AVUVX
Avantis U.S. Small Cap Value Fund Institutional Class
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\^ This. Fidelity can aggregate the value of all the AVUVX shares in its customers' IRAs, so that any IRA customer's minimum initial purchase becomes $500. Still, you'd be better off buying AVUV to avoid the $49.95 fee.
The OP didn't contribute $25,000 in a single year to their IRA. They bought $25,000 of AVUVX with the funds that are in their IRA which is perfectly fine.
Likely, Fidelity has a deal with Avantis where they promise that as a whole Fidelity customers will purchase >$5MM of AVUVX and are allowed to sell smaller units to their customers.
Small cap value has always been a thing as it was the best returning asset class for past 100 years. Also Fama and French wrote a nobel prize winning research paper about it. The reason i switched from the small cap index funds to AVUVX is because AVUVX uses factor investing that weeds out a lot of the garbage small cap stocks.
Thanks. But I actually ran this port thru [portfoliovisualizer.com/optimize-portfolio](http://portfoliovisualizer.com/optimize-portfolio) For the period Jan 2020 - Jul 2024 (I know it's not a long-term but it's the longest possible given AVUVX's short history), this port gives CAGR of 16.09% vs. VTI's 13.48%. Maximum Drawdown is -21.85% vs. -24.81%. Sharpe Ratio is 0.75 vs. 0.64. So at least for this period back-tested, it shows a notable margin against only holding VTI. What am I missing?