SPDR MSCI Europe Small Cap Val Weighted ETF

ETF

ISIN: IE00BSPLC298

Ticker: ZPRX

IE00BSPLC298

ZPRX

Price

Discussão sobre ZPRX

Postos

PowerWordChill

@PowerWordChill

4D·

Small caps and active ETFs

@Tenbagger2024 because of the questions about factor ETFs

https://getqu.in/oZ69CF/

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 (-0,14%) / $ZPRX (-0,33%) or add a quality filter on top: $RTWO (+0,11%)

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

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 (-0,08%) for example)

In my opinion, many investors do not distinguish between rules-based investing and stock picking, they all think of Dirk Müller $OD6H (+0,16%) and $ARKK (-0,24%) 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?

21 Comentários

Nostradonkey💩@DonkeyInvestor

The 2000s have called and want their managed funds back.

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Uwe

@SchlaubiSchlumpf

5D·

My Rewind 2024 - Getquin wrapped

Preface:

In the following, I would like to present how my portfolio has developed over the course of 2024.

This includes

1) my strategic orientation

2)Return on the portfolio.

The main topics are:

Moving away from individual stocks
Entry into gold and bitcoin
Factor investing

Finally, I will give my own thoughts on how to proceed.

The main changes to my portfolio that have led

to my current strategy are presented below using a short timeline.

timeline:

My timeline

Beginning of 2024

At the beginning of the year, I pursued a 70/30 core satellite

strategy. The 70% ETF core again consisted of STOXX Europe.

MSCI World, Emerging Markets.

The 30% consisted of stocks such as: $CSIQ (-0,18%) , $O (+0,34%) ,$TSM (+1,12%)
$ADM (+0,86%)
$UMI (-0,1%)
$D05 (-0,7%)
$BMW (-1%)
$UKW (+0%)
$8031 (-3,27%)
$MUV2 (-1,83%)

February

Addition of gold to my portfolio. Target size 10%. Build-up in batches.

The remaining 70/30 strategy therefore only relates to the remaining

90%.

April-June:

Entry into Bitcoin via Trade Republic in several batches

at prices between 50k and 63k.

After exchange with @Epi to the fee schedule at Trade Republic

I sold them there in order to sell Bitcoin on a dedicated crypto exchange.

exchange.

June:

Thanks to @PowerWordChill I got to grips with factor investing. A Gerd Kommer book later, and after some internet research, I decided to

decided to transform my ETF strategy into a factor ETF strategy.

July-August 2024:

Sale of my shares. Concentration on the factor portfolio.

August - September 24:

Renewed build-up of Bitcoin with the aim of making Bitcoin a

a fixed component of the portfolio. Consideration is 5%-10%

of my portfolio.

The idea. Build up an initial position, then make regular

investments of €50 per week with the aim of growing to the target size

to grow to the target size. The rapid rise in October/November led me to

led me to leave it at €50 per week. And individual purchases in

larger tranches at an early stage with a portfolio size of 2.x%.

End of December 2024:

Position size of Bitcoin almost 5%.

I am not yet including Bitcoin in my gold/ETF quota. I'm still running it on the side.

I re-evaluated my factor weighting at the end of the year

and would like to fine-tune it a little. I will briefly present the result in the

following section.

In addition, I have decided to include a small

include a small proportion of real estate stocks. However, this will probably never

part of my strategy worth mentioning and contains - as of today - only

about 3% of my portfolio and only $O (+0,34%) ).

Overall breakdown of my portfolio:

As described above, I do not yet include Bitcoin in my overall strategy

part of my overall strategy so that rebalancing remains easier. This will

change when Bitcoin reaches its target size.

The rest is made up as follows:

ETFs:

$XDEM (+0,2%) 30.3% (MSCI World Momentum)

$XDEB (+0,23%) 10.1% (MSCI World Minimum Volatility)

$XDEV (-0,11%) 10.1% (MSCI World Value)

$ZPRV (-0,14%) 15% (MSCI USA Small Cap Value Weighted)

$ZPRX (-0,33%) 6.5% (MSCI Europe Small Cap Value Weighted)

$PEH (+0,25%) 4.5% (as a quality factor on emerging markets)

$5MVL (+0,17%) 4.5% (Edge MSCI EM Value)

$SPYX (-0,34%) 9% (MSCI EM Small Cap)

Gold

$EWG2 (+0,7%) 10% Gold ETC

Getquin Rewind and own data:

At the end of the post you will find my Getquin Rewind, as I was not able to embed the image in the text:

However, according to my own calculations, this cannot be correct.

My portfolio volume at the start of the year was around €103,500 with a return of €16,693. This would correspond to a total return of 19.2%. However, we are not yet talking about a time-weighted return, as my invested capital has roughly doubled over the course of the year. I therefore estimate my TTWROR to be higher.

