What distinguishes Avantis U.S. Small Cap Value ETF from Vanguard Russell 2000 ETF in terms of strategy?

The Avantis U.S. Small Cap Value ETF focuses specifically on small-cap value stocks, aiming to capture returns associated with undervalued smaller companies. In contrast, the Vanguard Russell 2000 ETF tracks a broader small-cap blend, encompassing both value and growth elements within the Russell 2000 universe. This means one fund targets a specific style factor (value), while the other offers more general exposure to the small-cap segment. Investors should understand that value strategies may behave differently from blend strategies depending on market conditions.

How do small-cap value and small-cap blend indices differ?

A small-cap value index selects companies with lower valuations relative to their fundamentals, expecting potential price corrections or stability. A small-cap blend index includes a mix of value and growth stocks, providing a more representative sample of the entire small-cap market. The Avantis fund aligns with the value approach, while the Vanguard fund represents the blend. This distinction is crucial because value stocks often outperform or underperform blend stocks depending on economic cycles and investor sentiment towards risk.

Why do the expense ratios differ between these two ETFs?

The Avantis U.S. Small Cap Value ETF carries a 0.25% expense ratio, while the Vanguard Russell 2000 ETF has a 0.06% expense ratio. This difference reflects the varying operational costs and investment approaches. Passive index-tracking funds like the Vanguard option typically have lower fees because they replicate an index with minimal trading. The Avantis fund, potentially using more active or specialised strategies to target value factors, incurs higher management costs, resulting in a larger fee for investors.

Which fund has a lower expense ratio, and what does this mean for long-term holding?

The Vanguard Russell 2000 ETF has a significantly lower expense ratio of 0.06% compared to the Avantis U.S. Small Cap Value ETF's 0.25%. A 0.19 percentage point difference might seem small, but over decades, fees compound. Lower costs generally enhance net returns if all other factors are equal. However, the Avantis fund might aim to generate excess returns from its value focus that could theoretically offset the higher fee, though this is not guaranteed and depends on market performance.

Do these ETFs have any overlapping top holdings?

No, based on the provided top 10 holdings, there is zero overlap between the Avantis U.S. Small Cap Value ETF and the Vanguard Russell 2000 ETF. The Avantis fund lists companies like MATX and GATX, while the Vanguard fund lists different entities such as FROG and MOG.A. This lack of similarity underscores their different selection criteria: one targeting specific value characteristics and the other tracking a broader blend index, resulting in distinct portfolios despite both being in the small-cap category.

How do the dividend yields compare between the two funds?

The Avantis U.S. Small Cap Value ETF has a dividend yield of 1.24%, which is slightly higher than the Vanguard Russell 2000 ETF's yield of 1.13%. This 0.11 percentage point difference suggests the value-focused fund currently distributes a modestly higher cash flow relative to its price. While both yields are relatively modest, the distinction may matter to income-focused investors. However, yields can change with share prices and corporate payout policies, so this comparison reflects current data only.

Which fund might better suit an investor seeking broad small-cap exposure?

The Vanguard Russell 2000 ETF, with its lower 0.06% expense ratio and blend focus, is typically associated with investors seeking general, cost-efficient exposure to the small-cap market. Its broader mandate captures both growth and value elements. Conversely, the Avantis U.S. Small Cap Value ETF suits those specifically wanting to tilt their portfolio towards the value factor, accepting a 0.25% fee for this targeted strategy. Choice depends on whether one prefers a standard market bet or a specific style tilt.

How does the track record of each fund compare?

The Vanguard Russell 2000 ETF has an inception date of Sep 20, 2010, providing a track record of over 16 years. The Avantis U.S. Small Cap Value ETF launched on Sep 24, 2019, resulting in a shorter history of approximately 7 years. A longer track record can offer more data on how the fund behaves across different market cycles, whereas a shorter record may provide less historical context, though both are established products in their respective categories.

Are sector weights available for these ETFs?

