Finding Value in ETF's Worth Owning for the Long Haul
Content written by The Deep Value ETF Accumulator, aka Micah McDonald.
XLB vs SPY: January 1999 – January 2020
Continue reading “4 Best Long-Term Performance Natural Resources Sector ETFs 1.3”
FIW vs SPY: May 11, 2007 – February 7, 2020
Continue reading “4 Best Long-Term Performance Miscellaneous Sector ETFs 1.3”
US Large Cap Growth vs US Large Cap Blend: January 1972 – January 2020
Continue reading “4 Best Long-Term Performance U.S. Large Cap Growth ETFs 1.3”
U.S. Large Cap Blend CAGR = 10.39%: January 1972 – December 2019
SPY CAGR = 9.73%: February 1993 – December 2019
Continue reading “4 Best Long-Term Performance U.S. Large Cap Blend ETFs 1.3”
Continue reading “4 Best Long-Term Performance International Large Cap Value ETFs 1.3”
Today we made the decision to remove the iShares MSCI Thailand ETF (THD) from the list of ETFs we are accumulating. This is a fine single country emerging markets ETF, but it no longer meets our criteria for our portfolio. Last year I added this ETF to the Deep Value ETF Accumulator daily buy list based on this article that I wrote: Is the Thailand ETF Worth the Risk? (THD) 1.1 I can no longer stand by the thoughts I put forth in this article and have decided to no longer invest in THD. We will be closing our positions in THD in the near future and diverting those funds to the some of the other 31 ETFs that we continue to invest in. Here’s a current chart of THD which may shed some light on why we originally wanted to invest in this ETF and why we are dropping this fund from our portfolio.
Disclosure: We currently own shares of THD and we intend to sell these shares in the near future. I am not a professional investment advisor. Please perform you own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to M1 Finance and Google AdSense.
US MID CAP BLEND vs US LARGE CAP BLEND: January 1972 – December 2019
Continue reading “4 Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.3”
“What gets measured, gets improved.”
Welcome to my 6th installment of my semi-annual performance reports. 2019 was an amazingly profitable year to be invested in the stock market, especially coming off the heels of that horrible last quarter of 2018. Most markets are hitting new all-time-highs and so are most investor’s portfolios. Look at how 9 major asset classes performed in 2019; even emerging markets performed well.
Source: https://novelinvestor.com/asset-class-returns/
Continue reading “2019 Annual Performance Report – The Deep Value ETF Accumulator”
he U.S. Small Cap Blend asset class has outperformed the U.S. Large Cap Blend asset class by 1.35% CAGR over the last 47 yearsU.S. Small Cap Blend vs U.S. Large Cap Blend: June 2000 – November 2019
Continue reading “4 Best Long-Term Performance U.S. Small Cap Blend ETFs 1.3”
XLI vs S&P 500 index fund: January 1999 – October 2019
Continue reading “4 Best Long-Term Performance Industrials Sector ETFs 1.3”
XLU vs S&P 500 index fund: January 1999 – October 2019
Continue reading “4 Best Long-Term Performance Utilities Sector ETFs 1.3”
U.S. Small Cap Growth vs U.S. Large Cap Blend (aka the S&P 500)
Continue reading “4 Best Long-Term Performance U.S. Small Cap Growth ETFs 1.3”
The oldest Consumer Staples Sector ETF has outperformed an S&P 500 index fund by 0.13% CAGR, while being less volatile and having a low correlation to the US equity marketsXLP vs S&P 500 Index Fund: January 1999 – September 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “4 Best Long-Term Performance Consumer Staples Sector ETFs 1.3”
EWY vs S&P 500 Index Fund: June 2000 – September 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “Looking Back at the 19-Year Performance of the South Korea ETF (EWY) 1.3”
The U.S. Large Cap Value asset class has outperformed U.S. Large Cap Blend by 0.96% CAGR over the last 47 yearsU.S. Large Cap Value vs U.S. Large Cap Blend: January 1972 – September 2019
