AVUV vs VB: A Factor Bet and a Market Slice, Priced Accordingly
Both funds live in US small-caps and that is where the similarity stops. VB owns the whole small-cap market at near-zero cost. AVUV screens it down to profitable value names and charges five times as much for the privilege.
VB (Vanguard Small-Cap ETF) holds roughly 1,400 US small-cap stocks at market weight for 0.05%. It makes no judgment about which of them are cheap or profitable; it simply owns the segment. AVUV (Avantis US Small Cap Value ETF) starts from a similar universe and actively screens it down to about 700 names, overweighting stocks that look cheap on book value and screen as profitable, for 0.25%. The 20 basis point gap is not a rounding error, it is the price of the strategy. AVUV is not a better version of VB and it is not more diversified; it holds half as many stocks on purpose. It is a bet that the small-cap value premium documented in academic research shows up in your holding period. VB is a bet that owning the whole segment cheaply is enough. Investors who want both commonly hold VB as the base and size AVUV as a tilt on top.
Whether the lower-cost fund suits your situation depends on your existing holdings, account type, tax situation, and how you use each fund. This is a cost comparison, not a personalized recommendation.
Both funds trade commission-free at every major brokerage. How the major brokerages compare →
📋 AVUV vs VB — Key Facts Side by Side
| Metric | AVUV | VB |
|---|---|---|
| Fund Name | Avantis US Small Cap Value ETF | Vanguard Morningstar Small-Cap ETF |
| Issuer | Avantis | Vanguard |
| Tracks Index | Actively managed, value and profitability screened | CRSP US Small Cap |
| Expense Ratio | 0.25% | 0.05% ✓ |
| Cost per $10K/yr | $25.00 | $5.00 |
| AUM | $29.1B | $188.6B |
| Holdings | 700 | 1,400 |
| Inception | 2019 | 2004 |
| 1-Year Return | +38.59% | +24.51% |
| 3-Year Return | +16.32% | +14.26% |
| 5-Year Return | +13.16% | +7.50% |
| Dividend Yield | 1.25% | 1.19% |
| Holdings Overlap | See holdings overlap → | |
| Avg Bid-Ask Spread | 0.03% | 0.01% |
Expense ratio, AUM, and returns updated Aug 1, 2026 from ETF BFF database. Returns are annualised. Not investment advice.
📊 AVUV vs VB — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Which Fund Fits Which Investor?
- already use Avantis and prefer staying within one fund family
- want the lowest fees: saves ~$20/yr per $10K vs AVUV
- want broader diversification (1,400 holdings vs 700)
💰 What the Fee Difference Actually Costs
Adjust the numbers for your situation. This models each fund's expense ratio compounding against your balance over time.
Assumes a constant annual return reinvested, with each fund's expense ratio deducted yearly. Illustrative only; actual returns vary. Past performance does not guarantee future results.
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❓ AVUV vs VB — Frequently Asked Questions
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