A few people have asked why I'm not using Avantis funds. The market currently has very low depth-of-book (despite high trading volume.) Volume and liquidity are not synonymous, and without enough depth-of-book and proper market making/trading in Avantis securities, the spread is too wide to recommend them. $FNDF offers nearly identical factor exposure as $AVDE, and trades at a 1-cent spread. As such, I've been leaning toward $FNDX and $FNDF for large caps. $AVUV still remains a good option for small-cap value, but I am not confident that this factor will be persistent and pervasive throughout the current market cycle, as financials have been hit and may continue to be hit. Instead, I'd recommend a fund like $MGC - and avoiding the size factor instead of pursuing it. This is the only prudent way to pursue a value portfolio without introducing unnecessary volatility at this time, in my opinion.
A few people have asked why I'm not using Avantis funds. The market currently has very low depth-of-book (despite high trading volume.) Volume and liquidity are not synonymous, and without enough depth-of-book and proper market making/trading in Avantis securities, the spread is too wide to recommend them. $FNDF offers nearly identical factor exposure as $AVDE, and trades at a 1-cent spread. As such, I've been leaning toward $FNDX and $FNDF for large caps. $AVUV still remains a good option for small-cap value, but I am not confident that this factor will be persistent and pervasive throughout the current market cycle, as financials have been hit and may continue to be hit. Instead, I'd recommend a fund like $MGC - and avoiding the size factor instead of pursuing it. This is the only prudent way to pursue a value portfolio without introducing unnecessary volatility at this time, in my opinion.
Great take as always, thank you Avery!
Glad you are back writing here, evergreen :).
Have a great weekend!