A Little-Known Small-Cap Value ETF Has Left This Popular iShares Fund Behind Over 5 Years
Retirement savers looking for small, cheaply valued U.S. stocks usually start with the iShares Russell 2000 Value ETF (NYSEARCA:IWN), BlackRock’s passive Russell 2000 Value index tracker. A less familiar fund in the same category has pulled well ahead of it. The Avantis U.S. Small Cap Value ETF (NYSEARCA:AVUV) gained 61.9% over the five years from November 10, 2021. IWN gained 36.6% over the same stretch. Both figures come from adjusted price data.
How AVUV and IWN Pick Their Stocks
IWN essentially holds whatever the Russell 2000 Value index holds. AVUV is actively managed by Avantis, a unit of American Century. Avantis describes its ETFs as combining “the aspects of indexing (low fees, broad diversification, and tax efficiency) with daily active oversight and holistic consideration of company valuations when selecting and weighting securities.” Put simply, the managers start from the same pool of small value stocks and then lean toward companies “trading at low valuations relative to their profits,” as Morningstar puts it, rather than weighting by index rules alone.
That approach still produces a broadly diversified portfolio. As of November 2026, AVUV’s largest position, Matson (NYSE:MATX | MATX Price Prediction), made up just 0.97% of net assets. It was followed by GATX (NYSE:GATX) at 0.95% and SM Energy (NYSE:SM) at 0.85%. Other top holdings tilt toward regional banks and lenders, railcar lessors and truckers, energy producers, and consumer retailers. Neither fund’s published summary lists an official holdings count or sector weights.
On cost, IWN charges a net expense ratio of 0.24% according to its July 31, 2026, prospectus. AVUV’s expense ratio was 0.25%. Anyone comparing the two should pull current expense ratios from their prospectuses and set the figures side by side.
Where AVUV Stands Out
AVUV leads over every period longer than a week. Over the past month, the two funds ran close together.
| Measure (adjusted price) | AVUV | IWN |
|---|---|---|
| Price (Nov. 10, 2026) | $122.70 | $215.91 |
| One week | −1.02% | 0% |
| One month | 2.56% | 2.39% |
| Year to date | 21.47% | 20.4% |
| One year | 27.21% | 24.82% |
| Five years | 61.86% | 36.61% |
So far in 2026, the lead is modest. Most of AVUV’s advantage built up over the full five-year window.
Both funds pay quarterly distributions. AVUV’s trailing 12-month payout totals $1.5184 per share. IWN’s totals $3.253345. The two share prices differ widely, so those per-share amounts cannot be compared directly, and both funds’ payments vary from quarter to quarter.
Why Most Investors Have Never Heard of AVUV
Fund size does not explain its low profile. AVUV reported $27.1 billion in net assets as of May 31, 2026, so it is a large fund by any measure. Three other factors keep it off most retirees’ attention:
- Age: AVUV’s price history begins on September 26, 2019. IWN’s quarterly distribution record goes back to 2000.
- Sponsor: Avantis lacks the household-name recognition of iShares and BlackRock.
- Structure: Active ETFs get less attention than familiar index funds, though their growth recently led Morningstar to publish a review of how the largest active ETFs performed.
Volatility and Repeatability Risks for Retirees
Small-cap value stocks can fall sharply in recessions and credit scares, and AVUV’s top holdings in regional banks and cyclical industrials leave it exposed to both. AVUV fell 1.0% in the past week while IWN was flat, a reminder that active tilts can work against the fund over short stretches. Five years of outperformance offers no guarantee that the managers’ screens will keep beating the index. AVUV also has a shorter track record to judge them by.
Who AVUV May Suit
AVUV may suit investors already holding a small-cap value slice, who can sit through deeper swings with money they won’t need for years, and who want managers who actively screen for profitability. IWN remains the simpler choice for investors who want pure index exposure, a decades-long history and a sponsor they already know. Investors researching the fund can review AVUV’s expense ratio, its full holdings and sector breakdown, and how it held up in down quarters.
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Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.
Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community.
Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.
Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, moderating workshop sessions at regional conventions.
