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Need to include small cap value to portfolio?

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  • Need to include small cap value to portfolio?

    How many of you include small cap value funds in your portfolio? After reading this from Paul Merriman I plan to add it to mine.

  • #2
    Don’t “need” to, but I definitely do have SV tilt.

    You could just as easily find an article that persuades you not to. So be careful making decisions on a whim.

    Think about your personal reasons for SV tilt, and whether you’d have the stomach to stick it out after a decade or longer of underperformance.

    If there’s any chance you’d bail, then don’t tilt.


    • #3
      As warren buffet/jim like to say, no called strikes in investing....

      i also find merriman very persuading, but i think the problem with SCV tilt is:

      1. assume the premium is still there
      2. has to show up during your relevant investing timeframe
      3. you can't bail

      I would guess that because of emotions, more people are likely to underperform with a SCV strategy than are likely to outperform


      • #4
        I have a small tilt, as well, but who knows how it’ll do going forward.


        • #5
          just own the total stock mkt index fund; no other strategy is better


          • #6
            Nope. Simplicity is the key to brilliance. I'm okay with Total US market index. Aka: Vti & Chill.


            • #7
              I think small cap value likely will have outsized returns over the next 40 years, but I’m not willing to bet 10% of my portfolio on my ability to stay the course. I’m just total us and total international stock market because I know I can’t back out/time that.