AVLV
American Century ETF Trust - Avantis U.S. Large Cap Value ETF
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Roth IRA vs taxable. Where should I hold my factors vs s&p 500
Would AVLV theoretically be any more profitable than a passively managed fund like VOO?
Meta (Facebook) dropped ~60% YTD. Recently Meta has also been included in a large-cap value ETF of Avantis (AVLV) as a company with value, high profitability, and robust investing characteristics; Meta is the 10th largest position in AVLV. P/E is 13.3. Is it the right time to buy Meta?
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When AVLV begins to sell its position, or sells entirely, thats your time to get out. Right now its the top holding in Avantis US Large cap value, at 4%.
AVLV or VTV or SCHD will all help diversify your large cap US to diff extents and differently
Far too many stocks. Consolidate your portfolio and pick some up some ETFs. For example I buy shares of DRAM, SPY, AVLV for ETFs. Other great ETFs are QQQ, VOO, VT, etc. Singular stocks i currently have RIVN, RkLB, and PL. Im not a fan of holding a lot of individual stocks.
IMO due diligence on asset managers is much easier than due diligence on a stock portfolio. Plus if you pick a good manager they’re going to be better stocks pickers than you are anyway. Two ETFs I like that produce positive alpha are AVLV and CGDV. CGDV is heavier on tech so if you’re looking to avoid tech exposure you can go with the other fund. I own both as core holdings but still buy individual stocks outside of them too.
Add some PPA SMH AVLV AVUV AVUS Should cover everything
This is a smart strategy. I don't own that particular fund, but Dimensional uses a waiting period post-IPO before buying anything, and it employs factor tilts so that when it does buy SpaceX it'll do so at a lower weight than something like SPY. Avantis's AVUS fund uses similar strategies, with a stronger factor tilt. Personally, I'm using AVLV, which has explicit value *filters* in addition to tilts, to avoid this kind of stock entirely.
VXUS has the added benefit of getting you away from tech since the largest companies outside America tend to not be tech stocks. There's no reason to hold individual stocks. If you want to hold US stocks that are less concentrated in tech just buy a value index such as VTV or or AVLV.
MU trades at a forward PE of 11. Its a part of passive value ETFs like VTV and VLUE, and factor-tilted ETFs like AVLV and DFUV. If you don't think it's value because the company is actually growing revenue and earnings, then you're not helping with the allegations that value investors hate making money.
30% VOO 10% AVLV 10% AVUV 10% VXUS 10% AVDV EM portion stays the same It ain't that easy to stay the course with a completely factor tilted portfolio. Back it off a little, hold some of the market.
By buying fama french factor tilted indexes like those of Avantis like AVLV for large cap, which does a dual sort of value and profitability, choosing ~25% of the investable space and weighting higher by companies that sort stronger. So it eliminates companies that are strong on value but have bad or negative profits, and it excludes profitable companies that are too expensive, and it super highly weights companies with good prices and good profitability. Its basically the "buy a good company at a great price, or a great company at a good price" systematic index. And ofc Tesla isn't included in it at all.
Why not just buy an equal-weighted S&P ETF, or invest in something with a value tilt like AVLV or DFLV? Tesla might be egregiously overvalued, but it's not alone on that count, and investing accordingly would be more systematic. If it really is only Tesla that you object to, then maintaining a short is probably the most efficient solution. [Backtested funds](https://testfol.io/?s=dcK2ED43lPF) (omitted AVLV and replaced DFLV with DFLVX for more history)
A value-tilted fund would underweight or avoid stocks like Nvidia. If you want a broadly diversified fund, that's probably your best solution. For example, AVLV from Avantis is a US large cap value fund with only 1.75% allocation to Nvidia. DFLV from Dimensional has no allocation to Nvidia. These fund companies also have all-in-one global value stock funds, which would further diversify from your Nvidia holding. On top of that, the stocks overweighted by these funds have higher expected return than the broad market.
