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Has anyone seen information about asset flows into or out of small cap value? It's performance hasn't been good for a while so I'm wondering what the average investor is doing. Thanks!
Hi @Paul, I'm not sure this will fully answer your question ... but, here is my take.
I did a quick look using the etf JKL as my proxy for SCV and I charted the MFI (money flow) for JKL over the past 12 rolling months. It appears up until mid summer there was an ebb flow from JKL with a flow (flood) that peaked towards the first part of September with another ebb flow taking place which lasted to the first part of October. Since then, the tide has now turned with money returning. In review of the recent short volumes the bias is towards the longs. A little better than 60% of the stocks in this etf are above their 50 day moving average. In a red, yellow, green light analysis it would be green one for me. About 9% of my equity allocation is invested in the smid cap value style area which this etf covers. From a calendar perspective, I'm thinking, its time for the smids to start a fall upward run and possibly last through the first part of next year, or longer.
In addition, this investing space has a good number of dividend payers with JKL having a yield just short of 2.5% which makes it an attractive choice for a special investment position (spiff).
As reflected above, I'm already positioned for the anticipated party so no further action is necessary on my part.
@Paul, Trying to buy at low tide can be a bit of a challenge. For me, I like to position cost average into my spiffs, buying the dips, especially after stocks have had a strong run. If you want to look at (and study) a fund that buys the dips and sells the rips then you might wish to learn more about CTFAX and study it's fact sheet learning how it plays the swing trade.
CTFAX is one of nine positions found in my hybrid income sleeve as it generates it's distributions from both yield and capital gain distributions made from its swing trades. Due to stock market votalility I'm expecting a nice payout for 2019. So, if interested, buy it after it makes its December (yearend) distribution.
I use a small-cap index, VSMAX, by far my worst performer over the last couple years. I'm close to consolidating it with VTSAX already. But of course, small-caps will have the mega bounce once I do.
Comments
I did a quick look using the etf JKL as my proxy for SCV and I charted the MFI (money flow) for JKL over the past 12 rolling months. It appears up until mid summer there was an ebb flow from JKL with a flow (flood) that peaked towards the first part of September with another ebb flow taking place which lasted to the first part of October. Since then, the tide has now turned with money returning. In review of the recent short volumes the bias is towards the longs. A little better than 60% of the stocks in this etf are above their 50 day moving average. In a red, yellow, green light analysis it would be green one for me. About 9% of my equity allocation is invested in the smid cap value style area which this etf covers. From a calendar perspective, I'm thinking, its time for the smids to start a fall upward run and possibly last through the first part of next year, or longer.
In addition, this investing space has a good number of dividend payers with JKL having a yield just short of 2.5% which makes it an attractive choice for a special investment position (spiff).
As reflected above, I'm already positioned for the anticipated party so no further action is necessary on my part.
thanks for the feedback. So many people are talking about how value has hit bottom but the outflows don't seem to indicate that.
CTFAX is one of nine positions found in my hybrid income sleeve as it generates it's distributions from both yield and capital gain distributions made from its swing trades. Due to stock market votalility I'm expecting a nice payout for 2019. So, if interested, buy it after it makes its December (yearend) distribution.