GET DAILY SIGNALSAVUV vs DFAT: Weighing Two Active Small-Cap Value ETFs
Key Takeaways
- Both funds are actively managed U.S. value strategies, but AVUV targets small-cap value with a profitability screen, while DFAT spans small- and mid-cap value across a broader capitalization range.
- AVUV holds roughly 800 stocks with a weighted average market capitalization near $3.5 billion; DFAT holds roughly 1,200–1,300 names with a weighted average market cap closer to $7 billion.
- AVUV carries a 0.25% expense ratio, slightly below DFAT at 0.28%, giving the Avantis fund a modest cost edge.
- Both funds lean heavily into financials, energy, and industrials, but AVUV skews more deeply toward energy and consumer cyclicals, while DFAT adds greater mid-cap and health-care breadth.
- Relative positioning favors AVUV for deeper small-cap value and profitability exposure, while DFAT offers broader diversification and slightly lower concentration risk.
- Tickeron AI Verdict: AVUV — the Avantis fund combines a lower cost, deeper value-and-profitability tilt, and stronger factor consistency within the current market regime.
Why These Two Funds Stand Out for Value Investors
Value-focused investors evaluating U.S. small-cap equity often encounter two of the category's most prominent active offerings: AVUV and DFAT. Although the funds compete directly for the same investor dollar, they are not identical vehicles. Avantis U.S. Small Cap Value ETF (AVUV) pursues a concentrated small-cap value-and-profitability mandate, while Dimensional U.S. Targeted Value ETF (DFAT) applies a broader targeted-value approach that stretches from small caps into mid caps. This ETF comparison clarifies their structural differences, sector exposure, and relative positioning so investors can understand which tool better suits a value-oriented portfolio in today's market environment. When I compared their holdings side by side, I also checked this using Tickeron’s AI Screener to see how the funds align with broader industry peers.
A Closer Look at AVUV
AVUV is an actively managed, rules-based portfolio issued by American Century Investments and launched in September 2019. The fund seeks long-term capital appreciation by investing primarily in U.S. small-cap companies trading at low valuations with higher profitability ratios. Its systematic process weights holdings using combined value and profitability signals rather than tracking a traditional index.
The fund holds roughly 800 securities, keeping single-stock risk low — the top 10 positions account for only about 8.5% of assets. Representative top holdings include MATX (Matson), GATX, FIVE (Five Below), M (Macy's), VSAT (Viasat), and LEA (Lear). Sector allocation is dominated by financials (roughly 28%), followed by consumer cyclical (~19%), energy (~15%), and industrials (~13%), with a smaller information-technology sleeve near 7%. The fund's weighted average market capitalization sits near $3.5 billion, underscoring its authentic small-cap profile, and it charges a 0.25% expense ratio.
Understanding DFAT's Approach
DFAT is an active, tax-managed ETF from Dimensional Fund Advisors, launched in June 2021. It pursues long-term capital appreciation from a portfolio of U.S. small- and mid-cap value stocks, applying Dimensional's well-established research on size, relative price, and profitability. Rather than targeting a single benchmark, the fund maintains flexible exposure across the lower half of the U.S. market-cap spectrum.
With roughly 1,200–1,300 holdings, DFAT is among the most diversified value funds available; its top 10 positions represent only about 6.5%–7% of assets. Top names have included CF (CF Industries), PR (Permian Resources), APA, OVV (Ovintiv), AA (Alcoa), BALL (Ball Corp), and ALLY (Ally Financial). Sector exposure is led by financials (~29%), followed by industrials (~16%), consumer cyclical (~15%), energy (~9%), and information technology (~8%). Its weighted average market cap of roughly $7 billion reflects a meaningfully larger, more mid-cap-tilted portfolio than AVUV, and it charges a 0.28% expense ratio. I also ran a quick scan with Tickeron’s AI Trend Prediction Engine to confirm the relative size differences.
The Market Context for These Value Plays
Both funds operate within the broader U.S. small- and mid-cap value complex, a segment that has historically shown sensitivity to interest-rate expectations, credit conditions, and the economic cycle. Because financials and energy represent the largest combined weights in each portfolio, fund performance is closely tied to the path of interest rates, lending margins, and commodity prices. Recent market cycles have favored value and cyclical sectors during periods of firming inflation expectations and steepening yield curves, while growth leadership tends to pressure relative returns. A modest tilt toward domestically oriented companies also means both funds carry less mega-cap technology exposure than the broader market — a structural feature that lowers valuation risk but can dampen participation in large-cap growth rallies.
How They Stack Up in Recent Markets
In recent weeks and months, both AVUV and DFAT have benefited from a rotation into value and cyclical equities, yet their relative positioning has diverged in subtle ways. AVUV's deeper small-cap and energy emphasis has made it more sensitive to commodity trends and to the re-rating of smaller, lower-valued firms. DFAT's broader capitalization band and larger health-care and staples allocation have generally tempered volatility and provided a smoother ride during risk-off episodes. On a structural basis, AVUV's stronger value and profitability tilts and its marginally lower cost give it a firmer foundation for capturing the size and value premiums, while DFAT's superior diversification reduces single-name and sector concentration risk. Investors should weigh these differences against their tolerance for volatility rather than focusing on short-term price swings.
Enhancing My Research with Tickeron’s AI Screener
I often turn to Tickeron’s AI Screener when comparing ETFs like these because it lets me quickly filter for technical patterns, fundamentals, and AI-driven signals across thousands of securities. The tool helps surface how AVUV and DFAT stack up against peers on metrics such as volatility and performance, which adds useful context to the structural differences outlined above. It streamlines the process without replacing deeper manual review.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
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Financial analyst and market blogger with expertise in equity research, fundamental analysis, and macroeconomic trends. I regularly publish coverage on individual stocks, ETFs, and sector developments — combining rigorous financial analysis with clear, engaging writing for a broad investment audience.
Momentum Indicator for AVUV turns negative, indicating new downward trend
AVUV saw its Momentum Indicator move below the 0 level on November 05, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 82 similar instances where the indicator turned negative. In 72 of the 82 cases, the stock moved further down in the following days. The odds of a decline are at 88%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for AVUV moved out of overbought territory on October 30, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 45 similar instances where the indicator moved out of overbought territory. In 34 of the 45 cases, the stock moved lower in the following days. This puts the odds of a move lower at 76%.
The Moving Average Convergence Divergence Histogram (MACD) for AVUV turned negative on November 06, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In 37 of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at 76%.
AVUV moved below its 50-day moving average on November 05, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where AVUV declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
AVUV broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
The 10-day moving average for AVUV crossed bullishly above the 50-day moving average on November 02, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 15 of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 88%.
Following a +0.72% 3-day Advance, the price is estimated to grow further. Considering data from situations where AVUV advanced for three days, in 245 of 295 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
The Aroon Indicator entered an Uptrend today. In 260 of 305 cases where AVUV Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 85%.
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