Value funds

thegentleway

Any suggestions for funds to get exposure to value stocks?

ChilliBob

I'd use Trustnet, look at the sector you want, e.g IA Global, then sort by perf over say 3 years. This gives you an idea of the decent funds vs the dogs (%) return. 

Then sort by the last 1,3,6 months and find the best performers, ideally ones which are half decent in the 3yr column too.

Then you know you've got something with a half decent track record too.

There is no guarantee the result is value but it's fairly likely. Looking at the PE ratios and holdings will give you more of an idea too

An alternative is using Morningstar and finding the equity style box and filtering there for value. It's more explicit, but I found the results more cumbersome due to funds not available to me, duplicate results due to multiple share classes etc. 

jimjames

Depends if global or UK but Fidelity Special Values is UK biased or Special situations as the fund version

thegentleway

ChilliBob said:

I'd use Trustnet, look at the sector you want, e.g IA Global, then sort by perf over say 3 years. This gives you an idea of the decent funds vs the dogs (%) return. 

Then sort by the last 1,3,6 months and find the best performers, ideally ones which are half decent in the 3yr column too.

Then you know you've got something with a half decent track record too.

There is no guarantee the result is value but it's fairly likely. Looking at the PE ratios and holdings will give you more of an idea too

An alternative is using Morningstar and finding the equity style box and filtering there for value. It's more explicit, but I found the results more cumbersome due to funds not available to me, duplicate results due to multiple share classes etc. 

Yes I used morningstar but it was returning income funds.

jimjames said:

Depends if global or UK but Fidelity Special Values is UK biased or Special situations as the fund version

Global, I found the vanguard ones but they are US only so was hoping for something like that but global.

Thrugelmir

Value is better suited to active management. As sector allocation tends to be cyclical with returns historically being lumpy. One often needs to be patient and wait for the tide to change. Smaller companies in general are also good performers if held with a long term horizon. As can be extremely volatile. 

clsmooth48

Here’s a global vanguard one

https://www.vanguardinvestor.co.uk/investments/vanguard-global-small-cap-index-fund-gbp-acc/overview

darkidoe

ZPRV - SPDR MSCI USA Small Cap Value Weighted UCITS ETF
ZPRX - SPDR MSCI Europe Small Cap Value Weighted UCITS ETF

It seems not all value funds are equal and the evidence seems to suggest Value with Small size factor seems to perform better. There are other factors such as profitability which might give better capture of the premium.

As suggested Active funds may be able to capture this better, but I will admit it is not easy to decipher the manager's thoughts and ideas on 'value' without having an understanding yourself.

Dimensional Funds seem to have quite a good methodology for value strategy but unfortunately only available via an advisor.