AVSC vs SCAP

AVSCAAvantis U.S. Small Cap Equity ETF

SCAPFInfrastructure Capital Small Cap Income 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.

SCAP Most small-cap funds ask you to wait for the payoff. SCAP goes looking for cash now: active small-cap value picks, preferreds and convertibles, covered calls and modest borrowed leverage, all funneled into a monthly payout.

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.

SCAP The Fund seeks capital appreciation and income by investing primarily in small-capitalization companies. The adviser favors companies it views as relatively undervalued and having income qualities.

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.

• SCAP Unusual plumbing for a small-cap fund: dividend payers plus preferred and convertible securities, a selective option-writing overlay and modest leverage, all pointed at income. Pays monthly.infracapfund.com
• Stock-picked, not index-cloned. The manager buys small-cap names it views as undervalued with income qualities, leaning on profitability and value, measured against a small-cap value benchmark.
• The active wrapper lets it own income sources a plain small-cap index fund cannot, and to size positions by conviction rather than market cap.infracapfund.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.

• SCAP Cost is the headline trade-off: a 2.20% expense ratio, versus 0.25% at AVUV and 0.29% at JPSE. Active management, an options desk and borrowing are not cheap to run.
• The income engine cuts both ways: borrowed money amplifies moves in either direction, and calls written on holdings trade away upside on those names for premium.infracapfund.com
• Small and thinly traded since its late-2023 launch, so spreads are a real cost and the record covers a short stretch of market weather.

Full AVSC profile⁠

Full SCAP profile⁠