"AVUS is designed to serve as a core domestic equity holding, the kind of position that anchors a portfolio rather than adding a specific thematic bet. It launched in September 2019 and has since grown to $11.3 billion in assets, reflecting genuine adoption as a long-term holding rather than a trading vehicle."
"The return engine is factor-based investing, specifically the value and profitability factors identified in academic finance research. Avantis applies a similar philosophy: own a broad swath of U.S. equities, but systematically overweight companies trading at lower valuations with stronger earnings power."
"Over the past year, AVUS returned 19.3% versus VTI's 14.3%. Over five years, AVUS gained 73% compared to VTI's 57%. That gap is the factor tilt doing its job."
Avantis U.S. Equity ETF (AVUS) is designed as a core domestic equity holding, focusing on stocks that are undervalued and profitable. Launched in September 2019, it has grown to $11.3 billion in assets, indicating its role as a long-term investment. The fund employs factor-based investing, emphasizing value and profitability, with a low portfolio turnover of 2%. Its expense ratio of 0.15% makes it competitive with index funds. AVUS has outperformed the Vanguard Total Stock Market ETF (VTI) significantly over various time frames, showcasing the effectiveness of its strategy.
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