Small Cap Value heads Rejoice !!!

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Nathan Drake
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Re: Small Cap Value heads Rejoice !!!

Post by Nathan Drake »

000 wrote: Wed May 04, 2022 12:28 am It won't last if they really do tighten. Which I think they will get around to eventually, not necessarily right now or this year. But eventually.
Market has priced in some level of tightening.

It’s fruitless to try and predict what equities of all classes will do, none of us should be investing for this year or next. The time horizon should be much longer
20% VOO | 30% VXUS | 20% AVUV | 15% AVDV | 15% AVES
000
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Re: Small Cap Value heads Rejoice !!!

Post by 000 »

Nathan Drake wrote: Wed May 04, 2022 12:42 am Market has priced in some level of tightening.

It’s fruitless to try and predict what equities of all classes will do, none of us should be investing for this year or next. The time horizon should be much longer
It is. Full bore QT -> something that will have an impact stretching over years and decades.
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drumboy256
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Re: Small Cap Value heads Rejoice !!!

Post by drumboy256 »

AVDV has been acting like bonds which has been great. Honestly I think the value play over the next few decades is going to be too big to ignore given the uphill battle valuations and money flow issues are becoming.
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garlandwhizzer
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Re: Small Cap Value heads Rejoice !!!

Post by garlandwhizzer »

willthrill81 wrote: ↑Tue May 03, 2022 3:06 pm
AVUV is almost 10% ahead of VTI in year to date returns. It's still negative but only slightly at just over -4%.
AVDV down only 8% (VTMGX down 13%)

AVES down only 8% (VWO down 13%)
Value has certainly held up better in the recent inflationary environment than growth or cap weight indexes. Inflation hits growth much harder than value and the excessive valuations of some darling growth stocks has added to this. While value has suffered less, VGPMX, the Vanguard Global Capital Cycles Fund, is actually up +5.4% YTD. Its strategy is actually a mixture of PM/PME plus overlooked neglected neglected market segments with real assets like basic materials, all of which tend to fall into the value category. VGPMX is well poised for inflation, even to some extent for stagflation, and is more diversified than PM or PME alone or diversified value alone. Those who are searching for diversification to equity and bonds and have a preference for gold/PME and a value slant on a global scale may want to take a look at it.

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james22
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Re: Small Cap Value heads Rejoice !!!

Post by james22 »

garlandwhizzer wrote: Wed May 04, 2022 2:19 pmVGPMX, the Vanguard Global Capital Cycles Fund, is actually up +5.4% YTD. Its strategy is actually a mixture of PM/PME plus overlooked neglected neglected market segments with real assets like basic materials, all of which tend to fall into the value category. VGPMX is well poised for inflation, even to some extent for stagflation, and is more diversified than PM or PME alone or diversified value alone. Those who are searching for diversification to equity and bonds and have a preference for gold/PME and a value slant on a global scale may want to take a look at it.
It's an interesting fund. I've made it a 5% position.
When people say things are different, 20 percent of the time they are right. John Templeton
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willthrill81
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Re: Small Cap Value heads Rejoice !!!

Post by willthrill81 »

garlandwhizzer wrote: Wed May 04, 2022 2:19 pm
willthrill81 wrote: ↑Tue May 03, 2022 3:06 pm
AVUV is almost 10% ahead of VTI in year to date returns. It's still negative but only slightly at just over -4%.
AVDV down only 8% (VTMGX down 13%)

AVES down only 8% (VWO down 13%)
Value has certainly held up better in the recent inflationary environment than growth or cap weight indexes. Inflation hits growth much harder than value and the excessive valuations of some darling growth stocks has added to this. While value has suffered less, VGPMX, the Vanguard Global Capital Cycles Fund, is actually up +5.4% YTD. Its strategy is actually a mixture of PM/PME plus overlooked neglected neglected market segments with real assets like basic materials, all of which tend to fall into the value category. VGPMX is well poised for inflation, even to some extent for stagflation, and is more diversified than PM or PME alone or diversified value alone. Those who are searching for diversification to equity and bonds and have a preference for gold/PME and a value slant on a global scale may want to take a look at it.

Garland Whizzer
I don't know much at all about VGPMX, but it seems interesting. The effective exposure to commodities via basic materials companies has certainly paid off lately.
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mutualaid
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Re: Small Cap Value heads Rejoice !!!

Post by mutualaid »

Always fun to watch growth funds collapse below their value counterparts during these bubble-popping episodes. As of yesterday's close, VBR (Vanguard small-cap value) total return is 363% since inception (2004-01-26), while VBK (Vanguard small-cap growth) total return is 352% since inception (2004-01-26) - just a few months ago VBK total return was 560% since inception.
rascott
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Re: Small Cap Value heads Rejoice !!!

Post by rascott »

I haven't had much time to pay attention to my portfolio the last year or so.... but my SCV position has been entirely in SLYV/IJS for years... looking back now....AVUV has significantly outperformed.... obviously wish I would have switched when this became available (in tax-advantaged accounts), but never got around to it.

Would you jump ship into AVUV now?
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Re: Small Cap Value heads Rejoice !!!

Post by Nicolas »

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Last edited by Nicolas on Thu May 12, 2022 10:16 am, edited 1 time in total.
brademac
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Re: Small Cap Value heads Rejoice !!!

