AVSC vs FSCC

AVSCAAvantis U.S. Small Cap Equity ETF

FSCCBFederated Hermes MDT Small Cap Core ETF

In short

AVSC Avantis's whole-field small cap fund: roughly 1,500 US small companies in one ticker, run by the manager's own rules rather than a published index, at 0.25% a year.

FSCC A quant engine aimed at the Russell 2000. Federated Hermes' MDT models pick roughly 300 small caps from the index, then the prospectus says it plainly: this fund is not built to mirror the benchmark's composition or returns.

Stated mandate

AVSC The fund seeks long-term capital appreciation and invests primarily in a diversified group of U.S. small-cap companies across market sectors and industries, with at least 80% of assets normally invested in U.S. small-cap equity securities.

FSCC The Fund seeks long-term capital appreciation.

Why people hold it

• AVSC 0.25% a year versus a 0.52% median for active US small-cap funds. Less than half the going rate for a hands-on manager.
• Roughly 1,500 holdings spread across sectors and industries, so one small-cap blowup barely dents the fund.
• One of the strongest all-round implementations in the active US small-cap group on cost, portfolio build and ease of trading.
• Pays quarterly, trades with steady daily volume, and pulled in over a billion dollars since its 2022 launch.

• FSCC Costs 0.36% net of a waiver through May 1, 2027 (0.50% gross), below the median fee among the active US small-cap funds we grade.federatedhermes.com
• Undercuts both other graded funds fishing the same Russell 2000 pond: FSML at 0.45% and GSC at 0.75% net of a waiver through December 29, 2026.
• Rules over hunches: a bottom-up quantitative process ranks growth and value names, and the result spreads across roughly 300 holdings.sec.gov
• Does exactly what the label says, a US small-cap equity fund, and is one of the stronger implementations in its peer group.

Worth knowing

• AVSC Undiluted small-cap equity, kept at least 80% invested in the asset class. It rides the small-cap cycle with deeper swings than a large-cap fund.
• No declared index to check it against. The manager's stock-selection rules are the product, so you are buying a process, not a published benchmark.
• Its sibling AVUV works the value slice of the same universe at the same 0.25%. Own both and you are doubling up on overlapping small-cap names.

• FSCC The waiver runs to May 1, 2027. If it is not renewed, the fee steps back toward the 0.50% gross rate.
• Full equity exposure, no hedge or buffer, in the corner of the market that swings hardest. Small caps can fall further than the large-cap market in a selloff.
• The live record starts in July 2024, and trading is moderate rather than heavy, so the bid-ask spread matters more here than in the largest small-cap ETFs.

Full AVSC profile⁠

Full FSCC profile⁠