Vanguard Global Value Factor ETF
aroominyork
Posts: 2,821 Forumite
Can someone please explain “a rules-based active approach” in the context of this fund which has over 1200 holdings? Does it put a formula into one end of an algorithm and a mix of shares comes out the other end?
I want to compare active and passive (or maybe I mean active and rules-based active) in global value funds. The Vanguard seems to be the longest existing of the latter but is only three years old. However over that time it compares well to active funds like the (curiously named) Artemis Global Growth. Is there an argument – or evidence – that says that active management has less benefit in value than in growth investing?
I want to compare active and passive (or maybe I mean active and rules-based active) in global value funds. The Vanguard seems to be the longest existing of the latter but is only three years old. However over that time it compares well to active funds like the (curiously named) Artemis Global Growth. Is there an argument – or evidence – that says that active management has less benefit in value than in growth investing?
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Comments
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Yes sort of.... The fund is known as a 'smart beta' fund which in English means it's a passive index fund with a per-determined set of criteria in order to screen stocks which make up the index.
I recommend watching the following video for more information as it is explained better there:
https://www.youtube.com/watch?v=U0wnrUIgwVM0 -
That's an excellent video - thanks. The first few minutes were curious, though, when he compared FTSE 250 and All Share (UK) to Fundsmith and VVAL (global). The latter two outperformed the UK indices (no surprise there) since VVAL was launched in Dec 2015 up to April 2018 but Fundsmith and VVAL had performed similarly; since then Fundsmith has powered ahead. Anyway, great video with lots of good information - thanks again.Yes sort of.... The fund is known as a 'smart beta' fund which in English means it's a passive index fund with a per-determined set of criteria in order to screen stocks which make up the index.
I recommend watching the following video for more information as it is explained better there: https://www.youtube.com/watch?v=U0wnrUIgwVM0 -
From the same people, two other relevant videos:
Which is the Best UK Active Fund: Fundsmith, Lindsell Train or Vanguard Value? https://www.youtube.com/watch?v=MQT5TOs2Bg0
(Interesting they class VVAL as active).
Vanguard Factor Funds - Interview with Mark Fitzgerald https://www.youtube.com/watch?v=mI3zeXaiEZo
I like the pensioncraft series: they don't treat you like idiots.0
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