My own thoughts and outlook:

I do not expect any major changes in strategy over the next few years. At some point, a strategy will have to be established. If necessary, I will make some adjustments to this strategy.

This includes the fact that I am dissatisfied with the costs of the emerging markets factor ETFs. So far, however, I intend to live with it. Should I

stumble across better products, I will consider switching. Especially as long as I stay within the tax allowance when switching.

I'll also have to decide how big my Bitcoin holding should ultimately be.

If you've been reading carefully, you'll notice that a lot of money has accumulated in the last year. Big profits, big investments. Due to personal circumstances, I will not maintain these rates in the same style, but will reduce them somewhat. I expect to be able to continue investing around 1.5-2k per month. This means that my financial goals are

with an expected return of 5% adjusted for inflation over many years.

I am half hoping for major setbacks in the near future and the associated favorable entries. However, in view of the impact that minor price jolts have had on society as a whole (thanks to populism), I don't really wish for them.

Do you have any suggestions, questions or comments? Is there anything that particularly interests you?

I am also happy to receive suggestions for improvement for future posts.

Best regards,

Your Smurf

PS: @DonkeyInvestor and me, that's love ❤. And now send me your coins! (So I can reward your next post appropriately).

PPS: I hope someone is interested.

21 Comentários

Christian@christian

Thank you for the detailed introduction :)

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soylent_black

@soylent_black

2Mês·

Hi guys! Any thoughts on my portfolio? I started investing on march 2024, starting from 100€ and 0 knowledge. I’ve done many mistakes and already sold some positions (every time with profit, even if only 10€ profit). I’m still a noob and keep studying every day so please be kind 🤣

As you can see I also have some single stocks, these are just fun money and I’m using them just for buy and sell and make profit. I’m reinvesting on ETFs all the profits I make from stocks.

Basically I’m going to build my portfolio this way:

50% $VWCE (-0,02%) (this one will always be the core)

10% $WGLD (+0,48%)

10% $ZPRV (-0,14%)

5%/10% fun money (single stocks and a just a lil bit of cripto)

Aside from this portfolio I also have 10k on $XEON (+0,02%) (this is basically my “emergency funds”, since I don’t like/know a lot single bonds and etf bonds).

Thank you in advance!

2 Comentários

2Mês

You can sell anything under 3% allocation to simplify it.

••

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deodorhunter

@deodorhunter

3Mês·

UPDATE: The wait is over!

Starting October 1st, Avantis officially launched two ETFs, now available on Xetra exchange.

$AVWC (+0,1%) for global equities (World IMI benchmark) and $IE0003R87OG3 AVWS for world small cap value (MSCI World Small cap value benchmark)

Both are accumulating, multi factor, rule based and actively managed ETFs.

$AVWC (+0,1%) : world IMI, slight value and size tilt, profitability and momentum screened (negative momentum filtered)

TER 0.22%, in line with e.g. Vanguard FTSE-All World UCITS ETF $VWCE (-0,02%)

Initial AUM after seeding: $250M

https://www.avantisinvestors.com/ucitsetf/avantis-global-equity-ucits-etf/

$IE0003R87OG3 AVWS: developed world small cap value, profitability and momentum screened (no negative momentum, unlike $ZPRX (-0,33%) / $ZPRV (-0,14%) )

TER 0.39%, close to ZPR* (0.3%)

Initial AUM after seeding: $11M

https://www.avantisinvestors.com/ucitsetf/avantis-global-small-cap-value-ucits-etf/

Note

As EU KIID regulation enforcement is quite bonkers (KIID must be in local official language for the asset to be tradable to a citizen of that specific country), they’re still untradable for the large majority of European retail investors on almost every brokerage (except IBKR, where only EN KIID is required).

German retail investors should be the first to gain access, as the DE KIID is already submitted and available on Avantis website. It’s now up to brokers to list the product with necessary documentation.

deodorhunter

@deodorhunter

6Mês·

Good news for UCITS factor investors! Avantis will be launching UCITS ETF soon it seems: https://www.etfstream.com/articles/american-century-to-enter-europe-with-three-active-etfs

The three ETFs are to be launched by Avantis Investors, the group’s quantitative investment unit, headed up by the firm’s CIO Eduardo Repetto.

The Missouri-based asset manager has three US-listed equivalent ETFs, the $6bn Avantis International Small Cap Value ETF, the $5.6bn Avantis Emerging Markets Equity ETF and the $365m Avantis All Equity Markets ETF.

Curious
to see if they will be 1:1 porting of US equivalents $AVDV
$AVEM / $AVES
$AVGE and the actual factor loadings (RR community will be quick to analyse once they are confirmed).

This could mean as Eu investors we no longer need 3/4 ETFs for intl SCV like $ZPRV (-0,14%)
$ZPRX (-0,33%) , and no more extra momentum boosts to balance these ETFs negative momentum.

