IWN - AVUV: A Rare Gem In The Small-Cap World
2024-06-23 03:25:59 ET
Summary
- Small-cap investing has been challenging, with many stocks below 2021 highs, but active value investing, like AVUV, has thrived.
- AVUV uses a rule-based strategy to identify undervalued securities with high profitability ratios, avoiding risky "zombie companies.".
- The fund's diversity, sector breakdown, and outperformance compared to passive funds make it a strong contender for small-cap value investing.
It's been incredibly challenging to be a small-cap investor since 2021. Most small stocks are still trading below their respective 2021 highs, and large-caps have been all the rage. Passive, to put it simply, failed as an investment style for this segment of the stock market. But active value investing in small-cap stocks? That's actually had a very different outcome. And one fund that has crushed it with that style is the Avantis US Small Cap Value ETF ( AVUV )....
AVUV: A Rare Gem In The Small-Cap World