An actively managed ETF, AVUV combines the typical benefits of following an index — diversification, low turnover and a transparency of exposures — with the flexibility to capture price movements as they happen.
For benchmarking purposes, the fund uses the Russell 2000 Value Index, which tracks the 2,000 smallest capitalization stocks of the larger Russell 3000 Index, but the ETF does not replicate this index.
AVUV’s portfolio managers use fundamental screens such as shares outstanding, cash flow, expenses, revenue and book-to-value to select stocks. Smaller companies with high profitability are weighted more heavily than those with lower returns and higher prices.
In addition, AVUV can also invest in derivatives, such as future contracts, currency forwards and swap agreements to gain exposure to equities and manage cash flow.
AVUV’s top holding is AutoNation Inc at 0.90%, followed by Cimarex Energy Co. at 0.81%, and Goodyear Tire and Rubber Co at 0.80%.
Some of the top sector allocations for the fund include financials at 28%, consumer discretionary at 19%, industrials at 17%, as of end of June.
AVUV has an expense ratio of 0.25%.
