02-22-2016, 09:39 AM
(02-13-2016, 07:23 PM)navyasw02 Wrote:(02-13-2016, 06:34 PM)Concasto Wrote: There has been much innovation in ETFs over the years. I strongly feel some of these funds should be in every portfolio. Funds like QVAL from Alpha Architect stick to a quantitative strategy that has shown great out performance over time. Meb Faber's funds are also attractive imo.
Great read for all investment philosophies...
http://blog.alphaarchitect.com/2015/08/1...-not-easy/
Considering QVAL has only been around since late 2014, I highly doubt any performance analysis can be drawn to this point to show that its worth the .79% expense ratio. Since it has only 41 stocks, the average investor could build this portfolio pretty easily with less cost.
Well it matters how big your portfolio is in the first place and you would have to rebalance quarterly.
But the biggest advantage of holding stocks via an ETF is tax deferral. The ETF can rebalance without any cap gains costs to you. This is huge.
If you believe backtests are remotely accurate, then a fund like QVAL will beat out dividend growth investing across any long term time frame.