AVUC vs AVUS: Which Should You Pick?
AVUC or AVUS? Same Avantis strategy text, 0.17% vs 0.15%, but AVUC held 18.5% in seed investors' ETFs in November. Which to buy, and why not to swap them.
AVUS is Avantis’s broad U.S. stock ETF, launched in September 2019 and holding $14.7 billion in November 2026. AVUC launched on October 13, 2026 with the same prospectus strategy text and the same 0.15% management fee. The difference is how AVUC got its first portfolio: through Section 351 contributions, in which investors handed the fund appreciated holdings in exchange for shares, in transactions structured to defer their gains.
Quick answer
For new money, buy AVUS. It runs the same strategy for 0.15% against AVUC’s 0.17%, and its portfolio already reflects that strategy. On November 9, 2026, AVUC still held 18.5% in other ETFs that its seed investors contributed, and looking through those ETFs it overlapped the Russell 3000 (74.3%) more than it overlapped AVUS (65.7%). If you contributed to AVUC at launch, holding is the default, since selling would realize the gain the exchange deferred. In a taxable account, do not sell either fund to buy the other.
| AVUS | AVUC | |
|---|---|---|
| Launched | Sep 24, 2019 | Oct 13, 2026 |
| Strategy text | Identical apart from AVUC's seeding sentences and AVUS's derivatives and securities-lending sentences | |
| Benchmark | Russell 3000 | |
| Expense ratio | 0.15% | 0.17% (0.15% fee + 0.02% acquired funds) |
| 30-day median bid-ask spread (Nov 9) | 0.02% | 0.06% |
| Net assets (Nov 9) | $14.7 billion | $362 million |
| Holdings (Oct 31) | 1,940 | 1,543 |
| Held in other ETFs | 0% | 18.5% (70 positions) |
| Non-U.S. stocks (Avantis country tags) | 0% | 2.2% (70 names) |
| Overlap with each other | 65.7% of weight shared, looking through AVUC's ETFs (65.0% to 67.7% allowing for ETFs not expanded) | |
| In stocks making up the smallest 10% of index value | 15.0% | 4.3% (index: 10.0%) |
| Russell value share | 60.5% | 57.8% (Russell 1000: 55.1%) |
| Section 351 seeding | No | Yes |
| Unrealized gains | 30.2% of investments (Aug 31, 2026); no long-term gain distributions in fiscal 2025 or 2026 | Not yet reported; first semiannual report covers through Feb 28, 2027 |
AVUS and AVUC summary prospectuses (Jan 1 and Oct 7, 2026); Avantis daily holdings and trading data for Nov 9, 2026, with AVUC's ETFs looked through; Avantis Field Guide (Oct 31, 2026); Form N-CSR for the year ended Aug 31, 2026.
What AVUC holds that AVUS does not
The largest single difference is IWF and IWD, iShares’ Russell 1000 Growth and Value ETFs, at 6.67% and 5.87% of AVUC. Together they hold nearly the whole Russell 1000, weighted slightly toward growth, and the prospectus says AVUC “generally expects to hold” contributed ETFs as long-term investments. Looking through them, AVUC held JPMorgan at 3.08% against AVUS’s 1.41%, Berkshire Hathaway at 2.60% against 0.78%, and Procter & Gamble at 1.21% against 0.35%. AVUS leans toward smaller companies, with 15.0% in the stocks that make up the smallest 10% of the Russell 3000 by value; AVUC had 4.3% there, less than the index.
AVUC should move toward AVUS over time, because the strategy is the same. Selling low-basis seed positions would realize the gains the seeding deferred, so the change will come mainly through new cash and redemptions. Nobody outside Avantis can say how fast. The method and data behind these numbers are in the research repository.
DFAC as a third option
Dimensional’s DFAC costs 0.17%, the same as AVUC, and runs a similar tilted U.S. portfolio. Since October 5, 2026 it has been the ETF share class of a Dimensional mutual fund, and its prospectus warns that mutual fund flows can create capital gains for ETF holders. It is the usual tax-loss-harvesting partner for AVUS because it has a different manager and process.
Who should pick which
AVUS
Anyone buying the Avantis U.S. strategy with new cash, in a taxable account or an IRA. It is cheaper, larger, and its portfolio is already where the strategy puts it.
AVUC
Investors who contributed appreciated holdings at launch, and anyone who already owns it at a gain. Selling to save 0.02 points a year rarely pays for the tax.
Frequently asked questions
Is AVUC better than AVUS?
Not for a new buyer today. The strategy is the same and AVUS costs 0.02 points less. AVUC’s advantage was the tax-deferred exchange it offered seed investors at launch.
Should I sell AVUS to buy AVUC?
No. You would pay more each year for the same strategy, and in a taxable account you would realize any gain on your AVUS shares.
Can I tax-loss harvest between AVUS and AVUC?
I would not. They share a manager and strategy text. Summitward’s tax-loss harvesting guide lists only pairs with a different index or manager; DFAC is the usual partner for AVUS.
Can I still contribute my portfolio to AVUC?
Nothing public suggests so. The prospectus describes the in-kind exchange as how the fund acquired its initial portfolio, and Avantis has published no terms for later contributions.
The full reasoning
For the Section 351 mechanics, the IRS ruling of September 28, 2026, and the AVNC and AVTM comparisons, read Avantis AVUC, AVNC and AVTM Review: Should You Buy the New Core ETFs?.
Sources
- AVUC summary prospectus (Oct 7, 2026) and AVUS summary prospectus (Jan 1, 2026).
- Avantis daily holdings for Nov 9, 2026 and holdings counts for Oct 31, 2026, from the AVUC and AVUS fund pages; look-through, overlap and value-share calculations in summitward-research.
- American Century ETF Trust Form N-CSR for the year ended Aug 31, 2026 (AVUS tax cost, unrealized gains and distribution character).
- Dimensional supplement dated Sep 25, 2026 (DFAC 0.17%) and ETF share class prospectus (Feb 28, 2026).
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