AVLC vs SECT

AVLCAAvantis U.S. Large Cap Equity ETF

SECTCMain Sector 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.

SECT Rather than picking stocks, SECT rents whole sectors through sector ETFs, tilting toward the ones its managers judge undervalued. The stated aim: outperform the S&P 500 in rising markets while limiting losses when markets decline.

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.

SECT The Fund seeks to outperform the S&P 500 during rising markets while limiting losses when markets decline.

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.

• SECT One of the longer-running active sector-rotation ETFs, trading since 2017, with a record that spans the 2020 crash and the 2022 bear market.sec.gov
• 0.69% net of a waiver through March 31, 2027 (0.73% gross), and that cap covers the underlying sector ETFs' fees too, so fund-of-funds costs don't quietly stack on top.sec.gov
• A multi-billion-dollar fund that trades at moderate volume, so entering and exiting is rarely the hard part for retail-size orders. Pays quarterly.

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

• SECT The fee sits near the typical active US equity fund, but well above index-style peers in the group such as DFAU (0.12%) and AVLC (0.15%).
• Results ride on a short list of sector calls, so the portfolio can look very different from the S&P 500 in either direction.sec.gov
• The prospectus notes higher portfolio turnover can mean higher transaction costs and bigger tax bills for shares held in a taxable account.sec.gov

Full AVLC profile⁠

Full SECT profile⁠