P/E ratio is a little high. The weighting has changed a lot because of the mag 7 bloat, so now indexes are more dependent on what they do. That's why I like QGRO, AVLV, DFAX & AVUV
AVLV. Just look at the top holdings https://www.morningstar.com/etfs/arcx/avlv/portfolio
You could do a large cap value fund like AVLV. Or overweight small/midcaps. These are even more volatile than VTI though. If you want to reduce drawdown risk it's pretty much more bonds. Or you could look at a REIT. They have some downsides but generally have low correlation to the rest of the market and so should reduce drawdown.
If you want to diversify away from tech you could get a large cap value fund like VTV of AVLV. Value companies tend to be energy, industrials, etc. There's a good argument to be made for having some small amount (10% or so) of large cap value.
AVLV is an ETF I sometimes pair with SCHG. That too was up today.
AVUV, AVLV. These are US equities, but cheaper than the market average since they tilt to cheaper smaller profitbale companies
Also AVUS & AVLV following the Russell 1000
There are many reasons why they’re cap weighted. First, it follows the way the market, in aggregate, allocates capital. If you had a lot of money, a reasonable way to allocate would probably be to give more money to solid companies, less to more risky ones, etc. If you follow a cap weighted index you benefit from all the effort that all market participants make in deciding the best way to allocate your capital. A market cap weighted index also requires less parameters, discretion, trading, etc. It’s just more simple to implement. From what you write it seems that you either (1) want to invest in stocks with low beta, or (2) some fund that doesn’t decide what to invest in based on market cap but in valuations related to some fundamental. They’re different ideas and there are funds for each of them. If you want low volatility, there’s SPLV, which invests in the 100 less volatile stocks of the S&P 500. It doesn’t weight all S&P 500 according to volatility because that would just be too hard and costly to implement. If you want something that takes valuation into consideration, AVLV is probably the best option. Both of those funds focus on US large caps, which seems to be the investing universe you’re interested in.
>Question, why would someone want to invest in a high dividend fund over just your normal S&P 500 index fund? A few possible explanations: 1. The investor does not understand that dividends are not free money and that the opportunity cost of dividend payments is reduced capital appreciation; 2. The investor does not understand that dividends are taxed in the year they are distributed and thus create additional tax drag on an equities portfolio and forced income that can hinder certain tax planning techniques; 3. The investor believes the myth that dividend income in retirement is somehow magically different than selling shares to create retirement income; or 4. The investor is using dividend payment as a rough proxy to identify value stocks. Explanations 1-3 are simply the investor's ignorance. Explanation 4 is not ignorance, but it's a suboptimal approach for an investor pursuing a factor-based investing strategy. Avantis, for example, has created an impressive family of factor ETFs for value investing and so far as I can tell dividend payment is not among the selection criteria, nor would I expect it to be. So for those seeking to tilt their equities portfolio toward value, a genuine factor-based fund like AVLV makes more sense than a dividend-centric fund like SCHD.
Factor investing is a good option for long term buy and hold: VOO, AVUV, AVLV, and VXUS. I add in SPMO for momentum factor. Paul Merriman offers a lot of free information on this style of investing on YouTube and his website, including a "best in class" list of ETFs: https://www.paulmerriman.com/best-in-class-etfs-update-2023
If they end up in AVLV I will own them that way.
Have you looked at AVLV holdings? They are NOT value stocks. I'm actually shocked. AVLV-- 1) Apple 2) Meta with Costco, Amazon, Applied Materials, and Google all in the top 10. SCHD -- Home Depot, AbbVie, Cisco, Amgen, ...
AVUV and Schade... Haven't looked at AVLV particularly but I should
If you want to rotate to value why are you going SCHD instead of AVLV and AVUV?
