The Best Small-Cap Stock ETF to Invest $100 in Right Now Is the Avantis U.S. Small Cap Value ETF (AVUV)

There are many good reasons to invest in small-cap stocks, such as their potential for faster growth -- and the potential for them to be bought out at a premium by bigger companies.

If you're looking to add some to your portfolio, you might want to consider this solid exchange-traded fund (ETF) that's focused on small-cap stocks: the Avantis U.S. Small Cap Value ETF (NYSEMKT: AVUV).

Here's an introduction to it, its performance record, and its holdings.

Image source: Getty Images.

Meet the Avantis U.S. Small Cap Value ETF

A key thing to know about the Avantis U.S. Small Cap Value ETF is that it's actively managed -- that is, it has professional stock analysts studying the universe of smaller companies, deciding which ones to buy and sell, and when to do so. This is unlike a passively managed fund, such as an index fund that tracks a particular small-cap index, holding most or all of the same companies in roughly the same proportion.

Another important thing to know is that it's a value-oriented fund as opposed to a growth-oriented one. Whereas a growth investor will seek investments that are growing at a faster-than-average rate, a value investor is more concerned with finding investments that appear to be undervalued. (An investment can, of course, be both undervalued and fast-growing.) This means that the Avantis U.S. Small Cap Value ETF is more likely to feature some slower-growing companies, but ones that seem to be more of a bargain.

Its expense ratio (annual fee) of 0.25% is modest, too, for an actively managed fund, meaning you'll pay just $25 per year for each $10,000 you have invested in it. Here's how the ETF has performed in recent years:

Data source: Avantis, as of Sept. 30, 2025.

See? Despite not focusing on growth stocks, the ETF has put up quite respectable results. It has actually outperformed the Vanguard S&P 500 ETF over the past five years, though not the past one and three years.

What's in the Avantis U.S. Small Cap Value ETF?

The Avantis U.S. Small Cap Value ETF recently encompassed 777 holdings, and its top 10 holdings made up about 8% of its total value. With many large-cap ETFs, the top 10 holdings can comprise 30% or more of the ETF's value, making them rather top-heavy. With this ETF, your money is at least somewhat more evenly distributed. Here are the recent top 10 stocks:

Data source: Morningstar.com, as of Oct. 11, 2025.

Here's a little about some of these companies. Air Lease is, as you might expect, an aircraft-leasing company. Cal-Maine is America's largest producer and distributor of fresh-shell eggs. SkyWest is an American regional airline based in Utah. Granite Construction is a diversified company involved in construction and construction materials. Five Below is a retailer targeting young consumers.

Among the approximately 777 companies in this fund, you'll find a wide assortment of businesses.

How could this ETF boost your wealth?

There are few guarantees in the stock market, especially when it comes to expected returns, so let's imagine three different growth rates that an investment in the Avantis US Small Cap Value ETF might deliver over time. The table below shows how your money would grow at 8%, 10%, and 12%, over various periods, if you invested $1,200 per year -- which is $100 per month.

Source: Calculations by author.

So do consider including some small-cap stocks in your portfolio, whether you do so via an ETF such as this one or by investing directly in some smaller companies.

Selena Maranjian has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Cal-Maine Foods and Vanguard S&P 500 ETF. The Motley Fool recommends Five Below. The Motley Fool has a disclosure policy.