There is sufficient information in the financial and academic communities that Large Cap Value funds tend to outperform Large Cap Blend funds over long periods of time. I could cite many reports, news articles and academic papers to show support for this claim. But, I’d rather just jump right into the data that is readily available to all of us with a few online tools. My favorite tool for this job is: PortfolioVisualizer.com
By now, most of you know that the country of Brazil has fallen on hard times and is plagued by political turmoil. Enough said about that. The iShares MSCI Brazil Capped ETF – EWZ : $EWZ has been around for 17 years. During those 17 years the country has been plagued with hard times and political turmoil. Not much has changed. One picture says a thousand words to the Deep Value ETF Accumulator.
EWZ is worth the risk to me. Sorry, no deep dive analysis here. This is my analysis, short and sweet.
I do not currently have a position in EWZ, but I do intend to initiate a long-term position in this ETF in the future.
Thanks for reading.
The Deep Value ETF Accumulator, aka Micah McDonald
If you have been considering adding a U.S. Small Cap Value ETF to your portfolio, you have a lot to choose from. There are at least 17 ETFs to pick from in this category. In this article, I will show you how I came up with what I believe is the best ETF in this category for a well-balanced portfolio.
Before I go through that analysis, let’s first look at the long-term performance of the U.S. Small Cap Value asset class. This asset class has long been touted as a volatile yet lucrative place to build wealth over long periods of time. According to portfoliovisualizer.com, this asset class has returned 14.39% since 1972 vs the U.S. Large Cap Blend asset class which has returned 10.17%. Both are respectable returns, but look at the effects of compounding on this chart below.
Capital Flows to Where it is Treated Best: ETFs & Index Funds Have Treated Investors Most Excellently
“Capital flows to where it is treated best.” Many of you have probably heard this quote more than once, and should easily understand it, even if you don’t embrace it as universal truth. I like this quote because it just makes good common sense. The quote is normally used in the context of macro-economics, but I believe it is equally valid in the realm of actively managed mutual funds, index funds and ETFs.
How the Deep Value ETF Accumulator Selects a Best in Class Fund
First, I must know that the class of funds that I am selecting has a reasonable chance of meeting or beating the total returns of a broad market index such as the S&P 500. Continue reading “How To Select the Best in Class ETF”
Podcasting is now a dominate media format. Although it is still relatively new (see history), there are now over 1000 podcast shows available just in the “Investing” category in iTunes. With that many choices, a new podcast listener who wants great financial or investing content may not know where to begin.
There is one singular reason that I invest in ETFs instead of mutual funds. That reason is transparency. I like the fact that I can look at an ETFs website and/or prospectus and in relatively short order know exactly what it will cost me (expense ratio), how much it will cost to buy and sell it (transaction costs) and what’s in it (holdings). As a new financial blogger, it was brought to my attention that I may not be transparent enough myself. Most folks probably haven’t heard of the PowerShares DWA Energy Momentum Portfolio ETF PXI, and definitely wouldn’t know why The Deep Value ETF Accumulator invests in it. That will be my purpose today; to look under the hood of PXI and discover why I see value in this ETF. Continue reading “Looking Under the Hood of the PowerShares DWA Energy Momentum Portfolio ETF (PXI) $PXI”
How would you like to own a fund that has outperformed the S&P 500 by over 3% compounded annual growth rate (CAGR) over the last 18 years? Wouldn’t it be even better if you could purchase such a fund at a 28% discount from it’s all-time-high (ATH). Can such a fund be found in today’s raging bull market? The answer is a definite yes. The fund I’m talking about is The Energy Select Sector SPDR ETF XLE. (see also PXI & VDE) Continue reading “Discovering Value in the Top 3 Energy ETF’s”
David Moadel gave me the opportunity to explain how The Deep Value ETF Accumulator invests on his YouTube channel today. Thank you David.
Do you own an IRA, 401k or other tax sheltered Retirement Savings Account? If so, you would be wise to consider adding a Real Estate Investment Trust (REIT) ETF to your portfolio. The two main reasons I recommend REIT ETF’s are 1.) they have a relatively low correlation to the US Stock Market (0.57 over the last 22 years) and 2.) they have outperformed the S&P 500 during that same time by 68 basis points (CAGR Compounded Annual Growth Rate). Continue reading “Discovering Value in the Top 3 REIT ETF’s”