AVUV Profile
The Avantis U.S. Small Cap Value ETF is designed to provide investors with exposure to a broad array of small capitalization companies within the United States. The fund focuses on investing primarily in U.S. small cap stocks across various market sectors and industry groups, targeting firms with smaller market capitalizations compared to larger counterparts. This diversification aims to capture the growth potential inherent in smaller companies, which can often be overlooked by larger, more established funds.
Under typical market conditions, the ETF commits at least 80% of its assets to securities of small capitalization companies domiciled in the United States. This strategy allows the fund to capitalize on the potential higher returns and growth opportunities associated with small cap equities. The fund's management team applies a value-oriented investment approach, seeking companies that are trading below their intrinsic value based on fundamental analysis.
In addition to investing in equities, the fund may utilize a range of derivative instruments to enhance its investment strategy and manage risk. These derivatives can include futures contracts, which are agreements to buy or sell assets at a future date, currency forwards for managing foreign exchange risk, and swap agreements that allow the fund to exchange cash flows or other financial instruments. The use of these derivatives is aimed at optimizing returns and hedging potential risks associated with market fluctuations.
Overall, the Avantis U.S. Small Cap Value ETF is positioned to offer investors a dynamic exposure to the small cap segment of the U.S. equity market, leveraging both direct investments in small cap stocks and sophisticated financial instruments. The fund's strategic focus on value investing within the small cap space seeks to provide opportunities for capital appreciation while managing associated risks through a carefully considered investment approach.
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