AVSC Profile
The Avantis U.S. Small Cap Equity ETF (ticker: AVSC) is designed to offer investors targeted exposure to small-cap companies within the United States. Under normal market conditions, the fund commits to investing at least 80% of its assets in the equity securities of small capitalization firms. This focus on small-cap stocks provides the potential for significant growth opportunities, as these companies often exhibit higher growth potential compared to larger, more established firms.
The fund’s investment strategy emphasizes active management rather than attempting to mirror the performance of a specific index. The portfolio managers employ a rigorous analysis of market and financial data to guide their buy, sell, and hold decisions. This approach allows them to capitalize on emerging opportunities and adapt to changing market conditions, aiming to enhance returns and manage risk more effectively than a passive index strategy.
In addition to its core investment activities, the fund may participate in securities lending, a practice that involves lending securities from its portfolio to other market participants. The collateral received from these transactions is typically invested in eligible securities, such as government money market funds, to ensure liquidity and maintain capital preservation. This practice can generate additional income for the fund, contributing to its overall performance.
The Avantis U.S. Small Cap Equity ETF is structured to leverage the potential growth of small-cap companies while employing active management techniques to optimize returns. The fund’s focus on U.S. small caps, coupled with its use of securities lending and careful portfolio management, aims to deliver robust performance for investors seeking exposure to this dynamic segment of the equity market. Through its active management approach and strategic investment practices, the fund seeks to provide substantial capital appreciation opportunities.
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