem
    • ETFs in Canada
    • Market Outlook
    • Crypto ETF Hub
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Database Categories
    • Indexes
    • Scenario Analysis
    • Watchlists
    • Head-To-Head ETF Comparison Tool
    • Mutual Fund To ETF Converter
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
  • 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
    • Gaining Perspective 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. Two Active Options to Play a Small Cap Comeback
Core Strategies Channel
Share

Two Active Options to Play a Small Cap Comeback

Ben HernandezAug 25, 2023
2023-08-25

Large cap equities have been leading the 2023 market rally with the S&P 500 up 15%, but at some point, small cap equities will follow suit. Here are a pair of active exchange traded fund (ETF) options worth considering to get exposure to a small cap rally.

Right now, the Russell 2000 index is up about 7% for the year, but as investors get more confirmation that the Fed will loosen monetary policy and avoid a recession, more market confidence could increase demand for small caps. That said, for broad exposure, consider the Avantis U.S Small Cap Equity ETF (AVSC ).

With over 1,300 holdings (as of June 30), the deeply diversified AVSC seeks to prevent over-concentration in its broad portfolio. Additionally, its active management component allows it the flexibility to change holdings when market conditions warrant an adjustment.

In order to remain competitive with their passive fund counterparts, more active funds have been shifting to offer cost-effective solutions. AVSC is a prime example of this transition with its low 0.25% expense ratio.

Per its fund description, AVSC seeks long-term capital appreciation and invests primarily in a diverse group of U.S. small-cap companies across market sectors and industry groups, taking into consideration valuation, profitability, and levels of investment when selecting and weighting securities.

A Value-Oriented Option

For a more discerning screener that tilts towards the value factor, investors may want to consider exposure to the Avantis U.S. Small Cap Value ETF (AVUV ). Per its basic fund description, AVUV seeks long-term capital appreciation, investing in primarily a diverse group of U.S. small cap companies across market sectors and industry groups.

Like AVSC, this fund also features a low 0.25% expense ratio that can compete with passive funds. The active component still allows for AVUV to be pliable with the current market environment as well as when conditions change in the future.

Because the fund has a more discerning value screener (small cap companies designed to increase expected returns by focusing on firms trading at low valuations with higher profitability ratios), the fund has just more than half of the holdings of AVSC). Nonetheless, it’s still an ideal way to invest in the vast universe of small cap companies while allowing for a value factor strategy to hand pick holdings.

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


Content continues below advertisement

Loading Articles...
Our Sites
  • VettaFi
  • Advisor Perspectives
  • ETF Trends
Tools
  • ETF Screener
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Database Pro
More Tools
  • Financial Advisor & RIA Center
Explore ETFs
  • ETF News
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Information
  • Contact Us
  • Terms of Use and Privacy Policy
  • © 2025 VettaFi LLC. All rights reserved.

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