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Avantis US Small Cap Value ETF rated 'buy' for strong value focus and market cycle outperformance.

Analyst Insights
04 Sep 2026
Seeking Alpha
View Source
Bullish
Avantis US Small Cap Value ETF rated 'buy' for strong value focus and market cycle outperformance.

The Avantis US Small Cap Value ETF (AVUV) receives a 'buy' rating due to its active management strategy that emphasizes low valuations and high profitability. This approach has led AVUV to outperform passive peers like IJS and IWN over a full market cycle, showing superior margins, return on invested capital (ROIC), and return on equity (ROE). With a forward price-to-earnings ratio of 11.91 and expected double-digit earnings growth next year, the ETF offers attractive valuation and multiple potential sources of total returns. Additionally, AVUV has demonstrated resilience during market downturns, with a worst 12-month performance of -10.91%, significantly better than its competitors.

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