Small-cap value ETF for Australian retirement income portfolio

For investors outside the US. Personal investments, personal finance, investing news and theory.
Sister forums: Canada, Spain (en español)
---------------
Post Reply
Topic Author
RetiredAU
Posts: 3
Joined: Wed Jul 27, 2022 8:18 pm

Small-cap value ETF for Australian retirement income portfolio

Post by RetiredAU »

I follow Paul Merriman regularly and live in Australia. Currently, I've invested in index-tracking options for my retirement (Australian) superannuation portfolio using Australian and International (incl. Emerging Markets) equities, Diversified Bonds, and Cash (about four years of income).
I'd like to add some international small-cap value as Merriman suggests, up to perhaps 10% of my total equity allocation.
Is that a sensible thing for me to do? Can you recommend a suitable ETF?
IFYOUCAN
Posts: 35
Joined: Mon Dec 24, 2018 10:48 pm

Re: Small-cap value ETF for Australian retirement income portfolio

Post by IFYOUCAN »

Vvlu. No scv exists. There is also vism.
User avatar
andrew99999
Posts: 970
Joined: Fri Jul 13, 2018 8:14 pm

Re: Small-cap value ETF for Australian retirement income portfolio

Post by andrew99999 »

VVLU is the closest I know of, which is not just small, but is value with about 1/3 each of small, mid, and large.

The other option is to buy US-listed funds. AVUV/AVDV are the popular ones mentioned most often after Ben Felix discussed them in his videos. Many brokers offer the ability to buy US-listed shares, but Aussie brokers have extremely high FX fees, so if you choose these options and depending on how much you plan to buy, you may want to consider setting up an account with Interactive Brokers for US purchases, which has FX fees of 250-500 times less than Aussie brokers.
Topic Author
RetiredAU
Posts: 3
Joined: Wed Jul 27, 2022 8:18 pm

Re: Small-cap value ETF for Australian retirement income portfolio

Post by RetiredAU »

Okay and thank you.

Personally, I'm disinclined to invest super money outside of superannuation because the Australian benefits and ease of staying inside are worthwhile despite the merits of, for example, VBE (USA). Tilting towards small-cap as opposed to small-cap-value seems to have no great benefit.
Post Reply