SMLF
iShares MSCI USA Small-Cap Multifactor ETF
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Just doing black rock ones, DYNF, EMGF, SMLF. Couldn’t find ones for US mid cap. International developed I just went value (IVLU)
I am now thinking in a different way ... GWAV/BDRX and SMLF, there are with low trading volume. This, FFIE are with big trading volume. Maybe they dont care about dilution, or actual SI ...
Don’t worry about how high it’s gonna go that’s being greedy. It’s pretty easy to know when to sell. You sell when you make money. I sold $SMLF at like 5.80 could I have waited and sold at 8 sure but why risk it I made 100% on my money😂 if you make money on a trade SELLL! Who cares what others say it’s YOUR money not theirs
Looks like SMLF doesn't trade anymore. Any thoughts on AVUV? I own BRK and will keep buying to have it a small proportion of my portfolio. I'll definitely listen to the podcast. thanks.
It's been about 4 years since I looked into this, but SMLF was my choice then. Of course it's worth noting that value investors haven't been rewarded by the market for a long while, and growth/value spreads are wide. That said, I just don't like some of the exposures from being exclusively market cap weighted. In particular if the global -> US asset inflow megatrend reverses, I want some robustness against that scenario, and picking assets based on qualities other than market cap helps with this. It wouldn't be a big allocation, and if I had a more traditional buy and hold portfolio I'd also use futures for my SP500 exposure in order to lever up a bit with uncorrelated assets (modernized permanent portfolio style), so I'd be more concerned with tail risks and less concerned with total return % than most since I could just dial the leverage to tweak returns. Ultimately everyone has to pass the "sleep at night" test and 100% market cap weighted just doesn't get me there. I love BRK. Buffett is pretty blunt when he says "BRK is not for everyone, and most would be better off with the S&P", but I personally do like the Quality and Value exposure. I also like how they do very conservative but meaningful buybacks and think it adds value over a very long timeframe. I don't know how I feel about a post Buffett BRK though. If it goes on discount when he dies I'd be buying in, but I'd want at least a small discount. Buffett's trades can be a thing of beauty so I respect this as well (OXY warrants, buying Japanese commodity trading houses by issuing Yen bonds at near zero yield while everyone else was in the 2020 meme stock frenzy.... think about how beautiful a trade that was. Exposure to cheap Japan which is now ripping higher by the way, long inflation before inflation hit by issuing Yen bonds, and long commodity/shipping volatility before the big commodity moves happened post 2020.) I think there will be a loss to the company when he passes though. Here's a good podcast episode on some of the portfolio construction things I've mentioned. Men Faber is a huge podcaster now, but I remember this being a great interview when I heard it a few years ago: https://investingshortcuts.com/traders-podcast/mebane-faber-interview-chat-with-traders-episode-120/
So small/micro-cap stocks are supposed to have borrow fees in excess of 30%? I'm not so sure. Looking at table 5 [here,](https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3726227) low fee US-listed small caps have a weighted avg borrow fee of just 10 bps, and high fee small caps have a weighted avg borrow fee of 2.39%. Far from 20%+. And even if we consider VFMF to be an anomaly because of how small it is, LRGF and SMLF both have over 1B in AUM and still have very high borrow fees, especially compared to similarly sized or smaller single-style ETFs like QVAL, IMOM, FRDM, etc.
I'm going to load up on SMLF in my IRA. It's a small cap multifactor ETF, spread across all small cap sectors. It's a hedge to my high risk tech portfolio by factoring in value, while still being on my preferences and beliefs, which is for small cap and momentum stocks.