Search found 10610 matches

by MotoTrojan
Fri Sep 18, 2020 11:59 am
Forum: Investing - Theory, News & General
Topic: So, you want to tilt to growth
Replies: 33
Views: 2818

Re: So, you want to tilt to growth

Investors buy recent winners rather than build a well-balanced portfolio because of a myopic view of performance. Over the last 40 years, growth has outperformed value 20 times, and value has outperformed growth 20 times, but in the recent past growth has outperformed. so if value and growth have o...
by MotoTrojan
Fri Sep 18, 2020 11:31 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I don't, but I was talking about mid caps in general (its basically a 50-50 mid and small mix) What makes you say that? My estimate tell me it's closer to 80-20 small-mid. https://www.etrade.wallst.com/v1/stocks/fund_portfolio/portfolio.asp?symbol=VBR Is E*TRADE wrong? It's not wrong, just probably...
by MotoTrojan
Fri Sep 18, 2020 9:35 am
Forum: Investing - Theory, News & General
Topic: Vanguard Multifactor fund VFMF has had a bad year
Replies: 93
Views: 4951

Re: VFMF has had a bad year

Yes, like so many that invest in small value stocks because they did well in the past. Or those that jump into momentum or quality or profitability or low volatility stocks because they performed well in the past. I'd rather performance chase something that has a good long-run history but has done ...
by MotoTrojan
Fri Sep 18, 2020 9:00 am
Forum: Personal Investments
Topic: Thoughts about Leveraged ETF's
Replies: 19
Views: 1175

Re: Thoughts about Leveraged ETF's

Therefore I am looking to place a little money in high risk/ high reward investments. Good thoughts from vineviz above but to flesh it out a bit more, while UPRO is high risk, I don't know that I would call it high reward. This thread's 1st post has a TON of great info on these funds, and actual wa...
by MotoTrojan
Fri Sep 18, 2020 8:55 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

VBR does a perfectly fine job at getting exposure to HML relative to say SLYV, and still gets most of the SMB exposure. By holding a little more VBR you can get the same exposure while reducing your overall weighted expense ratio, so unless you need a deeper fund to meet your target exposure, no ne...
by MotoTrojan
Fri Sep 18, 2020 8:02 am
Forum: Personal Investments
Topic: Thoughts about Leveraged ETF's
Replies: 19
Views: 1175

Re: Thoughts about Leveraged ETF's

Therefore I am looking to place a little money in high risk/ high reward investments. Good thoughts from vineviz above but to flesh it out a bit more, while UPRO is high risk, I don't know that I would call it high reward. This thread's 1st post has a TON of great info on these funds, and actual wa...
by MotoTrojan
Fri Sep 18, 2020 7:56 am
Forum: Investing - Theory, News & General
Topic: Vanguard Multifactor fund VFMF has had a bad year
Replies: 93
Views: 4951

Re: VFMF has had a bad year

I'd hope not, but given the Boglehead affinity for performance-chasing I wouldn't be surprised. Yes, like so many that invest in small value stocks because they did well in the past. Or those that jump into momentum or quality or profitability or low volatility stocks because they performed well in...
by MotoTrojan
Fri Sep 18, 2020 7:39 am
Forum: Personal Finance (Not Investing)
Topic: Should I help my mother pay off debt?
Replies: 31
Views: 2202

Re: Should I help my mother pay off debt?

Your wife’s opinion will matter here more than anything, especially since I presume the inheritance was from her side. Maybe you can convince your mother to let you pay off $30K plus whatever interest that portion has accrued; keeps this equal between siblings at $10K each which could help her pride...
by MotoTrojan
Fri Sep 18, 2020 7:34 am
Forum: Personal Investments
Topic: Advice: Benefits in Early Career
Replies: 2
Views: 329

Re: Advice: Benefits in Early Career

I would confirm if Roth 401k contributions are acceptable for the match. I know the company can only contribute the match as pre-tax, so worth double checking that you’ll still get it if your contribution is Roth. Unless you can get that 5.7% WAY down I would probably put every penny beyond the matc...
by MotoTrojan
Fri Sep 18, 2020 7:17 am
Forum: Investing - Theory, News & General
Topic: Vanguard Multifactor fund VFMF has had a bad year
Replies: 93
Views: 4951

