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Can Value Trump Growth? Particularly With Sml Cap U.S. Stock Mutual Funds

beebee
edited July 2015 in Fund Discussions
Article by Craig L. Israelsen:

"So after six years of a surging bull market, I wanted to revisit that analysis to discover: Does value-oriented investing still win out? My goal was to find out whether the value premium has persisted among U.S. large-, mid- and small-cap equity indexes — and, if so, to quantify its impact."

and,

'These findings do not argue for eliminating growth-oriented assets from a portfolio. However, the analysis does suggest that a value “overweight” is justified in the long run — particularly among small-cap U.S. stock mutual funds."


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Article:
can-value-investing-still-trump-growth?

Comments

  • JohnChisum
    Can the argument also be made that value stocks are somewhat less volatile than growth stocks? Another point to consider.
  • Paul
    From inception to yesterday, VSGIX (vanguard small cap growth index) has outperformed VSIIX (vanguard small cap value index). It's not a huge difference though. I'd argue that now that everyone "knows" that small cap value will outperform...it will cease to do so (at least to as large of an extent).
  • beebee
    edited July 2015
    Paul said:

    I'd argue that now that everyone "knows" that small cap value will outperform...it will cease to do so (at least to as large of an extent).

    Also, I tend to believe that their are growth stock selling at the right price (GARP). POAGX seems to use GARP as one of it's strategies. In the end, what you pay for an investment plays into it's return.
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