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Go to Fidelity.com and search for VTV (Vanguard Value Index Funds) Plot the stock price then select compare to SP500. You can select 1 year, 2 year, 5 year, 10
by glofish 5y ago
Go to Fidelity.com and search for VTV (Vanguard Value Index Funds)
Plot the stock price then select compare to SP500. You can select 1 year, 2 year, 5 year, 10 year, Max range
What will you find?
For all of those ranges SP500 outperformed VTV. The longer the the period, the larger the margin. As an example over 10 years SP500 went up 220% VTV went up 160%
Now your choice is to trust paranoidvalueinvestor.substack.com or actual observations.
- julienchastang 5y agoYour time range is not long enough and it too skewed to a small number of companies that are dominating the sp500. For all of those espousing value investing in this HN discussion, try to read this pay-walled WSJ article one or another: https://www.wsj.com/articles/how-to-understand-this-crazy-year-in-investingand-what-to-do-now-11607698800 https://www.wsj.com/articles/how-to-understand-this-crazy-ye...
- glofish 5y agoI went ahead and compared VTV (Small Value Index) to VTI (Total Stock Market index) that includes all US companies. On the 1 year range the VTI underperformed. Over 2, 5, 10 and Max (18 years) VTI outperforms VTV, the longer the period the larger the difference. But I will say the author is right in that VTV shows less volatility, thus it may offer one more peace of mind.
- challenger-derp 5y agoAn assumption being made here is VTV is the kind of value investing you would (personally) define as value investing. I don't know VTV's methodology, but I've encountered ETFs by reputable companies that are quite shabbily managed for their claimed goal.