Can we count on AVUV high performance in the future?

Paul mentions his upcoming presentation to the ⁠⁠L.A. Chapter of AAII⁠⁠ on November 16, 2024    10:30 to noon.

Chris Pedersen and Daryl Bahls join Paul to answer your questions.  Paul opens the podcast with a brief introduction of the team and notes how thankful he is for their commitment to helping others.

Paul mentions the huge moves small cap value funds made on November 6.  He follows that with a comparison of the 5 year returns of AVUV and  3 Vanguard small cap value funds (VBR, VIOV and VTWV).  AVUV compound rate of returns were 3 plus percent higher than the Vanguard funds.  Paul’s questions:  What caused the higher returns and are they likely to be similar in the future?

Chris responds with a lengthy discussion of the systematic approach that AVUV uses and Paul reads what AVUV says about their systematic approach.

Chris compares the DFA small cap value fund (DFSV) with AVUV.  Chris also talks about a relative ranking he wants add to his Best In Class recommendations next year.

Chris discusses the quality factor of AVUV vs. funds that build their small cap value portfolio using the Russell 2000 Small Cap Value Index.  He introduced a new term: rich minus weak ratio.Paul and Chris discuss the question:  Is AVUV and actively managed fund?

Question:  JL Collins recommends VTI (Total Market Index) and Warren Buffett recommends VOO (S&P 500).  Which do we recommend?  Chris notes the important differences between VTI and AVUS and suggests a likely extra .5% return from AVUS.

For those who want to own only total market funds, the group discusses the possibilities of replacing both VIT(U.S. Total Market)  and  VXUS (International Total Market) with total market indexes that favor slightly smaller companies with a slightly more value tilt.

Paul references Ben Carlson’s article about, ⁠⁠“Some Things I Don’t Believe About Investing.”⁠⁠ 

Chris, Daryl and Paul weigh in on things they don’t believe about investing.Chris ends with some important comments about how we are likely helping investors.

Watch video here.