(AVUV) Avantis U.S. Small Cap - Ratings and Ratios

The Avantis U.S. Small Cap Value ETF (AVUV) is an actively managed exchange-traded fund that focuses on a diverse portfolio of small-cap U.S. companies, spanning various market sectors and industry groups. The funds investment strategy is centered around capturing the value premium in the small-cap universe, which has historically outperformed its growth counterpart over the long term.

By investing at least 80% of its assets in securities of small-capitalization U.S. companies, AVUV provides investors with exposure to a segment of the market that is often characterized by inefficiencies, creating opportunities for active managers to exploit mispricings. The funds ability to also invest in derivative instruments such as futures contracts, currency forwards, and swap agreements allows it to hedge against potential risks and enhance returns.

Analyzing the funds technical data, we observe that the current price is $88.48, slightly below its 20-day simple moving average (SMA) of $88.78, indicating a neutral short-term trend. However, the 50-day SMA at $85.05 is below the current price, suggesting a positive medium-term trend. The 200-day SMA at $93.06 is above the current price, indicating a longer-term downtrend. Considering the average true range (ATR) of 1.57, representing a 1.78% daily volatility, we can infer that the fund is experiencing moderate price fluctuations.

Combining the technical analysis with fundamental data, we note that the funds assets under management (AUM) stand at $15.4 billion, indicating a significant presence in the market. Given the current valuation and the funds investment strategy, we forecast that AVUV will experience a moderate rebound in the short term, potentially reaching $92.00 within the next 6-8 weeks, driven by a potential rotation into small-cap value stocks. However, this forecast is contingent upon a stable market environment and the absence of significant macroeconomic shocks.

Our analysis suggests that investors should closely monitor the funds price action relative to its SMAs and adjust their investment decisions accordingly. A break above the 200-day SMA could signal a longer-term uptrend, while a decline below the 50-day SMA may indicate a resumption of the downtrend.