Keep hearing the talking heads refer to value stocks vs growth stocks



Is there a good value stock ETF?

Schd is a dividends ETF, but would that be similar?

SCHV is what you'd want.

Good stuff, thanks!

"Value stocks" was maybe an exploitable market inefficiency to yield some better risk adjusted returns 30 years ago that there was some academic support for.

Once Vanguard or whoever makes a fund for it, it's long since been a valid approach. Look at the poor performance of all the other strategies that took off based on the type of research that supported value investing. Size, value, quality, etc - no alpha.

Buy a whole market index fund with next to no expense ratio, and if you want better returns, increase your allocation to stocks and reduce your allocation to fixed income.

VVIAX

jamey said:

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Keep hearing the talking heads refer to value stocks vs growth stocks



Is there a good value stock ETF?

Schd is a dividends ETF, but would that be similar?

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look at cowz. This is one i am thinking of getting into. Cash cows 100 etf

I bleed maroon said:

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jamey - A helpful suggestion: you may want to consider posting this type of question on:

Stock Markets - if you want a short term trade https://texags.com/forums/57/topics/2721405

-or-

Stock Markets - Swing and Longer Term Trades, if you want more of a buy-and-hold. https://texags.com/forums/57/topics/3120252

These are both on the top half of the first page, and get plenty of traffic.

You seem to start a new thread with every new thought that occurs to you, and it makes sense to use other threads to get the responses you want, without cluttering the board for other readers. Food for thought.

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I get that if everyone posted as many threads as Jamey, stuff might drop off the front page quicker....

But the last post on page 1 for the bottom thread was 14 days ago. On some boards stuff falls off the front page within an hour. I think this board is okay and is literally the opposite of a cluttered board. To each their own, but personally, I prefer more threads on a board, not less. Sometimes those longer threads get cluttered and you don't want to sift through everything. It's easier to have a new thread and some of us are appreciative of a person like Jamey adding some more spark to the board that otherwise is fairly dead.

Again, to each their own, but jamey isn't breaking any kind of forum rule, nor does it seem to be even the slightest issue in terms of cluttering up a board.

I agree, but I'm OK adding questions to those 2 threads if it makes sense.

I also suspect they get less responses though

I think it's more of an issue of asking questions that could easily be answered by Google.

Value Stock ETF's aren't that tough to research.

If folks don't mind, it's fine...but seems a bit unnecessary to start a new thread every time a thought pops in your head.

Hell, if he could consolidate his thoughts into his own threads on the topic...it would help

Maybe he is just an AI bot created by Texags to increase posting and engagement that is becoming more self-aware and asking about AI....

Captain Winky said:

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Maybe he is just an AI bot created by Texags to increase posting and engagement that is becoming more self-aware and asking about AI....

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I existed on TexAgs long before AI bots

My favorite basket of value stocks is Brk.B!

OP are you specifically looking for an etf, or are you open to mutual funds also?

chris1515 said:

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OP are you specifically looking for an etf, or are you open to mutual funds also?

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I'm not sure I can buy mutual funds in my 401K self managed but possibly. I don't think I ever tried

VTV- "Vanguard Value"

Also, OP needs to realize his options inside of his 401k are very slim. Limited to whatever your company picks and will always be very broad based.

My advice is stop worrying so much about it until you retire or reach 59.5 and can do an in-service rollover into an IRA. Pick a target date fund if they offer it and forget about it.

Baby Billy said:

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Pick a target date fund if they offer it and forget about it.

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don't do that if you want gains, just gonna copy my previous bashings on these:


target date funds are like the Dave Ramsey of investments, helping the poor stay slightly less poor

ppl commonly default into trash target date funds with the appeal that they 'rebalance' over the years without realizing their composition is way heavier international and bonds than most would self elect in their younger years

regardless of date they are wayy too heavy in bonds and international for anyone that's trying to build real wealth over time, most just default into it not knowing any better thinking it's the best standard or they can't mentally stomach short term volatility and rob themselves of returns over time

the furthest out date is still ~10% bonds which is 10% more than you should have with any long term horizon
also being forced to default 35%+ into international mindlessly is just throwing returns away, no thanks I'd rather see gains

beating the market is not easy, beating target date funds absolutely is

Baby Billy said:

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Also, OP needs to realize his options inside of his 401k are very slim. Limited to whatever your company picks and will always be very broad based.

