Small-Cap Value Rebounds; Active ETF ACSV Draws Interest

Small-cap value has shown leadership in 2026, and American Century’s Small Cap Value Insights ETF (ACSV) launched in October 2025 to target that segment. The actively managed ETF seeks to outperform the Russell 2000 Value Index and holds about 200 stocks.

American Century describes ACSV’s strategy as a fundamental value equity approach that targets companies with attractive valuations and higher-quality business and balance-sheet characteristics. Fund managers say the pairing of quality and value in small caps can help avoid value traps.

ACSV’s 200-stock portfolio is narrower than the roughly 1,400 names typical of passive funds that track the Russell 2000 Value. American Century cautions investors that ACSV may not move in lockstep with the benchmark.

Sector weightings for ACSV differ from the passive index. Financials account for about 34% of the ETF, while industrials, energy and consumer cyclical sectors together make up about 38%. Those allocations increase the fund’s exposure to domestic activity and capital spending.

Concerns about private credit and its effect on small-cap financial services have drawn scrutiny. BNP Paribas noted, “So, while small cap banks are exposed to an industry-wide credit cycle, we believe they’re largely insulated from [any] deterioration in private credit markets as it relates to access to capital for our small cap companies.” The firm added that a recent pullback by private credit firms has not removed access to capital.

BNP Paribas stated that de-escalation in the conflict in Iran would likely strengthen conditions for small caps and cited possible benefits: “Clearly, we need to see a de-escalation in the conflict in Iran, but as we do, there are a number of tailwinds for small caps that could reemerge. These include open capital markets, healthy M&A pipelines, improving industrial activity, strong domestic capex, and a resilient consumer.”

Advisors and investors considering how to access the small-cap value trade are discussing active vehicles such as ACSV because a concentrated portfolio can differ materially from passive exposures. Returns may diverge from passive Russell 2000 Value funds depending on stock selection and sector performance.