⚖️ SCHA vs AVUV Comparison · Free & No Signup

SCHA vs AVUV: Total Small-Cap Market vs Factor-Tilted Small-Cap

SCHA owns the entire U.S. small-cap market at near-zero cost. AVUV deliberately concentrates in small-cap stocks that score highest on value and profitability. These serve different investment philosophies, not the same one at different price points.

💰 SCHA is cheaper 🔬 Compare top 10 holdings → 💡 Plain-English verdict

🤝 BFF Take

SCHA for Pure Small-Cap Exposure. AVUV for a Deliberate Factor Tilt.

SCHA (Schwab U.S. Small-Cap ETF) and AVUV (Avantis US Small Cap Value ETF) both hold U.S. small-cap stocks, but they are fundamentally different products. SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index — over 1,700 stocks, market-cap weighted, no quality or value screen. You own the full small-cap market, including unprofitable growth companies. AVUV is an actively managed fund using Fama-French factor research to concentrate in small-cap stocks that are simultaneously cheap (value) and highly profitable. It holds around 730 stocks and charges 0.25% versus SCHA's 0.04%. The 21 basis point gap matters over time, but the question is whether AVUV's factor premium compensates. Since AVUV launched in 2019, it has outperformed SCHA meaningfully — but the difference may reflect the specific market environment rather than a guaranteed premium. SCHA Schwab investors who want low-cost broad small-cap exposure: stick with SCHA. Investors who specifically want to tilt toward value and profitability factors: AVUV is built for that purpose.

📋 Quick Takeaways

📊SCHA holds 1,700+ stocks with no factor tilt. AVUV holds ~730 stocks deliberately concentrated in cheap, profitable small-caps.

💰SCHA costs 0.04% — one of the cheapest funds available. AVUV costs 0.25%. The 21 basis point gap compounds to ~$4,500 extra on $100,000 over 20 years if returns are identical.

🔬AVUV applies profitability and value screens. SCHA includes unprofitable small-cap growth companies that historically drag down returns.

📊 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

SCHA

Schwab U.S. Small-Cap ETF

Expense Ratio

0.04% ✓

1-Year Return

+8.2%

AUM

$18B

Holdings

1,750

AVUV

Avantis US Small Cap Value ETF

Expense Ratio

0.25%

1-Year Return

+11.4%

AUM

$15B

Holdings

730

📋 SCHA vs AVUV — Key Facts Side by Side

Metric	SCHA	AVUV
Fund Name	Schwab U.S. Small-Cap ETF	Avantis US Small Cap Value ETF
Issuer	Schwab	Avantis
Tracks Index	Dow Jones U.S. Small-Cap Total Stock Market	Active (Factor-Based)
Expense Ratio	0.04% ✓	0.25%
Cost per $10K/yr	$4.00	$25.00
AUM	$18B	$15B
Holdings	1,750	730
Inception	2009	2019
1-Year Return	+8.20%	+11.40%
3-Year Return	+4.30%	+7.20%
5-Year Return	+9.10%	+12.80%
Avg Bid-Ask Spread	0.01%	0.01%

Data from ETF BFF database. Returns are annualised. Not investment advice.

📊 SCHA vs AVUV — Annualised Returns

Annualised returns (trailing, price-based). Past performance does not guarantee future results.

🎯 Should You Buy SCHA or AVUV?

Choose if...

SCHA

You want the lowest fees — saves ~$21/yr per $10K vs AVUV
You want broader diversification (1,750 holdings vs 730)

Choose if...

AVUV

You already use Avantis and prefer staying within their fund family

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❓ SCHA vs AVUV — Frequently Asked Questions

Is SCHA a good alternative to AVUV?

They serve different purposes. SCHA is a total small-cap market fund — it owns all U.S. small-caps without any quality or value bias, at 0.04%. AVUV is a factor-tilted fund that specifically targets the academic value and profitability premiums at 0.25%. If you want the broadest small-cap exposure at minimal cost, SCHA is the right tool. If you believe in factor investing and want to specifically overweight the small-cap value premium, AVUV is built for that purpose. Using one as an alternative to the other misunderstands what both are doing.

Does SCHA include unprofitable companies?

Yes. SCHA tracks the Dow Jones U.S. Small-Cap Total Stock Market Index, which does not screen for profitability. It holds unprofitable growth companies, pre-revenue biotech, and other speculative small-caps that are part of the full small-cap market. AVUV specifically excludes companies with low or negative profitability, which has historically been a drag on small-cap returns. The S&P SmallCap 600 (tracked by IJR) also excludes unprofitable companies — making IJR a middle ground between SCHA and AVUV.

Why is AVUV more expensive than SCHA?

AVUV is an actively managed ETF. A team at Avantis Investors applies quantitative factor research continuously to decide which small-cap stocks to hold and in what weight. This active process costs more than simply buying an index. SCHA passively replicates its index with minimal intervention. The 0.25% versus 0.04% difference reflects the cost of active management, not simply marketing or distribution costs.

I hold SCHA at Schwab. Should I switch to AVUV?

Not necessarily. SCHA is a perfectly valid small-cap holding at an extremely low cost. Switching to AVUV makes sense if you specifically want to tilt your portfolio toward the value and profitability factors — a deliberate investment decision, not just an upgrade. If you do switch, doing it in a tax-advantaged account (IRA, 401k) avoids the capital gains tax that switching in a taxable account would trigger. For new money going forward, you can simply direct it to AVUV without selling SCHA.

What is the profitability factor in small-cap investing?

The profitability factor, formalized by Robert Novy-Marx and incorporated into Fama-French research, shows that companies with high gross profitability (gross profit divided by assets) have historically earned higher returns than low-profitability companies at the same valuation. In small-cap investing specifically, combining high profitability with low valuation (value factor) has historically produced stronger returns than either screen alone. AVUV explicitly targets this combination. SCHA does not screen for profitability at all.

New to ETF investing? See answers to the most common ETF questions →

📄 SCHA & AVUV Fact Sheets

SCHA Fact Sheet→ AVUV Fact Sheet→

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.