Re: VFMF has had a bad year

I'd hope not, but given the Boglehead affinity for performance-chasing I wouldn't be surprised. Yes, like so many that invest in small value stocks because they did well in the past. Or those that jump into momentum or quality or profitability or low volatility stocks because they performed well in...
by MotoTrojan
Fri Sep 18, 2020 7:11 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Glad to hear you are starting to narrow things down! Few more answers to hopefully get you to the finish line. I think I prefer SLYV over VIOV because its market cap is about 4x the size and ER is the same IJS mkt cap is over 2x of SLYV, but a higher ER and I think a 2B mkt cap is fine, but not sure...
by MotoTrojan
Fri Sep 18, 2020 6:43 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Point is the decision on which fund is less critical than you are making it out to be, the real question is how much do you want to tilt? Once you decide that, using VBR, SLYV, VIOV, or AVUV really won't matter much, you just may want to adjust how much of each you hold to get you that tilt. Hmm. I...
by MotoTrojan
Thu Sep 17, 2020 7:49 pm
Forum: Investing - Theory, News & General
Topic: what % of stocks in SP500 returns better than index?
Replies: 27
Views: 2598

Re: what % of stocks in SP500 returns better than index?

The vast majority of companies not only underperform the market, they underperform t-bills.
by MotoTrojan
Thu Sep 17, 2020 7:27 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

So from doing some light studying about SCV I have some questions and conclusions: 1. It seems like S&P600>Russell 2000 b/c of the extra screening process, right? 2. VBR/VSIAX have a lot of mid cap, about half, way too much for the purpose of scv. I have a few questions though. 1. What are the diff...
by MotoTrojan
Thu Sep 17, 2020 3:59 pm
Forum: Investing - Theory, News & General
Topic: AQR still singing the same song
Replies: 121
Views: 10004

Re: AQR still singing the same song

One final point. There is great controversy about how best for funds to define and capture the SCV premium. SCV funds choose a wide variety of approaches. It may well turn out that in order to harvest it long term premium you have to pick not just any SCV fund but the right one, since there is a wi...
by MotoTrojan
Thu Sep 17, 2020 3:54 pm
Forum: Investing - Theory, News & General
Topic: AQR still singing the same song
Replies: 121
Views: 10004

Re: AQR still singing the same song

Fun to see all the people who endlessly bash factor investing in this thread with the same tired arguments. Meanwhile, I'm happily plugging along with my AQR funds, which I have held since 2014. My entire IRA is AQR funds. QSMLX has outperformed every other noteworthy small cap value fund since its...
by MotoTrojan
Thu Sep 17, 2020 3:51 pm
Forum: Investing - Theory, News & General
Topic: So, you want to tilt to growth
Replies: 33
Views: 2818

Re: So, you want to tilt to growth

Yes, I have a family member who sees the huge gains in growth and then sold value to buy QQQ during August. Performance chasing! We don’t have to worry about which will outperform with the total stock market fund which is of course one of the benefits holding it long term. Yikes... moving S&P500 fu...
by MotoTrojan
Thu Sep 17, 2020 3:38 pm
Forum: Investing - Theory, News & General
Topic: any lessons to remember from dot com bubble?
Replies: 22
Views: 2252

Re: any lessons to remember from dot com bubble?

columbia wrote: Thu Sep 17, 2020 2:46 pm Don't buy individual stocks.
CSCO still had a decade-long 40% CAGR even at the bottom of it's 80%+ drawdown :twisted: :greedy .
by MotoTrojan
Thu Sep 17, 2020 3:37 pm
Forum: Investing - Theory, News & General
Topic: any lessons to remember from dot com bubble?
Replies: 22
Views: 2252

Re: any lessons to remember from dot com bubble?

