AVLV Is Up 24.5% While Filtering Out the Value Traps Other ETFs Miss

"Avantis U.S. Large Cap Value ETF delivers large-cap value exposure with a profitability overlay. Rather than tracking a static index, Avantis uses a rules-based, factor-driven methodology that weights holdings by both valuation metrics (price-to-book, price-to-earnings) and profitability signals. The fund carries a 0.15% net expense ratio and holds $10 billion in net assets as of February 2026, making it a credible, liquid option in the factor ETF space."

"AVLV's profitability overlay appears to be earning its keep. Over the past year, the fund returned +24.5%, outpacing Vanguard Value ETF's +19.3% - a gap that reflects the benefit of filtering out cheap-but-deteriorating businesses. That outperformance is not coincidental; the quality screen systematically excludes companies with weak balance sheets that often drag down traditional value indexes."

Avantis U.S. Large Cap Value ETF (AVLV) employs a dual-screen methodology that filters for stocks that are both cheap and profitable, distinguishing it from traditional value ETFs that screen solely on valuation metrics. The fund uses rules-based, factor-driven methodology weighting holdings by price-to-book, price-to-earnings, and profitability signals, with a 0.15% expense ratio and $10 billion in assets. AVLV's profitability overlay has delivered measurable results, returning 24.5% over the past year versus Vanguard Value ETF's 19.3%, reflecting the benefit of excluding weak balance sheets. The fund maintains a 5% annual turnover rate, indicating genuine buy-and-hold positioning rather than active trading.

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