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Paul Merriman: When Going All-In On Small-Cap Value Mght Be A Winner
This is worth reading. At the end of the article, the author recommends 3 small-cap value ETFs: VTWV, IJS, or SLYV, the choice depending on whether one is a Vanguard, Fidelity or Schwab customer. Since I am the latter, I quickly compared SLYV to the other two. One difference really stands out; SLYV distributed north of 7% of NAV in income, STCG and LTCG in 2014, while VTWV and IJS have never paid capital gains. Turnover ratios at the three funds range from 36-41%, but SLYV would seem to be a bad choice in a taxable account. I don't understand how an index fund could generate STCG on the order of $3.32 last year alone. That looks like active management.
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