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cover of episode Can we count on AVUV high performance in the future?

Can we count on AVUV high performance in the future?

2024/11/13
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Sound Investing
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People
C
Chris
投资分析师和顾问，专注于小盘价值基金的比较和分析。
D
Daryl
参与《Sound Investing》播客，提供投资建议和分析，特别关注小盘价值基金。
P
Paul
投资专家和教育者，专注于小盘价值基金的分析和教育。
Topics
Paul 指出，AVUV 在11月6日表现突出，五年复合回报率远超三只 Vanguard 小型价值股基金。但他质疑这种高回报在未来能否持续。Chris 认为，AVUV 的系统性投资方法和对高质量公司的关注使其在长期内具有优势，但未来的回报仍取决于市场环境和这些属性是否受到青睐。

Deep Dive

Chapters
Paul and Chris discuss the performance of AVUV compared to Vanguard small cap value funds, exploring the systematic approach and quality factors that contribute to AVUV's higher returns.
  • AVUV has compounded at 14.5% over the last five years compared to 9.9% for VIOV, 11.9% for VBR, and 9.8% for VTWV.
  • AVUV's systematic approach and exposure to quality factors like rich minus weak give it an edge over Russell 2000-based indexes.
  • AVUV is designed to provide exposure to the top 15% of the small cap universe with high profitability and low valuation.

Shownotes Transcript

Paul mentions his upcoming presentation to the ⁠⁠L.A. Chapter of AAII⁠⁠) on November 16, 2024    10:30 to noon.

Chris Pedersen and Daryl Bahls join Paul to answer your questions.  Paul opens the podcast with a brief introduction of the team and notes how thankful he is for their commitment to helping others.

Paul mentions the huge moves small cap value funds made on November 6.  He follows that with a comparison of the 5 year returns of AVUV and  3 Vanguard small cap value funds (VBR, VIOV and VTWV).  AVUV compound rate of returns were 3 plus percent higher than the Vanguard funds.  Paul’s questions:  What caused the higher returns and are they likely to be similar in the future?

Chris responds with a lengthy discussion of the systematic approach that AVUV uses and Paul reads what AVUV says about their systematic approach.

Chris compares the DFA small cap value fund (DFSV) with AVUV.  Chris also talks about a relative ranking he wants add to his Best In Class recommendations next year.

Chris discusses the quality factor of AVUV vs. funds that build their small cap value portfolio using the Russell 2000 Small Cap Value Index.  He introduced a new term: rich minus weak ratio.Paul and Chris discuss the question:  Is AVUV and actively managed fund?

Question:  JL Collins recommends VTI (Total Market Index) and Warren Buffett recommends VOO (S&P 500).  Which do we recommend?  Chris notes the important differences between VTI and AVUS and suggests a likely extra .5% return from AVUS.

For those who want to own only total market funds, the group discusses the possibilities of replacing both VIT(U.S. Total Market)  and  VXUS (International Total Market) with total market indexes that favor slightly smaller companies with a slightly more value tilt.

Paul references Ben Carlson’s article about, ⁠⁠“Some Things I Don’t Believe About Investing.”⁠⁠  )

Chris, Daryl and Paul weigh in on things they don’t believe about investing.Chris ends with some important comments about how we are likely helping investors.

Watch video here.)