AVLC vs RHRX

AVLCAAvantis U.S. Large Cap Equity ETF

RHRXDAdaptive Tactical Rotation ETF

In short

AVLC Active management with index-fund manners: roughly 900 U.S. large caps, with the dial turned toward cheaper, more profitable companies. Avantis charges 0.15% a year to do it.

RHRX A fund of ETFs with a market-timing switch: an S&P 500 core that can be hedged with options, plus permission to rotate into Treasury bond ETFs, cash, or inverse ETFs when its trend model turns negative.

Stated mandate

AVLC The fund seeks long-term capital appreciation. It invests broadly in U.S. large-capitalization companies while using active decisions to overweight lower valuations and higher profitability.

RHRX The Fund seeks capital appreciation.

Why people hold it

• AVLC 0.15% a year against a 0.65% median for active U.S. equity funds. That is passive-style pricing on an actively run book.
• Holds about 900 names against the Russell 1000, so the value and profitability tilts sit on top of broad market exposure instead of a concentrated bet.avantisinvestors.com
• One of the stronger builds in the active U.S. equity group, priced in the same neighborhood as the Dimensional core funds (DFAU, DFAC) it competes with.
• A multi-billion-dollar fund that trades steadily, so spreads and liquidity are rarely the sticking point. Distributions are paid quarterly.

• RHRX Unusually flexible mandate for an equity fund: the prospectus allows hedging S&P 500 positions with puts and calls and moving into treasury bond ETFs, cash, or inverse ETFs in downtrends.sec.gov
• The signal set is disclosed rather than vague: price momentum, volatility, and comparative indicators versus certain indices drive when the portfolio turns defensive.sec.gov
• Exposure arrives through unaffiliated ETFs whose holdings are generally S&P 500 common stocks, so the underlying is familiar large-cap equity, not exotic single names.sec.gov
• Running since 2021 inside a 1940 Act ETF wrapper, with daily holdings disclosure and the same rules that govern plain index funds.

Worth knowing

• AVLC Launched in 2023. The tilt philosophy is well worn at Avantis, but this fund's own live record is still short.
• Active, not index-tracking. The Russell 1000 is a reference point, not a leash, so holdings and weights can drift from it.
• Leaning toward cheaper, higher-profitability companies means stretches where it moves differently from the plain cap-weighted market, in either direction.avantisinvestors.com

• RHRX Costs 1.38% a year, more than double the 0.65% median for active US equity funds and many times cheap core rivals like DFAU (0.12%) or AVLC (0.15%).
• Small and thinly traded, which typically means wider bid/ask spreads and more price impact on larger orders than with headline-size funds.
• Defensive mode can mean heavy cash or leveraged and inverse ETFs, which reset daily; a trend model that turns early or late shows up directly in results.sec.gov

Full AVLC profile⁠

Full RHRX profile⁠