AVTM vs AVGE: Which Should You Pick?
AVTM or AVGE? AVTM was 85% U.S. on Oct 31 and AVGE 71%; AVTM costs less, tilts less and carries larger unrealized gains. Which one-fund Avantis pick fits whom.
AVGE and AVTM are both one-fund Avantis stock portfolios with value, profitability and size tilts. AVGE, launched in September 2022, holds other Avantis ETFs and aims for roughly world weights, with a U.S. target of 70%. AVTM, launched on January 29, 2026, holds U.S. stocks directly, is benchmarked 85% U.S. and 15% international, and was seeded with Section 351 contributions of appreciated portfolios.
Quick answer
Pick AVGE if you want the Avantis tilt with close to global weights. Pick AVTM only if you have already decided on about 85% U.S. and want one ticker. It costs less than AVGE, but its tilt is milder, and on August 31, 2026 it carried unrealized gains equal to 61.9% of its investments, against 24.1% for AVGE. If you want market weights and no tilt, VT does that for 0.06%.
| AVGE | AVTM | |
|---|---|---|
| Launched | Sep 27, 2022 | Jan 29, 2026 |
| U.S. weight (Oct 31) | 71.3% (target 70%, range 63-77%) | 85.2% |
| Benchmark | MSCI ACWI IMI (63.5% U.S. on Oct 31) | 85% Russell 3000 / 15% MSCI ACWI ex USA IMI |
| Expense ratio | 0.23% (0.03% fee + 0.20% underlying funds) | 0.19% net per Avantis, Oct 31 (prospectus: 0.22% net, 0.23% gross) |
| 30-day median bid-ask spread (Nov 9) | 0.09% | 0.11% |
| Structure | Fund of Avantis ETFs | U.S. stocks held directly plus AVUQ (3.2%); Avantis ETFs for international (15.0%) |
| Weighted book/market vs benchmark | 0.33 vs 0.22 | 0.21 vs 0.17 |
| Net assets | $1.26 billion (Oct 31) | $762 million (Nov 9) |
| Unrealized gain (Aug 31, 2026) | 24.1% of investments | 61.9% of investments |
AVGE summary prospectus (revised Aug 1, 2026) and AVTM summary prospectus (Jan 29, 2026); Avantis Field Guide, data as of Oct 31, 2026; Avantis holdings for Nov 9, 2026; Form N-CSR for the year ended Aug 31, 2026; trading data from the Avantis fund pages (Nov 9, 2026).
The U.S. weight is the main decision
AVTM’s prospectus says that under normal conditions it “expects to invest at least 80% of its assets in equity securities of U.S. companies.” AVGE sits closer to the world market but still above it: 71.3% U.S. against 63.5% for its MSCI ACWI IMI benchmark on October 31. Dimensional’s one-fund DFAW is about 71% U.S., and VT’s index was 61.9% U.S. on August 31.
| Fund | U.S. weight | Net expense ratio | Approach |
|---|---|---|---|
| AVTM | 85.2% (Oct 31) | 0.19% | Avantis tilt, 85/15 benchmark |
| AVGE | 71.3% (Oct 31) | 0.23% | Avantis tilt, fund of funds |
| DFAW | About 71% (prospectus) | 0.24% | Dimensional tilt, fund of funds |
| VT | 61.9% (index, Aug 31) | 0.06% | Market-cap index |
How much to hold at home is a separate question from which fund to use; the VT guide and the case for global diversification cover it.
Tilt and taxes
AVTM’s weighted book-to-market was about a quarter above its benchmark’s on October 31, against half for AVGE, so AVTM is the lighter tilt. AVTM took in $869.6 million of securities in kind in its first fiscal period, and its tax cost on August 31 was $302.2 million against $793.0 million of investments. That gain came with the seed investors’ portfolios. ETFs can hand low-basis lots to authorized participants through in-kind redemptions, and AVTM paid only ordinary income through August 31, 2026, but a new buyer inherits more deferred gain per dollar in AVTM than in AVGE. How much of it is ever distributed depends on how the fund trades: in-kind redemptions remove low-basis shares without a sale, while cash redemptions and rebalancing sales can realize gains.
AVTM’s fee waiver equals the management fees of the Avantis funds it holds, so owning AVDE and AVEM inside AVTM adds no second layer of Avantis fees. Avantis’s October 31 table puts its net expense ratio at 0.19%. Its September 30 table and the prospectus show 0.22%, an estimate that assumed some non-Avantis ETFs; every ETF AVTM held on November 9 was an Avantis fund. In an IRA or 401(k), the embedded gain does not matter and the choice comes down to the U.S. weight.
Who should pick which
AVGE
You want the Avantis tilt in one fund with a U.S. weight near the world market’s, in a taxable or retirement account.
AVTM
You have chosen about 85% U.S., want a light tilt, and prefer one ticker. It fits best in an IRA. In a taxable account, AVUS, AVDE and AVEM give a similar mix with a stronger tilt and less embedded gain per dollar (AVUS: 30.2% of investments on August 31).
VT
You want world market weights, no factor view, and the lowest cost.
Frequently asked questions
Is AVTM a total world fund?
It holds stocks worldwide, but about 85% of it is in the U.S. by design. AVGE and DFAW sit near 71% and VT’s index near 62%.
Can I build AVTM myself?
Roughly: 85% AVUS and 15% split between AVDE and AVEM gives a similar mix. AVTM’s U.S. stocks are held directly rather than through AVUS, and it also held 3.2% in AVUQ, Avantis’s U.S. quality fund, on November 9, and AVUS tilts harder than AVTM, so the two portfolios will differ somewhat.
Which is more tax-efficient?
Neither has paid a long-term capital gain distribution in the periods reported. AVTM carries more unrealized gain relative to its size because of its Section 351 seeding. Watch Avantis’s December distribution estimates.
The full reasoning
For the Section 351 mechanics and the AVUC and AVNC comparisons, read Avantis AVUC, AVNC and AVTM Review: Should You Buy the New Core ETFs?.
Sources
- AVTM summary prospectus (Jan 29, 2026) and AVGE summary prospectus (revised Aug 1, 2026).
- Avantis Investors, Monthly ETF Field Guide, October 2026 edition (data as of Oct 31, 2026); Avantis holdings for Nov 9, 2026, summarized in summitward-research.
- American Century ETF Trust Form N-CSR for the year ended Aug 31, 2026.
- Dimensional ETF Trust prospectus (Feb 28, 2026) for DFAW; Vanguard VT summary prospectus and the FTSE Global All Cap Index factsheet (Aug 31, 2026).
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