Risk Parity Radio
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.
29:46
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Quick takeaways
- The podcast highlights the importance of investing in small cap value funds, focusing on their performance variations and industry standards like Vanguard's VIOV.
- A critical evaluation of unreliable literature suggests that investors should avoid books from questionable authors that lack actionable financial insights.
Deep dives
Understanding Small Cap Value Funds
The discussion emphasizes the differences between various small cap value funds, primarily focusing on Vanguard's VBR and iShares' IJS. It highlights that IJS, which tracks the S&P 600 small cap value index, provides more direct exposure to small cap value compared to VBR, which uses a different index that skews towards mid-cap. Vanguard responded to market trends by creating VIOV, based on the S&P 600 index, which has become the industry standard over the last two decades. The conversation urges investors to recognize that fund performance can vary widely, and it is more important to maintain exposure to small cap value rather than obsessing over which particular fund is currently deemed superior.
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