Reddit Posts
Mentions
I hold that, a few of the Ishares country/market related etfs, and GVAL.
That’s funny I did used to listen to his podcast and I even own some GVAL
$GVAL also is very interesting. Talk about an etf focused on growth potential. 🙌
> I want some deep value stocks. look at the holdings in DIV, SDIV and GVAL. they're deep value territory according to Morningstar. and DEEP, of course.
SCHD and VTSAX wouldn't be pointless, but there would be a lot of overlap. They're both dominated by large US companies. look under "portfolio" or "holdings" and you'll see all the stocks in SCHD will also be held in VTSAX. I don't have anything against SCHD, but you'd be doubling up on a lot of large US companies. if the goal is to diversify I'd look at something a little more unorthodox or off the wall so you're more likely to get stocks you don't already have. things like DFJ (Japan high-dividend small cap stocks), GVAL (deep value stocks from Poland, Columbia, Czech Republic, etc, mostly mid-size companies), DVYE (emerging market high-dividend stocks), FNDF (a 'fundamental index' for large foreign companies), a 'master limited partnership' ETF because MLPs trade on the stock market, and some are very large companies, but MLPs are not included in index funds (list of MLP ETFs: https://etfdb.com/etfdb-category/mlps/) if you want to lower the overall beta, there are low-beta EFTs like ACWV. utilities tend to have low beta, as do most bond funds and most 'balanced funds'.
Hahaha! True that. VXUS is a very nice ETF. For broad based foreign exposure ETFs, I like VXUS (large cap heavy), IEMG (emerging markets), and FM (frontier markets), in a 2:1:1 ratio. Someone on Reddit turned me onto GVAL, which is a really interesting, albeit low volume, foreign ETF whose exposure differs greatly from others I’ve seen. I’m considering opening a small position. Here are some stats on it: - average P/B of 1.1 - average P/E of 11.7 - yield around 3% with a 0.7% expense ratio - about half developed and half emerging economies - generally even spread between large and small caps, concentrated towards mid cap. - * only 124 million AUM - but here is where it get’s interesting, it’s top ten country exposures are: 1) Poland 2) Czech Republic 3) Austria 4) Russia 5) Spain 6) Greece 7) Portugal 8) UK 9) Singapore 10) Turkey (Obviously a couple of those are in...uncertain times). The fund takes an approach similar to my own method of finding individual equities on foreign exchanges. Anyways, curious your thoughts. Thanks.
GVAL and EYLD look attractive
not all active I guess, but heres a few value names I like that definitely provide a different sort of risk profile (both foreign and domestic): SLYV, EFV, EWJV, GVAL, AVDV, AVES, EYLD. Those final 4 are more exotic. I really like the all the Cambria offerings. I have a fair bit of EYLD. They also have another which is VERY similar but it has slightly different criteria for how they select.
S&P 500 funds are all gonna be practically identical over the long-haul, because they're all following the same index. Fidelity and Schwab are tied for the cheapest fund that I'm aware of at .02%. FXAIX or SWPPX. FNILX from Fidelity is a large-cap index with zero fee that's very similar to the S&P 500 but as close as they can get without paying a fee to Standard & Poor's. VT is a good option, it's well diversified globally. if you wanted to do more than VT + S&P 500 +target date, i'd recommend (a) a small-cap ETF (VT & S&P 500 are both dominated by large companies) and/or (b) something a little off-the-wall or unusual, so you get a bit of concentrated exposure to something that's not already in VT/S&P 500. ... something like DFJ (Japan small cap dividend stocks) or DVYE (emerging market high-dividend stocks) or GVAL (global deep-value stocks from places like Poland or Columbia that aren't held in VT), or ALTY (alternate income options like covered calls, master limited partnerships, emerging market bonds).
these days, fees above 1% are generally considered on the higher end. last year about 90% of this sub was willing to pay .75 for Cathie Wood's ARK ETFs... when looking at the entire universe of mutual funds or ETFs. personally, I'm willing to pay higher fees for foreign and smaller stocks, niche stuff that's not included in the major indexes. In my Roth IRA, I have FLPSX with a .78 fee, and FNORX with a .90 fee. At work I'm willing to pay about .5 for the Dodge & Cox stock fund DODGX (they've been around 90 years, any investing firm that survived the Great Depression deserves some respect). my wife's 401k has DODBX (balanced fund, similar fee) and an active small-cap from T Rowe Price with .6. her Roth IRA has GVAL with a .6 fee, which has deep-value stocks from places like Poland or the Czech republic ... I'm willing to pay more than an index for that particular strategy.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2129474 Yes it seems to work. Faber runs an ETF for the strategy, GVAL.
