Avantis U.S. Small Cap Value ETF (AVUV): Complete Beginner's Guide

What is Avantis U.S. Small Cap Value ETF?

AVUV targets U.S. small-cap value stocks, a segment of the market that academic research shows has historically produced higher returns over long periods. It uses a systematic approach based on factor investing principles. Beginners with long time horizons may benefit from a small allocation, but should expect higher short-term volatility.

AVUV is managed by Avantis Investors and has been available since 2019. With $13.0B in assets under management, it's a well-established fund with strong institutional backing. The fund charges an expense ratio of 0.25%, which means for every $10,000 you invest, you pay approximately $25 per year in management fees.

AVUV at a Glance — Key Metrics

Top 10 Holdings in AVUV

AVUV holds 750 different securities. Here are the largest positions that make up the core of this fund:

AVUV Performance History

Here's how AVUV has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 8.5/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

AVUV scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 750 holdings, and has been available since 2019, though its track record is still developing.

How to Buy AVUV — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "AVUV" — Use the search bar in your brokerage platform to find Avantis U.S. Small Cap Value ETF.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

AVUV Sector Allocation

Here's how AVUV distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into AVUV

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With AVUV's expense ratio of 0.25%, a $10,000 investment would lose approximately $2,111 to fees over 20 years compared to a zero-fee investment. This is significant — consider whether the fund's strategy justifies these costs.

Pros and Cons of AVUV

AVUV vs Similar ETFs

See how AVUV stacks up against similar funds:

Frequently Asked Questions