Saca un poco mas de rentabilidad a tu cartera de largo plazo
There is good reason to believe that small stocks and value stocks will, in the long run and on average, tend to have higher risk-adjusted returns than large and growth stocks, respectively. In order to seek exposure to both the small and value risk factors at the same time, it seems natural to invest in a small-cap value fund.
There are several similar-seeming investment options available. Which is best?
All of the options discussed here will likely have somewhat similar performance and any of them will probably get the job done quite well. You can't go far wrong choosing any of the options listed here. However, there is a dramatic difference between how funds investing in the absolute tiniest and most valuey stocks perform versus those investing in merely "small" and merely "value" stocks. The funds are listed in rough overall order of preference.
Preferences are listed separately for use in retirement accounts and for taxable accounts.
For a listing of our preferences in other asset classes, see here.
Retirement Accounts (i.e., tax-deferred or tax-exempt accounts)
Rydex S&P SmallCap 600 Pure Value ETF (RZV). E/R: 0.35%. This ETF tracks the S&P SmallCap 600/Citigroup Pure Value Index. It is both extremely small (as measured by weighted average market capitalization) and extremely valuey (as measured by weighted average book to market value). As of 2/28/09, this fund's weighted average book to market ratio was 82% more valuey and it's weighted average market capitalization was 72% smaller than DFSVX below. Unlike virtually all other passively managed funds, this fund isn't weighted by market cap, but rather by "value-ness." For more information on ETFs, see here.
DFA US Small Cap Value Portfolio (DFSVX). E/R: 0.54%. This fund is both extremely small (as measured by weighted average market capitalization) and extremely valuey (as measured by weighted average book to market value). It basically has a strategy of emulating the returns of the 25% most valuey of the 8% of US publicly traded companies with the lowest market capitalization. As of 2/28/09, this fund's weighted average market capitalization was 30% smaller and its weighted average book to market ratio was 46% more valuey than VISVX/VBR below. Unfortunately, this fund is now closed to new investors.
DFA US Targeted Value Portfolio (DFFVX). E/R: 0.41%. This fund is similar to the above fund, only with somewhat less of a small-cap orientation. Specifically, it excludes the largest 72% or so of companies. It basically has a strategy of emulating the returns of the 25% most valuey of the US publicly traded companies with a market capitalization within the smallest 18% of all such companies. We don't like this fund as much as DFSVX because the stocks it invests in aren't as small in market capitalization or as valuey.
Vanguard Small Cap Value ETF (VBR). E/R: 0.15%. This ETF is a share class of the Vanguard Small Cap Value Index Fund (VISVX). As such, it should benefit from greater internal efficiency that incoming cash flows bring, as compared with other ETFs. For more information on ETFs, see here. We don't like this fund as much as DFSVX because the stocks it invests in aren't as small in market capitalization and they aren't as valuey. We also don't like that this fund has quite a bit of REITs in it.
Vanguard Small Cap Value Index Fund (VISVX). E/R: 0.28%. This fund tracks the MSCI US Small Cap Value Index. While its expense ratio is lower than DFSVX and DFFVX above, the stocks it invests in are nowhere near as valuey as either of the above, and nowhere near as small or as well diversified as those in DFSVX. We also don't like that this fund has quite a bit of REITs in it.
iShares S&P Small Cap 600 Value Fund (IJS). E/R: 0.25%. This ETF tracks the S&P SmallCap 600/Citigroup Value index. For more information on ETFs, see here.
iShares Russell 2000 Value Fund (IWN). E/R: 0.25%. This ETF tracks the Russell 2000 Value index. For more information on ETFs, see here.
SSgA streetTRACKS U.S. Small Cap Value Index Fund (DSV). E/R: 0.27%. This ETF tracks the Dow Jones Small Cap Value Index. For more information on ETFs, see here.
iShares Morningstar Small Value Fund (JKL). E/R: 0.30%. This ETF tracks all stocks which Morningstar considers to be "Small Value." For more information on ETFs, see here.
Taxable Accounts
Rydex S&P SmallCap 600 Pure Value ETF (RZV). E/R: 0.35%. This ETF tracks the S&P SmallCap 600/Citigroup Pure Value Index. It is both extremely small (as measured by weighted average market capitalization) and extremely valuey (as measured by weighted average book to market value). As of 2/28/09, this fund's weighted average book to market ratio was 82% more valuey and it's weighted average market capitalization was 83% smaller than DTMVX below. Unlike virtually all other passively managed funds, this fund isn't weighted by market cap, but rather by "value-ness." As an ETF, we expect this fund to be perfectly capital gains tax efficient (which is good). However, it has a dividend yield that is three times as high as DTMVX below. While this contributes to making this fund more "valuey", it also makes it somewhat less tax efficient. For more information on ETFs, see here.
DFA Tax-Managed U.S. Targeted Value Portfolio (DTMVX) (formerly the DFA Tax-Managed U.S. Small Cap Value Portfolio). E/R: 0.47%. This fund is both extremely small (as measured by weighted average market capitalization) and extremely valuey (as measured by weighted average book to market value). It basically has a strategy of emulating the returns of the 25% most valuey of the 18% of US publicly traded companies with the lowest market capitalization (i.e., those smaller than the 500th largest). It also endeavors to maximize tax-efficiency by minimizing both capital gains and dividend distributions. This tax management causes its pre-tax performance to be expected to diverge fairly markedly (in a random fashion) from the similar (non-tax-managed) DFSVX (its higher market capitalization causes its pre-tax performance to further diverge from DFSVX). Note that none of the options below can be expected to be anywhere near as tax-efficient as this option. As of 2/28/09, this fund's weighted average market capitalization was about the same and its weighted average book to market ratio was 46% more valuey than VISVX/VBR above. Our preference for DTMVX over VBR is not a strong one.
Vanguard Small Cap Value ETF (VBR). E/R: 0.15%. This ETF is a share class of the Vanguard Small Cap Value Index Fund (VISVX). As such, it should benefit from greater internal efficiency that incoming cash flows bring, as compared with other ETFs. While ETFs by their very nature tend to be more (capital gains) tax-efficient than non-ETFs, Vanguard ETFs are an exception — they will be exactly as tax-efficient as their parent fund. For more information on ETFs, see here. We don't like this fund as much as DTMVX because this fund has quite a bit of REITs in it.
Vanguard Small Cap Value Index Fund (VISVX). E/R: 0.28%. This fund tracks the MSCI US Small Cap Value Index. While its expense ratio is lower than DTMVX above, the stocks it invests in are less valuey, less small, and less diversified than those in DTMVX. Further, VISVX is not tax-managed. We don't like that this fund has quite a bit of REITs in it.
iShares S&P Small Cap 600 Value Fund (IJS). E/R: 0.25%. This ETF tracks the S&P SmallCap 600/Citigroup Value index. For more information on ETFs, see here.
iShares Russell 2000 Value Fund (IWN). E/R: 0.25%. This ETF tracks the Russell 2000 Value index. For more information on ETFs, see here.
SSgA streetTRACKS U.S. Small Cap Value Index Fund (DSV). E/R: 0.27%. This ETF tracks the Dow Jones Small Cap Value Index. For more information on ETFs, see here.
iShares Morningstar Small Value Fund (JKL). E/R: 0.30%. This ETF tracks all stocks which Morningstar considers to be "Small Value." For more information on ETFs, see here.
“Los dos guerreros más poderosos son paciencia y tiempo.” (León Tolstoi)