I did another exercise that I didn't end up enjoying very much. I assumed I retired in beginning of 2000 with a $1 million nest egg, 100% US equities, and a 4% withdrawal rate (2% raise each year for inflation). FIRE style type of plan. Looks like I made it through 20 years without going broke, but...
by MotoTrojan
Thu Sep 17, 2020 2:22 pm
Forum: Investing - Theory, News & General
Topic: any lessons to remember from dot com bubble?
Replies: 22
Views: 2252

Re: any lessons to remember from dot com bubble?

I did another exercise that I didn't end up enjoying very much. I assumed I retired in beginning of 2000 with a $1 million nest egg, 100% US equities, and a 4% withdrawal rate (2% raise each year for inflation). FIRE style type of plan. Looks like I made it through 20 years without going broke, but...
by MotoTrojan
Thu Sep 17, 2020 11:51 am
Forum: Personal Investments
Topic: Suggestions for 100x moonshots
Replies: 86
Views: 11998

Re: Suggestions for 100x moonshots

OP I would consider buying a basket of net-net micro-cap stocks if you can find any. Buying 10 of them may give you a shot at capturing a couple big ones, but 100x is all luck. Good book covering all the basics of net-nets: https://www.amazon.com/Benjamin-Grahams-Net-Net-Stock-Strategy/dp/085719707X
by MotoTrojan
Thu Sep 17, 2020 11:50 am
Forum: Investing - Theory, News & General
Topic: SEC Yield on Vanguard Short Term Treasury Index (VSBSX)
Replies: 2
Views: 240

Re: SEC Yield on Vanguard Short Term Treasury Index (VSBSX)

SEC yields always include expense ratio (it is net of fees).
by MotoTrojan
Thu Sep 17, 2020 11:10 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

In 2003 Larry Swedroe, who represents a large advisory group, published " The Successful Investor Today. " He wrote: "Thus holding a value tilt not only provides greater expected returns on your equity holding, but it also allows you to take more interest-rate risk and thus potentially earn greater...
by MotoTrojan
Thu Sep 17, 2020 10:21 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

If you don't believe their inclusion will generate higher risk adjusted returns, then there is no reason to use them when holding bonds (you would be equally well off to simply tilt more towards total market equity funds). I believe holding the tilt incorporates different kinds of risk. Like not pu...
by MotoTrojan
Thu Sep 17, 2020 10:19 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I'm curious about what the general mindset was like back then (~2003). Were people rushing into small/value strategies because of the 2000-2003 outperformance? Were people saying that large growth investing is dead? I found this old thread a while back from April of 2007 and people were talking abo...
by MotoTrojan
Thu Sep 17, 2020 8:00 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Ok so you, like Dave and Swedroe, believe in a diversification free lunch. Nothing good or bad, it's just your belief. So you should tilt as much as you can while keeping the tracking error reasonable for you. Believing that a portfolio that has exposure to 3 factors is more diversified than a port...
by MotoTrojan
Thu Sep 17, 2020 7:59 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

rascott wrote: Thu Sep 17, 2020 7:13 am


O'Shaughnessy also has motives to entice investors into their SCV funds with 1.79% ERs.
Are they really that high? Wow... well constructed composite value-sorting and profitability screens are not worth anywhere near that.
by MotoTrojan
Wed Sep 16, 2020 9:18 pm
Forum: Investing - Theory, News & General
Topic: AQR and Vanguard funds performance vs. stated benchmarks, updated 8/31/2020
Replies: 13
Views: 1523

Re: AQR and Vanguard funds performance vs. stated benchmarks, updated 8/31/2020

Great post, nisi, thanks for posting. Those who believe that alpha can be generated on a consistent basis by academic backtesting derived strategies should take a hard look at these results. Cliff Asness is brilliant and has a vast wealth of academic credentials but what that bounty has produced th...
by MotoTrojan
Wed Sep 16, 2020 8:36 pm
Forum: Personal Finance (Not Investing)
Topic: Preparing for retirement in mid 30s
Replies: 311
Views: 21066

