AVSC vs MMSC

AVSCAAvantis U.S. Small Cap Equity ETF

MMSCFFirst Trust Multi-Manager Small Cap Opportunities 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.

MMSC Two small-cap shops, one ticker. Driehaus and Stephens each feed stock ideas to First Trust, which decides how much money each sleeve runs. Active small-cap stock picking priced like the boutique product it is.

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.

MMSC The fund seeks long-term capital appreciation and normally invests at least 80% of its net assets in equity securities issued by small capitalization companies.

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.

• MMSC Genuinely multi-manager: Driehaus Capital Management and Stephens Investment Management Group both recommend names, and First Trust's investment committee sets each sub-adviser's slice.sec.govftportfolios.com
• The sub-advisers are non-discretionary. They pitch, First Trust decides and trades, which keeps one desk accountable for what actually lands in the portfolio.sec.gov
• Roughly 200 holdings, so no single small-cap name drives the fund. Active picking without the single-manager concentration risk.
• The mandate is written down: at least 80% of net assets in small-cap equities, aiming for long-term capital appreciation. Live since 2021.ftportfolios.com

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.

• MMSC 0.95% a year is boutique-active pricing, roughly four times the 0.25% charged by systematic small-cap peers like AVUV and AVSC, and well above the active small-cap median.
• Small asset base and light trading next to the small-cap index giants, so bid-ask spreads can run wider. Limit orders are the standard workaround.
• Built for capital appreciation, not income. A regular distribution stream has not been part of the profile.

Full AVSC profile⁠

Full MMSC profile⁠