@Tenbagger2024 because of the questions about factor ETFs
If you want to go into small caps, then I always recommend adding another factor, as the size factor itself is not very strong.
Primarily, you should try to remove the unprofitable companies, as these destroy almost all of the excess return.
This has been scientifically analyzed here:
https://www.sciencedirect.com/science/article/pii/S0304405X18301326
Therefore, I recommend either small cap value $ZPRV (-0,26%) / $ZPRX (-0,28%) or add a quality filter on top: $RTWO (+0,03%)
Now that we have clarified that, I would like to open another barrel at this point. Why not use an aCtiV eTf? *haha ha ha ha, ... muhahahaha*
There has recently been a new ETF provider in Europe and it brings us this beauty, among other things: $AVWS (+0%)
Avantis is a company formed from former Dimensional Fund Advisors employees.
In the institutional sector, they are known for their factor ETFs, which are all rule-based investments but do not track an index.
And so I asked myself the question, does it always make sense to have an index?
After all, an index is also a rule-based system built by humans. So why not implement the system without an index?
Dimensional Fund Advisors have been doing this for over 40 years.
That's why I've been looking at other such rules-based ETFs. ($IQSA (-0,3%) for example)
In my opinion, many investors do not distinguish between rules-based investing and stock picking, they all think of Dirk Müller $OD6H (-0,1%) and $ARKK (-0,33%) but there are many shades of gray between those and an MSCI World, which in my opinion do not receive enough attention.
@SchlaubiSchlumpf
@DonkeyInvestor
@Stullen-Portfolio
What do you think of ETFs without an index?