It is an actively managed ETF that selects undervalued stocks from among US large-cap value stocks. Rather than tracking a set index, the management team builds the portfolio by assessing each stock's upside potential and downside risk.

It suits US value investors who want to rely on the managers' stock selection skill rather than settle for a passive value ETF.

The ETF is run with an active (actively managed) approach by Allspring Global Investments.

The fund holds undervalued stocks from the US large-cap universe, selected through a consistent valuation process. It narrows down candidates by comparing each stock's upside potential against its downside risk, allocating most of its assets to US large caps and spreading a portion across overseas stocks.

• Stock selection at the managers' discretion, not index tracking
• A value approach that weighs upside potential against downside risk

Assets under management (AUM) stand at $204.5M, and the total expense ratio (Expense Ratio) is 0.35% per year.

Its fee is somewhat higher than those of the passive value ETFs VTV and IWD, but the difference is that the managers have room to select stocks.

The value style has shown relative performance against growth stocks that swings with interest rates and the economic cycle, and because the fund is actively managed, it can diverge from the market average. Recent trends come with volatility depending on the market environment.

As a relatively new active ETF, its asset size falls in the small-to-mid-sized category compared with passive large-cap value ETFs. Fund flows tend to fluctuate with the preference for value stocks and demand for active strategies.

The managers' room for stock selection is its strength, while the higher fee relative to passive funds and the short track record are its weaknesses.

VTV, IWD, and IVE, shown in the table, are passive ETFs in the same large-cap value category, and their main difference from ASLV is that they track an index at a lower fee. If you want to broaden your value style exposure, you can also consider VBR, which offers exposure to small-cap value, and SPYV, which focuses on S&P 500 value stocks. Unlike these, ASLV is distinguished by its active selection at the managers' discretion.

These are the points to review before investing in ASLV. Because it is an active value ETF, it is wise to confirm in advance whether its fee level relative to passive funds, its management approach, and the value style fit your own strategy.

Because it is actively managed, the managers' judgment drives results, and there is a risk of divergence from the market average. When the value style is struggling, short-term performance may be weak.

It is a suitable choice for investors who want to place their trust in the managers' stock selection rather than settle for the low-cost exposure of a passive value ETF. If cost is a priority, it is also wise to compare passive alternatives such as VTV and SPYV.