My advice is stop worrying so much about it until you retire or reach 59.5 and can do an in-service rollover into an IRA. Pick a target date fund if they offer it and forget about it.

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It's the self managed part of my 401K, so I can buy stocks with it.

There are some limits, like I can't do options. Not sure on mutual funds

EliteZags said:

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Baby Billy said:

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Pick a target date fund if they offer it and forget about it.

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don't do that if you want gains, just gonna copy my previous bashings on these:


target date funds are like the Dave Ramsey of investments, helping the poor stay slightly less poor

ppl commonly default into trash target date funds with the appeal that they 'rebalance' over the years without realizing their composition is way heavier international and bonds than most would self elect in their younger years

regardless of date they are wayy too heavy in bonds and international for anyone that's trying to build real wealth over time, most just default into it not knowing any better thinking it's the best standard or they can't mentally stomach short term volatility and rob themselves of returns over time

the furthest out date is still ~10% bonds which is 10% more than you should have with any long term horizon
also being forced to default 35%+ into international mindlessly is just throwing returns away, no thanks I'd rather see gains

beating the market is not easy, beating target date funds absolutely is

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I don't disagree with anything you said. And I'm a CFP.

OP's posting history seems like he'll do more harm than good trying to be involved.

jamey said:

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Baby Billy said:

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Also, OP needs to realize his options inside of his 401k are very slim. Limited to whatever your company picks and will always be very broad based.

My advice is stop worrying so much about it until you retire or reach 59.5 and can do an in-service rollover into an IRA. Pick a target date fund if they offer it and forget about it.

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It's the self managed part of my 401K, so I can buy stocks with it.

There are some limits, like I can't do options. Not sure on mutual funds

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What is your definition of "stocks"?

Value vs growth is a function of mutual fund baskets. 401k providers will often spilt their large cap, mid cap, and small cap baskets into two smaller baskets: the top 50% performers at that given moment are deemed "growth" and the bottom 50% are tagged "value*. It's nebulous, not granular - buy both if those are your options. When SHTF the growth half will tank and the value half will maintain. Having both is a hedge. If you have a long term horizon and aren't stuck in the either/or scenario of 401k funds, then you should consider BRK.B. Berkshire is the ultimate "value etf". That's what uncle Warren does best, and he's killing it, for decades.

One trick I like to do is play the game of.. would my money be better off in... this, or something else. So let's play..

I saw COWZ mentioned. Here it is. Kind of melting up and looks to be in the latter stages of a significant move from COVID.



Now let's compare. Here it is in relation to SPY. Since Nov 2022, you're money would be less than if you had put it in SPY. Maybe that's changing. Looks good off the recent low. But lot of resistance overhead.



Here it is in relation to Gold. Again, mostly underperforming since 2022.



Here it is in relation to XOM. Nearly 4 years of far underperforming this single O&G stock. Maybe working towards being more valuable. Not clear yet.



Here it is in relation to EEM (Emerging markets ETF). Much better place for your money, but will it continue?



Here it is compared to GBTC (Grayscale Bitcoin trust). Probably should have just put your money in BTC the last 4 years.



And here it is in relation to TLT (20 Year Bond ETF). Way outperforming. But with rates falling, will it continue?



Longt story short, if you are interested in investing to something, and it is clearly in a downtrend when compared to something else, follow the puck. Go where the strength is. If the tides change, change with them. Holding anything long term with wide market exposure is going to result in some periods of boom, some periods of bust, and some periods of watching paint dry. But if your money can stay mostly aligned where the bulls are running, you will be better off. I have no idea if COWZ is a good investment. This was just an example.