Source: https://www.portfoliovisualizer.com/ Continue reading “4 Best Long-Term Performance U.S. Large Cap Value ETFs 1.3”
EWZ vs S&P 500 index fund: August 2000 – September 2019
Source: https://www.portfoliovisualizer.com/ Continue reading “Weighing the Risks & Rewards of the Brazil ETF (EWZ) 1.3”
The U.S. Small Cap Value asset class has outperformed U.S. Large Cap Blend (S&P 500) by 3.58% CAGR over the last 47 yearsU.S. Small Cap Value vs U.S. Large Cap Blend: January 1972 – September 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “4 Best Long-Term Performance U.S. Small Cap Value ETFs 1.3”
XLE vs S&P 500 Index Fund: January 1999 – August 2019
Source: https://www.portfoliovisualizer.com/
XLE vs SPY: December 22, 1998 – September 20, 2019
Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Energy Sector ETFs 1.3”
REITs vs US Large Cap Blend (aka S&P 500): January 1994 – August 2019
Source: https://www.portfoliovisualizer.com/
The oldest Real Estate ETF is the iShares U.S. Real Estate ETF (IYR). Its’ inception date was June 12, 2000. Since inception, this ETF has outperformed an S&P 500 index fund by 4.13% CAGR with a relatively low correlation to US Markets of 0.65.
IYR vs S&P 500 Index fund: July 2000 – August 2019
IYR vs SPY: June 19, 2000 – September 13, 2019
Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Real Estate Sector ETFs 1.3”
EWW vs S&P 500 Index Fund: May 1996 – August 2019
Source: https://www.portfoliovisualizer.com/
EWW vs SPY: March 18, 1996 – September 13, 2019
Source: https://www.koyfin.com/home Continue reading “Is the Mexico ETF Worth the Risk? (EWW) 1.3”
Is the Health Sector a good place to invest?
The Health Care Select Sector SPDR® Fund (XLV) is the oldest and largest Health Sector ETF available. Its’ inception date was on December 16, 1998.
XLV vs S&P 500 index fund: January 1999 – August 2019
Source: https://www.portfoliovisualizer.com/
XLV vs SPY: December 22, 1998 – September 6, 2019
Source: https://www.koyfin.com/home Continue reading “4 Best Long-Term Performance Health Sector ETFs 1.3”
I normally pick the oldest ETF in a category to show how that category has performed over a long period of time. This time I have chosen the second oldest China ETF, the Invesco Golden Dragon China ETF (PGJ), to display long term performance. The reasoning behind this is that PGJ is only 2 months younger that the iShares China Large-Cap ETF (FXI), and PGJ has superior long term performance to FXI.
Is China still worth the investment risk?
PGJ vs S&P 500 index fund: January 2005 – August 2019
Source: https://www.portfoliovisualizer.com/
PGJ vs SPY: December 9, 2004 – August 30, 2019
Source: https://www.koyfin.com/home
Continue reading “4 Best Long Term Performance China Equity ETFs 1.3”
U.S. Mid Cap Growth vs U.S. Large Cap Blend (S&P 500): January 1972 – August 2019
Source: https://www.portfoliovisualizer.com/
The oldest available U.S. Mid Cap Growth ETF is the iShares S&P Mid-Cap 400 Growth ETF (IJK). It’s inception date was July 24, 2000. Since inception, IJK has outperformed an S&P 500 index fund by 1.76% CAGR.
IJK vs S&P 500 index fund: August 2000 – July 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Mid Cap Growth ETFs 1.2”
The oldest available Consumer Discretionary sector ETF is the Consumer Discretionary Select Sector SPDR® Fund (XLY). Its’ inception date was 12/16/1998.
XLY vs S&P500 index fund: January 1999 – June 2019
My name is Micah McDonald and I run the Deep Value ETF Accumulator blog. I retired from a 22-year Air Force career in 2008, worked the Alaska North Slope oilfields from 2008-2017 and now work as an electronics technician in remote locations in Alaska. I’m married to Gina and we have 7 kids and many grandchildren. You might consider me semi-retired now because I only work about 7 months a year. I plan to work under 6 months a year in about 3 years from now when we will be empty nesters.
