US Small Value - Did i just luck out big time?!

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ZenInvestor
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US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 10:50 am

My company just introduced a new fund into our 401k. Its a small cap value fund with an ER of 0.51%. Under the hood it looks like this:

Image

I believe in small value tilting for factor diversification, but have been unable to do so effectively since most of my capital is in home (owned) and 401k's (not available). This looks like a reasonably cheap way to access a "DFA" fund to get more factor diversification. Thoughts?

KlangFool
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Re: US Small Value - Did i just luck out big time?!

Post by KlangFool » Fri Feb 24, 2017 10:54 am

ZenInvestor wrote:My company just introduced a new fund into our 401k. Its a small cap value fund with an ER of 0.51%. Under the hood it looks like this:

Image

I believe in small value tilting for factor diversification, but have been unable to do so effectively since most of my capital is in home (owned) and 401k's (not available). This looks like a reasonably cheap way to access a "DFA" fund to get more factor diversification. Thoughts?
What is the ticker for this fund? DFSVX?

KlangFool

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BL
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Re: US Small Value - Did i just luck out big time?!

Post by BL » Fri Feb 24, 2017 10:55 am

deleted.
Last edited by BL on Fri Feb 24, 2017 11:01 am, edited 1 time in total.

gkaplan
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Re: US Small Value - Did i just luck out big time?!

Post by gkaplan » Fri Feb 24, 2017 10:58 am

I may be spoiled, since I have a Vanguard Roth and a TSP, but I don't think an ER of 0.51% is "reasonably cheap."
Gordon

Elbowman
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Re: US Small Value - Did i just luck out big time?!

Post by Elbowman » Fri Feb 24, 2017 11:00 am

ZenInvestor wrote:Its a small cap value fund with an ER of 0.51%.
There are people here who would pay 0.51% for SV, but I'm not one of them.

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:01 am

BL wrote:What is the other "half" invested in?

Do you wish to invest in individual stocks?
I dont understand the question.

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:01 am

KlangFool wrote:
What is the ticker for this fund? DFSVX?

KlangFool
It doesnt have a ticker.

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BL
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Re: US Small Value - Did i just luck out big time?!

Post by BL » Fri Feb 24, 2017 11:02 am

ZenInvestor wrote:
BL wrote:What is the other "half" invested in?

Do you wish to invest in individual stocks?
I dont understand the question.
Sorry, I just deleted this. It wasn't a good question.
It looks like a DFA fund.

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:04 am

gkaplan wrote:I may be spoiled, since I have a Vanguard Roth and a TSP, but I don't think an ER of 0.51% is "reasonably cheap."
I get that perspective. To me 0.51% is a bit of a stretch. But factor diversification is important to me. Hence my interest at that price level. The rest of my holdings are in Vanguard Total World Fund, Vanguard Total Bond Market, and Vanguard Intermediate term Muni fund.

letsgobobby
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Re: US Small Value - Did i just luck out big time?!

Post by letsgobobby » Fri Feb 24, 2017 11:04 am

ZenInvestor wrote:
BL wrote:What is the other "half" invested in?

Do you wish to invest in individual stocks?
I dont understand the question.
half of the fund is a DFA fund - good for you if you believe in DFA.

The other half appears to be an actively managed basket of individual stocks. Do you want to invest in that?
Last edited by letsgobobby on Fri Feb 24, 2017 11:24 am, edited 1 time in total.

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:04 am

BL wrote:
ZenInvestor wrote:
BL wrote:What is the other "half" invested in?

Do you wish to invest in individual stocks?
I dont understand the question.
Sorry, I just deleted this. It wasn't a good question.
It looks like a DFA fund.
Thats my initial conclusion. But looking for other eyes on this before i make the leap. Thanks!

KlangFool
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Re: US Small Value - Did i just luck out big time?!

Post by KlangFool » Fri Feb 24, 2017 11:06 am

ZenInvestor wrote:
KlangFool wrote:
What is the ticker for this fund? DFSVX?

KlangFool
It doesnt have a ticker.
ZenInvestor,

Now, this is getting suspicious. Is this one of those closed end fund? What is the actual description of this fund? Who managed this fund?

KlangFool

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:07 am

letsgobobby wrote:
ZenInvestor wrote:
BL wrote:What is the other "half" invested in?

Do you wish to invest in individual stocks?
I dont understand the question.
half of the fund is a DFA fund - good for you if you believe in DFA.

The other half appears to be an actively managed basked of individual stocks. Do you want to invest in that?
Im not sure it is 50% actively managed. Seems like its 50% DFA and 50% Russell Value Index. Am i reading that correctly?

Image

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:10 am

KlangFool wrote:
ZenInvestor wrote:
KlangFool wrote:
What is the ticker for this fund? DFSVX?

