There's little to no evidence you can systematically tactically allocate in and out of stock market sectors. Bogleheads sometimes debate which geographical regions or stock market factors to overweight or underweight, but not sectors.Freeman2025 wrote: ↑Mon Mar 18, 2024 1:36 pm Curious as to what sectors people think we should be rotating into (or out of) at this phase of the cycle (March 2024). Thanks in advance for any thoughts.
Search found 694 matches
- Mon Mar 18, 2024 2:37 pm
- Forum: Investing - Theory, News & General
- Topic: Any thoughts on sector rotation - March 2024?
- Replies: 20
- Views: 1170
Re: Any thoughts on sector rotation - March 2024?
- Thu Jan 25, 2024 9:06 pm
- Forum: US Chapters
- Topic: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
- Replies: 429
- Views: 43315
Re: 🎁 🎉Happy 100th Birthday to Taylor Larimore 🎊🎂
Happy birthday, Mr. Larimore!
- Sun Sep 03, 2023 6:55 am
- Forum: Investing - Theory, News & General
- Topic: S&P 500 concentration risk: Should we be worried?
- Replies: 245
- Views: 24670
Re: S&P 500 concentration risk: Should we be worried?
Most likely you'll be fine just staying with a standard index fund. That being said, if you go back to the old Bogleheads forum at Morningstar from the tech bubble in 2000, all worries about sector concentration and high valuations back then were dismissed as noise. From March 2000 it took about 12 years to get back to even in nominal terms in an S&P 500 index fund.
- Sat May 13, 2023 1:42 pm
- Forum: Investing - Theory, News & General
- Topic: Loving the unloved mids...
- Replies: 39
- Views: 7914
Re: Loving the unloved mids...
If you guys had to pick a Midcap Fund - would you pick the S&P 400 (IJH) or CRSP Midcap (VO)? The CRSP Midcap Index has a much much larger avg Market-cap size. Based on M* metrics - the S&P 400 (Midcap) index is practically half Midcap & half Smallcap. Is there performance data for the CRSP Midcap index for say 20/25/30 years to be able to compare to the S&P 400 Midcap index? Despite their overlapping names, there's pretty much no overlap in terms of holdings between VO and IJH. VO holds about the 200th to the 600th largest public companies in the US. IJH holds 400 stocks from about the 600th larges to the 1200th largest public companies in the US. VO has small large caps. IJH has large small caps. The ETF scan tool at ETF ...
- Tue Mar 28, 2023 3:35 pm
- Forum: Investing - Theory, News & General
- Topic: Why not follow Buffett’s mantra?
- Replies: 134
- Views: 13576
Re: Why not follow Buffett’s mantra?
- Sat Mar 25, 2023 7:36 am
- Forum: Investing - Theory, News & General
- Topic: Why not follow Buffett’s mantra?
- Replies: 134
- Views: 13576
Re: Why not follow Buffett’s mantra?
In Boglehead terms you'll achieve the same if you rebalance (or maybe over-rebalance) out of bonds and into stocks when stocks fall.
- Fri Mar 24, 2023 6:35 am
- Forum: Non-US Investing
- Topic: Risks of owning Deutsche Bank Swap/Synthetic ETF
- Replies: 5
- Views: 1161
Risks of owning Deutsche Bank Swap/Synthetic ETF
If you live in Europe and you want to own the S&P 500 in the most tax efficient way, Invesco S&P 500 UCITS ETF and Xtrackers S&P 500 Swap UCITS ETF 1C offer you superior performance to e.g. iShares Core S&P 500 UCITS ETF, since there is no dividend tax leakage in the swap/synthetic based ETFs. Just check out historical performance yourself. However, I hear there's some counterparty risk in these ETFs. What would happen if Deutsche Bank were to go under in a banking crisis? Would you as a shareholder in these ETFs lose everything?
- Tue Jan 24, 2023 12:53 pm
- Forum: US Chapters
- Topic: 🎊Happy 99th Birthday to Taylor Larimore🎉
- Replies: 247
- Views: 15932
Re: 🎊Happy 99th Birthday to Taylor Larimore🎉
Happy birthday from Norway! Thank you for your participation in freeing Europe during WW2 and thank you for your helpful posts on the Bogleheads forum.
