AVUV vs IWM ETF Comparison: AI Score, Valuation, Performance and Upside
AVUV and IWM both provide small-cap US equity exposure, but with meaningfully different portfolio construction. AVUV uses factor screens (value + profitability) to target academically-supported return premiums. IWM provides broad small-cap market exposure including unprofitable companies. Factor investors who believe in the small-value premium prefer AVUV. Investors wanting the small-cap benchmark, maximum liquidity, or tactical options strategies prefer IWM.
AVUV vs IWM is the factor-tilted small-cap value ETF screening for profitability to capture small-cap, value, and profitability return premiums simultaneously (Avantis AVUV) versus the broad Russell 2000 small-cap benchmark ETF providing maximum liquidity and complete small-cap market exposure without factor screening (iShares IWM) — systematic factor exposure vs pure market-cap index.
AVUV holds the edge across 3 of 5 key metrics in this comparison. AVUV has delivered stronger 1-year price return (+21.56% vs +17.21% for IWM).
- believe in the academic factor investing framework — specifically the small-cap, value, and profitability factor premiums documented by Fama-French and other researchers
- prefer profitability-screened small-cap value that avoids cheap-but-unprofitable small companies ('value traps') dragging pure small-value index returns
- want long-term small-cap factor premium exposure in a core portfolio allocation with patience for multi-year factor cycles
- are comfortable with small-cap value's recent extended underperformance vs large-cap growth, higher expense ratio than IWM, and factor premium uncertainty in shorter time horizons
- prefer the Russell 2000 small-cap benchmark for institutional-grade liquidity, performance attribution comparison, and deep options market for small-cap tactical strategies
- value IWM as the recognized US small-cap standard — widely used in performance attribution, portfolio construction discussions, and financial media commentary
- want tactical small-cap positioning for economic recovery exposure or rotation from large-cap to small-cap in a familiar, liquid vehicle
- are comfortable with unscreened small-cap including unprofitable companies, standard index methodology without factor improvement, and tactical rather than factor-focused investing
| Metric | AVUV | IWM |
|---|---|---|
| ETF scorei | 86.0 | 71.0 |
| Latest closei | $121.96 | $284.10 |
| 1M returni | -3.25% | -5.59% |
| 6M returni | +15.77% | +17.88% |
| 1Y returni | +21.56% | +17.21% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | AVUV | IWM |
|---|---|---|
| 1Y ago | $12.38K (+23.8%) started 2025-09-18 | $11.84K (+18.4%) started 2025-09-18 |
| 5Y ago | $20.04K (+100.4%) started 2021-09-20 | $14.93K (+49.3%) started 2021-09-20 |
| 10Y ago | $30.61K (+206.1%) started 2019-09-26 | $30.18K (+201.8%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | AVUV | IWM |
|---|---|---|
| Expense ratioi | 0.25% | 0.19% |
| Total assets (AUM)i | $31.17B | $80.46B |
| Dividend yieldi | 1.25% | 0.90% |
| Trailing P/Ei | 12.11 | 16.73 |
| Betai | 1.05 | 1.16 |
| 52-week change | 21.56% | 17.21% |
| Metric | AVUV | IWM |
|---|---|---|
| 1Y returni | +21.56% | +17.21% |
| 6M returni | +15.77% | +17.88% |
| 1M returni | -3.25% | -5.59% |
| 1Y Sharpe ratio | 1.04 | 0.71 |
| Betai | 1.05 | 1.16 |
| Dividend yieldi | 1.25% | 0.90% |
| 5Y CAGR | +12.87% | +6.90% |
Over the past year, AVUV and IWM have moved strongly in the same direction (correlation of 0.85), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | AVUV | IWM |
|---|---|---|---|
| 1Y | Growthi | +21.56% | +17.21% |
| CAGRi | +21.58% | +17.23% | |
| Volatilityi | 15.67% | 18.60% | |
| Sharpe ratioi | 1.04 | 0.71 | |
| Sortino ratioi | 1.58 | 1.03 | |
| Max drawdowni | 7.95% | 11.03% | |
| Current drawdowni | 4.96% | 6.64% | |
| Avg drawdowni | 1.87% | 2.37% | |
| Ulcer Indexi | 2.65% | 3.33% | |
| Max daily dropi | 3.51% | 3.55% | |
| Max wkly dropi | 5.43% | 4.62% | |
| 5Y | Growthi | +83.02% | +39.57% |
| CAGRi | +12.87% | +6.90% | |
| Volatilityi | 22.22% | 22.40% | |
| Sharpe ratioi | 0.46 | 0.21 | |
| Sortino ratioi | 0.67 | 0.30 | |
| Max drawdowni | 28.79% | 31.91% | |
| Current drawdowni | 4.96% | 6.64% | |
| Avg drawdowni | 6.35% | 13.38% | |
| Ulcer Indexi | 8.31% | 16.32% | |
| Max daily dropi | 8.16% | 6.42% | |
| Max wkly dropi | 14.10% | 12.38% | |
| 10Y | Growthi | +171.84% | +163.20% |
| CAGRi | +15.41% | +10.17% | |
| Volatilityi | 27.79% | 23.00% | |
| Sharpe ratioi | 0.50 | 0.34 | |
| Sortino ratioi | 0.71 | 0.48 | |
| Max drawdowni | 49.42% | 41.13% | |
| Current drawdowni | 4.96% | 6.64% | |
| Avg drawdowni | 7.67% | 9.89% | |
| Ulcer Indexi | 11.26% | 13.34% | |
| Max daily dropi | 12.69% | 13.27% | |
| Max wkly dropi | 25.92% | 24.00% |
| Category | AVUV | IWM |
|---|---|---|
| Fund name | Avantis US Small Cap Value ETF | iShares Russell 2000 ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.25% | 0.19% |
| Total assets (AUM)i | $31.17B | $80.46B |
| Dividend yieldi | 1.25% | 0.90% |
- Triple factor exposure: small-cap, value, and profitability factors all simultaneously — academic research suggests each provides an independent return premium over time
- Profitability screen avoids value traps: AVUV's requirement for profitable small-value companies excludes the cheapest-but-unprofitable small caps that drag pure value index returns
- Avantis' systematic approach: active factor management allows quarterly rebalancing toward highest-ranked factor stocks vs rigid index reconstitution
- Most liquid small-cap ETF: IWM's large AUM and trading volume create the most liquid small-cap ETF with the deepest options market for tactical and hedging strategies
- Benchmark standard: IWM's Russell 2000 tracking is the recognized small-cap performance benchmark in the US — widely used for performance attribution and peer comparison
- Broad small-cap diversification: 2,000 companies create maximum diversification within small-cap, reducing single-stock event risk
- Small-cap value has been a challenging factor: despite academic evidence, small-cap value has underperformed large-cap growth for extended periods in recent history
- Higher expense ratio than IWM: AVUV at 0.25% is more expensive than IWM at 0.19% — worth it only if factor premium materializes
- Small-cap stocks are more illiquid and economically sensitive: small companies underperform in economic slowdowns and credit contractions
- Many Russell 2000 companies are unprofitable: the Russell 2000 has a high percentage of unprofitable small companies — potentially dragging returns vs profitability-screened alternatives like AVUV
- Russell 2000 includes speculative small-caps: the index includes many early-stage, money-losing small companies that represent high risk
- Small-cap factor beta to economic cycles: Russell 2000 companies are more domestic-economy-sensitive and credit-sensitive than large-caps — underperforming more severely in slowdowns
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