If anything has good total returns there isn't an issue with holding it anywhere. Funds that invest based on dividend yield are idiosyncratic and don't have any real fundamentals behind their allocations. Schd does good because it's *accidentally* tilted to the value premium. AVLV does better because it systematically targets value, profitability, reinvestment characteristics, price stability. Equity fundamentals like market cap, cheapness vs expensiveness (value vs growth), profitability cross linked with value, reinvestment, momentum, these factors are how you determine differences in portfolio performance and expected returns by being exposed to priced risks. Dividend yield is not predictive of future total returns.
Here we are basically talking about Dimensional Fund Advisors and Avantis fund advisors. The make the best value /size/profitability factor tilt funds. Classics involve AVUV/DFSV, AVES, DFIV, AVDV, AVGV, AVMV, AVLV, AVNV, etc
You know what's interesting about AVUV? Since they are more of a stock picking fund constrained to a specific universe rather than a passive factor SCV fund like something Vanguard offers, I thought it would be interesting to see how the [Avantis way and philosophy](https://res.americancentury.com/docs/inst-avantis-scientific-approach-to-investing.pdf) gets applied in the large cap universe. >[AVLV] these are some of their top and heaviest bets which actually are great stocks: >COST, AMZN, META, JPM, GOOGL, XOM, JNJ, AAPL >I bet if I looked really carefully at AVUV I might end up agreeing with some of their picks too if I was restraining myself to small cap. However, I bet I would find alllllot that I don't like. >I rather just have those and not stuff like Southwest airlines, Delta airlines, Ford, royal caribbean (mountains of debt), Nike (not in this price conscious price environment), United Airlines, Expediters shipping. A lot of the stuff in there just doesn't make sense to me. Feels like "diworsification" and lots of dead weight that is there to fulfill the factor requirement. >Maybe even more if they have more small cap total holdings. This is what really holds me back from AVUV. I have a personal thesis that small caps value or not will really struggle and people are relying too heavily on historical data about a reversion that no longer applies today. That said, you should never be closed off to any individual company and I have seen some interesting individual plays in that space. To be clear, my critique is on blind factor investing, not stock-picking. In AVUV you also seem to end up with a lot of small weak banks.
You know what's interesting about AVUV? Since they are more of a stock picking fund constrained to a specific universe rather than a passive factor fund like something Vanguard offers, I thought it would be interesting to see how the [Avantis way and philosophy](https://res.americancentury.com/docs/inst-avantis-scientific-approach-to-investing.pdf) gets applied in the large cap universe. >[AVLV] these are some of their top and heaviest bets: >COST, AMZN, META, JPM, GOOGL, XOM, JNJ, AAPL >I bet if I looked really carefully at AVUV I might end up agreeing with some of their picks too if I was restraining myself to small cap. However, like above, I bet I would find alllllot that I don't like. >But I rather just have those and not stuff like Southwest airlines, Delta airlines, Ford, royal caribbean (mountains of debt), Nike (not in this price conscious price environment), United Airlines, Expediters shipping. A lot of the stuff in there just doesn't make sense to me. Feels like "diworsification" and lots of dead weight that is there to fulfill the factor requirement. >Maybe even more if they have more small cap total holdings. This is what really holds me back from AVUV. I have a personal thesis that small caps value or not will really struggle and people are relying too heavily on historical data about a reversion that no longer applies today. That said, you should never be closed off to any individual company and I have seen some interesting individual plays in that space.
Lol wut COST is a top holding of AVLV, that is bizarre to me. I've never even looked at any of their large cap funds tbh. I don't see the point of not being fully passive there.
One thing to consider about Avantis. Whatever they use, they seem to coincide with growth value investing anyway. For example in AVLV, I like COST, AMZN, META, JPM, GOOGL, XOM, JNJ, AAPL are some of my favorite holdings and Avantis puts them as some of their largest holdings. So we "agree" on those. But I rather just have those and not stuff like Southwest airlines, Delta airlines, Ford, royal caribbean (mountains of debt), Nike (not in this price conscious price environment), United Airlines, Expediters shipping. A lot of the stuff in there just doesn't make sense to me.