EM offering could also trim the number of ETFs needed, once we know the offering and factor loadings

Are you looking forward to these ETFs? Will you switch to them in the near future?

Really curious to hear the community factor spiritual guide @PowerWordChill opinion on this :)

www.etfstream.comERROR: The request could not be satisfied

5 Comentários

João@joaoluis

3Mês

Really interesting ETF, I was waiting for something like this to finally add the Small Cap Value into my Portfolio. Would love to hear @PowerWordChill opinion on this ETF. Only thing holding me back is the active management.

••

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deodorhunter

@deodorhunter

5Mês·

Hello again dear community!

Since I'm in my rebalancing window after 6 months, I've been ruminating on a specific asset reallocation for a couple of weeks, and would like to know your opinion. :)

I'm thinking about closing my position at $META (-0,05%) with roughly a +30%, and move the money somewhere else. I'll try to bullet point my sell case.

PROS

I think the share is quite fairly valued at ~490-525$, even if some analysts shoot a PT of ~600$ (I'm sure I'll be proven wrong, hindsight is always 20/20 after all).
Meta's current valuation ratios are higher than historical 5Y averages across the board by ~10-15% average, except PEG, which is historically always been <1
A lot of CAPEX is going into AI, but it's really unsure how and when this will translate into tangible metrics growth. The Street has historical beef with META regarding CAPEX: if expectations are not beaten consistently, I fear some retaliation coming. Additionally, Reels monetization improvements, which bolstered 2023 roaring comeback, are on a plateau, and the competition is getting tougher
Capital structure shows a market cap of 1.27T compared to an enterprise value of 1.24T, which confirms fair valuation view from this POV
Re-reading Q1 earnings call transcript, Q2 is expected to be softer by management. EPS revisions show a ~60% down trend for Q2
Given the above, it looks like most positives about valuation, cash flow generation and margins (both of which are huge, not a sliver of doubt about that) are already priced in
Therefore, the overweight on top of my two core ETFs (still building the desired %) that hold META, S&P500 $VUSA (+0,04%) (2.3%) and $JPGL (+0,34%) (equal weighted at 0.33% last time I checked) is not easily justified anymore in terms of alpha/momentum/premia generation compared to risk. I would still be on board to reap the eventual benefits, just not overweight. And move the money to another sector, given the current outlook for late summer/fall in rates and sector rotation (still unsure if the recent development is an incoming mass move or just an algo move)
Last and probably the least meaningful point: lots of insider selling and no buying in the last months

CONS

Despite CAPEX growth and AI monetization concerns, META will remain a cash cow, and able to buy competition at a whim (if antitrust allows).
The above is supported by the enormous FCF growth, powered by Operating margin and Operating cash flow
Impressions based ad monetization algorithm should retain its current growth in the next quarters, even if demand dwindles. After all, we are looking at >3 billion overall users, with a growth in the mid single digits range
Despite high multiples across the board, META remains one of the least expensive Mag7, beaten only by Google. We could look more at sales-based valuation metrics than classical valuation metrics. In this case, META would be aggresively valued instead of fairly-valued (or for some, overvalued even)
META's moat remains one of the widest, and it won't likely shift downwards in the next years
Due to lowered expectations, we get a good beat in Q2 earnings report (31/07) that shoots the price upward, losing potential profits.
Or a stock split announcement. We know how retail money loves stock splits and disregards common knowledge of "the underlying value is unchanged". Meta is a retail darling after all, as Nvidia. Look what happened there after the split
Meta still is an AI developer. It's own LLM, Llama, is in constant evolution and being applied in some use cases. LLama is, also, one of the few open source LLMs. Meta is better directly positioned as an AI play than some others, no need to say more about the AI growth story.

As I said, I'm quite convinced of the sell case with my actual portfolio positioning. I'm not quite convinced about the timing (now or after earnings), but I'm trying to not think about timing the market and maximising profits.

The next step is: where to move that money? To me, there are three options:

Open a position in $BRK.B (+0,22%) and keep saving that long term. It's basically a value ETF posed to keep going forever, even after Buffet
All into $JPGL (+0,34%) to keep building it up to desired % f portfolio
All in Small Caps, expanding my planned allocation by 2% for FY2024 ($ZPRV (-0,14%) & $ZPRX (-0,33%) ) considering macros and recent market rotation

What are your opinions on the matter? Would love to discuss it here in the comments :)

Have a nice Sunday!

Data sources

Data used in the analysis comes from https://seekingalpha.com/symbol/META and https://valueinvesting.io/META/

3 Comentários

OldWhiteGuy@amanaplanacanalpanama

5Mês

Very diligent assessment, it would appear (when do you get work, life done?). Personally, I have never quite understood the appeal of $META - holding $GOOG Alphabet, but not so much for their advertising business, rather for Project X (playing the very long game) - given the short-term focus of most Western societies, I feel we need companies reaching for the moon (and not in terms of earningd, but of accomplishments).

