1 Compelling Reason to Invest in AVUV's Stock This October

Impact of Fed Policy on Small-Cap Stocks: Small-cap stocks, particularly those in the Russell 2000 index, are highly sensitive to changes in interest rates, which contributed to a significant decline in 2022. With the Federal Reserve expected to cut rates, small-cap ETFs like Avantis U.S. Small Cap Value ETF (AVUV) may benefit from this accommodative policy.

Advantages of AVUV for Long-Term Investors: AVUV is an actively managed ETF that can adjust its portfolio to capitalize on declining interest rates, potentially leading to outperformance as the U.S. economy strengthens. The fund's focus on small-cap companies, which often rely on domestic sales, positions it well for growth in a recovering economy.

Sector Sensitivity to Rate Cuts: Different sectors respond variably to Fed easing, with energy, financial services, and industrials making up a significant portion of AVUV's portfolio. These sectors may experience greater benefits from rate cuts, enhancing AVUV's potential for near-term gains despite being a value fund.

Risks and Considerations: While AVUV can avoid unprofitable small-cap companies, investors should be aware that over 40% of Russell 2000 members are unprofitable. Additionally, potential investors are encouraged to consider other high-performing stocks identified by analysts, as AVUV was not included in a recent top stock recommendation list.