Mr. SR (MSR): I’m very interested in the premise of your site, Deep Value ETF Accumulator. I’m a big fan of the low expense aspect of ETFs and my wife and I use them in our IRAs and Roth IRAs. Can you explain what “deep value” means?
Micah McDonald (MM): To me, Deep Value means an asset (or ETF) that has historically performed well has fallen out-of-favor in the eyes of the market. There is no specific valuation that I focus on.
I have found 32 ETFs that have good long-term performance that I want to own. I use Morningstar portfolios to rank them by how much they have fallen from their 52-week high price. I accumulate shares once a week, so I buy an ETF that is near the top of the list or fallen furthest from it’s 52-week high price. The further an ETF has fallen in price, the deeper the value. Continue reading “The Deep Value ETF Accumulator Interview with Mr. SR from the Semi-Retire Plan Website”
XLK vs S&P 500 index fund: January 1999 – June 2019
Source: https://www.portfoliovisualizer.com/
XLK vs SPY: December 22, 1998 – July 21, 2019
Source: https://www.koyfin.com/home
Source: https://www.morningstar.com/
Continue reading “Best Long-Term Performance Technology ETFs 1.2”
Source: https://www.portfoliovisualizer.com/ Continue reading “Best Long-Term Performance U.S. Mid Cap Value ETFs 1.2”
The iShares MSCI Pacific ex Japan ETF (EPP) seeks to track the investment results of an index composed of Pacific region developed market equities, excluding Japan.
Why EPP?
1. Exposure to companies in Australia, Hong Kong, New Zealand, and Singapore
2. Targeted access to a specific subset of Asia Pacific stocks
3. Use to diversify internationally and express a regional view
4. Excellent long-term returns
EPP vs S&P 500 index fund:
Source: https://www.portfoliovisualizer.com/
Continue reading “The Asia / Pacific ETF With A Long History Of Excellent Returns (EPP) 1.2”
Welcome to my 5th installment of semi-annual reports. The first half of this year has been an amazing follow-up to the last quarter of 2018. Most markets are hitting all-time-highs and so are most investor’s portfolios. Check out what Mr. Charlie Bilello posted on Twitter just a few days ago. Now that’s a banner half year report.
“What gets measured, gets managed” So, why do we measure performance? Most investors want to get a good return on their investments, so there needs to be a benchmark and a measurement to know if they are getting a good return. I will take that one step further and say that most portfolio managers are looking to produce portfolios with good risk-adjusted performance. For example, a portfolio consisting of 60%/40% equities and fixed income should be compared to a similar portfolio, not a portfolio of 100% growth stocks. I have 3 main reasons that I track performance. 1. I run a blog dedicated to ETF investing and I expect that some people who read it want to know how well or poorly my strategy works. 2. I personally want to know if my strategy is worth continuing to pursue. 3. My wife wants to know if the time and effort I spend playing with my blog and researching investments is a good use of my time.
Continue reading “2019 H1 Semi-Annual Performance Report – The Deep Value ETF Accumulator”
WARNING! Leveraged ETFs comprise a high degree of financial risk. Please consult a professional investment advisor before investing in any leveraged exchange traded product.
The Deep Value ETF Accumulator Rankings for Trading – Leveraged Equity ETFs:
Source: https://www.morningstar.com/
Continue reading “Best Long-Term Performance Trading – Leveraged Equity ETFs (2X Only) 1.2”
FYI: This post has nothing to do with investing. Just something that was on mind.