I think you'd be better off just buying a strategy that naturally tilts more towards this direction. Also if in taxable, you would avoid the tax-hit to rebalance. A Fundamentally Weighted index like FNDB would be one such example that will avoid the tech overweight. Something like AVUS will also get you within this 25% cap right now (this would be my preference). If you want even more tilt to value, could use AVLV but AVUS is a well designed fund with less tracking error. Both of these options hold all the large-cap names but just adjust weights, so you aren't excluding anything outright, just over/under-weighting at the sector AND stock level.
AVLV, AVIV, AVUV, AVDV, AVES, AVMV. Or AVGV that captures them all.
I personally am almost all-in on value, so I respect the VOOV pick. I would suggest you research some better fund constructions though. These days you can get a much better designed fund with daily rebalancing. My suggestion would be AVLV. Could even buy AVGE or AVGV and have an all in one globally diversified, tilted fund, but if you prefer VXUS that’s reasonable. S&P500 value gets the job done but it’s not optimal by any means.
Lmao imagine buying individual stocks and trying to pick winners. If it shows up in AVLV due to being cheap or profitable enough, it'll be in my portfolio.
AVLV from avantis Their factor tilting methodology is legit imo Not financial advice
Looks like AVLV has a good amount of overlap with VOO. Very neat that you have an all Avantis portfolio, I guess you feel the e.r.s are worth it? I'm going to listen to that episode today
Just buy AVLV and AVUV and AVIV and AVDV and EVES
I don't know, I just discovered this sub. I personally like their fund literature. I'm not looking into LCV, I'm wondering if there's any point at all to holding AVGV to possibly simplify my Avantis holdings but AVGV is 40% AVLV. I think I'll only end up using Avantis for thier SCV funds. To restate, I'm not necessarily interested in LVC at all, my post was mostly about opening up discussion that I could learn from. BRK has obviously done wonderfully, but it seems like even Buffet is concerned that it will be hard to continue that growth. Wasn't he talking about starting to pay a divided to keep investors from dumping their shares?
I brought up AVLV because it's 40% of AVGV, so it seems like there's a lot of S&P 500 overlap and I'm not sure if there's any point to seek value in large caps when most of that profitability seems to be from growth. VT, AVUV & AVDV seems like a very solid strategy. The reason I based my portfolio around VOO was because I wanted to try to avoid mid & small cap growth drag, at least in the US. Who knows, those mid caps might make for a good hedge though. Thanks for your thoughts.
I guess I didn't ask it in the most specific way, but you're right in your assumption. I just mean essentially long-term. I'm trying to find what my individual approach will be to managing my IRA (and hopefully 401K soon) and am asking this to see if it's really worth it to own a fund like AVGV, which is 40% US large cap value. It looks like AVLV has a lot of overlap with the S&P 500, so I'm essentially wondering if there's really any point in trying to find value picks in large cap stocks and paying that higher E.R. It sounds like you don't really feel that there's any advantage to owning this fund. I like the simplicity of pairing AVGV with VT, but I don't know if AVGV really is concentrated in capturing the risk factor exposure that will be the most profitable. I'll dig through your post history, always looking for good reading. Thank you.
Let's get some easy stuff out of the way: > digging a little deeper, I found that the average age of the S&P 600 is actually 40 years old. This is simply the survival bias effect taking place. Since most companies die, and small cap stocks are more likely to go bankrupt or be bought out than large caps, the index of companies that currently exist will be older. >I looked into the valuation history of the small-cap world (ok, just the S&P 600) and I was surprised by the size and persistence of the valuation spread between large-cap (S&P 500) and small-cap (again, S&P 600) companies. This is also expected on two fronts. 1) It is easier to be large-cap if you have a higher P/E as the market cap is a reflection of P. Thus, larger-cap companies are more likely to have higher P/Es simply mechanically. 2) Small cap stocks are riskier and less likely to have wide moats like large-caps, thus we should expect them to be on balance cheaper. I invest in small-caps because there are more companies in the small-cap index that have high academic factor exposures. The factor exposures of AVUV is higher than AVLV for example. As you can see if you look out further into history, your data is extremely small pool of recent years, right now the P/E multiple of large cap companies are in their 90th percentile relative to small caps. Small caps are cheaper now and I see that as a good opportunity. I expect factors to perform. To be honest I dislike the Russell 2000, I think it is a bad index, so maybe I do agree with you a bit.
