🤝 BFF Take
AVUV Has the Performance Edge — VBR Wins on Simplicity and Cost
AVUV (Avantis US Small Cap Value ETF) and VBR (Vanguard Small-Cap Value ETF) both target small-cap value stocks, but take different approaches. VBR passively tracks the CRSP US Small Cap Value index (~840 stocks) at a very low 0.07%, owning every qualifying value stock in proportion to market cap. AVUV is an actively managed ETF that applies Fama-French factor research to specifically overweight stocks with strong value characteristics AND high profitability — a combination with strong academic backing. AVUV charges 0.25% for this disciplined active tilting. Since its 2019 launch, AVUV has meaningfully outperformed VBR, though the track record is short. Investors who believe in factor investing and are willing to pay 18 extra basis points tend to prefer AVUV; those who want passive simplicity prefer VBR.
📋 Quick Takeaways
🔬AVUV tilts to high-value + high-profitability small-caps (factor-based); VBR passively indexes all small-cap value stocks
💰VBR costs 0.07%; AVUV costs 0.25% — 18 basis points more for the active factor approach
📈AVUV has outperformed VBR since its 2019 launch, but the track record is still relatively short
📊 Data-Based Take: AVUV has the lower fee
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.
✓
Reviewed by a CFA® Charterholder · Data updated Jun 2026 · Educational only, not financial advice
AVUV
Avantis US Small Cap Value ETF
VBR
Vanguard Small-Cap Value ETF
📋 AVUV vs VBR — Key Facts Side by Side
| Metric |
AVUV |
VBR |
| Fund Name |
Avantis US Small Cap Value ETF |
Vanguard Small-Cap Value ETF |
| Issuer |
Avantis |
Vanguard |
| Tracks Index |
Active (Factor-Based) |
CRSP US Small Cap Value |
| Expense Ratio |
0.25% |
0.07% ✓ |
| Cost per $10K/yr |
$25.00 |
$7.00 |
| AUM |
$15B |
$30B |
| Holdings |
730 |
840 |
| Inception |
2019 |
2004 |
| 1-Year Return |
+11.40% |
+9.80% |
| 3-Year Return |
+7.20% |
+5.60% |
| 5-Year Return |
+12.80% |
+10.20% |
| Avg Bid-Ask Spread |
0.01% |
0.01% |
Data from ETF BFF database. Returns are annualised. Not investment advice.
📊 AVUV vs VBR — Annualised Returns
Annualised returns (trailing, price-based). Past performance does not guarantee future results.
🎯 Should You Buy AVUV or VBR?
Choose if...
AVUV
- You already use Avantis and prefer staying within their fund family
Choose if...
VBR
- You want the lowest fees — saves ~$18/yr per $10K vs AVUV
- You already use Vanguard and prefer staying within their fund family
📧 Free Weekly Newsletter
Get smarter about ETFs — one concept a week, free forever
The ETF BFF newsletter breaks down one ETF concept per week — clear, jargon-free, and actually useful.
✅ You're in! Check your inbox for your first issue.
❓ AVUV vs VBR — Frequently Asked Questions
What makes AVUV different from VBR?
VBR passively indexes small-cap value stocks — it buys everything in the CRSP US Small Cap Value index by market cap. AVUV uses active management informed by factor research (particularly Fama-French) to overweight stocks that score highest on both value (cheap relative to fundamentals) and profitability. This dual screen excludes "value traps" — cheap stocks that are cheap because they're poorly run. AVUV aims to capture a purer, stronger version of the small-cap value premium.
Is AVUV worth the higher expense ratio?
That depends on your belief in factor investing. Academic research supports the idea that small, cheap, profitable stocks have historically earned higher returns — and AVUV specifically targets that combination. Since launch in 2019, AVUV has outperformed both VBR and IWM. But 0.25% is meaningfully more than VBR's 0.07%, and past performance doesn't guarantee the factor premium will persist. Many investors split the difference by holding both.
How does AVUV fit into a three-fund portfolio?
AVUV doesn't fit neatly into a three-fund portfolio (Total US / Total International / Bonds) — it's a factor tilt for investors who want to deliberately overweight the small-cap value premium. Some investors use it as a "satellite" position (10-20%) alongside a large VTI or VOO core. This approach is sometimes called a "factor-tilted" portfolio and is endorsed by researchers like Larry Swedroe and Ben Felix.
What is the small-cap value premium?
The small-cap value premium refers to the historical tendency of small companies with low valuations to outperform the broad market over long periods. This was documented by economists Fama and French and has been replicated across multiple markets and time periods. The premium is real historically but not guaranteed — it can underperform for extended periods (as small-cap value did 2007-2020). Investors who hold it need a long time horizon and tolerance for tracking error.
How does AVUV compare to DFSV or VIOV?
DFSV (Dimensional US Small Cap Value ETF) is another factor-based small-cap value ETF with similar methodology to AVUV but from Dimensional Fund Advisors. VIOV (Vanguard S&P Small-Cap 600 Value ETF) uses the S&P 600 Value index which includes a profitability screen (unlike the broader Russell 2000). AVUV, DFSV, and VIOV all represent higher-quality small-cap value approaches than VBR.
New to ETF investing? See answers to the most common ETF questions →
ℹ️ Data shown is for educational purposes and may not reflect the most current figures. Returns are trailing price-based and exclude dividend reinvestment. Past performance does not guarantee future results. ETF BFF is not a licensed financial advisor — this is not personalized financial advice.