Value small cap

Michael121

Does anyone know where i can get a value small cap etf?

From what i can tell having 10% in small cap could have increased returns by around half a percent over the last 20 years whilst also reducing risk.
 PWL-WP-Felix-Factor-Investing-with-ETFs_08-2019-Final.pdf (pwlcapital.com)
Page 20 ignore the allocation he is Canadian.
If you have seen his vids on small caps he says that having small caps in your portfolio that has growth small cap is no good, so vanguards small cap for example also has mid cap, so he said just stick with world tracker. Also notice it doesn't add a lot to the return so paying to much in costs would make it a waste of my time having one. How ever i can't find a value small cap etf anyway so was wondering if anyone has an alternative. I know past performance doesn't predict future performance but if small caps have been beating large cap on average but not so much after the last decade i would like to own some, im not really bothered about the ups and down i just want to accumulate as much as possible over the next 40 year.

El_Torro

I only invest in funds so I can't suggest an ETF for you I'm afraid. 

Just wanted to pick up on one point, you say that investing in small caps reduces risk. How so? It does increase diversification but I can't see how it would reduce risk. Small caps are more volatile than a standard global index tracker.

Your idea of putting 10% (or less) of your investments in Small Caps isn't a bad one though, I'm just saying to be prepared for a bumpy ride. I've done the same, though not as much as 10%.

BananaRepublic

Michael121 said:

Does anyone know where i can get a value small cap etf?

From what i can tell having 10% in small cap could have increased returns by around half a percent over the last 20 years whilst also reducing risk.
 PWL-WP-Felix-Factor-Investing-with-ETFs_08-2019-Final.pdf (pwlcapital.com)
Page 20 ignore the allocation he is Canadian.
If you have seen his vids on small caps he says that having small caps in your portfolio that has growth small cap is no good, so vanguards small cap for example also has mid cap, so he said just stick with world tracker. Also notice it doesn't add a lot to the return so paying to much in costs would make it a waste of my time having one. How ever i can't find a value small cap etf anyway so was wondering if anyone has an alternative. I know past performance doesn't predict future performance but if small caps have been beating large cap on average but not so much after the last decade i would like to own some, im not really bothered about the ups and down i just want to accumulate as much as possible over the next 40 year.

I would ignore that chap. I’ve had good performance from growth small caps funds. These are OIECS but I imagine ETF’s are similar. 

ChilliBob

I ended up going for the Vanguard one as the L&G one seems to have disappeared. Only a small alloc on s small pot though. Interesting what you say thou that you may as well stick to a global tracker instead of spltting a bit into this one. 

Prism

I'm not sure if value works at the moment but here is the closest to a small cap value fund in the UK
Global Targeted Value Fund (GBP, Acc.) | Dimensional

BrockStoker

El_Torro said:

Small caps are more volatile than a standard global index tracker.

Volatility is only a risk in the short term. Over time, volatility becomes much less of a risk.

Small caps by their very nature have more room for growth than large caps. In my view, the risk in investing in large caps is that they do not grow, or even fail completely, which is becoming more of an issue as small disruptive-tech enabled companies join the fray. Older/large companies are potentially vulnerable, along with their investors. Small companies are nimble and can exploit the changing landscape more efficiently.

Given the above, and a long time scale, I'm inclined to agree with the OP that actually, there may be more risk in large caps than small caps.

Michael121

El_Torro said:

I only invest in funds so I can't suggest an ETF for you I'm afraid. 

Just wanted to pick up on one point, you say that investing in small caps reduces risk. How so? It does increase diversification but I can't see how it would reduce risk. Small caps are more volatile than a standard global index tracker.

Your idea of putting 10% (or less) of your investments in Small Caps isn't a bad one though, I'm just saying to be prepared for a bumpy ride. I've done the same, though not as much as 10%.

 A fund is even better to be honest. I thought small caps was more volatile as well however on that report he was comparing two portfolios and the one with 10%small value cap was less volatile. Not sure why but if i remember correctly he said it was because of the extra diversification with small caps vs the original portfolio without.

Im not concerned if it is more volatile however, problem is im looking through all the brokers and i can't see one value small cap fund/etf. Something like this one looks like what im looking for but its not on iweb or aj bell. Avantis® U.S. Small Cap Value ETF (AVUV) Portfolio - ARCX | Morningstar Notice how it has 2% mid cap and the rest in small cap no growth, im not sure what difference this really makes in comparison to the many on iweb that have a lot of mid cap and small cap growth but im only going off what i have seen regarding Ben Felix research and he seems to know what he's talking about. Of course im open to hear anyone's opinion on this if they think it makes much difference.

There is 1% small cap in my fund already, not sure why they even bothered with 1%. 

Michael121

Prism said:

I'm not sure if value works at the moment but here is the closest to a small cap value fund in the UK
Global Targeted Value Fund (GBP, Acc.) | Dimensional

That's actually the funds he uses but they were only available to clients, he has a fund from them but does everything in one. I cant find them on i web though.

Thrugelmir

BrockStoker said:

El_Torro said:

Small caps are more volatile than a standard global index tracker.

Volatility is only a risk in the short term. Over time, volatility becomes much less of a risk.

Volatility is a measurement of one form of risk. Volatility is in effect uncertainty. When investing in equities there's never going to be total certainty. 

Prism

Michael121 said:

Prism said:

I'm not sure if value works at the moment but here is the closest to a small cap value fund in the UK
Global Targeted Value Fund (GBP, Acc.) | Dimensional

That's actually the funds he uses but they were only available to clients, he has a fund from them but does everything in one. I cant find them on i web though.

You can get it on Youinvest if that helps.
https://www.youinvest.co.uk/market-research/FUND:B2PC093?tab=3&SecurityToken=F000002J8T]99]1]FXALL$$ALL_1392&Id=F000002J8T&ClientFund=1&CurrencyId=GBP&ms-redirect-path=/1c6qh1t6k9default.aspx

Michael121

Prism said:

Michael121 said:

Prism said:

I'm not sure if value works at the moment but here is the closest to a small cap value fund in the UK
Global Targeted Value Fund (GBP, Acc.) | Dimensional

That's actually the funds he uses but they were only available to clients, he has a fund from them but does everything in one. I cant find them on i web though.

You can get it on Youinvest if that helps.
https://www.youinvest.co.uk/market-research/FUND:B2PC093?tab=3&SecurityToken=F000002J8T]99]1]FXALL$$ALL_1392&Id=F000002J8T&ClientFund=1&CurrencyId=GBP&ms-redirect-path=/1c6qh1t6k9default.aspx

Brilliant. I swear i checked there before