- Tue Jan 10, 2023 1:20 pm
- Forum: Investing - Theory, News & General
- Topic: REGISTRATION FOR THE 2023 BOGLEHEAD CONTEST
- Replies: 672
- Views: 41009
- Fri Dec 23, 2022 3:39 am
- Forum: Personal Investments
- Topic: Why diversify past total stock market
- Replies: 149
- Views: 16754
- Sun Dec 18, 2022 4:56 pm
- Forum: Investing - Theory, News & General
- Topic: Total International Index fund dividends shrinking ? Am I wrong?
- Replies: 42
- Views: 15504
Re: Total International Index fund dividends shrinking ? Am I wrong?
Stronger dollar makes the total dividend from international stock shrink (in USD terms).
- Sat Jul 30, 2022 2:31 pm
- Forum: Personal Investments
- Topic: Cheapest S&P 400 Index Fund for IRA?
- Replies: 9
- Views: 1381
Re: Cheapest S&P 400 Index Fund for IRA?
It's not intuitive, but there's virtually NO overlap between the Vanguard mid cap etf and the s&p 400 mid cap etf. Vanguard mid cap contains small large caps. S&p 400 mid cap contains large small caps.pkcrafter wrote: ↑Wed Aug 25, 2021 12:22 pm Vanguard's mid cap index might be a good choice. Expense ratio is 0.05%, but minimum is $3,000.
https://investor.vanguard.com/mutual-fu ... fees/vimax
https://www.morningstar.com/funds/xnas/vimax/quote
Note: I hope you are not buying based on recent performance.
Paul
Compare the portfolios of VO and IJH at ETF Research Center here: https://www.etfrc.com/funds/overlap.php
- Thu Jul 28, 2022 10:08 am
- Forum: Personal Finance (Not Investing)
- Topic: Do you use a password manager?
- Replies: 361
- Views: 34462
Re: Do you use a password manager?
And unhackable.AnnetteLouisan wrote: ↑Tue Jul 19, 2022 4:16 pm I just write the passwords down. No, not on the back of my hand (that’s for phone numbers and grocery lists), I use a sheet of paper called “Passwords.” It’s old school, but it works.
- Sat Jun 04, 2022 2:20 pm
- Forum: Personal Investments
- Topic: Is the 60/40 portfolio still relevant without adjustments?
- Replies: 17
- Views: 2779
Re: Is the 60/40 portfolio still relevant without adjustments?
Yes, I believe a 60 40 portfolio will do just fine over the next ten or twenty years. With no adjustments.
- Sat May 28, 2022 4:06 pm
- Forum: Investing - Theory, News & General
- Topic: Is Low Volatility the best factor?
- Replies: 39
- Views: 4969
Re: Is Low Volatility the best factor?
If I were to deviate from straight indexing and invest in one factor for the rest of my investing lifetime, it would have to be some kind of quality factor. MSCIs quality indexes have been steady outperformers in pretty much any region over pretty much any Five year time horizon.
- Sun Apr 24, 2022 9:24 am
- Forum: Investing - Theory, News & General
- Topic: shocking Total Bond fund returns
- Replies: 140
- Views: 20242
Re: shocking total bond returns
Those hikes are already priced in.Artful Dodger wrote: ↑Fri Apr 22, 2022 7:51 am I buy into the efficient markets theory and am comfortable with the pure BH approach to equity markets, but on the bond side when you have increasing inflation and the Federal Reserve telling you they’re going to raise rates multiple times in the future, you can’t really say “Nobody knows nothing”.
- Sat Mar 12, 2022 3:47 pm
- Forum: Personal Investments
- Topic: International Stock Allocation
- Replies: 155
- Views: 16708
Re: International Stock Allocation
That is a complete falsehood. Between 1945 and 2009 the performance of US and ex US stocks was identical. All of the outperformance of US stocks since WW2 has come after 2009.
- Tue Mar 01, 2022 3:21 pm
- Forum: Investing - Theory, News & General
- Topic: What emerging markets funds hold Russian stocks?
- Replies: 151
- Views: 16643
Re: What emerging markets funds hold Russian stocks?
"not very happy about index or factor funds actively deciding to sell Russian stocks after a 50-80% drop. It seems like this may actually happen. I invest in rules based funds (market cap weighted index funds or factor funds) specifically to avoid these kinds of emotional decisions on part of the fund manager." Me too. What is the alternative that you are suggesting? The US sanctions effectively bar us funds from trading in Russian securities. I suggest the funds hold still; do nothing. The money is lost entirely at this time. Perhaps Russia withdraws- says "oops, sorry, my mistake, spasibo." The market could still recover somewhat at least. Index funds follow the index. The index is removing the stocks because they are...