If you want to keep VOO as a core position could offset that with some international options that are more focused on under-valued stocks. things like IVLU, IDV, GVAL, FIDI, FNDF ...
GVAL - Not strictly emerging, but they select 11 countries to invest in based on cheap valuation metrics for that countries stock market (ex: cape ratio) and then pick value stocks in those counties
look at the holdings in any foreign value fund or ETFs for starting points for your own research. https://www.cambriafunds.com/assets/docs/GVAL-FactSheet.pdf https://www.ishares.com/us/products/275382/ishares-msci-international-developed-value-factor-etf https://www.tweedy.com/resources/gvf/FactsTBGVX,%2020210430.pdf https://www.dodgeandcox.com/pdf/shareholder_reports/dc_international_holdings.pdf
GVAL (Cambridge Global Value ETF) buys cheap markets and is currently heavy in Colombian and Polish stocks. Whether cheap stocks are a good value is another question.
Yes, no problem. EYLD is a collection of about 100 stocks in emerging markets that have high yield (Cambria also filters for good value qualities too). GVAL takes the 25% lowest CAPE countries (12 countries out of investing universe of 45) and invests a roughly equal amount in each country. In each country it picks the 10 most undervalued stocks out of the 30 largest stocks by market cap (with the exception of Colombia). The theory is the low CAPE countries have better value. My opinion is GVAL is too restrictive and rule-based on what Cambria can buy. For example, if Meb can find better value in Turkey than, say, Chile I want him to overweight Turkey and not artificially split equal weights. EYLD and FYLD give him a bigger investing universe and allows him pick the best stocks to his liking. I also think they’re straying from the literature on CAPE rotations (the theory states to buy the country index and not pick individual stocks).
Can you explain a little more on your preference for EYLD over GVAL? Sounds like you were referencing how he is doing more individual stock picking in GVAL compared to EYLD but isnt he basically employing the same strategy for both? just maybe a slightly different initial screen of geographies to pick from? As a complete aside, one of my favorite things he always references is how (i'm paraphrasing) over the past 100 years US have outperformed the rest of the world by around 150% but all of that outperformance has come since 2010. Then he follows it up by explaining that there is ZERO statistically significant geographic risk premium over time....aka buckle up for the mean reversion haha Also, while were at it...just for some good confirmation bias material: https://www.tradingview.com/x/WBWSNz6r/ https://www.tradingview.com/x/kEXjAXk2/
Yeah, have been listening to Meb’s podcasts too now that I bought his fund. I really like him. I also like that he has his own money tied up in his funds. GAA is a blend of multiple funds (some Cambria, some others, it includes some bond funds) to try to get a diversified portfolio - the idea being you would just buy that instead of hodge podging your own portfolio together. FYLD is developed world ex-US high shareholder yield stocks. Basically an actively managed ETF of 100 stocks. For what it is worth I like EYLD better than GVAL. I get the academics behind CAPE rotation but I feel like it artificially limits Meb’s universe of stocks. You can find most of the low CAPE in EM anyways. The valuations on EYLD are better too on just about every metric (PE, forward PE, RoE, leverage, etc). I also believe the CAPE theory would call for one to buy the index of the country so get wary of Meb picking individual stocks (outside of Colombia for which he bought the index). I think he does a fantastic job, just the research around CAPE rotations is to buy country indexes. I’m on the fence about FYLD still, I just keep wanting to buy EYLD instead since EM value is such a great deal right now and much less expensive. I swear that man is a wizard because the allocations by sector and country are exactly what make sense to me.
Meb is the bossest boss. I have probably listened to 3/4 of his podcast episodes. He opened my eyes to the world of quant finance and what I see as the need to be principled, disciplined, and avoid behavior pitfalls (one of which is thinking that American exceptionalism will persist indefinitely lollll). Currently I only own TOKE and TAIL but I am in the middle of thinking through a pretty aggressive (defensive, really) tilt towards global value and the Cambria funds will likely be the centerpiece (likely GVAL). Random question -- do you understand the difference between GAA and FYLD? they both seem like 1 stop shops for a total portfolio but I cant determine the difference. Also, the thing I don't quite get about the shareholder yield funds is that in the fund info it calls them out as "equity income" -- I would have expected "equity growth" and this makes me feel like I dont understand the objective of these funds. Whats your take? Also, don't worry about the low liquidity. Toke trades thinner than a fking pancake but it wont matter in 10 years when it has slowly outperformed all the other hype MJ ETFs.