AVSC vs FSML

AVSCAAvantis U.S. Small Cap Equity ETF

FSMLBFranklin Small Cap Enhanced 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.

FSML Franklin's quant take on small caps: a proprietary model scores Russell 2000 companies on value, quality and momentum, and the portfolio tilts toward the top scorers. Active decisions in an index-shaped frame, for 0.45% 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.

FSML The Fund seeks long-term capital appreciation by investing at least 80% of net assets in small-capitalization equity securities and economically similar derivatives or instruments.

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.

• FSML The 0.45% fee lands below the median for active small-cap ETFs, a corner of the market where paying up for a stock picker is the norm.
• The recipe is written down: at least 80% of net assets in small-cap equities, ranked by a value, quality and momentum model with the Russell 2000 as the reference.
• Already sits in the upper half of its active small-cap peer group while being one of the newest names in it.
• Plain-vanilla plumbing: a standard 1940 Act fund that pays quarterly and sends a 1099, not a K-1.

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.

• FSML It launched in December 2025, so there is very little live history behind the model and risk readings rest on a short window.
• Cheaper systematic small-cap options exist (AVUV, AVSC, DUHP). The extra fee here buys Franklin's scoring model, not broader exposure.
• The Russell 2000 is a yardstick, not a leash: the fund is actively run, so holdings and results can diverge from that index in either direction.

Full AVSC profile⁠

Full FSML profile⁠