I saw that the OG to factor investing have released some ETFs for retail. Has anyone made the switch from Avantis? Or will you stick with Avantis? E.g. DFSV insted of AVUV and DISV istead of AVDV.
I am from Sweden and a while back I went through the exposure that AVDV had to Sweden and I have to say I was a bit disappointed. The biggest holding in Sweden was a fraudulant real estate company which is on the verge on bankruptcy (Samhällsbyggnadsbolaget). When I go through the list for DISV for Sweden, I don’t see any outright fraudulant companies. On the other hand in DISV I see for example BORUSSIA DORTMUND GMBH. I don’t know about you, but I don’t a football club which is owned 51% by the fans has to goal of generating shareholder value…
I would not look at individual holdings. That’s why we do index investing.
These companies have different rules based and algorithmic approaches. The are not perfect and also they are not able to look at every single company in their fund closely. If their rules and algorithm say a company is to be included, they include the. It’s not perfect and it can never be.
Also that’s kind of the nature of value companies a bit, their is a reason they are more risky and their market price is not as high as other’s even though they have good financials. That’s one of teh reason there are risk premiums for value.
Other than that, Im personally fully Avantis, except UBS etfs for a 10% home bias. But I am currently thinking on switching AVDV to DISV, due to DISV supposedly having a lower dividend ield, which is preferable here in Switzerland, due to taxes. But Im waiting for the dividends to be announced this month and then decide. If the performance is very similar, but one has lower dividends, I decide for the one with less dividends, because this means more return for our tax situation.