Avantis' funds use rule-based quantitative strategies that use screens and performance data to decide the fund composition and trades. Unlike actively managed funds, there's no human picking stocks or timing the trades. I'm sure they tweak their models a lot, but it's not a Peter Lynch situation.
Indexes like the S&P 600 (which VIOV follows) use similar screens for value and profitability and so on, and could be said to be "actively managed" [1]. Don't forget that indexes are typically "actively managed" as well. The S&P 500 is an example of an index that is essentially a human-curated list set up by committee. It's not the top 500 companies on VTSAX/VTI.
But indexes have a big downside in they they're not rebalanced so often. Avantis' funds can rebalance constantly (usually daily) based on their quantitative models.
Indexes like the S&P 600 (which VIOV follows) use similar screens for value and profitability and so on, and could be said to be "actively managed" [1]. Don't forget that indexes are typically "actively managed" as well. The S&P 500 is an example of an index that is essentially a human-curated list set up by committee. It's not the top 500 companies on VTSAX/VTI.
But indexes have a big downside in they they're not rebalanced so often. Avantis' funds can rebalance constantly (usually daily) based on their quantitative models.
[1] https://www.optimizedportfolio.com/passive-is-a-myth/