3:36 Specific small cap value funds outperform because of their exposure to risk factors that carry empirically provable premiums, such as Size (small vs. big), Price (low vs. high), Profitability (more vs. less), Investment (less vs. more), and lastly, Market risk, which everyone gets if they broadly diversify their holdings. Anyone interested in better risk adjusted returns should read about factor investing and Eugene Fama and Ken French's groundbreaking research on the topic. Dimensional Fund Advisors and Avantis both have factor mutual funds and ETFs tailored to these investing strategies. TH-camr and wealth manager Ben Felix also has multiple podcast episodes and a community forum (Rational Reminder podcast and RR Community) focusing on these topics.
@@Mosesusorer Mine, too! His videos and podcasts got me into the topic and then i did additional research on the funds. The RR Community is great, btw. Highly recommend the forum.
Do you know the best proportions to allocate to such tailored funds (and i think to Avantis AVUV) . Or maybe link to some research on the subject ? Thanks !
@@AzgharvideosHi there! I invest in both AVUV and DFSV to sort of split institutional risk between the two firms. My portfolio is basically 75% VTI for total US market exposure and then 25% split between AVUV and DFSV. I've got some other funds, as well, but that breakdown represents the vast majority of my holdings. There is a ton of discussion on the RR forum about portfolio allocation. Admittedly, mine is pretty aggressively weighted towards the factors and you can slide the percentages up or down depending on how much risk you can handle.
For me, I’m definitely keeping emerging markets in my portfolio. I want to own the entire world market and I don’t want to miss out on the countries that are included in my emerging market funds. I just made sure to find the emerging market funds that complemented the rest of my portfolio. e.g. If I already had the South Korean market in an international fund, then I wanted to find emerging market funds that didn’t include South Korea. Definitely a crazy ride, but worth it, imho. Down this year, but it’ll be back up other years. I’m a firm believer in more diversity and without emerging markets, I’m gonna miss out on about 11% of the world’s equities by market cap. Plus, emerging markets make up 45% of the world’s GDP. I definitely want to participate in that. 👍
Hi, I think most Middle East/Africa and Latin America are considered Emerging Markets, so that adds another ~7% to the 16% you discuss in the video, right?
what is the difference between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? inner is almost the same. OOk with country distribution. which one will be better? Have noticed that with "Vanguard emerging" no "samsung" is in the top 10-20.. Maybe that's a small difference. Thank you..
Me, personally, I like to have emerging markets within a total international fund. Less micromanaging. That is why I think 15%-20% in total international fund works fine with the percentage goal you are looking for in emerging markets.
Brazil had 7 currencies since 1822. Our currency was only created in 1994 after many unsuccessful attempts to fight hyperinflation. We had dictatorships. Two presidents impeached in the last 20 years. There was a savings confiscation in 1990. And there are still many companies that manage to survive all that. And it's still profitable long term and a good idea to buy stocks here lol.
There is no country on the world map called “emerging markets.” These countries are called 🇨🇳 China, 🇮🇳 India, 🇧🇷 Brazil, 🇲🇽 Mexico and others. I prefer to choose. I don’t want my money to be where there is no democracy. I am just a foreign investor there with no rights.
3:36 Specific small cap value funds outperform because of their exposure to risk factors that carry empirically provable premiums, such as Size (small vs. big), Price (low vs. high), Profitability (more vs. less), Investment (less vs. more), and lastly, Market risk, which everyone gets if they broadly diversify their holdings. Anyone interested in better risk adjusted returns should read about factor investing and Eugene Fama and Ken French's groundbreaking research on the topic. Dimensional Fund Advisors and Avantis both have factor mutual funds and ETFs tailored to these investing strategies. TH-camr and wealth manager Ben Felix also has multiple podcast episodes and a community forum (Rational Reminder podcast and RR Community) focusing on these topics.
Yesss!! Ben Felix is my favorite
@@Mosesusorer Mine, too! His videos and podcasts got me into the topic and then i did additional research on the funds. The RR Community is great, btw. Highly recommend the forum.
you are correct
Do you know the best proportions to allocate to such tailored funds (and i think to Avantis AVUV) . Or maybe link to some research on the subject ? Thanks !
@@AzgharvideosHi there! I invest in both AVUV and DFSV to sort of split institutional risk between the two firms. My portfolio is basically 75% VTI for total US market exposure and then 25% split between AVUV and DFSV. I've got some other funds, as well, but that breakdown represents the vast majority of my holdings. There is a ton of discussion on the RR forum about portfolio allocation. Admittedly, mine is pretty aggressively weighted towards the factors and you can slide the percentages up or down depending on how much risk you can handle.
For me, I’m definitely keeping emerging markets in my portfolio. I want to own the entire world market and I don’t want to miss out on the countries that are included in my emerging market funds. I just made sure to find the emerging market funds that complemented the rest of my portfolio. e.g. If I already had the South Korean market in an international fund, then I wanted to find emerging market funds that didn’t include South Korea. Definitely a crazy ride, but worth it, imho. Down this year, but it’ll be back up other years. I’m a firm believer in more diversity and without emerging markets, I’m gonna miss out on about 11% of the world’s equities by market cap. Plus, emerging markets make up 45% of the world’s GDP. I definitely want to participate in that. 👍
Personally, my roller-coaster ride on Emerging Markets was no fun...
All I know is my VEMAX has cratered.
Hi, I think most Middle East/Africa and Latin America are considered Emerging Markets, so that adds another ~7% to the 16% you discuss in the video, right?
Yes, the MENA area is definitely considered emerging markets.
I liked this video because he confirmed my biases by liking the stocks I like!!
what is the difference between "İshares core MSCİ emerging" and "Vanguard FTSE Emerging"? inner is almost the same. OOk with country distribution. which one will be better? Have noticed that with "Vanguard emerging" no "samsung" is in the top 10-20.. Maybe that's a small difference. Thank you..
South Korea is developed in ftse but emerging for Msci. Few others but Tiny.
My India/Turkey/Japan mix is a serious performer with great dividends that make nutty US volatility look like an amateur circus.
Japan is not emerging
Only India is still doing well and that went nutso around modi election.
Me, personally, I like to have emerging markets within a total international fund. Less micromanaging. That is why I think 15%-20% in total international fund works fine with the percentage goal you are looking for in emerging markets.
Dividend is only carrying my fpadx
vanguard shows 26.80% emerging markets Regions.
Brazil had 7 currencies since 1822. Our currency was only created in 1994 after many unsuccessful attempts to fight hyperinflation. We had dictatorships. Two presidents impeached in the last 20 years. There was a savings confiscation in 1990. And there are still many companies that manage to survive all that. And it's still profitable long term and a good idea to buy stocks here lol.
Eh, as globalization slowly ends, I recommend sticking with the USA. Even during the peak years of globalization Jack Bogle recommended US-only funds.
Submerging markets.
Investing is unstable, but it's a good learning experience I think
Yes. Emerging markets = exposure to commodities at low prices
not necessarily, if you wind down into what the funds are actually investing in.
There is no country on the world map called “emerging markets.” These countries are called 🇨🇳 China, 🇮🇳 India, 🇧🇷 Brazil, 🇲🇽 Mexico and others. I prefer to choose. I don’t want my money to be where there is no democracy. I am just a foreign investor there with no rights.
well, considering almost all international corporations have high exposure to those countries, I would say your money is already there.