Re: Preparing for retirement in mid 30s

OP my only suggestion is to diversify some of your VOO into VXUS. 60 years is a long time to bet on US equity dominance. I don't trust foreign political systems. There is too much potential for shenannigans. The US political system has its problems but it is one of the the least worst options out t...
by MotoTrojan
Wed Sep 16, 2020 4:04 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

kolder wrote: Wed Sep 16, 2020 3:59 pm AVUVX been doing quite well since the march 23 bottom:
It also fell a lot harder. VBR still ahead YTD by my math.
by MotoTrojan
Wed Sep 16, 2020 3:12 pm
Forum: Personal Investments
Topic: Throwing In The Towel on Portfolio Management
Replies: 61
Views: 8026

Re: Throwing In The Towel on Portfolio Management

If you are going to go through all this effort I would find a single fund that meets your objectives and really go for maximum simplicity.
by MotoTrojan
Wed Sep 16, 2020 3:07 pm
Forum: Personal Investments
Topic: Opinions on 100% into VGT and QQQ
Replies: 33
Views: 2630

Re: Opinions on 100% into VGT and QQQ

along with my company stock as soon as it qualifies for long term capital gains tax Do you have RSUs or options? If RSUs, there is no need to hold them for a year as you pay full income tax on the value when they vest. Long term cap-gains only comes into play for any additional growth, but if your ...
by MotoTrojan
Wed Sep 16, 2020 2:56 pm
Forum: Personal Investments
Topic: Opinions on 100% into VGT and QQQ
Replies: 33
Views: 2630

Re: Opinions on 100% into VGT and QQQ

These threads are getting more and more wild... Will tech continue to dominate our world for the rest of our lives? Absolutely. Are tech stocks priced accordingly? Absolutely. Stocks outperform when they beat expectations, not just because that business or sector did better than other business or se...
by MotoTrojan
Wed Sep 16, 2020 1:49 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Very interesting. Let's say your net-worth was starting to call for a delevering today, are you committed to replacing factor-funds with broad-indexes even in the midst of a huge value drawdown? Perhaps your delevering is slow enough that you are comfortable blindly following that? I'd be fine with...
by MotoTrojan
Wed Sep 16, 2020 1:37 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

This thread has been getting too technical... getting back to our regularly scheduled programming, SCV is soaring! AVUV in particular is teasing me and saying "VBR is for wusses!". Also Jim O just realized a podcast discussing the "historic opportunity" in small-caps: https://osampodcast.libsyn.com/...
by MotoTrojan
Wed Sep 16, 2020 1:28 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I presume later in life you plan to incorporate some bonds, and I know right now you are using your tilts to help gain some extra leverage via higher expected-returns (albeit as you note you believe, with higher expected risk); do you plan to unwind your tilts or maintain them for life and just dil...
by MotoTrojan
Wed Sep 16, 2020 1:14 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I have no EM exposure at all, but wouldn't mind some if the ex-US funds I use (FNDC & IVAL) had market-weight. I have considered adding some back in via DGS or similar, but don't have any reason to overweight EM, and at market-weight it just doesn't move the needle enough to justify the complexity....
by MotoTrojan
Wed Sep 16, 2020 12:33 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

These sample portfolios are handy, but it really is so so subjective, and even once making one you can find 5 other variants using different allocations to the funds that match the same factor exposure. You just have to read about the methodologies, pick a fund that speaks to you, decide how much a...
by MotoTrojan
Wed Sep 16, 2020 12:29 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

My allocation likely has deeper factor exposure than 60/40 VFMF/VXUS for what it's worth. As does mine, as I'm now 50% VTI/VXUS, and 50% AVUV/AVDV/DGS. 25% VVIAX (VTV) 25% VSIAX (VBR) 15% QVAL 25% FNDC 10% IVAL All-in on value baby! Planning to move that VVIAX back to S&P500 at some point in the di...
by MotoTrojan
Wed Sep 16, 2020 12:22 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I recommend you first take a step back and think about what your beliefs are. ... for some of the factor enthusiasts in this thread to come up with sample portfolios. Iirc Vineviz created one a while back. I second this. It would be awesome to see some sample portfolios that combine the likes of VT...
by MotoTrojan
Wed Sep 16, 2020 12:21 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

