What Is the AVSC ETF? A Complete Guide to Returns, Expense Ratio, Holdings, and Alternative ETFs
An ETF that pursues the small-cap premium through factor-based active management. Key features include broad diversification, a low expense burden, and selection based on profitability and valuation.
SubscribeWhat Is This ETF?
This ETF does not track a specific index. Instead, it builds an actively managed portfolio of US small-cap stocks using profitability and valuation factor signals. It overweights stocks with high factor scores within a broad small-cap universe.
It suits long-term investors who want factor-based excess returns beyond passive small-cap ETFs while keeping the expense burden low.
It is an actively managed ETF launched in 2022 by Avantis (American Century).
How Does It Invest?
| Item | Details |
|---|---|
| Tracking Index | None (active management) |
| Management Style | Factor-based active |
| Rebalancing Frequency | Continuous (at the portfolio manager's discretion) |
| Distribution Frequency | Quarterly dividends |
| Expense Ratio | 0.25% |
The portfolio assigns larger weights to US small-cap stocks with high profitability and valuation factor scores. Without tracking any index, the portfolio manager continuously incorporates factor signals and adjusts holdings and weights, pursuing the factor premium while maintaining broad diversification.
- Factor-based active management without a specific index addresses the limitations of mechanical index tracking
- An expense level below the category average secures cost efficiency
Size and Costs
Assets under management (AUM) stand at $3.2B, and the expense ratio is 0.25% per year.
Compared with AVUV, a similar small-cap factor ETF focused on small-cap value, AVSC covers the small-cap market broadly without a value tilt. Its expense ratio is somewhat higher than that of passive small-cap ETFs, but this can be viewed as the cost of factor adjustments.
Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeUS small caps are more sensitive to interest rates than large caps, and they tend to draw relatively more attention during rate-cut cycles. Given its factor-based approach, the fund follows the broader small-cap market while concentrating weight in stocks with solid profitability and valuation.
As a small-cap factor ETF, it may be overlooked in a market led by large caps, but a normalization of interest rates and an economic recovery could bring in small-cap rotation demand. Its assets have grown steadily as trust in the Avantis brand has increased.
Strengths and Weaknesses
Factor-based active management and broad diversification are its strengths, while investors must take into account the high volatility and liquidity risk typical of small caps.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products
VIG, SCHD, and VYM shown in the table are dividend-focused large-cap and mid-cap ETFs, with investment targets and strategies that differ from AVSC. DFAC is a US small-cap factor ETF from the same Avantis family and is a point of comparison, while DVY is a high-dividend-focused ETF. For direct small-cap comparisons, you can also consider AVUV, Avantis's small-cap value product, IWM, which passively tracks the Russell 2000, VBR, Vanguard's small-cap value ETF, and SCHA, Schwab's low-cost small-cap ETF.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 SCHD | Schwab US Dividend Equity ETF | $35.83 | +0.5% | $121.7B | 0.06% | 2.94% | +33.8% |
 VIG | Vanguard Dividend Appreciation FTF | $249.89 | +0.3% | $116.7B | 0.04% | 1.46% | +15.0% |
 VYM | Vanguard High Dividend Yield Indx ETF | $163.45 | +0.5% | $82.7B | 0.04% | 2.25% | +15.9% |
 DFAC | U.S. Core Equity 2 Portfolio-ETF Class Shares | $44.71 | -0.3% | $49.3B | 0.18% | 0.88% | +14.2% |
 RDVY | First Trust Rising Dividend Achievers ETF | $79.36 | -0.0% | $25.6B | 0.47% | 0.86% | +17.0% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
 NMRK | Newmark Group Inc | - | $11.32 | -6.2% | $2.1B | 13.9 | 1.59% |
 NWL | Newell Brands Inc | - | $5.93 | +0.7% | $2.5B | - | 4.89% |
 SDGR | Schrodinger Inc | - | $32.41 | -2.9% | $2.4B | - | - |
 NEOG | Neogen Corp | - | $11.67 | -3.4% | $2.5B | - | - |
 MYMK | State Street My2031 Municipal Bond ETF | - | $24.76 | -0.1% | $0.0M | - | 2.6% |
 ATRO | Astronics Corp | - | $62.00 | +5.1% | $2.7B | 32.9 | - |
 CECO | Ceco Environmental Corp | - | $51.83 | -0.3% | $3.0B | - | - |
 RDNT | Radnet Inc | - | $77.94 | -0.6% | $6.1B | - | - |
 TBBK | Bancorp Inc | - | $48.67 | -2.3% | $1.9B | 8.6 | - |
 DAVE | Dave Inc | - | $273.85 | -3.1% | $3.5B | 20.1 | - |
Investor Checkpoints
These are the points to verify before investing in AVSC. It is important to fully understand the characteristics of factor-based active management and the risks of small caps before deciding whether to invest.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Check the impact of active management costs on long-term performance | Below the category average |
| 📊 Factor Understanding | Need to verify the long-term validity of the profitability and valuation factor strategy | Backed by academic research |
| 📉 Volatility | Whether you can tolerate the larger short-term drawdowns of small caps compared with large caps | Periods of high volatility exist |
| 💱 Exchange Rate | As a dollar asset, currency effects are reflected in returns converted to won | No currency hedge applied |
The high volatility and interest rate sensitivity typical of small caps are the main risks. Periods in which the factor premium fails to materialize in the short term may last a long time, and when the overall market falls, small caps tend to experience larger corrections than large caps.
It is a suitable choice for long-term investors who want to pursue the small-cap factor premium at a relatively low cost. If you want factor selection beyond passive small-cap ETFs, consider AVSC; for a greater focus on small-cap value, AVUV; and for simple passive exposure, IWM or SCHA are the points of comparison.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of November 7, 2026.
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