Small Cap Value heads Rejoice !!!

[Nicolas]

AVUV seems to be very tax efficient despite turning over a large portion of its portfolio it shows no capital gains and dividends are 100% qualified. Is this due to the ETF structure? If so long term ETFs should create a lot of wealth in comparison to a similar mutual funds which would have annual capital gains/ordinary income from turnover.

I don’t think any ETF declares capital gains, that’s one of the advantages tax-wise. The dividends being 100% qualified is likely due to all of the holdings being (profitable) US companies

[zie]

AVUV seems to be very tax efficient despite turning over a large portion of its portfolio it shows no capital gains and dividends are 100% qualified. Is this due to the ETF structure? If so long term ETFs should create a lot of wealth in comparison to a similar mutual funds which would have annual capital gains/ordinary income from turnover.

I don’t think any ETF declares capital gains, that’s one of the advantages tax-wise. The dividends being 100% qualified is likely due to all of the holdings being (profitable) US companies

ETF's can post capital gains, it's just rare(It has happened in the past).

[Kenster1]

AVUV seems to be very tax efficient despite turning over a large portion of its portfolio it shows no capital gains and dividends are 100% qualified. Is this due to the ETF structure? If so long term ETFs should create a lot of wealth in comparison to a similar mutual funds which would have annual capital gains/ordinary income from turnover.

AVUV according to M* is showing turnover of 24% - which is close to DFSVX (DFA SCV Mutual Fund) at 23%. I think those are moderate amounts of turnover to be expected for a Smallcap Value fund right?

IJS (iShares S&P600 SCV ETF) is showing 42% turnover.

VBR tends to have a lower turnover because it has a bigger band before kicking stocks out of the underlying CRSP index.

[sycamore]

Taking a break from the SVB threads, I see not much going on here.

My small cap value fund (VBR) was down 7.8% the past week versus down 5.7% for Total Stock. Presumably a greater drop due to exposure to financial stocks?

Anyway, carry on fellow SCV investors.

[Nathan Drake]

Taking a break from the SVB threads, I see not much going on here.

My small cap value fund (VBR) was down 7.8% the past week versus down 5.7% for Total Stock. Presumably a greater drop due to exposure to financial stocks?

Anyway, carry on fellow SCV investors.

Yep. "Risk" showed up. SCV is riskier.

[muffins14]

Taking a break from the SVB threads, I see not much going on here.

My small cap value fund (VBR) was down 7.8% the past week versus down 5.7% for Total Stock. Presumably a greater drop due to exposure to financial stocks?

Anyway, carry on fellow SCV investors.

Happy rebalancing. Long term treasuries were up 4%

[Apathizer]

Taking a break from the SVB threads, I see not much going on here.

My small cap value fund (VBR) was down 7.8% the past week versus down 5.7% for Total Stock. Presumably a greater drop due to exposure to financial stocks?

Anyway, carry on fellow SCV investors.

It could be, but small caps are generally more volatile than the total market. That's the expected trade-off; hopefully higher overall returns and imperfect correlation, but higher volatility.

[chem6022]

VBR at least has had a better run YTD than VTI, so the recent bigger drop doesn't seem so surprising in that light.

[gtwhitegold]

Taking a break from the SVB threads, I see not much going on here.

My small cap value fund (VBR) was down 7.8% the past week versus down 5.7% for Total Stock. Presumably a greater drop due to exposure to financial stocks?

Anyway, carry on fellow SCV investors.

Happy rebalancing. Long term treasuries were up 4%

I would if I was closer to my rebalancing band, but I still have a ways to go for that. However, I am doing soft rebalancing by directing all incoming funds into the smaller cap funds available in my wife's and my employers' accounts. No real small value funds are available in either right now.

[livesoft]

A most classic RBD play just happened. Remember that Fridays cannot be bona fide RBDs, but Monday was a great RBD for AVUV when it dropped an additional -3.85% by the close though it was down even further intraday. And the next day AVUV has traded as high as 75.62 though it has slacked off to 74.11 as I type this.

BND even cooperated by going up 1%+ on Friday and 1%+ on Monday, though it has gone down more than 1% from it Monday high.

In any case, selling BND on Monday to buy AVUV, then selling AVUV on Tuesday has been profitable. Should BND be rebought? I'm gonna wait for now.

Added: these kinds of trades can not be backtested with the current version of PortfolioVisualizer.com because it (a) doesn't have intraday numbers and (b) only has monthly prices anyways.

