Episode 397: Small Cap Value Funds, How To Recognize Bad Books, CAOS And Weekly Portfolio Reviews As Of January 24, 2025
Jan 26, 2025
Dive into the intriguing world of small-cap value funds as key players like Vanguard and iShares are put under the microscope. Unpack the historical context and importance of diversification for robust portfolios. Get ready for some laughs as the hosts critique a dubious book, giving a light-hearted take on investment strategies. Plus, discover how CAOS is shaking up traditional approaches with innovative risk management tools. Finally, stay tuned for detailed reviews on various sample portfolios and their performance in today's market.
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volunteer_activism ADVICE
Small-Cap Value Fund Choices
Consider VIOV as the industry standard for small-cap value due to its history and profitability filter.
However, explore AVUV as a potentially better alternative, especially if you are tax-loss harvesting.
insights INSIGHT
Evaluating Financial Authors
Approach financial books with skepticism, researching the author's background for potential conflicts of interest.
Be wary of failed fund managers turned authors, often pushing conspiracy theories or precious metals.
question_answer ANECDOTE
Listener's CAOS Experiment
Justin, a listener, experiments with CAOS, an Alpha Architect ETF, as a tail protection and potential bond replacement.
He backtests it alongside UPRO, achieving better returns with regular rebalancing.
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David Rogers Webb's "The Great Taking" blends elements of personal narrative with a conspiracy theory centered on global elites. The book presents a critical perspective on economic systems and power structures. Webb's background in the hedge fund industry adds a layer of intrigue to his analysis. The work is characterized by its unconventional approach and controversial claims. While it may appeal to readers interested in alternative viewpoints, its lack of rigorous evidence and reliance on speculation limit its credibility.
In this episode we answer emails from Bones, Paul and Justin. We discuss small cap value funds and their underlying indexes, an odd book from an unreliable source and an alternative ETF called CAOS.
And THEN we our go through our weekly portfolio reviews of the eight sample portfolios you can find at Portfolios | Risk Parity Radio.
What if your investments could outpace market trends with a simple shift in strategy? On Risk Parity Radio, we promise to unravel the complexities of asset allocation, specifically tailored for the DIY investor. We kick off with a deep dive into the world of small-cap value funds, dissecting the evolution of Vanguard’s funds alongside iShares' stalwart, IJS. The competition heats up with new entrants like Avantis and Dimensional, particularly the rising star AVUV. With insights from Paul Merriman's research, we explore why diversifying into small-cap value can be a game-changer for your portfolio, no matter which fund you choose.
Ever wondered if an investment product could thrive in both stable and volatile markets? Enter Wes Gray’s Alpha Architect product, Chaos, which challenges traditional investing with tools like protective puts and box spreads. We bring you a thorough examination of this intriguing product and a candid discussion about its potential and risks. Our analysis extends to sample portfolios, showcasing the power of diversification with assets ranging from the S&P 500 to commodities. We wrap up by contrasting popular portfolios like the All Seasons and Golden Butterfly with the experimental Accelerated Permanent Portfolio, making sure you are equipped with cutting-edge strategies to optimize your investments.
Risk Parity Radio