What does expense ratio mean for ETFs like AVUV and SCHA?

The expense ratio is an annual management fee deducted from a fund's assets, affecting net returns. AVUV's expense ratio is 0.25%, which is considerably higher than SCHA's 0.03% fee. While lower fees typically preserve more capital over time, higher-fee funds may employ different strategies like targeted value investing that could lead to distinct outcomes, though not guaranteed. Understanding fees helps investors assess how much cost drag they will experience over long investment horizons.

What is meant by index focus in these funds?

The index focus describes the underlying investment strategy each ETF follows. AVUV targets small-cap value stocks using a rules-based approach to specific factor exposure, as stated in its pros. SCHA provides broad market-cap weighted small-cap blend exposure. These differing approaches mean the funds select holdings using entirely different methodologies, resulting in distinct portfolios and potentially different risk-return profiles, even though both target the small-cap sector.

What is a blend category fund?

A blend category fund like SCHA combines value and growth characteristics within its portfolio, offering diversified exposure to the small-cap segment. This approach reduces single-stock concentration risk but may underperform pure value strategies such as AVUV during periods when value factors are favoured by the market. Blend funds aim for broad market representation rather than selecting stocks based on specific value metrics, providing a more generalist exposure to small-cap equities.

How do the fee differences between AVUV and SCHA affect returns?

SCHA's expense ratio is 0.03% while AVUV's is 0.25%, creating a difference of 0.22 percentage points. This means SCHA has a significantly lower fee, which reduces cost drag and can enhance net returns over time compared to higher-fee alternatives. Investors should consider how this consistent annual fee difference compounds over multiple years, as lower expenses theoretically allow more of the gross return to remain within the investor's account.

How do top holdings differ between AVUV and SCHA?

AVUV's largest position is MATX at 1.10%, followed by GATX at 0.89% and LNTH at 0.89%. Conversely, SCHA holds SNDK at a substantially larger weight of 5.18%, with LITE at 1.51%. Notably, none of AVUV's top ten holdings appear in SCHA's top ten list. This lack of overlap reflects the distinct construction methods of value-targeted versus market-cap-weighted portfolios, resulting in completely different stock allocations for each fund.

Are AVUV and SCHA comparable in terms of portfolio diversification?

SCHA's market-cap weighting provides diversified exposure across the US small-cap segment without concentrated single-stock risk. AVUV employs a rules-based approach targeting specific value factors, offering distinct factor exposure that provides diversification benefits relative to broad market funds. The two funds are not directly comparable as they serve different roles within a portfolio: one for targeted value factor exposure and the other for broader small-cap market representation, though both exhibit different concentration levels.

How does inception date impact fund comparison?

AVUV launched on September 24, 2019, meaning it lacks a long track record for evaluation through complete economic cycles. In contrast, SCHA has been operating since November 3, 2009, offering a well-proven track record. The younger age of AVUV means investors have less historical performance data available to assess how the fund behaves during different market conditions compared to the longer-established and more thoroughly tested alternative.

Is scale a significant factor for these small-cap ETFs?

Both funds exhibit substantial assets that support efficient trading. AVUV possesses $30.9 billion in net assets, facilitating liquidity and minimising bid-ask spreads. SCHA holds $25.5 billion in net assets, indicating established scale alongside a proven track record. These considerable asset bases are beneficial for market participation, ensuring both funds have enough volume for efficient execution and trading without excessive cost impacts, though neither fund dominates the other in terms of total asset size.

How do dividend yields differ between these funds?

AVUV provides a dividend yield of 1.24% compared to SCHA's yield of 1.06%. Both ETFs distribute earnings to shareholders from underlying stock dividends and interest. These yields are relatively low for income-focused strategies, as neither fund prioritises high distributions. The modest 0.18 percentage point difference between them is unlikely to be the sole determinant for income-seeking investors, who may find both yields insufficient for substantial current income requirements from small-cap equities.

What educational disclaimer applies to this comparison?

This comparison is strictly educational and does not constitute financial advice. The information provided regarding fees, holdings, yields, and fund characteristics is based on data from Yahoo Finance fetched in September 2026. Figures may change over time. Investors should conduct their own comprehensive research, verify data through official sources, and consider personal financial circumstances before making investment decisions. Past fund performance and characteristics do not guarantee future results.

AVUV vs SCHA

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

Compare AVUV (Avantis U.S. Small Cap Value) and SCHA (Schwab US Small-Cap) on fees, holdings and dividends. Expense ratios are 0.25% and 0.03%; dividend yields are 1.24% and 1.06%. Index focus: Small Value and Small Blend. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVUV

Metric

SCHA

0.25%

Expense Ratio

0.03%

1.24%

Dividend Yield

1.06%

$30.93B

Net Assets

$25.48B

798

Holdings

1,704

Sep 24, 2019

Inception Date

Nov 3, 2009

–

Index Tracked

–

Small Value

Fund Category

Small Blend

SCHA costs about $22.00 less per year for every $10,000 invested.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

AVUV

Pros

The fund employs a rules-based approach to target small-cap value stocks, offering distinct factor exposure for diversification.
With $30.9 billion in net assets, the fund possesses substantial liquidity to facilitate efficient trading and minimise bid-ask spreads.
Avantis provides a transparent portfolio with defined rules, allowing investors to understand the methodology behind holdings selection.

Considerations

The expense ratio of 0.25% is considerably higher than broad-market alternatives like SCHA, potentially reducing net returns over time.
A dividend yield of 1.24% may be less attractive for investors specifically seeking high current income from small-cap value equities.
As the fund was only launched in September 2019, it lacks a long track record for evaluating performance through full economic cycles.

SCHA

Pros

An ultra-low expense ratio of 0.03% ensures minimal cost drag on performance, making it highly efficient for passive small-cap exposure.
The fund's broad market-cap weighted index provides diversified exposure to the US small-cap segment without concentrated single-stock risk from top holdings.
Established in November 2009, the fund offers a well-proven track record and substantial scale with $25.5 billion in net assets.

Considerations

As a blend category fund, it may underperform pure small-cap value strategies like AVUV during periods favouring value factors.
A dividend yield of 1.06% is relatively low, which may not suit income-focused investors seeking substantial distributions from their small-cap allocation.
The market-cap weighting methodology means recent winners like SNDK receive larger allocations, potentially increasing exposure to momentum-driven volatility.

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About AVUV and SCHA

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.

SCHA (SCHA)

Schwab US Small‑Cap ETF (SCHA) offers broad exposure to US small-capitalisation companies through a low-cost, market‑weighted fund managed by Charles Schwab. It seeks to track a small‑cap index, providing diversified access to hundreds of smaller US-listed firms across sectors. Investors often use SCHA to complement large‑cap holdings, potentially enhancing long‑term growth and diversification, though small caps can be more volatile and sensitive to economic cycles. As an ETF, SCHA trades like a stock on exchanges, making it easy to buy or sell during market hours. It typically has a low expense ratio, but investors should also consider bid‑ask spreads, tracking error, and tax implications. This is general educational information and not personalised advice; returns are not guaranteed and the value of an investment can fall as well as rise. Suitability will depend on an individual’s goals, risk tolerance and investment horizon.

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AVUV vs SCHA

Fund Snapshot