KlangFool
It doesnt have a ticker.
ZenInvestor,

Now, this is getting suspicious. Is this one of those closed end fund? What is the actual description of this fund? Who managed this fund?

KlangFool
Found it. Image

So I am super happy about the DFA part. Need to better understand Boston Partners.

goblue100
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Re: US Small Value - Did i just luck out big time?!

Post by goblue100 » Fri Feb 24, 2017 11:12 am

gkaplan wrote:I may be spoiled, since I have a Vanguard Roth and a TSP, but I don't think an ER of 0.51% is "reasonably cheap."
My how times have changed. When I started putting money away back in the 80's, anything under 2% was a low load fund. We were laughing at the people paying the 4 and 5% front end loads.
Some people are immune to good advice. - Saul Goodman

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:15 am

KlangFool wrote:
ZenInvestor,

Now, this is getting suspicious. Is this one of those closed end fund? What is the actual description of this fund? Who managed this fund?

KlangFool
It appears Boston Partners is active management (as is DFA), and is focused in this case on size, value, and momentum.

letsgobobby
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Re: US Small Value - Did i just luck out big time?!

Post by letsgobobby » Fri Feb 24, 2017 11:26 am

What is the meaning of, 'It is not a mutual fund'?

I would be content with the DFA portion. I'd be uncomfortable with the other portion as stated. If this is not a mutual fund, is there not a prospectus? What are the feeds for the total investment?

pkcrafter
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Re: US Small Value - Did i just luck out big time?!

Post by pkcrafter » Fri Feb 24, 2017 11:32 am

The company offering is a hybrid using 50% DFA and 50% of other small stocks--149 "other" in total. DFA holds 1489 stocks. It is not a DFA fund because the top ten holdings in DFA are not the same as those listed. Here's' DFA Targeted Value top 10

1. AVNET INC COMMON STOCK USD1.0 0.741% 0.741%
2 JACOBS ENGINEERING GROUP INC COMMON STOCK USD1.0 0.731% 1.472%
3 ARROW ELECTRONICS INC COMMON STOCK USD1.0 0.715% 2.187%
4 PEOPLE S UNITED FINANCIAL COMMON STOCK USD.01 0.701% 2.888%
5 RELIANCE STEEL + ALUMINUM COMMON STOCK 0.682% 3.570%
6 TRANSOCEAN LTD COMMON STOCK CHF.1 0.678% 4.249%
7 ASSURANT INC COMMON STOCK USD.01 0.675% 4.924%
8 ZIONS BANCORPORATION COMMON STOCK 0.656% 5.580%
9 PULTEGROUP INC COMMON STOCK USD.01 0.635% 6.215%
10 TOLL BROTHERS INC COMMON STOCK USD.01

In considering if you wan to own it, it does have 50% DFA. DFA would normally come with a 1% advisor charge, but you can get it for 50% off. Maybe not so bad an option, but then again, you don't know what the other 50% is going to do to overall performance.

Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.

ZenInvestor
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Re: US Small Value - Did i just luck out big time?!

Post by ZenInvestor » Fri Feb 24, 2017 11:53 am

pkcrafter wrote:The company offering is a hybrid using 50% DFA and 50% of other small stocks--149 "other" in total. DFA holds 1489 stocks. It is not a DFA fund because the top ten holdings in DFA are not the same as those listed. Here's' DFA Targeted Value top 10

1. AVNET INC COMMON STOCK USD1.0 0.741% 0.741%
2 JACOBS ENGINEERING GROUP INC COMMON STOCK USD1.0 0.731% 1.472%
3 ARROW ELECTRONICS INC COMMON STOCK USD1.0 0.715% 2.187%
4 PEOPLE S UNITED FINANCIAL COMMON STOCK USD.01 0.701% 2.888%
5 RELIANCE STEEL + ALUMINUM COMMON STOCK 0.682% 3.570%
6 TRANSOCEAN LTD COMMON STOCK CHF.1 0.678% 4.249%
7 ASSURANT INC COMMON STOCK USD.01 0.675% 4.924%
8 ZIONS BANCORPORATION COMMON STOCK 0.656% 5.580%
9 PULTEGROUP INC COMMON STOCK USD.01 0.635% 6.215%
10 TOLL BROTHERS INC COMMON STOCK USD.01

In considering if you wan to own it, it does have 50% DFA. DFA would normally come with a 1% advisor charge, but you can get it for 50% off. Maybe not so bad an option, but then again, you don't know what the other 50% is going to do to overall performance.

Paul
Paul - I found it. The other 1/2 is with Boston Partners. http://www.boston-partners.com/wp-conte ... rofile.pdf

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