- Mon Feb 28, 2022 12:08 pm
- Forum: Investing - Theory, News & General
- Topic: What emerging markets funds hold Russian stocks?
- Replies: 151
- Views: 16643
Re: What emerging markets funds hold Russian stocks?
Most (or all) EM index funds hold Russian stocks.
My allocation to Russian stocks is less than half a percent of my portfolio, so I'm not that concerned anyway. In principle, however, I am not very happy about index or factor funds actively deciding to sell Russian stocks after a 50-80% drop. It seems like this may actually happen. I invest in rules based funds (market cap weighted index funds or factor funds) specifically to avoid these kinds of emotional decisions on part of the fund manager.
https://www.reuters.com/business/exclus ... 022-02-28/
My allocation to Russian stocks is less than half a percent of my portfolio, so I'm not that concerned anyway. In principle, however, I am not very happy about index or factor funds actively deciding to sell Russian stocks after a 50-80% drop. It seems like this may actually happen. I invest in rules based funds (market cap weighted index funds or factor funds) specifically to avoid these kinds of emotional decisions on part of the fund manager.
https://www.reuters.com/business/exclus ... 022-02-28/
- Fri Jan 28, 2022 1:01 pm
- Forum: Investing - Theory, News & General
- Topic: Jeremy Grantham (Jan 26, 2022) being asked a lot of tough questions about his super bubble call...
- Replies: 601
- Views: 72786
Re: Jeremy Grantham (Jan 26, 2022) being asked a lot of tough questions about his super bubble call...
I think it's totally possible (at least imaginable) that US stocks will deliver negative real returns over the next decade. But Grantham needs to be called out on his doomsday preaching and 90% crash predictions.CraigTester wrote: ↑Thu Jan 27, 2022 1:50 pm Jeremy is definitely not a Boglehead.
But the interviewer almost sounds like he might be....
Interesting exchange..... Do any of Jeremy's thoughts cause anyone to rethink their IPS, or does everyone on this forum just dismiss him...?
https://www.youtube.com/watch?v=JlEGU2ypr1Q
- Mon Jan 03, 2022 1:13 pm
- Forum: Investing - Theory, News & General
- Topic: Official Registration For The 2022 Boglehead Contest
- Replies: 733
- Views: 42390
- Wed Dec 22, 2021 5:21 am
- Forum: Investing - Theory, News & General
- Topic: Rational Reminder: Is the Value Premium Smaller Than Originally Thought?
- Replies: 129
- Views: 9251
Re: Rational Reminder: Is the Value Premium Smaller Than Originally Thought?
It it has higher volatility ("risk"), it should also have higher returns. If the market is efficient, asset classes should have the same risk-adjusted returns).Marseille07 wrote: ↑Sat Dec 18, 2021 12:11 pmCorrect. One could possibly hope that SCV would continue outperforming the market, but fundamentally there's no reason why they must outperform.Triple digit golfer wrote: ↑Sat Dec 18, 2021 7:53 am Can it really be measured other than in hindsight? Can't we only say what the value premium was over a time period, not what it is?
- Fri Dec 10, 2021 4:56 pm
- Forum: Investing - Theory, News & General
- Topic: VXUS why do you guys ever invest [Vanguard Total International Stock]
- Replies: 304
- Views: 29413
Re: VXUS why do you guys ever invest
Looking at VXUS graph last 10 years it has gone from 50 (~Jan'2011) to 65 as of today with highs and lows all over last 10 years. If I compare that with VTI its night and day difference in returns. So essentially last 10 years VXUS has been completely flat to ~20-25% returns, not even beating inflation over last 10 years. So my question is, I understand past is not guarantee for future but 10 years is a long long time for VXUS to show that exponential growth, it has not even doubled in last 10 years while VTI has gone places. Why invest in VXUS at all ? For the folks that are investing what returns you expect, remember mediocre returns is same as losing money to inflation, even US real estate over last 10 years have outperformed VXUS big t...
- Sun Oct 24, 2021 1:18 am
- Forum: Investing - Theory, News & General
- Topic: What Individual stocks are you buying?
- Replies: 222
- Views: 28552
Re: What Individual stocks are you buying?
I don't memorize ticker symbols (especially not of single stocks), so I have no idea what you are talking about.
- Thu Oct 07, 2021 3:19 am
- Forum: Investing - Theory, News & General
- Topic: Is the S&P 500 Still a Diversified Portfolio?
