What is the fundamental difference between a value-focused ETF and a broad small-cap blend ETF?

A value-focused ETF, like Fund A, targets companies considered undervalued by financial metrics. In contrast, a broad small-cap blend ETF, like Fund B, aims to mirror the entire small-cap market regardless of valuation style. Fund A seeks excess returns through specific valuation criteria, whereas Fund B replicates the Russell 2000 index. This structural difference means their portfolios and performance drivers vary significantly, even though both operate within the small-cap segment.

How do expense ratios impact the long-term value of an investment in these funds?

Expense ratios are annual fees deducted from fund assets. Fund B charges 0.19%, while Fund A charges 0.25%. Over time, this 0.06 percentage point difference compounds. For every £10,000 invested, the lower fee in Fund B theoretically saves the investor £6 per year before returns are accounted for. Beginners should note that lower fees can preserve capital, but performance and strategy also influence total outcomes.

What does it mean that these funds hold only small-cap companies?

Small-cap refers to companies with relatively low market capitalisation, typically under £1 billion in the US. These firms are often younger or operate in niche markets. Compared to large-cap stocks, small-caps can be more volatile and sensitive to economic cycles. Fund A and Fund B both expose investors to this segment, but Fund A filters for value, while Fund B includes a broader mix of small-cap stocks, regardless of valuation.

How do the net assets of Fund A and Fund B compare?

Fund B has £77.2 billion in net assets, making it significantly larger than Fund A, which has £30.9 billion. Greater asset size often correlates with higher liquidity, meaning it may be easier to buy or sell shares without affecting the price. While Fund A offers substantial scale for an active strategy, Fund B’s size reflects its long history since May 2000 and broad market appeal, providing tighter bid-ask spreads.

Which fund has a longer track record and why does it matter?

Fund B was launched on May 22, 2000, giving it over two decades of performance history. Fund A started on September 24, 2019. A longer track record allows investors to see how the fund behaves across different market cycles, such as recessions and expansions. Fund A’s shorter history means there is less data available to assess its active management strategy against various economic conditions.

How concentrated are the top holdings in Fund A versus Fund B?

Fund A’s largest holding is MATX at 1.10%, followed by GATX at 0.89%. Fund B is extremely diversified, with its top holding TWST at only 0.36%. This indicates Fund B closely mirrors a broad index, reducing single-stock risk. Fund A’s slightly higher concentration suggests active selection, but its holdings are still relatively low-weighted compared to highly concentrated portfolios, aiming to balance specific stock ideas with diversification.

Do Fund A and Fund B share any holdings in their top positions?

Yes, the top-10 holdings for both funds include SM and VSAT. In Fund A, SM is weighted at 0.84% and VSAT at 0.79%. In Fund B, both SM and VSAT are weighted at 0.30% and 0.32% respectively. The overlap suggests that certain small-cap stocks meet both broad index criteria and specific valuation thresholds. However, the differing weights indicate distinct portfolio construction methods.

Which fund offers a higher dividend yield for income-focused investors?

Fund A provides a dividend yield of 1.24%, while Fund B offers 0.96%. The higher yield in Fund A is typical for small-cap value strategies, which often target companies with stable cash flows or higher payout ratios. Fund B’s lower yield reflects its blend approach, which includes growth-oriented small-caps that may reinvest profits rather than distribute dividends. Investors seeking modest income may look closer at Fund A’s yield.

How do sector exposures compare between these two funds?

The provided data lists sector weights as not available for both Fund A and Fund B. Without this specific information, investors cannot directly compare their sector allocations. Beginners should check the latest fund documents for detailed sector breakdowns, as sector exposure significantly influences risk and return profiles. Differences in sector weights often explain performance divergence even when broad asset classes are similar.

Are these funds affected by the same market risks?

Both funds invest in US small-cap companies, so they share sensitivity to economic downturns and higher volatility compared to large-cap stocks. However, Fund B’s blend nature exposes it to all small-cap styles, including growth. Fund A specifically targets value stocks, which may behave differently during periods of financial stress or recovery. The specific index tracking for both is listed as not available in the current data context.

Is there an index benchmark available for tracking these ETFs?

According to the provided fund data, the index tracked for both Fund A and Fund B is not available. Typically, passive funds track specific indices, while active funds like Fund A may not. Fund B usually tracks the Russell 2000, but based strictly on the supplied context, this detail is marked as not available. Investors should verify benchmark details from official fund prospectuses.