Post by brademac »

I split between AVUV and VBR

I use VBR as a mid cap value fund and AVUV as the compliment for the small value realm

Both are great ETFs. They just cover different market caps of the value spectrum.

And when I use both like that it averages out my expense ratio to 0.16% since VBR is 0.07% and AVUV is .25%

I try to weight my value tilt to 20%

I use AVDV for international to compliment my core international funds that track EAFE index and VWO for my emerging markets. I also use some VSS too.
MotoTrojan
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Re: Small Cap Value heads Rejoice !!!

Post by MotoTrojan »

Just wanted to say hello and I am glad this thread is still going strong! Haven't been on Bogleheads in ages.

It is our time to shine value-heads :).

https://www.aqr.com/Insights/Perspectiv ... l-This-YTD

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Nathan Drake
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Re: Small Cap Value heads Rejoice !!!

Post by Nathan Drake »

MotoTrojan wrote: Tue May 10, 2022 9:24 pm Just wanted to say hello and I am glad this thread is still going strong! Haven't been on Bogleheads in ages.

It is our time to shine value-heads :).

https://www.aqr.com/Insights/Perspectiv ... l-This-YTD

MotoTrojan / HML_Compounder
Have you considered investing in AQR long-short funds?
20% VOO | 30% VXUS | 20% AVUV | 15% AVDV | 15% AVES
MotoTrojan
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Re: Small Cap Value heads Rejoice !!!

Post by MotoTrojan »

Nathan Drake wrote: Tue May 10, 2022 11:37 pm
MotoTrojan wrote: Tue May 10, 2022 9:24 pm Just wanted to say hello and I am glad this thread is still going strong! Haven't been on Bogleheads in ages.

It is our time to shine value-heads :).

https://www.aqr.com/Insights/Perspectiv ... l-This-YTD

MotoTrojan / HML_Compounder
Have you considered investing in AQR long-short funds?
I have not. Obviously the past year or so you would've loved to have had some short-growth, but over the long-run my belief is that value-factor exposure is value-factor exposure, whether you get it on the long or short side. I also believe that beta has a positive expected return (duh, think we all agree) and that going long/short to offset beta increases costs. Going 100% long-value gives me enough value factor exposure, thus I see no need to go L/S. Makes more sense to me if you want to reduce beta exposure to allow levering up, or need even more factor exposure than 100% long.

I think if you just want diversification there are better options to add to a factor portfolio, namely my newfound favorite, trend-following (managed futures) :D. Especially if you can set it up as an overlay on your portfolio (return stacked) so you aren't giving up any equity exposure.
Massdriver
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Re: Small Cap Value heads Rejoice !!!

Post by Massdriver »

rascott wrote: Tue May 10, 2022 4:02 pm I haven't had much time to pay attention to my portfolio the last year or so.... but my SCV position has been entirely in SLYV/IJS for years... looking back now....AVUV has significantly outperformed.... obviously wish I would have switched when this became available (in tax-advantaged accounts), but never got around to it.

Would you jump ship into AVUV now?
I asked a similar question some time last year or so in this thread and the advice I got was yes, other people would. I would still switch right now if I hadn't switched then. It may feel like you're chasing returns, but I viewed it as switching to a superior methodology for the long haul. I still have SLYV/IJS in my taxable which is a larger position for me, but new contributions for US SCV go to AVUV. They're still great funds if you take a look going back to IJS's inception compared to DFA and VTI: https://www.portfoliovisualizer.com/bac ... ion3_3=100

IJS was the best I could do at the time when I started tilting several years ago. The recent underperformance to AVUV has indeed been disappointing, but it may just be noise; we will see. Also don't forget DFA has new retail ETFs.
Last edited by Massdriver on Wed May 11, 2022 5:56 pm, edited 1 time in total.
rkhusky
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Re: Small Cap Value heads Rejoice !!!

Post by rkhusky »

Massdriver wrote: Wed May 11, 2022 2:05 pm
rascott wrote: Tue May 10, 2022 4:02 pm I haven't had much time to pay attention to my portfolio the last year or so.... but my SCV position has been entirely in SLYV/IJS for years... looking back now....AVUV has significantly outperformed.... obviously wish I would have switched when this became available (in tax-advantaged accounts), but never got around to it.

Would you jump ship into AVUV now?
I asked a similar question some time last year or so in this thread and the advice I got was yes, other people would. I would still switch right now if I hadn't switched then. It may feel like you're chasing returns, but I viewed it as switching to to a superior methodology for the long haul. I still have SLYV/IJS in my taxable which is a larger position for me, but new contributions for US SCV goes to AVUV. They're still great funds if you take a look going back to IJS's inception compared to DFA and VTI: https://www.portfoliovisualizer.com/bac ... ion3_3=100
Always interesting to see time period variance. Try starting periods of 2005, 2010, 2015.
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mangorunner
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Re: Small Cap Value heads Rejoice !!!

Post by mangorunner »

rkhusky wrote: Wed May 11, 2022 2:47 pm Always interesting to see time period variance. Try starting periods of 2005, 2010, 2015.
Paints quite a different picture, doesn't it. Wouldn't it be great to have a crystal ball and be able to see if/when SCV outperforms total market? :sharebeer
livesoft
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Re: Small Cap Value heads Rejoice !!!

Post by livesoft »

This thread deserves a bump today. so rejoice!
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