- Replies: 84
- Views: 12399
Re: Is the S&P 500 Still a Diversified Portfolio?
Just like the winners balanced out the losers from 2000 to 2010 (with an annualized return of minus one percent or so)?brybogle wrote: ↑Tue Oct 05, 2021 2:48 am In 1990, the top S&P 500 holding was IBM. In 2000, it was GE. In 2010, it was Exxon. As these companies declined, it was balanced by the rise of Apple and Amazon, which were also in the S&P 500.
The winners balance out the losers. And so it will be as tech falls out of favor, you will own increasing percentages of the new hot sectors. So, it "naturally" rebalances and diversifies itself in a sense.
- Fri Jul 30, 2021 11:17 pm
- Forum: Investing - Theory, News & General
- Topic: Thinking of Dropping Out of International Stock Funds
- Replies: 300
- Views: 27222
- Sun Jul 25, 2021 2:50 am
- Forum: Personal Consumer Issues
- Topic: Asko Dishwasher
- Replies: 14
- Views: 1842
Re: Asko Dishwasher
Asko is a Swedish electronics manufacturer. It is a subsidiary of Gorenje that manufactures dishwashers (primarily) for the professional market. They've been in business since the 1950s. I think they are a perfectly fine manufacturer.
- Sat Jul 03, 2021 2:54 am
- Forum: Personal Investments
- Topic: how dangerous is margin
- Replies: 36
- Views: 5216
Re: how dangerous is margin
Your lender may call your loan for any reason at any point (although the risk is likely higher during a significant fall in the market).lexor wrote: ↑Fri Jul 02, 2021 9:10 pm If you leverage 15%, is it really that dangerous to use a margin account? Especially if you use portfolio margin and only buy broad market index funds? How much of a drop in the market could you handle? (I think you'd be able to take 6x leverage) How often do you need to "rebalance" your margin? i.e. re-correct your leverage to 15%.
- Wed Jun 23, 2021 5:52 pm
- Forum: Investing - Theory, News & General
- Topic: When is 0% bonds appropriate?
- Replies: 320
- Views: 29485
Re: When is 0% bonds appropriate?
When you are young AND your expected future contributions are far greater than the size of your current portfolio.
- Sat Jun 05, 2021 5:43 pm
- Forum: Investing - Theory, News & General
- Topic: One Bogleheads idea I have a hard time understanding...
- Replies: 108
- Views: 17212
Re: One Bogleheads idea I have a hard time understanding...
Stocks should have a higher expected return than risk free bonds. If you can get 1% with no risk, then the stock market should at least give you more than 1% per year. Otherwise, a rational investor would not want to invest in stocks.
- Sat Feb 06, 2021 7:17 am
- Forum: Investing - Theory, News & General
- Topic: International Stock
- Replies: 254
- Views: 16459
Re: International Stock
What do you really gain from exposure to value stocks? Over the years, I’m not sure what it adds to my portfolio. Why bother?
- Tue Feb 02, 2021 2:38 am
- Forum: Investing - Theory, News & General
- Topic: Do growth stocks have a higher weighting in the market now than before? How would you measure that?
- Replies: 10
- Views: 787
Do growth stocks have a higher weighting in the market now than before? How would you measure that?
Lately people many people (I guess i should have some references to back up this statement, but I don't) have said that growth stocks now have a higher weighting in the total stock market index than, say, five or ten years ago. Does statement make sense? By what measure(s) can one say that that is true?
If the upper half of the market (by market cap) with the highest valuations are growth stocks and the lower half of the market by valuation are value stocks, then by definition growth stocks can never get a higher weighting in the market than value stocks, so that can't be what these people are saying.
Could anyone enlighten me?
Thanks
If the upper half of the market (by market cap) with the highest valuations are growth stocks and the lower half of the market by valuation are value stocks, then by definition growth stocks can never get a higher weighting in the market than value stocks, so that can't be what these people are saying.
Could anyone enlighten me?
Thanks
- Mon Feb 01, 2021 3:06 pm
- Forum: Investing - Theory, News & General
- Topic: We are NOT in a bubble
- Replies: 164
- Views: 25117
Re: We are NOT in a bubble
On the other hand, if you listened to Greenspan and went to one of the two investment grade Vanguard bond funds available at the time, you'd find yourself ahead of the Vanguard 500 fund for significant time periods. You'd be ahead with intermediate term bonds as late as 2013 and you'd be ahead with long term bonds as late as December 2016:arcticpineapplecorp. wrote: ↑Fri Jan 29, 2021 10:12 pm Greenspan said there was "irrational exuberance" on 12/5/1996. If you'd have listened to him and sold out of the market on 12/5/1996 what would you have lost out on?
