1Semana·

Emerging markets Smallcap Value Funds

I am currently using the $DGSD (-0,02 %) to track small value in EM. As I don't find the proxy that exciting, the exposure is rather small. I just stumbled across Dimensional Fund Advisors being available at Finvesto while looking through my VL contract with FNZ Bank. There, among other things, about the EM Smallcap Value (if I see that correctly) $RQ325Z .

In general, Dimensional is involved in Factoretfs. As far as I know, they are only available in Europe via advisors and want to enter the ETF market this year with 2 ETFs.

@TotallyLost Wouldn't that be interesting for you too? Of course, I don't know what the situation is in Austria. I haven't looked at it that closely so far. (I also don't know the price of custody account management at FNZ-Bank). In terms of costs, the fund seems to be on a par with comparable ETFs. So still expensive, but cheaper than most actively managed funds. I read 0.56% in the prospectus

7 Comentarios

TotallyLost@TotallyLost

1Semana

I am a big fan of Dimentional products.
The fund looks OK at first glance.
If it were investable, I could imagine putting it next to my $SPYX.

But I'm slowly running out of steam, I'm now invested in 18 funds, some of which are not yet fully invested and there are still 4 that I haven't even started yet...

And since I don't want to hold a position <2%, my cap is slowly being reached... I have to learn to say NO to factor funds... 😅

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Uwe@SchlaubiSchlumpf

1Semana

@TotallyLost Haha I actually stuck with 8. I try to run as redundancy-free as possible. I would therefore throw out the smallcal value. I don't have any smallcap without a value factor.

I recently shifted some of the smallcap EM dividend into the EM and increased my SC Value DM share in order to keep the exposure in Small equally high, keep EM equally high and still partially get out of the dividend. I would have to see what the conditions are for Dimensional funds there. FNZ Bank apparently charges a 0.2% front-end load on Finvesto. Which would be okay. And 9 euros per quarter. All 36 euros per year. With 4000 euros (assumption) also 1% per year. Whereby they probably allow a basic portfolio with one position. Let me have a look at what else they have. In the meantime, my factoretfs are also making solid profits. Too much back and forth would hurt.

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Uwe@SchlaubiSchlumpf

1Semana

@TotallyLost I looked up the return on the $B2PC071. The thing has made 112% in the last 10 years, which corresponds to a return of 7.85 p.a.. If I compare this with 3 self-hold etfs for SC Value US&EU from MSCI and a smallcap EM (via Curvo in the backtest), the self-built variant performs somewhat more volatile, but with a better geometric return.

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TotallyLost@TotallyLost

1Semana

@SchlaubiSchlumpf I'm still looking for an actively managed EM small cap fund, the markets are too different so you often only get individual countries.

People often forget that EM is not a homogeneous mass.

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Uwe@SchlaubiSchlumpf

1Semana

@TotallyLost Why actively managed? There would be some passive ones (without value). With value, you are almost forced into active. Or semi-functioning auxiliary vehicles

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TotallyLost@TotallyLost

1Semana

@SchlaubiSchlumpf I think this is alpha to get, due to trade barriers, illiquidity and the fact that EM are completely out, there are changen.

I also have a frontier market fund that is actively managed $C084Y2
(Here is a share class with a longer history:
https://www.onvista.de/fonds/MAGNA-NEW-FRONTIERS-FUND-R-USD-ACC-Fonds-IE00B670FC16 )

And I think such an outperformance is also possible with EM small caps.

But I've only found one fund and it's not investable for the general public. 😅

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Uwe@SchlaubiSchlumpf

1Semana

@TotallyLost understand. If I benchmark the $C084Y2 with the $5MVL there is a 20% difference in performance. (110 vs 130) That's quite a lot. I think I'll settle for the Value anyway. It's cheaper and I know the logic behind it.

The problem with manager funds is always to buy them before they have good performance

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