[steadyosmosis]

A most classic RBD play just happened. Remember that Fridays cannot be bona fide RBDs, but Monday was a great RBD for AVUV when it dropped an additional -3.85% by the close though it was down even further intraday. And the next day AVUV has traded as high as 75.62 though it has slacked off to 74.11 as I type this.

BND even cooperated by going up 1%+ on Friday and 1%+ on Monday, though it has gone down more than 1% from it Monday high.

In any case, selling BND on Monday to buy AVUV, then selling AVUV on Tuesday has been profitable. Should BND be rebought? I'm gonna wait for now.

Added: these kinds of trades can not be backtested with the current version of PortfolioVisualizer.com because it (a) doesn't have intraday numbers and (b) only has monthly prices anyways.

Very nice movements indeed, although I did not participate with AVUV.
Instead moved $$ from BND to (SCHB) equities Friday and yesterday, and did the opposite today.
Good stuff.

[whodidntante]

AVUV seems to be very tax efficient despite turning over a large portion of its portfolio it shows no capital gains and dividends are 100% qualified. Is this due to the ETF structure? If so long term ETFs should create a lot of wealth in comparison to a similar mutual funds which would have annual capital gains/ordinary income from turnover.

I don’t think any ETF declares capital gains, that’s one of the advantages tax-wise. The dividends being 100% qualified is likely due to all of the holdings being (profitable) US companies

ETF's can post capital gains, it's just rare(It has happened in the past).

Most ETFs have never distributed capital gains.
Folks got spooked by owning State Street ETFs during their drunken party years. I think they finally hired some adults who could pull off a heartbeat trade.

[zie]

AVUV seems to be very tax efficient despite turning over a large portion of its portfolio it shows no capital gains and dividends are 100% qualified. Is this due to the ETF structure? If so long term ETFs should create a lot of wealth in comparison to a similar mutual funds which would have annual capital gains/ordinary income from turnover.

I don’t think any ETF declares capital gains, that’s one of the advantages tax-wise. The dividends being 100% qualified is likely due to all of the holdings being (profitable) US companies

ETF's can post capital gains, it's just rare(It has happened in the past).

Most ETFs have never distributed capital gains.
Folks got spooked by owning State Street ETFs during their drunken party years. I think they finally hired some adults who could pull off a heartbeat trade.

Agreed. The iShares Core Allocation funds(AOK -> AOA) also distributed CG once a few years ago. I assume they finally also got their act together, as they haven't done it again since. That's why I said it's rare, but that it has happened in the past, so it's not just theoretically that they can, ETF's actually have. Though like you said, hopefully they have all learned their lesson(s) on how to avoid CG and won't repeat their mistakes.. but who knows There are always new exciting lessons to learn out in the world.

[muffins14]

Another day, another “well at least my future contributions are coming in soon” vibe.

Rejoice

[SafeBonds]

Unlike the previous recent down days, today international AVDV is down just as much as US AVUV. And Emerging is down too.

[livesoft]

Another day, but I don't have the guts yet to rinse-and-repeat, but the day is not over yet.

[MaxDOL]

AVUV seems to be very tax efficient despite turning over a large portion of its portfolio it shows no capital gains and dividends are 100% qualified. Is this due to the ETF structure? If so long term ETFs should create a lot of wealth in comparison to a similar mutual funds which would have annual capital gains/ordinary income from turnover.

I don’t think any ETF declares capital gains, that’s one of the advantages tax-wise. The dividends being 100% qualified is likely due to all of the holdings being (profitable) US companies

ETF's can post capital gains, it's just rare(It has happened in the past).

Most ETFs have never distributed capital gains.
Folks got spooked by owning State Street ETFs during their drunken party years. I think they finally hired some adults who could pull off a heartbeat trade.

Agreed. The iShares Core Allocation funds(AOK -> AOA) also distributed CG once a few years ago. I assume they finally also got their act together, as they haven't done it again since. That's why I said it's rare, but that it has happened in the past, so it's not just theoretically that they can, ETF's actually have. Though like you said, hopefully they have all learned their lesson(s) on how to avoid CG and won't repeat their mistakes.. but who knows There are always new exciting lessons to learn out in the world.

The iShares allocation ETFs had to distributed capital gain because the index that the ETFs based on change its index's Methodology by remove assets such as Reit's ETF, High Yield bond's ETF, global region's specific ETFs and went all in on global stock/bond based on market cap weight.

[zie]

Agreed. The iShares Core Allocation funds(AOK -> AOA) also distributed CG once a few years ago. I assume they finally also got their act together, as they haven't done it again since. That's why I said it's rare, but that it has happened in the past, so it's not just theoretically that they can, ETF's actually have. Though like you said, hopefully they have all learned their lesson(s) on how to avoid CG and won't repeat their mistakes.. but who knows There are always new exciting lessons to learn out in the world.

