AVSC: Avantis Investors' Small Cap ETF Is Solid But Too Diversified
Source: SeekingAlpha
2025-04-08 21:12:45 ET
Summary
- AVSC offers exposure to 1000+ small-cap stocks with attractive value and profitability characteristics. Its expense ratio is 0.25% and the ETF has $1.27 billion in assets under management.
- Exposure to the size factor is high, and AVSC's $1.44 billion weighted average market cap is one of the lowest among any U.S. Equity ETF trading today.
- Unfortunately, AVSC fails to deliver on its quality objective, mainly due to extreme diversification at the company level. Over 20% of the fund's holdings by weight are unprofitable.
- AVSC's value features aren't much better. Valuation ratios like forward P/E, P/B, EV/EBITDA, and EV/Sales are all above my peer group average.
- Overall, I think AVSC is a solid but not optimal choice. As an alternative, I suggest ROSC, whose performance and fundamentals I'll highlight in the article below.
Investment Thesis
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AVSC: Avantis Investors' Small Cap ETF Is Solid But Too Diversified
Avantis U.S Small Cap Equity ETF
NASDAQ: AVSC
AVSC Trading
-1.6% G/L:
$62.15 Last:
14,826 Volume:
$62.29 Open:
