QVAL is the subject of a big article in the December issue. As I've been an investor with Alpha Architect, the manager of QVAL, I wanted to take a moment to endorse the ETF. I've had a SMA with Alpha for close to two years. Due to regulations, I assume Alpha was not allowed to use the SMA figures in any QVAL documents but there is no prohibition against my doing so. The account I had that used the same approach that QVAL is using outperformed the S&P 500 after management fees by several percent during the period I was invested. I have transitioned my SMA to QVAL because of the superior tax efficiency of the ETF structure. If you really want to do a deep dive into the inner workings of the strategy, read Wes Gray's Quantitative Value book. AA are good people and I'm writing this as an MFO subscriber that wants to see QVAL succeed so that I'm not caught up in a fund liquidation if it were forced to close due to not enough AUM. I don't think that will be a problem because I believe in the long run it will outperform its benchmark and there are very few funds that actually do that. OTOH I wouldn't want it to get so successful that huge AUM interferes with their ability to execute the strategy! However, the inevitable stretches of underperformance will probably prevent that from happening. So I encourage you to look into QVAL unless you're looking to invest a billion dollars. If so, please don't ruin it for the rest of us!
Comments
Regards,
Ted
http://www.mutualfundobserver.com/2014/12/valueshares-us-quantitative-value-qval-december-2014/
I like the principle of high quality at relative value, but am trying to see how best to gain exposure to it.