AVUV ETF offers diversification by focusing on undervalued U.S. small-cap stocks beyond tech giants.

The Avantis U.S. Small Cap Value ETF (AVUV) provides a diversification solution for investors overly concentrated in mega-cap tech stocks like Apple and Microsoft. AVUV targets over 500 undervalued, profitable small-cap U.S. companies in sectors like regional banks, energy, and industrials, offering a different risk and return profile. With a low expense ratio of 0.25%, AVUV has outperformed many benchmarks recently, returning over 38% in the past year. However, it is more volatile and cyclical, making it suitable for long-term investors seeking to balance their portfolios beyond large-cap growth stocks.