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Like all fund companies, there is good and there is not so good. DFA has some excellent DFA funds and some mediocre ones. Their international small-cap value is excellent. It hasn't been replicated in the ETF world yet. The emerging market core fund is also very good. I like the way they allocate a...

Thanks. That is probably what I will do.

Pauliec84, I would appreciate an analysis of your data. I sometimes think I understand the numbers but obviously, I don't :oops: . In my company's profit sharing account, the international allocation is Vanguard Total International index 50%, GWX ( S& P international small cap ETF) 25% and DLS (...

SCZ (i shares MSCI EAFE small cap ETF) is small cap blend not value.

Venkat

There are 3 options. All ETFs. Powershares FTSE mid and small cap fund (PDN), WIsdomtree international small cap dividend fund( DLS) and Wisdomtree emerging markets small cap dividend fund( DGS). Both the Wisdomtree ETFS hold up very well against their DFA counterparts. Probably worth the pricey ERs...

Thanks for the info. And I thought 'momentum' was the 4th FF factor .

Venkat

Something strange must be happening in Austin, TX ( DFA headquaters). In Dec 2012 they started domestic and international GROWTH funds (including the famous black hole, small cap growth). Are they finally joining the Vanguard bandwagon? Should be interesting to hear what the value diehards have to s...

Can we now expect that Vanguard Small Cap Value (and Large value) will be following the same index as equivalent DFA funds?

I meant DLS vs DISVX and DGS vs DEMSX.

Venkat

Closet Indexer, can you post the factor loadings for DGS and DLS in comparison with equivalent DFA funds?

Thanks.

This links to Aug 2011 returns.

Was wondering why it wasn't up. Thanks. Hope you keep doing it.

Venkat

Though not true value ETFs, a combination of Wisdom Tree Emerging markets small dividend (DGS) and Smallcap Dividend (DLS) should be adequate.

I check my portfolio daily. I only sell for TLH. The only unBoglehead thing I do is rebalance on major dips. So far that seems to be working . My Vanguard portfolio returns for 1, 3, 5 years are 7, 12.5 and 7.4%. However my total return is likely lower due to my wife's retirement account (401K and p...

I noticed today that the yield for this fund is 1.77 as compared with 1.97 for Total Bond. (Admiral shares) Isn't this a small spread for the (greater than double) duration risk? I know this is not a fair comparison and should certainly not matter for 'buy and hold'-ers but am curious to hear from b...

Jerry_lee, In an old thread, Robert T had suggested (Vanguard) Mid Val as a substitute for Large Val presumably for the same reasons you mentioned. Interestingly, I vaguely remember him mentioning Tax managed Small cap (S & P 600) as a decent small cap holding in taxable accounts. I've often won...

I wonder how you reconcile the know all efficient Mr. Market with the 'madness of crowds'.
I have no theory to back this up but I tend to rebalance on the dips especially with new cash. Fortunately still in the accumulating phase.

Much to learn, I wonder if the equity premium has itself been arbitraged out . See my previous post.

Sorry that should have been Nick not Ken. Actually I came up with a more sobering problem which really overshadows the small value lag. Both intermediate and long term bonds have beaten total stock market index by 1% and 4% respectively for both 10 and 15 years! Long term bonds have smashed stocks o...

Ken,

Do you believe that applies to the DFA SV fund as well? I know you do not believe in a 'real life' value premium but what about a small cap premium?

So does anyone know the longest period of underperformance of HmL or even SmB?
Just curious, not planning to change my strategy anytime soon. Seems like it would be important for advisors(who follow FF) to know.

It's well known that (small) value can lag blend or even growth (?) for long periods of time. When I checked Morningstar it appeared that DFA small value was lagging upto 10 years ( less than 0.2% overperformance compared to Vanguard blend and underperformance of 0.70 compared to Vanguard small grow...

VFINX has beaten your once favored 'hot hands' over 1 and 5 years :wink: . Likewise Taylor's trio has beaten the G portfolio. However, while I'm an indexer, there is no question that you could do far worse than select low cost active Vanguard funds. You don't need Weiner to select them. I'm not even...

This physician oriented site may help as well: http://whitecoatinvestor.com/

Venkat

Just check Madsinger's monthly report. This has a bunch of portfolio returns since 1999 including Wiener's portfolios.
1, 3 and 5 year returns are less than stellar.

I would consider the following:
1) Get a consultation from Vanguard.
2) If you want DFA access check this out http://www.retireearlyhomepage.com/low_fee_dfa.html
Additionally check out Diehard Disciple's thread 'How I chose a low cost DFA advisor.....'

Venkat

I guess Adrian Nenu would be considered an exBoglehead.
Venkat

Ferri's book is 'The Power of Passive Investing'.

Venkat

This is a mild dilemma I deal with. I'm one of the trustees for my groups pooled pension and profit plan. Before I joined it was run by an advisor who invested it in 7 stocks (50% BRK.A) and cash (0 bonds). I've gradually implemented the following: 1) Transferred from Merrill to Vanguard. 2) Asset a...

I've been waiting for the Indian RE bubble to burst for many years !:shock: Seems like I can afford a house in the US but not in Chennai. Conventional wisdom in India is to invest in RE, gold (at any cost) and CDs with their deceptively high rates. Stocks and bonds are still not that popular. Regard...

So, it's obvious that bonds are going to take a hit. Should we then move to 100% stocks or reduce bond holdings?
I don't buy that. For the really nervous one obvious option may be short term bonds (funds), CDs, or I bonds.
Nisi should step in now and give his quantitative take on bond bubbles.

Venkat

It would seem that even the great minds sometimes forget the grand principles of asset allocation, buy, hold and rebalance.
The article reeks of tactical asset allocation. Perhaps the saving grace was the part on low costs.
Even idols have feet of clay...

Venkat

Actually the IIFL Nifty ETF is the cheapest (0.25% expense ratio) but also the newest. So perhaps the best choice is the Goldman Sachs Nifty BeES ETF.
Here is a more recent list with expense ratios:
http://www.onemint.com/2011/10/11/compr ... -and-etfs/

Venkat

Some support for indexing in India:
http://www.crisil.com/pdf/capitalmarket/SPIVA_dec11.pdf

Venkat

Maybe this recent article will support my pessimism about indexing in India: http://www.onemint.com/2012/03/13/why-isnt-investing-in-index-funds-popular-in-india/ This web site also has good lists of index funds and why the 'Nifty' is a better choice than the Sensex. I just want to clarify that I pe...

I have looked at this some time back. Was very disappointed because I got the impression that they were relatively expensive compared with good ol' index funds in the US. Some useful websites: Value research online, Morningstar India, MutualfundsIndia.com and lastbull.com (this has a list of Indian ...

I recently refinanced with Amerisave. I would never do it again. I'm a relatively high net worth individual with excellent credit, negligible debt and enough liquid nonretirement funds to pay the loan several times over. I felt humiliated by the process and literally went through a financial inquisi...

As a physician, I see no point in becoming a CFP. Doubt you can do justice to both. I have an avid interest in personal finance and investing. In fact, by default I manage my practice's (4 physician plus 20 or so employees) profit sharing and pension plan. I also started a 401K plan with Employee Fi...

And....dear Rick...we are waiting..what is that non beta fund!

Venkat

Good job.
Looks like someone has been inspired by Taylor .

Best wishes.

Venkat

Check out this useful but somewhat old article, 'Investing in Managed funds' by Susan Hely, Money, Oct 2007. I have no idea about posting links but google it. Also google ME funds.

Best wishes.

Venkat

You could check the Vanguard Australia web site. Ideal investment would be Vanguard Life Strategy High Growth fund but minimum investment is $5000.

Venkat

Thanks, Robert. I always enjoy your incisive analysis though I don't always understand the math. On a side note, I've naively wondered why there are only five factors which explain portfolio returns. Seems to me that there are atleast 9. The usual FF 5 as well as momentum, expense, tax (in)efficienc...

It will be interesting to see the future performance of the Larry portfolio. Personally I would go with the whole market/small tilt combo. Devout Indexer, what are your thoughts about the (current) Vanguard small cap value index compared with DFA small value and what do you use for international val...

I personally believe that most, if not all idols have clay feet.
Bogleheads would never fall for, 'this time is different'.

Venkat

Because all risk is not the same. There is an expectation, not a guarantee of higher return for taking on higher systematic (market) risk so the statement, risk=return is misleading and incorrect. Seems to me you would be taking on sector(unsystematic) risk with European bonds unless you were alread...

I wondered about that too. It should be called GMO Monthly Real Return Forecast!

Venkat

Oops....the last comment will surely stir up a fire storm. Small growth clearly being the most reviled of the stock universe amongst value tllters and slicers/dicers.

Venkat

More support for Mel's unloved midcaps! But seriously how can they allow this in NYT. Wrong benchmark comparisons, comparing mid and small cap funds to the S &P 500. Even an inexperienced Boglehead like me can see the flaw.
Venkat

I always assumed Nisi was a wise middle aged man, former computer programmer, forever computer/quant geek. I vaguely remember him mentioning his wife in some long lost post.
Venkat