In 401k, HSA, and IRA : AVLV, AVUV, AVDV, AVIV, AVES.
I think your best bet would be to limit the exposure by using a large cap value ETF like DFLV or AVLV.
My large cap exposure primarily comes from AVLV. Might be worth considering. Not sure if there's an ETF for what you described.
You have plenty of options to pursue a factor tilt without stressing out too much over it. I'll list a couple of the simplest I'd look at first. After that I'll debunk some of the claims made in this topic. Feel free to ask for any additional resources on any of the statements made below. Happy to provide links to the research that backs up my statements. First, you can combine the traditional path with a factor tilt, i.e. '2 Funds For Life'. That's a free book you can get from subscribing to the Paul Merriman website's newsletter. The tldr is an approach of combining a Vanguard (or similar) Target Date Fund together with a tilt to small cap value. If you invest using the TDF for your financial planning and the factor tilted portion as 'extra, unaccounted for' money you can end up with a sizeable fortune in the best case scenario and meeting your goals when you might not have otherwise in the worst case scenario. Part of factor investing is the ability to increase the likelihood of meeting one's goals. This is what I'd direct most people interested in factor investing toward. Secondly, you can actually allocate to a factor-tilted all-in-one package through [AVGE](https://www.avantisinvestors.com/avantis-investments/avantis-all-equity-markets-etf/). This has the benefit of not seeing all the underlying pieces, nor having as much complication. Just a single ticker. I believe this tilts a little more than your second option though. >'You won't find an edge over buying and holding the S&P 500 / You should just own the S&P 500'. Unfortunately, the chances of the S&P 500 being the accurate portfolio for the average investor seems anywhere from unlikely to downright incorrect. If we lived in a CAPM world, sure, however, we don't. We know factors exist and they are pervasive. >'I don't know... it's probably something where you need to treat it as a trader more than a buy-and-hold investor' This couldn't be farther from the truth. In fact, the evidence points to timing factor strategies being incredibly difficult to do reliably. In addition, [buy-and-hold beats buying the dip](https://www.pwlcapital.com/resources/buy-the-dip/). >'factor tilting involves dynamically changing your allocation based on market or interest rate conditions' This individual was likely thinking of the business cycle and traditional news media's statements regarding *economic* factors. The factors discussed in this post are of the statistically significant nature, found through rigorous academic & practitioner research. >I wouldn't do anything you are suggesting and neither would anyone else Factor tilting has gotten fairly popular and various institutional managers are incorporating it in their portfolios. Avantis's high AUM shortly after its first fund releases exists for a reason. >Here, you have a very heavy tilt against large cap companies, and a mild tilt against mid caps. Why you do that is up to you, but if you aren't clearly wanting an anti-large cap I'd argue that the factor tilts discussed in the OP are actually LIGHT and still maintain the vast majority within the US total stock market. They are far away from a 50/50 Large/Small allocation. You mentioned SCHD. AVLV is similar to SCHD, just tilted toward different factors and actually doing so through intentional targetting while SCHD is unlikely to maintain proper factor exposure over the long run due to that simply not being its goal. Finally, if anyone here is available on the 18th, check out this [free conference](https://alphaarchitect.com/democratizequant/) full of CIOs gathering to discuss the latest research. Ideas conference following an academic presenter/discussant format, not a product conference.
In any given year, observed returns are likely to deviate greatly from expected returns. Their prediction is not that you can consistently observe a slight outperformance by VXUS, and switch once you’ve decided you can see momentum. Anyway, I don’t especially recommend funds like VXUS, but instead those with a value tilt like AVLV, AVDV, AVES, or DFAX.
