AVMC vs NBSM

AVMCAAvantis U.S. Mid Cap Equity ETF

NBSMDNeuberger Berman Small-Mid Cap ETF

In short

AVMC The forgotten middle of the US market, run the Avantis way: roughly 600 mid-cap names tilted toward cheaper stocks with stronger profits, at 0.18% a year. Systematic active management priced like an index fund.

NBSM Old-school stock picking in small- and mid-cap land: about 80 names chosen by bottom-up fundamental research hunting undervalued companies, measured against the Russell 2500 rather than copying it.

Stated mandate

AVMC Seeks long-term capital appreciation through a broad portfolio of U.S. mid-cap companies, emphasizing securities with lower valuations and higher profitability ratios.

NBSM To pursue its goal, the Fund normally invests 80% of net assets in small- and mid-capitalization securities. Managers use bottom-up fundamental analysis to identify undervalued companies and manage risk through broad issuer and industry diversification.

Why people hold it

• AVMC 0.18% a year, against a 0.65% median for active US equity funds. Index-fund pricing on an active mandate.
• Spreads the value-and-profitability tilt across roughly 600 mid-caps, so it leans on the screen rather than a handful of concentrated picks.avantisinvestors.com
• One of the strongest implementations in our active US equity group, sitting with large-cap sibling AVLC and the Dimensional core funds.
• Pure mid-cap exposure with a quarterly distribution, filling the gap most portfolios leave between mega-caps and small caps.

• NBSM Real conviction, not index cloning. Roughly 80 holdings against a benchmark that spans thousands, so each pick has to earn its seat.
• The mandate is specific and the portfolio honors it: normally 80% of net assets in small- and mid-cap stocks, primarily US, with up to 10% allowed abroad.
• Concentration with guardrails. Managers spread risk across issuers and industries instead of betting the fund on one corner of the market.
• A value tilt where it still has room to work: undervalued smaller companies get less analyst coverage than mega caps, which is the case for paying an active manager.

Worth knowing

• AVMC Trades lighter than the giant index ETFs, which can mean wider bid-ask spreads at the moment you transact.
• Launched in 2023, so the live record is short. There's no published index behind it either: outcomes come from Avantis' own valuation and profitability rules.
• All mid-cap, no mega-cap ballast, plus a tilt away from expensive names. Both can put it out of step with a market led by the largest growth stocks.

• NBSM Active pricing. The 0.75% expense ratio sits above the typical active US equity ETF, and above FFSM (0.43%) and CGMM (0.51%), which measure against the same Russell 2500 benchmark.
• Launched in 2024, so the record is short. There is not yet a long history across different market regimes to judge the process by.
• Small and mid caps move harder in both directions than large caps, and this fund trades moderately rather than heavily, so limit orders are your friend.

Full AVMC profile⁠

Full NBSM profile⁠