VIOV for SCV?

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jonpierce
Posts: 1
Joined: Sat Dec 07, 2019 9:06 am

VIOV for SCV?

Post by jonpierce » Mon Jan 13, 2020 7:59 pm

Hi folks, I'm new to the forum and have already found it to be an invaluable resource as I refine my portfolio strategy. So, thank you!

I've decided to tilt to small cap value and have settled on using one of the S&P Small-Cap 600 Value ETFs for the job: IJS, SLYV, or VIOV. I was leaning toward using VIOV given that its expense ratio is now on par with SLYV (0.15%) and it doesn't have the latter's checkered tax history (though, to be fair, it appears State Street has fixed issue as of 2018).

However, just as I was about to move ahead with VIOV, I noticed that its Morningstar style box is different from the other two; VIOV is now considered slightly less value-y at 36-42-20 vs. 47-33-17 for SLYV and IJS. And it appears it has been this way, or close to it, for a couple years now. Nevertheless, their performance still looks very similar.

What do y'all make of this drift from SCV to SCB? Any reason for concern? Or is this typical? (I do see that there have been years in the past when SLYV and IJS were also temporarily considered "blends".)

Lastly, what's your opinion? Should I move forward with VIOV? Stick with tried and true IJS even with a slightly higher ER? Or go with SLYV now that it may have its tax issues in the rear view mirror?

VIOV
http://portfolios.morningstar.com/fund/ ... ture=en-US

SLYV
http://portfolios.morningstar.com/fund/ ... ture=en-US

IJS
http://portfolios.morningstar.com/fund/ ... ture=en-US

Recent performance:
https://www.portfoliovisualizer.com/bac ... ion3_3=100

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Vegomatic
Posts: 256
Joined: Tue Feb 27, 2007 11:16 pm

Re: VIOV for SCV?

Post by Vegomatic » Mon Jan 13, 2020 10:05 pm

https://www.portfoliovisualizer.com/fac ... sion=false

Above is Portfolio Visualizer link, comparing various funds. Quick look - the 3 funds you mentioned look pretty similar, in terms of their factor exposure. (Note: Added VBR, which holds larger stocks.)

Below are pages at ETF.com for each. You can also read up on the (sometimes dated) FactSet analysis, along with the current metrics, and see if that helps you in your thinking.

https://www.etf.com/IJS
https://www.etf.com/SLYV
https://www.etf.com/VIOV

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whodidntante
Posts: 7081
Joined: Thu Jan 21, 2016 11:11 pm
Location: outside the echo chamber

Re: VIOV for SCV?

Post by whodidntante » Mon Jan 13, 2020 10:19 pm

Hate to say it, but morningstar is junk sometimes. VIOV is fine. Buy with confidence.

Bama12
Posts: 129
Joined: Fri Aug 30, 2019 11:48 pm

Re: VIOV for SCV?

Post by Bama12 » Mon Jan 13, 2020 10:52 pm

All 3 are very good. I would buy any of them today.

I own VSIAX,VBR,IJS,DES and overseas DLS,DGS.

I also have VSMAX and SCZ for Small Cap.

I think it's safe to say I love small!
Last edited by Bama12 on Mon Jan 13, 2020 11:02 pm, edited 2 times in total.

financeperchance
Posts: 184
Joined: Thu Nov 02, 2017 11:15 am

Re: VIOV for SCV?

Post by financeperchance » Mon Jan 13, 2020 10:57 pm

Please define what you mean when you say "value" and "blend." The Fama/French definition of value from their 1990s papers was simply price/book (or what they called book-to-market).

IJS has a P/B of 1.24. VIOV has a P/B of 1.39. See much difference there? Me neither lol.

If you really, really need to take 100 basis points off of the P/B ratio, you might also check out VTWV, the Vanguard Russell 2000 value ETF.

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Stef
Posts: 334
Joined: Thu Oct 10, 2019 10:13 am

Re: VIOV for SCV?

Post by Stef » Tue Jan 14, 2020 12:47 am

whodidntante wrote:
Mon Jan 13, 2020 10:19 pm
Hate to say it, but morningstar is junk sometimes. VIOV is fine. Buy with confidence.
+1

Went also with VIOV.

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