AVSC vs FSEG

AVSCAAvantis U.S. Small Cap Equity ETF

FSEGBFidelity Enhanced Small Cap Growth 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.

FSEG Active small-cap growth without the active-management price tag. Fidelity's enhanced playbook keeps the portfolio anchored to the Russell 2000 Growth Index, then tilts toward valuation, growth and quality signals, for 0.28% a year.

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.

FSEG The fund seeks capital appreciation and normally invests at least 80% of its assets in common stocks included in the Russell 2000 Growth Index. Its research-driven process may consider valuation, growth, quality, and other long-term return drivers.

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.

• FSEG Costs 0.28% a year, roughly half the 0.52% median for active US small-cap funds in its peer group. That is index-fund pricing on a stock-picking mandate.
• Benchmark-anchored by design: normally at least 80% of assets sit in Russell 2000 Growth Index stocks, so the research shows up as tilts rather than wholesale bets.fidelity.com
• Roughly 300 names, so any single small-cap stumble carries limited weight. Breadth is the point in a corner of the market where individual stories break often.
• Part of a family running the same enhanced approach across the size range. The core version, FESM, is among the strongest implementations in this cohort at the identical 0.28% fee.

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.

• FSEG A 2026 launch, so the live record is short. You can see the fee and the process; the performance history is still being written.
• Small asset base and light trading volume. Wider bid-ask spreads come with the territory versus the household-name funds in the category.
• Small-cap growth is the choppy end of US equities, and staying close to that benchmark means riding its swings rather than sidestepping them.

Full AVSC profile⁠

Full FSEG profile⁠