The iShares allocation ETFs had to distributed capital gain because the index that the ETFs based on change its index's Methodology by remove assets such as Reit's ETF, High Yield bond's ETF, global region's specific ETFs and went all in on global stock/bond based on market cap weight.

Interesting, but my understanding is, they could have temporarily increased tracking error rates and moved a little slower to shift the assets without distributing any CG, right?

[Massdriver]

I scooped up some AVUV and AVES earlier this week. Rejoice!

[bluerafters]

Anyone taking a look at VIOV after the split? I know it's not "cool" but I actually have it available in one of my accounts for an option. Vanguard has fractional shares for it's own ETF's, yes? Might be a interesting place to sweep funds into.

[strummer6969]

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is.

Edit: This would be a permanent tilt if I were to do it. So I'm not market timing but just want to make sure I get a reasonably decent entry point.

[sycamore]

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is.

If you have to ask, you're not fit to buy SCV.

Just kidding

Some people are "committed" to SCV. It's like a relationship

Others will time the market -- see livesoft's postings about this.

Personally, I wouldn't make a buying or selling decision based on Boglehead's opinions about this or that. Ultimately you need to decide for yourself, otherwise you'll be changing your portfolio every other week, day, hour...

[gtwhitegold]

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is.

If you have to ask, you're not fit to buy SCV.

Just kidding

Some people are "committed" to SCV. It's like a relationship

Others will time the market -- see livesoft's postings about this.

Personally, I wouldn't make a buying or selling decision based on Boglehead's opinions about this or that. Ultimately you need to decide for yourself, otherwise you'll be changing your portfolio every other week, day, hour...

I totally agree with this. One shouldn't tilt if they can't stick with it.

[livesoft]

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is.

Edit: This would be a permanent tilt if I were to do it. So I'm not market timing but just want to make sure I get a reasonably decent entry point.

I cannot predict whether there is further down to go. I think one can have a base position in SCV, but that one needs to buy more on RBDs and sell those newly bought shares within days or weeks. Rinse and repeat. For example, if this coming week there is an RBD, then I'm buying. If no RBD happens, then I am content with my current holdings.

Another example, I made about 3.5% on newly purchased AVUV shares this past week even though AVUV closed the week lower than my purchase price. That's because I held the shares I bought less than 24 hours. At this point, the volatility in AVUV is a behavioral finance story about human emotions and not a fundamental story about banks.

[er999]

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is.

Edit: This would be a permanent tilt if I were to do it. So I'm not market timing but just want to make sure I get a reasonably decent entry point.

I cannot predict whether there is further down to go. I think one can have a base position in SCV, but that one needs to buy more on RBDs and sell those newly bought shares within days or weeks. Rinse and repeat. For example, if this coming week there is an RBD, then I'm buying. If no RBD happens, then I am content with my current holdings.

Another example, I made about 3.5% on newly purchased AVUV shares this past week even though AVUV closed the week lower than my purchase price. That's because I held the shares I bought less than 24 hours. At this point, the volatility in AVUV is a behavioral finance story about human emotions and not a fundamental story about banks.

Amazing to hear almost day trading advocated for on bogleheads by one of its most prominent posters.

[strummer6969]

I've always been curious about SCV tilting but it seems like timing is everything for this asset class. Do you guys think now is a good time for a SCV tilt with the small bank failures plastered all over the news, or is there further down to go? I really can't tell how serious of a crisis it is.

If you have to ask, you're not fit to buy SCV.

Just kidding

Some people are "committed" to SCV. It's like a relationship

Others will time the market -- see livesoft's postings about this.

Personally, I wouldn't make a buying or selling decision based on Boglehead's opinions about this or that. Ultimately you need to decide for yourself, otherwise you'll be changing your portfolio every other week, day, hour...

I'd definitely stick with it. I do not like to touch my allocations more than every few years or so. I need a very good reason to change an allocation.

We'll see what happens this week. If SCV retests the 2022 low and has major movement downward from that, it might be a great buying opportunity.

I would not be changing my overall equities and fixed income/cash allocation (70/30), only the equities part.

[livesoft]

Amazing to hear almost day trading advocated for on bogleheads by one of its most prominent posters.

I won't tell you what I did with BND then this past week.

[drumboy256]

Amazing to hear almost day trading advocated for on bogleheads by one of its most prominent posters.

I won't tell you what I did with BND then this past week.

Uh oh..... sounds like someone bought more equities......