AVUV ETF offers value-focused small-cap U.S. stocks with moderate fees amid high valuation gaps.

The Avantis U.S. Small Cap Value ETF (AVUV) provides broad exposure to U.S. small-cap value stocks with over 700 holdings and a moderate expense ratio of about 0.25%. Small-cap value stocks currently trade at lower valuation multiples compared to large-cap growth stocks, which remain richly valued, making AVUV relatively attractive. The ETF's strategy is factor-driven rather than focused on individual stock selection, aiming to benefit from potential mean reversion as small caps have underperformed recently. However, risks remain if market conditions sharply change, which could impact small-cap value stocks as well.