Announcement

Collapse
No announcement yet.

Small cap vs small cap value index fund

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • newinvestor
    replied
    Thank you for your comments and a great post about Investor Policy Statement. I don't have one but look forward to making one after reading your post.

    Leave a comment:


  • PhysicianOnFIRE
    replied
    All of the above answered your question very well, and Joseph asked some pertinent questions.

    I paraphrased your question in my latest post, You Need an Investor Policy Statement.  If you've got one, great!  And thank you for the inspiration.

    Leave a comment:


  • TheGipper
    replied
    Academic research would argue that over the long run there is both a small and value premium, meaning one should expect higher long term returns with increased risk and volatility with both small cap and value stocks.  Some people combine these factors and tilt toward a single small cap value fund for simplicity, such as Vanguard VSIAX or DFA DFSVX (much smaller and much more valuey than Vanguard at a slightly higher cost to own).  Some tilt to value stocks in general.  Some tilt to small cap stocks in general.  Which will perform better, who knows, but with either you need to be prepared to stay the course and tolerate many years of underperformance to eventually get your reward.

    Leave a comment:


  • jfoxcpacfp
    replied




    I would appreciate input on which one is better  – Vanguard small cap index fund vs small cap value index fund and in a similar way between mid cap and mid cap value index funds
    Click to expand...


    Small caps are basically characterized as either "value" or "growth". iow, the Vanguard small cap index fund is diversified with both types. If you plan on buying a SC Growth fund in addition to the SC Value, then you would have the same diversification, but with two separate funds. It's your call.

    Leave a comment:


  • Zaphod
    replied
    Likely makes no difference. Easiest to pick them all with a more balanced fund instead of artificially separating out a factor and hoping its the correct one going forward.

    Leave a comment:


  • Joseph
    replied
    It completely depends on your investing goals.  What are you trying to accomplish? What is the rest of your portfolio?

    Leave a comment:


  • newinvestor
    started a topic Small cap vs small cap value index fund

    Small cap vs small cap value index fund

    I would appreciate input on which one is better  - Vanguard small cap index fund vs small cap value index fund and in a similar way between mid cap and mid cap value index funds
Working...
X