Not enough years around for me to be into AVLV. I'll need to reseach SMHV.
Why not SMHV or the AVLV they are also good option is well
Not many people getting into AVLV, seems its hype getting low now
I don't think we'll see QE again any time soon, so a turn in the market is not going to have an obvious catalyst. That said I am actually surprised you are relying on a technical indicator given that you sold based on a macro call (I assume). And we're pretty dang close to a golden cross right now: 388 vs 395 on the SPY. OK, we could drill to 300 starting tomorrow. But it wouldn't take much sideways action or a small rally from here to get that golden cross. Are you really ready to pull the trigger if we do? There's still so much negativity in the markets and from your boy Steve Weiss. I think the story of the last year is that all those factor investors were right all along: value beats growth over the long haul. Trying to time the market's gyrations is a lot less appealing (especially considering tax implications of realizing gains) than just focusing on value. Large cap value was basically flat last year if you include divvies, and has now beaten LCG over the last 5 year period, especially if you are still accumulating (since you didn't accumulate at bubble valuations). Since you're sitting in 100% cash, I feel like the move for you is to take a look at portfolio composition, read up on factor investing, and if you believe the evidence, just dump the whole port into funds like SCHD, AVLV, AVUV, AVGE, etc based on personal preferences.
My portfolio is down 2% YTD. 100% stocks, 70% US, 30% international (35% AVLV, 35% AVUV, 12% AVIV, 12% AVDV, 6% AVES).
Why not just buy AVLV and cut out the middle Man?
I'm disagreeing with your assertion that others will now treat it as a value stock just because tiny little AVLV has called it a value stock. The bigger ETFs have already decided on this one way or the other. And Value<->Growth is a spectrum. Basically, AVLV's opinion likely doesn't matter.
If AVLV is a tiny ETF, why would guys like Carl Icahn and Bill Ackman pay heed to them? Let along the major ETFs which also manage many billions?
Not material. AVLV is just a tiny etf. It will not move ANY stock. Especially not a huge stock. The overall point is that they've "declared" it to be a value stock. So other value investors will buy it too. Not just one piddly ETF. Guys like Carl Icahn and Bill Ackman will buy it and hedge funds and stuff like that. Value investors tend to copy each other's homework.
What portion of Meta's float is in AVLV? And how does that compare to other ETFs which have Meta in their portfolio? I.e. how would AVLV rank in terms of holdings, in that list? These two pieces of info will help determine if this inclusion could be material.
20 years out generally pick an ETF with a strategy you believe in to automate it. Some examples: Highly diversified value : AVLV/ AVUV / DFAT / RPV etc. Concentrated Value : QVAL Concentrated Momentum: QMOM Highly diversified Momentum: VFMO Pretty diversified trend following: GMOM / VMOT etc.
The market is generally down and growth companies with very high beta have taken a huge hit. You are dealing with the pain of volatility. I also have BABA, META, ZM bought at the top of the market so I understand that pain. However, if you can still invest and DCA, a different approach than selling and buying SP500 would be to buy the other side of the market. VXF or some other value ETF: VV, VBR, AVUV, AVLV, DFUV. This gives you another risk factor. So you don't have to make a bet which one would go up next. Not a financial advisor, though.
AVLV and DFUV would work well
No idea why you are being downvoted here. Crashes are just inevitable in anybody's investing time, and top performers always get hit the hardest. If you look at the top performers of the S&P of the 2010s, none of them were top performers in the 00s. ExxonMobil was one of the best performing stocks of the 00s. It traded basically flat for the next decade. GM was the same in the 90s and 00s I don't recall a time the S&P has been this concentrated at the top with so few companies. And I question whether a lot of those companies can carry that growth into the next decade that got them there. Not that they will crash per season but will they overperform? I don't think Tesla will long term. I own VOO. I also supplement my ETF large cap holdings with RSP (equal weight S&P) and AVLV (Avantis large cap value ETF). Nothing irrational with thinking the top of the S&P is too top-heavy.