How should beginners use this comparison to inform their research?

Beginners should use this data to understand how fees, holdings, and yields differ between active and passive strategies. Compare the 0.25% expense ratio of Fund A to the 0.19% of Fund B. Note the yield difference of 1.24% versus 0.96%. Review the top holdings to see diversification levels. This comparison highlights trade-offs between cost, income, and investment style, aiding in aligning choices with personal financial objectives.

AVUV vs IWM

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

Compare AVUV and IWM to review expense ratios, top holdings and dividend yields. See how the Avantis U.S. Small Cap Value ETF differs from the iShares Russell 2000 ETF in strategy and asset focus. This page analyses fees and fund composition to help understand their market approaches. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVUV

Metric

IWM

0.25%

Expense Ratio

0.19%

1.24%

Dividend Yield

0.96%

$30.93B

Net Assets

$77.19B

798

Holdings

1,990

Sep 24, 2019

Inception Date

May 22, 2000

–

Index Tracked

–

Small Value

Fund Category

Small Blend

IWM costs about $6.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	AVUV	IWM
SMSM Energy Company	0.84%	0.30%
VSATViasat, Inc.	0.79%	0.32%

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AVUV vs VB

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Investment Analysis

AVUV

Pros

Avantis U.S. Small Cap Value ETF charges a 0.25% expense ratio, providing cost-efficient exposure to the small-cap value style.
With $30.9 billion in net assets, the fund offers substantial liquidity and scale for active managers in this niche.
Dividend yield of 1.24% indicates a modest income stream, often associated with value-oriented small-cap strategies.

Considerations

The fund lacks a disclosed index methodology or tracking benchmark, complicating performance evaluation against passive alternatives.
Top holdings represent only modest weight, with the largest at 1.10%, potentially diluting concentrated alpha-generation from specific ideas.
Since inception in September 2019, the track record is shorter compared to longer-established small-cap value benchmarks.

IWM

Pros

The iShares Russell 2000 ETF has a lower expense ratio of 0.19%, reducing costs for long-term holders.
With $77.2 billion in net assets, it is one of the largest small-cap ETFs, offering deep liquidity and tight bid-ask spreads.
Long track record since May 2000 allows investors to assess performance across various market regimes and economic cycles.

Considerations

Dividend yield is 0.96%, which is lower than some value-focused peers, making it less attractive for income-oriented investors.
Extremely diversified with top holdings below 0.36%, this approach mirrors a broad market rather than seeking concentrated excess returns.
Exposure to small-cap companies inherently involves higher volatility and sensitivity to economic downturns compared to larger-cap indices.

About AVUV and IWM

AVUV (AVUV)

The Avantis U.S. Small Cap Value ETF (AVUV) is an exchange-traded fund designed to provide investors with exposure to small-cap value stocks within the United States. Managed by American Century ETF Trust, this fund employs a systematic approach to select holdings that exhibit characteristics of the value factor, such as high book-to-price ratios and low earnings yields, alongside small size. With an inception date in September 2019, AVUV has rapidly grown to hold net assets of approximately USD 30.93 billion. It maintains a competitive expense ratio of 0.25%, aiming to offer cost-effective access to this specific market segment. The fund currently holds 798 distinct securities and has a dividend yield of 1.24%. Investors considering AVUV should be aware that small-cap value stocks can experience greater volatility compared to large-cap growth equities. While the strategy seeks to capture potential long-term returns associated with these factors, past performance is not a reliable indicator of future results, and the value of investments can go down as well as up.

IWM (IWM)

The iShares Russell 2000 ETF (IWM) is a well-established exchange-traded fund designed to track the performance of small-cap stocks in the United States. Launched in May 2000, it offers investors broad exposure to a diverse range of smaller companies, often characterised by higher growth potential compared to large-cap giants. With net assets exceeding USD 77 billion and nearly 2,000 holdings, it provides significant diversification within the small-cap sector. The fund operates with an expense ratio of 0.19% and currently reports a dividend yield of 0.96%. While small-cap stocks can offer attractive opportunities during economic expansions, they may also experience greater volatility and sensitivity to interest rate changes than larger, more established firms. This ETF is generally considered suitable for investors seeking exposure to the US small-cap market as part of a diversified portfolio, bearing in mind that the value of investments can fall as well as rise and past performance is not a reliable indicator of future results.

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AVUV vs IWM

Fund Snapshot