$BRK.B would appear to be a very nice complement to any remainung tech/AI investment, almost like a hedge.

Given your diligent assessment I have no doubt that you will make your decision based on a far greater understanding that what will most likely be gained from swarm intelligence. Trust in yourself!

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deodorhunter

@deodorhunter

6Mês·

Good news for UCITS factor investors! Avantis will be launching UCITS ETF soon it seems: https://www.etfstream.com/articles/american-century-to-enter-europe-with-three-active-etfs

The three ETFs are to be launched by Avantis Investors, the group’s quantitative investment unit, headed up by the firm’s CIO Eduardo Repetto.

Curious
to see if they will be 1:1 porting of US equivalents $AVDV
$AVEM / $AVES
$AVGE and the actual factor loadings (RR community will be quick to analyse once they are confirmed).

This could mean as Eu investors we no longer need 3/4 ETFs for intl SCV like $ZPRV (-0,14%)
$ZPRX (-0,33%) , and no more extra momentum boosts to balance these ETFs negative momentum.

EM offering could also trim the number of ETFs needed, once we know the offering and factor loadings

Are you looking forward to these ETFs? Will you switch to them in the near future?

Really curious to hear the community factor spiritual guide @PowerWordChill opinion on this :)

www.etfstream.comERROR: The request could not be satisfied

8 Comentários

PowerWordChill@PowerWordChill

6Mês

You would have to look at the products in detail. In itself, there is nothing wrong with actively managed funds as an admixture, as long as they are rule-based.
There are still many inefficiencies that can potentially be "harvested", particularly in the small caps and emerging markets sectors.

Let's see what comes next, competition is known to stimulate business. 😘

•

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PowerWordChill

@PowerWordChill

9Mês·

Not the content you want, but the content you deserve!

How do equity returns behave in relation to economic growth?

https://getqu.in/Ii4nBx/

The USA belongs in every portfolio! BUT: Country diversification is important!

https://getqu.in/NXy7mT/

A different perspective on gold and BTC - What can possibly go wrong?

https://getqu.in/BSxcSb/

There is nothing magical about dividend growth!

https://getqu.in/wL4sOf/

At what point is my portfolio diversified? - Are 30 stocks enough?

https://getqu.in/TdfxBy/

Tiny Titans strategy

https://getqu.in/JfQMe4/

--------------------------------------------------------------------

Crypto share

between 10-30 % of all assets

50 % $BTC (-2,82%)

45 % $ETH (-2,58%)

5 % $SOL (-0,13%)

--------------------------------------------------------------------

Equity / bond share

Multifactor portfolio with cash / bond reserve for countercyclical purchases.

--------------------------------------------------------------------

Target allocation bonds / cash:

20% - 0% of the total portfolio, depending on the distance from the last ATH

75% EUR

------> 50% cash + overnight ETF $CSH2 (+0,02%)

------> 12.5% Inflation Linked Govt Bonds $IBCI (-0,35%)

------> 12.5 % Germany Gov Bond $X03G (-0,01%)

25 % USD

------> 12.5 % TIPS US Inflation-Linked Bonds $XTIP (+0,05%)

------> 12.5 US Treasury Bond 3-7 Year $TR7G (+0,1%)

--------------------------------------------------------------------

Target allocation equities:

80-100% of total portfolio, depending on distance from last ATH

35.0% World AllCaps Market capitalization weighted

-> 35 % Developed + Emerging Markets $SPYI (-0,11%)

48.0 % Developed Markets Factors

-> 12.0 % Value Factor $XDEV (-0,11%)

-> 12.0 % Quality Factor $XDEQ (+0,03%)

-> 12.0 % Momentum Factor $XDEM (+0,2%)

-> 12.0 % Size Factor

----> 2.75 % US Small Cap Value weighted $ZPRV (-0,14%)

----> 2.75 % US Small Cap Quality $RTWO (+0,11%)

----> 5.5 % EU Small Cap Value weighted $ZPRX (-0,33%)

----> 1.0 % Japan Small Caps $ISJP (-0,31%)

17.0 % Emerging Markets

-> 2.0 % EM AllCaps $EIMI (-0,01%)

-> 5.0 % EM Value Factor $5MVL (+0,17%)

-> 5.0 % EM Quality $PEH (+0,25%)

-> 5.0 % EM Size Factor $SPYX (-0,34%)

Performance porn 2023:

https://getqu.in/BY7tzt/

15 Comentários

Uwe@SchlaubiSchlumpf

9Mês

If I'm wondering whether I'm on the right or left side of the maximum, I'm probably on the left, right? 😢 At least I have a few shares (which, as it should be, are performing worse together than the etf)

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