AIMS Represents A New Era for Small-Cap ETFs

Behind the Ticker’s host Brad Roth, CIO of Thor Financial Technologies, chats this week with Chris Tessin, Managing Partner, CIO of Acuitas Investments. Tessin offers insights into the small- and micro-cap spectrum, opportunities specific to this year for small-caps, as well as why a multi-manager approach just makes sense in research-heavy assets, with a focus on the Acuitas Small Cap Active ETF (AIMS). 

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3 Reasons You Should Be Paying Attention to Small-Caps

• The Multi-Manager Model Innovation The AIMS ETF utilizes a unique structure where Acuitas aggregates model portfolios from several specialized active managers into a single, liquid ticker. This approach allows the fund to maintain high-conviction, concentrated bets while diversifying the specific style risks associated with any one individual manager. By using a trading sub-advisor to execute these blended models, the fund provides retail and institutional investors with streamlined access to talent that is typically restricted to private accounts.

• Solving the Small-Cap Capacity Crisis Small and micro-cap managers often face strict capacity limits, meaning they must close their doors to new capital to avoid diluting their investment strategy. Acuitas solves this by building a diversified team of managers, which effectively creates a much larger pool of scalable capacity for the ETF. This enables the fund to handle significant inflows—like the $77 million gained in its first month—without forcing the underlying managers to compromise their active, high-alpha approach.

• A Compelling 2026 Valuation Thesis Despite a decade of large-cap dominance, Tessin highlights a massive valuation disconnect between the S&P 500 and the Russell 2000. With small-cap earnings expectations for 2026 projected at roughly 30% growth, the asset class is positioned to potentially triple the earnings growth rate of its large-cap counterparts. He argues that with large-cap multiples currently stretched, the significant discount found in small and micro-cap equities offers a coiled spring opportunity for investors.

Acuitas Investments can be found at AcuitasInvestments.com. The firm encourages advisors, investors, and small-cap managers who want to connect or learn more about the product to reach out directly.

Disclaimer: The market insights, projections, and investment strategies expressed in this article are solely those of the contributor and do not necessarily reflect the views or opinions of ETF.com. This content is provided for informational purposes only and does not constitute financial, investment, or legal advice.