AVMC vs SMIG

AVMCAAvantis U.S. Mid Cap Equity ETF

SMIGBBahl & Gaynor Small/Mid Cap Income Growth 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.

SMIG Small caps are the market's dividend desert. SMIG hunts there anyway: an actively run book of about 60 small- and mid-cap companies chosen for rising dividend income and downside protection, with cash paid out monthly.

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.

SMIG The Fund pursues current and increasing dividend income, downside protection, and long-term capital growth. It is actively managed and normally commits at least 80% of net assets to small- and mid-capitalization companies.

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.

• SMIG Unusual mandate: at least 80% of net assets in small- and mid-cap companies, selected for current and increasing dividend income and downside protection, not just headline yield.
• Costs 0.60% a year, under the median for active US equity ETFs in its group, and distributions land monthly rather than quarterly.
• About 60 holdings, hand-picked. Every name has to earn its slot, which is the opposite of a closet index.
• Launched in 2021 and now a multi-billion-dollar fund that trades at moderate volume, one of the stronger showings among the active US equity ETFs we grade.

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.

• SMIG The prospectus benchmark is the S&P 500, a large-cap index, so headline comparisons pit this small/mid portfolio against a very different universe.
• Active stock picking has a price: 0.60% sits well above broad low-cost active peers such as DFAU (0.12%) and FELC (0.18%).
• Downside protection is a stated objective, not a mechanism. A concentrated book of roughly 60 small and mid caps can still move sharply on a few names.

Full AVMC profile⁠

Full SMIG profile⁠