AVUV ETF outperforms Russell 2000 by focusing on profitable, undervalued small-cap stocks.

The Avantis U.S. Small Cap Value ETF (AVUV) offers a smarter alternative to the broad Russell 2000 Index by actively selecting small-cap stocks with strong profitability and attractive valuations. While the Russell 2000 includes about 2,000 companies regardless of financial health, AVUV targets quality businesses, resulting in better year-to-date returns of 24.5% versus 20.6% for the Russell 2000 ETF. Despite a slightly higher expense ratio, AVUV's focus on value and profitability has led to stronger long-term performance, making it a compelling choice for investors seeking small-cap exposure with lower risk.