Dog Owners, Please Contain Your Dogs
I like to jog and walk in your neighborhood. But I fear your dog, and someone or your dog is going to get hurt. I am not threatening you or your dog with this post; I’m just making you aware of a few facts. Sometimes I jog or take walks with a hiking stick, a rock, bear spray or other personal protection devices. Yep, that’s me, the old scruffy looking guy with the ugly blue running shoes. It has gotten to the point that I now fear your dog more than I fear being trampled by a moose, mulled by a bear, clowns in sewers, perverts in white vans, and teenagers texting and driving on my side of the street. And please don’t think that because you own a nice little schnauzer or a gentle retriever that my fear is any less than when I run into a pit bull. This post is a warning about a few different outcomes that may happen, when and if your dog comes at me. I’m an old grumpy military vet and if my mind is overwhelmed with fear for my safety, I may act irrationally. Remember, I’m usually carrying something to defend myself. You may have heard the term, fight or flight. Once again, I’m old, I jog slow, and walk slower. I’m not going to outrun your dog, even your basset hound. I will fight. I don’t want to hurt your dog, but someone is going down in this situation, and I don’t plan for it to be me. I will punch, kick, stab, spray or whatever it takes to protect myself. Not only am I a vet, but I’m also a grandpa. And, just like lots of other grandpas, I like to take walks with my granddaughter. You might have seen us walking in your neighborhood, I’m the grumpy looking one with the camo pants and worn out desert boots, she’s the cute one with a pretty sundress and white sandals. When her and I take walks, things are just peachy, if we don’t run into your dog. I’ll let you know; your dog will not come away unscathed if it comes near my granddaughter. Either your dog or I are going down. By the way, the granddaughter knows how to use my smartphone. She knows how to dial 911 and my lawyer. I’m not saying any of this because I don’t like dogs. I do like dogs. My wife has 2 schnauzers and I even like them, sometimes. We have a yard but no fence. We keep our dogs contained to the yard with radio collars, but sometimes the batteries go dead. At this point our dogs could end up in the road. If our dogs get hit by a car, this would be our fault for not containing them properly, and probably not the driver of the vehicle. So, if your dog comes at me, or my granddaughter, and something bad happens to your dog, the fault will be on you, the dog owner. I’ve checked the law on this one, and it’s clear, so long as I’m not trespassing on your property, I will not be responsible for the outcome of an altercation with your dog. Again, this is not a threat. This is as simple as saying, don’t let your dog play in the street because it might get hit by a car. Please contain your dogs to your property, for your own dogs’ sake and mine.
Thanks for reading the ramblings of an old slow jogger.
PDN EQUITY STYLE BOX
Source: https://www.morningstar.com/
Deep Value ETF Accumulator rankings for Foreign Small / Mid Value ETFs:
Source: https://www.morningstar.com/
Continue reading “Best Long-Term Performance Foreign Small / Mid Value ETFs 1.2”
The iShares MSCI Emerging Markets ETF (EEM) is the largest and one of the oldest available ETFs in the Emerging Markets asset class. It was launched on April 7, 2003. Since that time, EEM has had a compounded rate of return of 10.39%. An S&P 500 index fund returned 9.44% CAGR over the same period. This outperformance came with a price though, and that price is called volatility. In the case of EEM, it’s standard deviation (a measure of volatility) was 21.97% while the S&P 500 was only 13.38% (lower mean less volatility). Other ways to demonstrate how this volatility (risk) relates to performance (reward) are the Sharpe and Sortino ratios. Typically, the higher these ratios, the better the risk vs reward ratio. In the chart below, the S&P 500 funds’ Sharpe & Sortino ratios are both higher than EEM. So, with all this additional risk, why should long-term investors consider allocating part of their equity portfolio to Diversified Emerging Markets? My answer is diversification. Diversification has oft been quoted as the “only free lunch in investing”. As a long-term investor and an investment blogger, I have made it my mission to find and invest in as many different equity asset classes as possible without degrading long-term performance. Diversified Emerging Market funds can be a useful component in a worldwide equity portfolio because they have the potential to lift long-term performance while simultaneously reducing overall risk. The risk reduction can be found in this asset class’ correlation to U.S. Markets. Once again, referring to the chart below, this asset class has a correlation to U.S. Markets of 0.79. This is a favorable number, because the lower the number, the lower the correlation to U.S. Markets, so long as the asset class does not perform poorly long-term.
EEM vs S&P 500 index fund: May 2003 – March 2019
Source: https://www.portfoliovisualizer.com/
EEM vs SPY: April 11, 2003 – April 21, 2019
Source: https://www.koyfin.com/home
Continue reading “Best Long-Term Performance Diversified Emerging Markets ETFs 1.2”
EZA vs S&P 500 index fund: March 2003 – March 2019
Source: https://www.portfoliovisualizer.com/
EZA vs SPY: February 7, 2003 – April 14, 2019
Source: https://www.koyfin.com/home
Continue reading “Is The South Africa ETF Worth The Risk? (EZA) 1.2”
Continue reading “The Sweden ETF: 23 Years of Good Returns (EWD) 1.2”
Investopedia defines the Natural Resources sector this way: The basic materials sector is a category of stocks for companies involved in the discovery, development, and processing of raw materials. The sector includes companies engaged in mining and metal refining, chemical products, and forestry products. This sector has performed very well over the last 20 years. The Materials Select Sector SPDR® Fund (XLB) has an inception date of 12/16/1998. XLB is the oldest available ETF in this category. Since it’s inception date, it has outperformed an S&P 500 index fund by 1.02% CAGR. That’s a 78.47% greater gain in XLB than in the SPY ETF over 20 years. (See charts below)
XLB vs S&P 500 index fund: January 1999 – February 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance Natural Resources Sector ETFs 1.2”
So, what is a Miscellaneous Sector ETF? Here’s how Morningstar defines this sector: “Miscellaneous sector portfolios invest in specific sectors that do not fit into any of Morningstar’s existing sector categories and for which not enough funds exist to merit the creation of a separate category.” This category mostly contains ETFs that specialize in alternative energy, clean technology and water related companies. Some of the newer ETFs in this category are focused on new or exponential technologies. There are currently 25 ETFs in this category. Fourteen of these ETFs have been available for 10 years or longer. These older 14 ETFs will be the focus of this article.
The oldest ETF in the Miscellaneous Sector category is the Invesco WilderHill Clean Energy ETF (PBW). As with most of the ETFs in this category, PBW has not performed very well vs an S&P 500 index fund. The ETFs that are focused on water related companies have done well, but the alternative energy ETFs have struggled.
PBW vs S&P 500 index fund: April 2005 – February 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance Miscellaneous Sector ETFs 1.2”
The long-term performance of the U.S. Large Cap Growth asset class is on par with U.S. Large Cap Blend (aka S&P 500), ± 0.25% CAGR
The oldest U.S. Large Cap Growth ETF has outperformed an S&P 500 index fund by 1.00% CAGR over the last 20 years
There are currently 52 ETFs available in the Morningstar Large Cap Growth category. 15 of these funds have been available for 10 years or longer.
U.S. Large Cap Growth vs U.S. Large Cap Blend (aka S&P 500): January 1972 – February 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Large Cap Growth ETFs 1.2”
U.S. Large Cap Blend: January 1972 – January 2019
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Large Cap Blend ETFs 1.2”
The International Large Cap Value asset class has been around much longer than ETFs have been available. This asset class is typically underutilized in most American’s equity portfolios. That is unfortunate because International Large Cap Value stocks tend to garner a long-term risk premium over growth stocks, just as U.S. Large Cap Value stocks do. This asset class has done poorly vs a typical S&P 500 fund since it’s availability as an ETF, but when looking back further than 2002, this asset class has produced superior returns over very long periods. Index Fund Advisors is an excellent website to get a long-term view of the performance of many asset classes.
Continue reading “Best Long-Term Performance International Large Cap Value ETFs 1.2”
U.S. Mid Cap Blend vs U.S. Large Cap Blend (aka S&P 500): January 1972 – December 2018
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Mid Cap Blend ETFs 1.2”
No, this isn’t an exercise in fuzzy math. In fact, most investors who are in the accumulation phase of their investing journey probably saw similar results. So, let’s see how this investor was able to grow his family’s net worth when Mr. Market dealt him a bad hand.