- Mon Jan 25, 2021 1:10 pm
- Forum: US Chapters
- Topic: Happy 97th Birthday, Taylor Larimore
- Replies: 146
- Views: 12448
Re: Happy 97th Birthday, Taylor Larimore
Happy birthday, Taylor! I don't offend you addressing you with your first name, only. Every once in a while, when we want to stray off into active management, you always have a bunch of wise quotes to keep us index investors on track
- Sun Jan 10, 2021 3:46 am
- Forum: Investing - Theory, News & General
- Topic: 'The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble' - GMO
- Replies: 235
- Views: 35888
Re: 'The long, long bull market since 2009 has finally matured into a fully-fledged epic bubble' - GMO
Why is the quantitative indicator "bull market" any more useful than other quantitative indicators? Bogleheads frown upon quantitative indicators used by technical analysts, but still use the term as if it has any degree of significance.
- Thu Jan 07, 2021 4:01 pm
- Forum: Investing - Theory, News & General
- Topic: Official Registration For The 2021 Boglehead Contest
- Replies: 664
- Views: 34537
Re: Official Registration For The 2021 Boglehead Contest
Guessing a 2021 meltup. 4502.
- Tue Oct 20, 2020 9:13 am
- Forum: Investing - Theory, News & General
- Topic: Is market-cap weight skewed inaccurate by stocks, like BRK, holding other stocks?
- Replies: 22
- Views: 1597
Re: Is market-cap weight skewed inaccurate by stocks, like BRK, holding other stocks?
Let's say there are 20 billion shares of AAPL outstanding, at a market price of $100 each for a total of $2,000 billion. Let's say that at first Berkshire Hathaway owns none of it, then it buys 1 billion of those shares. So Berkshire Hathaway buying it doesn't change the number of outstanding shares. Meanwhile, if Berkshire Hathaway owns it, then nobody else owns it. The share only has one owner. It doesn't get counted twice. Let me just use some round numbers. AAPL market cap i $2,000 billion and is 5% of the S&P 500. Berkshire market cap is $400 billion, so Berkshire is 1% of the S&P 500. But Berkshire holds $100 billion in cash. If Berkshire spends this $100 billion to buy AAPL stock, then Berkshire's weighting in the index will...
- Sun Sep 13, 2020 3:59 am
- Forum: Investing - Theory, News & General
- Topic: Irrational Exuberance- Is completely ignoring all external signals (p/e) and auto-investing monthly ever a bad idea?
- Replies: 54
- Views: 4949
Re: Irrational Exuberance- Is completely ignoring all external signals (p/e) and auto-investing monthly ever a bad idea?
By that definition value stocks are cheaper than growth stocks. Not just now, but they always have been and always will be. And value traps (those that in hindsight will be known as value traps) are the cheapest stocks of all.warner25 wrote: ↑Sun Sep 13, 2020 3:24 amBut, by definition, they are cheaper, right? They are the industries that investors haven't bid up so high.
- Wed Apr 22, 2020 5:11 am
- Forum: Investing - Theory, News & General
- Topic: Vanguard factor funds performance - Q1 2020
- Replies: 151
- Views: 8113
Re: Vanguard factor funds performance - Q1 2020
So which parts of the market outperformed? Large cap, high volatility, low quality, negative momentum and high multiple (growth) stocks?
- Thu Apr 02, 2020 8:18 am
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks in free fall
- Replies: 36221
- Views: 4683569
Re: U.S. stocks in free fall
The market has no obligation to be priced based on this year's or next year's earnings. When the dust has settled from the pandemic, which we hope it will by a year or two, the rebuilding of the economy will begin. Earnings will hopefully be back to all time nominal highs within three to five years. That's probably what the market expects, too, if it doesn't fall to 2000 or 1500.
- Sun Mar 29, 2020 3:09 pm
- Forum: Investing - Theory, News & General
- Topic: Where Is The SP 500 Future
- Replies: 32
- Views: 3659
Re: Where Is The SP 500 Future
You're forgetting the dividend yield of about 2%.
S&P 10 000 in 40 years sounds pretty reasonable. With a 2% dividend yield and 2% inflation that's a 3.5% annualized real return.