My allocation likely has deeper factor exposure than 60/40 VFMF/VXUS for what it's worth. As does mine, as I'm now 50% VTI/VXUS, and 50% AVUV/AVDV/DGS. 25% VVIAX (VTV) 25% VSIAX (VBR) 15% QVAL 25% FNDC 10% IVAL All-in on value baby! Planning to move that VVIAX back to S&P500 at some point in the di...
by MotoTrojan
Wed Sep 16, 2020 12:15 pm
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Now if you've finally decided factors produce outperformance and higher risk-adjusted returns, then you should tilt as much as your tracking error will withstand. Why wouldn't you, it's a free lunch! So you'd go 100% VFMF in your USA holding perhaps, adding VTI only to the extent you need to stay t...
by MotoTrojan
Wed Sep 16, 2020 11:49 am
Forum: Personal Investments
Topic: Vanguard Roth Performance
Replies: 17
Views: 1770

Re: Vanguard Roth Performance

summerof42 wrote: Tue Sep 15, 2020 12:00 am Since Jan '20, would I have faired better if I had been invested in VG Total Bond or VG 500?
Since January 2020 if you had been in TSLA you'd have a 412% gain.
by MotoTrojan
Wed Sep 16, 2020 11:38 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I'm still not sure about momentum with small caps. Seems the transaction costs associated with the turnover is much higher in the small cap space. This was one thing that drew me towards Avantis is that they have some screens to avoid negative momentum and delay selling a stock exhibiting positive ...
by MotoTrojan
Wed Sep 16, 2020 11:34 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Here, people are divided as well. Posters like Dave, writers like Swedroe, folks at Avantis, etc will have you believe there is a diversification benefit and higher-risk adjusted returns. But even Fama himself has very clearly stated he doesn't believe factor tilts produce higher risk-adjusted retu...
by MotoTrojan
Wed Sep 16, 2020 11:28 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

Having a tough time figuring out what SCV fund to pick for the US and now I am wondering if I should have SCV for International or if it gets too complicated/not worth it DFA is not available to me easily. I do have access to Avantis though I think it’s reasonable to just start with US-only. Most o...
by MotoTrojan
Wed Sep 16, 2020 10:42 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I don't go out of my way to recommend funds, but this is one fund that is very impressive. I want them to come out with the International versions already! Very much agree with this, and I really want an International version to replace my iShares multifactor. One other thing I find quite attractiv...
by MotoTrojan
Wed Sep 16, 2020 9:20 am
Forum: Personal Finance (Not Investing)
Topic: Front load years 401k contributions when moving from high tax state to no tax state?
Replies: 16
Views: 1048

Re: Front load years 401k contributions when moving from high tax state to no tax state?

I'm in PA. Yes, Pennsylvania is one of the few states that does not follow the federal rules on 401(k) contributions. PA does NOT exclude 401(k) contributions from a taxpayers income - thus, making contributions taxable.Jun 4, 2019 source: https://www.google.com/search?client=firefox-b-1-d&q=does+P...
by MotoTrojan
Wed Sep 16, 2020 9:04 am
Forum: Personal Finance (Not Investing)
Topic: Front load years 401k contributions when moving from high tax state to no tax state?
Replies: 16
Views: 1048

Re: Front load years 401k contributions when moving from high tax state to no tax state?

If next year I am moving from a high tax state to a no tax state for the majority of the year, regarding taxes, is it smarter to front load traditional 401k contributions while living in the high tax state or will I end up owning the same amount either way? Thanks for any advice! in my state I don'...
by MotoTrojan
Wed Sep 16, 2020 8:45 am
Forum: Investing - Theory, News & General
Topic: Small Cap Value heads Rejoice !!!
Replies: 3126
Views: 229750

Re: Small Cap Value heads Rejoice !!!

I mentioned earlier in the thread that a friend and I sat down once with a Bloomberg terminal, wrote a small R script, and backtested a simulated VFMF strategy. We then regressed the returns against various factor models and decided to invest in it ever since. The methodology was excellent from a f...