What does the term 'small cap' mean in the context of these ETFs?

In investing, 'small cap' refers to companies with relatively low market capitalisation. Both AVUV and VB invest in this segment, but they differ in strategy. AVUV focuses on 'value' characteristics, often targeting companies that appear undervalued relative to their fundamentals. VB offers a 'blend' exposure, capturing a wider range of small companies. Understanding these definitions helps clarify the distinct risk and return profiles of each fund without implying one is superior.

How do expense ratios affect long-term returns for ETFs?

The expense ratio is an annual fee deducted from a fund's assets. VB has a lower expense ratio of 0.03% compared to AVUV's 0.25%. Over time, this 0.22 percentage point difference reduces the gross returns of AVUV relative to VB, assuming identical performance before fees. While lower fees are generally efficient, investors should consider whether the potential for excess returns from a specific strategy, like value investing, justifies the higher cost. It is a mechanical drag on performance, not a market prediction.

Why is the inception date important when comparing these two funds?

AVUV was launched on Sep 24, 2019, while VB started on Jan 26, 2004. This significant gap means VB has a much longer operational history and track record. For beginners, a longer history can provide more data on how the fund behaves across different market cycles. However, a newer fund like AVUV may use more recent strategies or indices. The date itself does not predict future performance, but it highlights that VB has more established longevity and assets under management.

How large are the asset bases of AVUV and VB?

Asset size can influence liquidity and fund stability. According to the data, VB holds net assets of $78.6 billion, making it a very large, established fund. In contrast, AVUV has net assets of $30.9 billion. While both are substantial, the difference in scale reflects their varying ages and investor adoption. Larger assets generally reduce the risk of fund closure but do not guarantee better returns. Beginners should note these figures as indicators of popularity and market presence rather than performance metrics.

Do AVUV and VB hold the same top companies?

No, the top holdings are quite different. VB's top positions include companies like MRNA (0.62%) and NTRA (0.54%), while AVUV holds stocks such as MATX (1.10%) and GATX (0.89%). The data indicates there are no shared holdings in the top 10 lists. This suggests the funds have distinct portfolios reflecting their different strategies: VB tracks a broad small-cap blend, whereas AVUV targets specific value factors. Investors looking for diversification across both strategies would find these funds complementary rather than duplicative.

Are the dividend yields of these ETFs significantly different?

The current dividend yields are very similar. AVUV reports a yield of 1.24%, while VB reports 1.23%. A difference of 0.01 percentage points is negligible for most beginners. Dividends for ETFs are passed through from the underlying holdings. While the rates are close, the stability and growth of these payments depend on the specific companies held in each portfolio. Investors should not choose between these two funds based on this tiny yield difference, as other factors like strategy and fees are more impactful.

What sectors do these funds represent, and is the data available?

Sector weights provide insight into where a fund's exposure lies within the economy. However, for both AVUV and VB, the current data lists sector weights as 'not available'. This means investors cannot directly compare their sector diversification using this specific dataset. While we know they both target small-cap stocks, the exact split between technology, healthcare, or industrials is missing. Beginners should be aware that without this data, assessing potential sector concentration risks is difficult and would require looking at the underlying index definitions.

How does market capitalisation impact the risk profile of small-cap ETFs?

Small-cap stocks are generally considered more volatile than large-cap ones. Both AVUV and VB expose investors to this higher volatility. VB, being a 'blend', captures the general small-cap market, while AVUV, a 'value' fund, targets a specific subset that may behave differently during economic shifts. Value stocks might underperform in growth-led rallies but could be more resilient in downturns. Understanding this dynamic helps explain why the two funds, despite sharing the 'small cap' label, may react differently to market events.

Why are holding weights important when analysing an ETF?

Holding weights show how much of the fund is invested in specific companies. For example, in AVUV, the top holding MATX is 1.10%, while in VB, the top holding MRNA is only 0.62%. This indicates AVUV might have slightly more concentrated bets in its top positions compared to VB's more diversified approach within the top 10. Lower weights in the top holdings usually suggest a broader spread of risk, but the total diversification depends on the entire portfolio, not just the top 10.

Can I buy fractional shares of these ETFs?

The ability to purchase fractional shares depends on your brokerage platform, not the ETF itself. Both AVUV and VB trade on major exchanges. Many modern brokers allow you to invest dollar amounts rather than whole share counts. This is useful for beginners with smaller budgets who want to allocate funds to either the value strategy of AVUV or the blend strategy of VB. Check with your specific broker to see if they support fractional trading for these tickers.

Where can I find the official index definitions for these funds?

The provided data lists the index tracked as 'not available' for both AVUV and VB. For accurate details, you should visit the official issuer websites: Avantis for AVUV and Vanguard for VB. These sites will explain exactly which benchmark indices the funds attempt to replicate or follow. Understanding the index methodology is crucial because it defines the rules for stock selection and weighting. This information is not in the current dataset but is readily available from the fund providers.

AVUV vs VB

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 ETF) and VB (Vanguard Small-Cap ETF). This page outlines fees, holdings, dividends, and how each fund tracks its market. AVUV has a 0.25% expense ratio, while VB is 0.03%. Both are diversified small-cap ETFs with different strategies. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVUV

Metric

0.25%

Expense Ratio

0.03%

1.24%

Dividend Yield

1.23%

$30.93B

Net Assets

$78.57B

798

Holdings

1,311

Sep 24, 2019

Inception Date

Jan 26, 2004

–

Index Tracked

–

Small Value

Fund Category

Small Blend

VB 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

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VB

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Considerations

About AVUV and VB

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.

VB (VB)

The Vanguard Small-Cap ETF (VB) is a widely recognised investment vehicle designed to provide exposure to smaller companies in the US equity market. It belongs to the Small Blend category, aiming to capture a diversified mix of small-cap growth and value stocks. With an extremely low expense ratio of 0.03%, it offers a cost-effective way for investors to access the small-cap sector, which has historically provided higher potential returns compared to large-cap stocks, albeit with greater volatility. The fund holds over 1,300 companies and manages approximately $78.57 billion in net assets, offering broad diversification within its niche. It has been in existence since 2004, providing a track record for investors to consider. While small-cap investments can add growth potential to a portfolio, they also carry higher risks, including price fluctuations and economic sensitivity. Investors should weigh these factors against their own risk tolerance and investment objectives, remembering that returns are not guaranteed and values can fall as well as rise.

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AVUV vs VB

Fund Snapshot