No, specific sector weight data is not available for either the Avantis U.S. Small Cap Value ETF or the Vanguard Russell 2000 ETF in the provided information. Without this detail, investors cannot easily assess concentration risks within industries like technology or healthcare. This lack of transparency requires investors to rely on the overall fund objective and top holdings to infer potential sector exposures, which may be less precise than a detailed sector breakdown.

Which fund has larger assets under management?

The Avantis U.S. Small Cap Value ETF manages $30.9 billion in net assets, whereas the Vanguard Russell 2000 ETF holds $16.9 billion. Despite the Avantis fund being newer, it has attracted a larger capital base. Higher assets can contribute to liquidity, but it also means the fund must trade in larger volumes. Investors should consider that while AUM is a metric of popularity and size, it does not directly determine the fund's performance or risk profile.

Is the information on this page financial advice?

No, this page is for educational purposes only. It compares factual data points such as expense ratios, inception dates, and current holdings for the Avantis U.S. Small Cap Value ETF and the Vanguard Russell 2000 ETF. It does not offer investment recommendations or advice on which fund to buy or sell. Market conditions change, and past performance does not guarantee future results. Investors should conduct their own research or consult a qualified financial professional before making investment decisions.

AVUV vs VTWO

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

Compare Avantis U.S. Small Cap Value ETF (AVUV) and Vanguard Russell 2000 ETF (VTWO). This page details fees, holdings, dividends and how each fund tracks its market, offering a clear view of their distinct small-cap strategies. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

AVUV

Metric

VTWO

0.25%

Expense Ratio

0.06%

1.24%

Dividend Yield

1.13%

$30.93B

Net Assets

$16.86B

798

Holdings

2,002

Sep 24, 2019

Inception Date

Sep 20, 2010

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Index Tracked

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Small Value

Fund Category

Small Blend

VTWO costs about $19.00 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

Invests in small-cap value stocks, offering potential exposure to a specific market segment with a $30.9 billion asset base.
Holds a diversified portfolio of 10 distinct companies, with top positions ranging from 0.70% to 1.10% of net assets.
Provides a dividend yield of 1.24%, generating modest income for investors focused on total returns from equity holdings.

Considerations

Carries a 0.25% expense ratio, which is higher than some passive alternatives available for broad market exposure.
Launched in September 2019, it has a shorter track record compared to more established funds in the same category.
Specific sector weights are not available, limiting the ability to assess concentration risks across different industry groups.

VTWO

Pros

Tracks small-cap blend equities with a low expense ratio of 0.06%, making it cost-efficient for long-term investors.
Benchmarked against the Russell 2000 index, providing broad exposure to the small-cap market via 10 distinct top holdings.
Operates as an established fund with a $16.9 billion asset base, offering liquidity and stability for institutional use.

Considerations

Top holdings include smaller positions with weights ranging from 0.28% to 0.34%, reflecting the fragmented nature of small-caps.
Dividend yield of 1.13% is slightly lower than the comparable Avantis fund, affecting immediate income potential.
Sector weight data is not available, preventing investors from verifying geographic or industry-specific concentration levels within the portfolio.

About AVUV and VTWO

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.

VTWO (VTWO)

The Vanguard Russell 2000 ETF aims to track the performance of small-cap companies in the United States. With an expense ratio of just 0.06%, it offers a cost-effective way for investors to gain broad exposure to this sector. The fund holds over 2,000 securities, providing diversification across many different small businesses. Since its inception in September 2010, it has grown to manage approximately USD 16.86 billion in net assets. It currently offers a dividend yield of 1.13%, which may fluctuate based on market conditions and company payouts. As with any investment involving small-cap stocks, values can be more volatile than those of larger companies, so it's important to consider your personal risk tolerance. This ETF is designed for general educational purposes to help you understand how small-cap market segments operate within a portfolio.

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AVUV vs VTWO

Fund Snapshot