- Mon Mar 23, 2020 4:24 am
- Forum: Investing - Theory, News & General
- Topic: It's Not Different This Time
- Replies: 379
- Views: 48729
Re: It's Not Different This Time
I think this is serious, but I don't the world economy will be in worse shape than say, Japan and Germany after WW2. These two countries came back and became the top two and three economies in the world after WW2.
- Fri Mar 20, 2020 4:32 pm
- Forum: Investing - Theory, News & General
- Topic: Declines in stocks do not occur in a vacuum
- Replies: 99
- Views: 11365
Re: Declines in stocks do not occur in a vacuum
I think I remember that Jason Zweig once wrote something along the lines "You don't get to buy stocks at bargain prices in the absence of bad news." This drop in stocks illustrates that point perfectly.
- Mon Mar 16, 2020 6:58 am
- Forum: Investing - Theory, News & General
- Topic: U.S. stocks in free fall
- Replies: 36221
- Views: 4683569
Re: U.S. stocks in free fall
I believe the market will move down until we either get a vaccine or the stats looks like we are on the downside of the crest. I think the development of a vaccine is probably the most important since some believe there may be multiple waves of infections. I believe an official recession is all but built in. I will be keeping an eye on China as the canary. There are questions about whether a vaccine can be made for a coronavirus any time soon. https://www.theguardian.com/world/2020/mar/15/when-will-a-coronavirus-vaccine-be-ready-human-trials-global-immunisation The consistent message I've been hearing is at least a year to 18 months until a vaccine can be in widespread production. Many have quoted Dr Fauci in various threads here as saying...
- Thu Jan 09, 2020 8:58 am
- Forum: Investing - Theory, News & General
- Topic: OFFICIAL REGISTRATION FOR THE 2020 BOGLEHEAD CONTEST
- Replies: 688
- Views: 37066
- Sat Dec 21, 2019 11:05 am
- Forum: Investing - Theory, News & General
- Topic: The S&P 500 Goes Supernova
- Replies: 135
- Views: 23199
Re: The S&P 500 Goes Supernova
All events are historical, but only extraordinary events are historic.
- Sat Dec 21, 2019 11:05 am
- Forum: Investing - Theory, News & General
- Topic: The S&P 500 Goes Supernova
- Replies: 135
- Views: 23199
Re: The S&P 500 Goes Supernova
All events are historical, but only extraordinary events are historic.
- Wed Sep 25, 2019 10:58 am
- Forum: Personal Investments
- Topic: VTIAX International fund - should I give up on it?
- Replies: 297
- Views: 44416
Re: VTIAX International fund - should I give up on it?
Lot of posts in this thread parroting the "recency bias" fallacy. 200 years ago the US was not even a top 10 economy, and even in the late 19th century was still behind Britain. It has absolutely outperformed in the past 1-2 centuries. Yes. The US also has significant cultural, demographic, and geographic advantages over most every other country that have greatly contributed to those returns. We all hope those advantages continue into the future. All those things were known a few decades ago when the consensus was that Japan was going to take over the world. What's deemed an advantage today has a way of becoming a disadvantage tomorrow. Despite whatever the latest news cycle says, and despite how corny it sounds, America has prov...
- Mon Sep 09, 2019 4:15 pm
- Forum: Investing - Theory, News & General
- Topic: Explaining the Demise of Value Investing
- Replies: 318
- Views: 25686
Re: Explaining the Demise of Value Investing
Any comments on today's wide spread in performance between value and growth stocks? VLUE (ishares enhanced value) was up 1.78%, while IWF (russell 1000 growth) was down 0.78%. MTUM was down 1.68%. Just noise, or anything worth commenting in?
- Thu Sep 05, 2019 6:25 pm
- Forum: Investing - Theory, News & General
- Topic: US Small Value Has Been Hiding In Plain Sight All Along
- Replies: 33
- Views: 3994
Re: US Small Value Has Been Hiding In Plain Sight All Along
...with the SV fund winning by just about 2% annually over that 7 year time period. 2009-2016 VTSMX 14.69% DFSVX 16.65% The DFA fund was 45% more volatile than the total market fund. Total Market crushed the DFA fund on a Sharpe Ratio basis. That means that it would have been much better to simply lever up your total market holding: DVSVX: 16.65% VTSAX levered to 145%: 21.18% https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=2009&firstMonth=1&endYear=2016&lastMonth=12&calendarAligned=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDevi...