Avantis Funds--Does "Financial Science" Produce Better Returns?
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- Опубликовано: 30 июл 2024
- I've been asked countless times what my thoughts are on Avantis ETFs and mutual funds. In this video I walk through the history of Avantis, its approach to investing, and compare two of its funds.
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While still working as a trial attorney in the securities field, I started writing about personal finance and investing In 2007. In 2013 I started the Doughroller Money Podcast, which has been downloaded millions of times. Today I'm the Deputy Editor of Forbes Advisor, managing a growing team of editors and writers that produce content to help readers make the most of their money.
I'm also the author of Retire Before Mom and Dad--The Simple Numbers Behind a Lifetime of Financial Freedom (amzn.to/3by10EE)
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Rob, as others have said, I think you meant to compare AVUS to VTHR. Had you done so, you would find that AVUS had a CAGR of 13.79 vs VTHR's CAGR of 11.65.
Portfolio visualizer has another tool named Factor Regression, with that tool it's possible to appreciate that Avantis has better factor tilts. For example, its small cap value AVUV vs Vanguard S&P 600 value (VIOV):
They are similar in the size factor, Avantis is slightly higher in value(0.57 vs 0.42) and much higher in profitability(0.22 vs 0.02)
you have to type in the correct tickers unfortunately which makes it all a bit useless - this dude's comparing $VTI with $AVDV lol - international VALUE! not even their value-tilted or US funds, he's not familiar with the funds and it really really shows. don't take advice from strangers, all these funds beat their benchmarks lol
You prefer the Avantis or Dimensional ETFs?
Hi Rob, at 7:08 you compared the Russell 3000 to International Small Cap Value (AVDV), I think you may have meant to compare the Russell 3000 to AVUS which looks more favorable. Or maybe AVUV to showcase the difference between the R3K and pure small cap value. Great video, keep it up!
How can it be a great video, if almost half of the video analyzes a false comparison? :)
the r3k is comparable with total market funds - you're thinking of the r2k value or S&P 600 value indices - or CRSP small value - literally anything but the r3k or r1k
Not only is he comparing Apples to Orangutans, but AVUS outperformed VTHR from common inception (Jan 2020) to Dec 2022.
Not only is he comparing Apples to Orangutans, but AVUS outperformed VTHR from common inception (Jan 2020) to Dec 2022.
I could not agree more: if you don’t have strong conviction, stay away.
However, I do not share your aversion to financial science.
And there’s more to avantis’s strategy than small and value. They use profitability and investment factors as well, and they have cleverly applied momentum in a way that doesn’t increase turnover. Their turnover is often less than index.
I use AVUV and AVDV. They have outperformed their indexes without trying to stock-pick or market-time. And I believe they will continue to do so.
@@DucksNuts. Dimensional has come out with ETFs that anyone can access, analogous to AVUV is DFSV and analogous to AVDV is DISV
What are your thoughts on AVES?
The comparison at the 7 minute mark was with the wrong fund. AVUS outperformed VTHR from Oct 2019 to May 2022.
I guess it's harder to justify his conclusion if Avantis is outperforming Vanguard.
Hi Rob, with all due respect please take down this video or post a new one comparing VTHR with AVUS as you would have originally intended to. In my opinion AVUS along with AVUV are very good ETF’s to not ignore.
Yes, I agree let's try something different aside from the same old Vanguard funds, yes they may have low expense ration and large AUMs but it's good have a different spin on a portfolio as well that will define it's own financial gain personality.
You may need to scrub this video and start again. You are not comparing AVUS, to the russel 3000. you are comparing AVDV.
@RobBerger you compared the Russell 3000 to Avantis International small-cap value in portfolio visualizer.
Oops! Thanks for letting me know.
Hi Rob, Thanks for the review. Did you mean to compare the Russel 3000 to the international small cap value fund?
I don’t know if that done on purpose or not because avus Avantis us equity fund has outperformed vti/vthr by about two percent cagr wise.
Hey Rob could you please add in your ideas on avuv. Paul Merriman is now recommending it dimensional fund. I want to say I really appreciate all the work that you put in for us.
Rob, thank you for the review. I was also considering adding International Small Cap Value ETF to my core portfolio and decided to use VSS (Vanguard FTSE All-Wld ex-US SmCp) instead of AVDV despite VSS is more Small/Mid Cap Blend, but my criteria for long-term portfolio is to have fee less than 0.2. Do you think such replacement would work or worse to revise AVDV? Or maybe there are good alternatives?
Im all in on AVGE
Hi Rob, thank you so much for these great and very educational videos. I am new to investing and your videos helped me start investing smarter way. I am building my portfolio and now is mainly individual stocks and few ETF funds. I am 50 years old and started investing couple of years ago and want to add bonds maybe next year. I have been following gold for probably 10 years and bought few gold coins. What would be your advise to invest in gold instead of bonds? Not gold ETF but owning a physical gold as gold coins and bars. Thank you again for great presentations and I am waiting for your next video.
Good and honest review. I do like to use AVUV - US small cap value. Rather than a pure index SCV option, just to weed out some of the businesses.
But I agree, I definitely wouldn’t want it as a core position.
Excellent Review, thanks! Please consider a similar review for O'Shares Investments.
You did it Rob. Thanks for the walk through on Avantis. By the way would you be able to tell us how the Knight moves?
Rob, could you share what software you use to share your screen while you record? Thanks.
Balanced discussion. Thank you.
Where do you put avantis small cap international fund? In taxable brokerage or roth? Also international funds in general , in taxable or roth?
Thanks Rob - your work is always appreciated
Hi Rob, great review. I was wondering if you could build an aggressive growth portfolio on a future video. I have been trying to build one but i always seem to fall short of VOO. Very inexperienced old guy here :) thanks
I have a small position of AVUS, low cost actively managed fund that I can dollar cost average on a more frequent basis, compared to most Vanguard funds.
These slight tilts are really just tinkering, IMO. Many books suggest ‘playing’ with a small % of your overall Portfolio. I’ve tried this, but it means being able to predict….. And really, the generic index funds - set it and forget it, has to be the right approach for the vast majority of us. I tend to get bored and want to tinker from time to time…. But at least I’ve abused by the small percentage of total rules…. And thus lessened the hit……. Again thanks Ron for your advice. You rock!
Sorry, ‘abided by’… not ‘abused’
Abided by…. Not ‘abused’
You've made a pretty big mistake in your comparison as you compared the Russell 3000 (a domestic small cap value fund) to AVDV (Avantis international small cap value fund). What you meant to do was compare the Russell 3000 to AVUV which is Avantis domestic small cap value fund. I think that will account for the large discrepancy in CAGR. Thanks as always
Russell 3000 and AVUS are not small value.
Yeah, Rob, this guy’s right. You used the wrong fund.
Yep, wrong fund, Rob. Just ran this myself on portfolio visualizer. AVUS has beaten VTHR since inception.
Agree. It was a wrong fund comparison.
Russell 3000 is small cap total, not value.
I would be really interested to know if you had gotten a chance to see the video that was put up by Paul merriman that explained the difference of a 50 year return when factor investing. I think the key is you need to be in it for the long haul to expect those returns and even then the past isn't a perfect predictor of the future. Although I always feel more confident with trends when we have more and more data/time to base our decisions on. (ie. I expect I have better idea what my stocks will do in 15 years vs the next 3)
Finally!
Have you taken a look at their AVGE ETF?
Three words Rob - Long Term Capital. That would be a "no" from me! Ha. Thanks Rob for your good stuff. - Bill
I’d rather have a fund advisor with an ear to the House ways and means committee
Seems like some intriguing funds, although not for me.
So you believe that it’s unnecessary to tilt your portfolio towards factors that have historically provided superior returns & are grounded in rigorous academic research but would happily “invest” 2% of your money in a 100 P/E wallstreetbets-type stock like Tesla (allocation in a MCW fund)? I would call THAT nonsensical! Give me my 6 P/E stocks w/robust profitability, conservative investment, & positive momentum!
Considering SP500 is less and less diversified because of the small number of growth megacaps, these small cap value are a great diversifier. A free lunch as far as I am concerned. They should be used as such IMO
Delete and redo. You compared wrong fund……,
How u doin Rob
Agree - stick to index funds that lean toward small cap /large cap or a low cost managed value fund like VEIRX
Why would you compare $AVDV, a DM Value ETF to a freakin' Russel 3000 ETF? This makes absolutely zero sense. Neither of them even hold a single of the same stocks. Compare $AVUS to $VTI if you really want to, at least compare the same country/countries.
It is his first day on the job give him a break 😂😂😂