Continue reading “2018 The Year Mr. Market Took -3.5%, While This Investor Grew Net Worth +13.7%”
THD vs SPY: March 28, 2008 – January 6, 2019
Source: https://www.koyfin.com/home
Continue reading “Is the Thailand ETF Worth the Risk? (THD) 1.1”
I recently shared this on the Deep Value ETF Investors Facebook group and I thought is was worth sharing here also:
How to lose 80% in an investment… Thank you to E.G. for prompting the thought to examine some of our investing failures. Back in 2013 & 2014 I was frequently trading between UWTI (Bull) & DWTI (Bear) (3x leveraged oil futures ETNs). I thought I was smart because I was making lots of money. Oil was pretty steady between $80 to $110/barrel. So I’d buy DWTI when oil prices went up and sell it as oil prices went down. And I’d buy UWTI when oil prices dropped and sell it when oil went back up. I thought “this is so easy, why doesn’t everyone do this?” Then, later in the 2nd half of 2014 oil prices fell big time and I continued to buy UWTI every 5% drop in oil (or 15% drop in UWTI). Eventually I sank over $30k into this ETN from 2014 through 2016. Towards the end of 2016, it started to look like I might make it out of this horrible investment with a small loss or maybe even break-even. But, no! Credit Suisse decided to close these ETNs and I was forced to close my position with an approximate 80% loss in Nov 2016. I went looking for some records to show this, but Scottrade has since been bought out by TDA, so I only have one record showing my last transaction with UWTI. That transaction is attached but it only represents a portion of my loss because I was doing the same thing in another account. All told, I lost over $25k trading UWTI. Not looking for pity, just sharing my experience so that hopefully somebody learns from my mistakes. Stay diversified friends and by all means either don’t use leverage or use it with extreme caution. Micah
“What gets measured, gets managed”
The Deep Value ETF Accumulator 2018 Annual Performance Report
I’ll be the first to admit, 2018 was a tough year to make money in the stock market. But, if you are in the accumulation phase of your investing journey, take heart, most of your purchases of equities last year were probably at great prices. This may not make you feel any better about your year-end account balances, but if your account simply returns to par in 2019, you’ll probably be up substantially in the new year.
Continue reading “2018 Annual Performance Report – The Deep Value ETF Accumulator”
U.S. Small Cap Blend vs U.S. Large Cap Blend (aka S&P 500)
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance U.S. Small Cap Blend ETFs 1.2”
The Industrial Select Sector SPDR® Fund (XLI) is the oldest available Industrials sector ETF. Its’ inception date was December 16, 1998. Since inception, this ETF has outperformed an S&P 500 index fund by 1.45% CAGR. In the chart below, you can see the benefit of this outperformance where a $10k investment in XLI grew to $42k while a $10k investment in the S&P 500 only grew to $32k. This sector ETF also has a market correlation of 0.88, which can be useful when building a diversified equity portfolio.
XLI vs S&P 500 index fund: January 1999 – November 2018
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance Industrials Sector ETFs 1.2”
The Financial Select Sector SPDR® Fund (XLF) is the oldest available Financial sector ETF. Its’ inception date was December 16, 1998. The Great Financial Crises of 2007-2009 decimated this sector of the market. Because the Financials were the most severely wounded sector, the associated ETFs have failed to keep up with the returns of the broad U.S. Markets or any other sector of the market. Therefore, investors will find it difficult to find a “good” Financial sector ETF with a history of great returns. This is why you will see the XLF ETF significantly lagging the S&P 500 in the following charts.
XLF vs S&P 500 index fund: January 1999 – November 2018
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance Financial Sector ETFs 1.1”
XLU vs S&P 500 index fund: January 1999 – November 2018
Source: https://www.portfoliovisualizer.com/
Continue reading “Best Long-Term Performance Utilities Sector ETFs 1.2”
