AVLC vs XLSR

AVLCAAvantis U.S. Large Cap Equity ETF

XLSRCState Street US 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.

XLSR Sector timing, outsourced. State Street's Investment Solutions Group tilts toward and away from the S&P 500's GICS sectors using quant signals plus human judgment, typically rebalancing monthly, all inside one US large-cap ticker.

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.

XLSR The fund seeks capital appreciation through active sector rotation. It uses quantitative and qualitative analysis to adjust sector exposures and typically rebalances monthly.

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.

• XLSR State Street's Investment Solutions Group sets the sector over- and underweights using quantitative signals plus judgment, typically rebalancing monthly. The rotation call, in one ticker.ssga.comssga.com 2
• It dials active risk up and down against the S&P 500 rather than swinging all-in on one sector, so it still behaves like a US large-cap core position.ssga.com
• Running since 2019, a multi-billion-dollar fund that trades with reasonable ease and sits in the upper half of a very crowded active US equity field.

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

• XLSR 0.70% a year is above the typical active US equity fund and multiples of systematic peers like DFAU (0.12%) and FELC (0.18%). Active judgment carries a price tag.
• A couple dozen positions means a handful of sector calls drive the outcome, and results can drift well away from the S&P 500 in either direction.
• The stated goal is capital appreciation, not income. Distributions arrive quarterly and are a byproduct of whatever the underlying sectors happen to pay.

Full AVLC profile⁠

Full XLSR profile⁠