Diversify. I do 25% large caps, but have it split between VOO, RSP, and AVLV to control how much the top of the S&P affects my portfolio. Everything his affected right now. Emerging markets. Developed markets. Bond. Small cap. Everything is dragging, but not everything is plunging bear -20% at the moment. And if you are DCA'ing, this is an accumulation phase where you can buy cheaper. Unless you are close to retirement, you should WANT it to be cheaper unless you haven't done the homework on individual holdings to figure out intrinsic value. And when you find those stocks with great growth and great returns on invested capital and they are cheap, you do the total opposite of diversity.
Only reason to hold both VOO and SPY is that SPY has much more fluid options plays. I just hold VOO personally. I personally don't see much reason to hold VTI and VOO. VTI is based on market cap, so it's small and mid cap holdings aren't that much. If you just want S&P, hold VOO. If you want total US, hold VTI. Personally, I hold VOO, RSP, and AVLV to control my large cap exposure and use AVUV for small cap exposure. Look at VTI and where each cap is. If you like the proportion, just go with that. If you'd rather have more mid cap and small cap exposure, and learn why you might, then diversify from there. https://github.com/investindex/Portfolio
Mix of Ray Dalio with the all weather aspect, and kinda Boglehead in that I like to just set and forget and try not to worry about market timing, but I like leaning into small cap value a lot more and I do tinker. I recently shifted my large cap exposure into RSP and AVLV more. I took a small position in TAIL as insurance for a real market shift. Plus, I love value investing principles. I like figuring out intrinsic value and buying at a bargain. I try not to chase growth, so I didn't do as good as the market last year, but Ive got 25 more to go til retirement.
I don't know about megacap, but AVLV (US-only) and AVDV (ex-US) are quite possibly the best ETFs out there for exposure to large-cap companies with strong balance sheets and fundamentals. [Since inception, AVLV has held up much better than QUAL.](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=4&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=AVLV&allocation1_1=100&symbol2=QUAL&allocation2_2=100) [Likewise, AVIV has held up much better than IQLT.](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=4&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=AVIV&allocation1_1=100&symbol2=IQLT&allocation2_2=100)
First I would question the premise. Do growth stocks really have "momentum" right now? Let's check their YTD performance from January through the end of September. Small cap growth [VBK](https://investor.vanguard.com/etf/profile/performance/vbk): 5.0% Mid cap growth [VOT](https://investor.vanguard.com/etf/profile/performance/vot): 11.8% Large cap growth [VUG](https://investor.vanguard.com/etf/profile/performance/vug): 14.9% If you take a look at the link I provided, you'll see that the US small cap value fund I recommend is [AVUV](https://www.avantisinvestors.com/content/avantis/en/investments/avantis-u-s-small-cap-value-etf.html). The YTD performance of this fund is 34.1%. Vanguard's fund [VIOV](https://investor.vanguard.com/etf/profile/performance/viov) has not done as well, with a YTD return of 25.1%. The US mid cap value fund I recommend is [RFV](https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Investor&ticker=RFV), which has YTD performance of 25.0%. Vanguard's fund [VOE](https://investor.vanguard.com/etf/profile/performance/voe) has returned 18.9%. The large cap value fund I recommend is [AVLV](https://www.avantisinvestors.com/content/avantis/en/investments/avantis-us-large-cap-value-etf.html), but its inception was too recent to have YTD performance. Vanguard's fund [VTV](https://investor.vanguard.com/etf/profile/performance/vtv) has returned 15.7% this year. I also recommend overweighting small cap value the most, because the value premium is strongest in small cap stocks. This would've provided great YTD returns. Even if the most recent performance suggested that growth had momentum, there's no reason to think that someone would be able to hop between value and growth funds as each have periods of outperformance. Value outperforms in the long run, so an evidence-based investor should overweight value stocks. See the link in my first reply for more.