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Start with a core portfolio tentpole and then build around it with above-average return potential.
These four ETFs target different areas of the market and work well together to mitigate portfolio risk.
IWM owns every small cap the Russell 2000 will take, profitable or not, and that open-door policy has a measurable cost that most investors never calculate before buying in.
Avantis U.S. Small Cap Value ETF targets high-quality, attractively valued small-cap stocks, addressing typical small-cap value pitfalls. AVUV's portfolio boasts a higher book-to-market (0.63) and profits-to-book (0.31) ratio than its Russell 2000 Value benchmark, signaling cheaper and more profitable holdings. Small-cap earnings growth is accelerating, with S&P SmallCap 600 Q4 2026 earnings expected to rise 26%, supporting the bullish case for AVUV.
The Avantis US Small Cap Value ETF (AVUV) is a buy for long-term investors who need a small-cap sleeve, but it's not a buy for the short or medium term as its headwinds are still blowing. Avantis starts from the Russell 2000 Value and picks within it, trimming the index's regional-bank concentration and adding oil and gas. A third of the fund trades under 10x. Surprisingly, about 12% of AVUV sits in loss-makers. But that is roughly half the broad Russell 2000's share and a third of the small-cap growth index's.
A $30,000 consulting check landing in your account every year sounds like a tax headache, but a retirement structure most people overlook can shelter nearly all of it and quietly compound into a second fortune over two decades.
Paying the IRS on purpose sounds like financial malpractice, but under the right conditions it unlocks a compounding shelter that ordinary accounts can never touch. Three ETFs turn that counterintuitive move into a serious long-term advantage.
The Avantis US Small Cap Value ETF earns a 'buy' rating for its focus on quality and value, outperforming passive peers over a full market cycle. AVUV's active management emphasizes low valuations and high profitability, resulting in superior margins, ROIC, and ROE compared to IJS and IWN. With a forward P/E of 11.91x and double-digit next-year EPS growth, AVUV offers attractive valuation and multiple sources of potential total returns.