VSIAX

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Mario2222
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Joined: Mon Dec 24, 2018 12:16 am

VSIAX

Post by Mario2222 »

Is VSIAX Vanguard small cap value index Admiral shares a pure small cap value fund?
dru808
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Re: VSIAX

Post by dru808 »

No, it isn’t.
63% US equity | 27% INTL equity | 10% US long bond index
absolute zero
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Re: VSIAX

Post by absolute zero »

What do you mean by “pure”? It’s a small cap value fund, yes. It has exposure to both the small factor and the value factor. It has larger companies than many other SCV funds though - sometimes here it’s referred to as more of a “mid cap value” fund.

It will do the job though if your desire is diversification through exposure to other factors beyond beta, and slightly higher expected returns. Alternatively, could hold a fund with deeper SCV exposure like IJS/SLYV/VIOV. You would just hold a slightly higher allocation to SCV if you invest in VSIAX.
000
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Re: VSIAX

Post by 000 »

The second happiest day in a small cap value investor's investing life is the day he buys SCV. The happiest is the day he sells it.
software
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Re: VSIAX

Post by software »

000 wrote: Wed Aug 12, 2020 9:48 pm The second happiest day in a small cap value investor's investing life is the day he buys SCV. The happiest is the day he sells it.
Your recency bias is showing.
000
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Re: VSIAX

Post by 000 »

software wrote: Wed Aug 12, 2020 10:17 pm
000 wrote: Wed Aug 12, 2020 9:48 pm The second happiest day in a small cap value investor's investing life is the day he buys SCV. The happiest is the day he sells it.
Your recency bias is showing.
Nah, there is just no reason to think "small" and "value" are meaningful differentiators in future stock performance.
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grabiner
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Re: VSIAX

Post by grabiner »

If you want pure exposure, try RZV (Invesco S&P 600 Pure Value). It holds mostly micro-caps, and much deeper value. You do pay a higher expense ratio, but if you have limited room for holding small-cap value, this may be worth it to get better exposure.

I used to hold RZV in my HSA, but I now hold VFVA (Vanguard Factor Value ETF) for both large-cap and small-cap deep value exposure.
Wiki David Grabiner
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