RetireJapan

I was browsing the list of available US ETFs at SBI and saw that 4 of the low cost active ETFs from Avantis are now available in Japan!



Over on their all new Japanese website, I learned that they've obtained the necessary FSA permits to make the following 4 active ETFs available in Japan:

AVUV - Avantis US Small Cap Value etf
AVUS - Avantis US Equity etf
AVDE - Avantis International Equity etf
AVEM - Avantis Emerging Markets Equity etf

One idea I had was to construct an ACWI-like portfolio using these, but substituting US Small Cap Value for the general US Equity in order to forgo exposure to the AI bubble driven stocks of the Magnificent 7. I'll still have exposure to the Magnificent 7 via my 楽天・インデックス・バランス・ファンド（均等型） but the performance of the Avantis offerings since their launch in 2019 seems to be pretty solid when I compare it to MSCI ACWI. What do the boglehead gurus here on the board think about a satellite portfolio of low cost active ETFs which are highly diversified, but skewing to profitable companies in the universe?

What is your rationale, given your other post:

ChapInTokyo wrote: ↑Thu Nov 21, 2024 3:47 am I was reading this article about how the proposed tariffs under Trump could very well lead to the US dollar climbing higher.

What are your guesses?

Donald Trump’s policies risk making the US dollar a source of global instability

https://www.chathamhouse.org/2024/11/do ... nstability

Although Trump favours a weaker exchange rate, his policies are likely to have the opposite effect. The risk is that the US dollar could become too strong, which is bad news for the global economy.

How are you tying these two things together? (or are you?)

My thoughts would start by considering whether: tariffs and a trade war might not be so good for int'l/EM equities.

What do you think?

AVUV - Avantis US Small Cap Value etf

This is enticing....

The unrealized promise of small cap value and all makes me pause though.

I use some of the Avantis ETFs in my portfolio. The company is very similar to DFA in their approach to factor investing and rules-based stock selection. There is a blog post below which might be of interest:

https://www.whitecoatinvestor.com/avantis-vs-vanguard/

captainspoke wrote: ↑Thu Nov 21, 2024 11:46 am What is your rationale, given your other post:

ChapInTokyo wrote: ↑Thu Nov 21, 2024 3:47 am I was reading this article about how the proposed tariffs under Trump could very well lead to the US dollar climbing higher.

What are your guesses?

Donald Trump’s policies risk making the US dollar a source of global instability

https://www.chathamhouse.org/2024/11/do ... nstability

Although Trump favours a weaker exchange rate, his policies are likely to have the opposite effect. The risk is that the US dollar could become too strong, which is bad news for the global economy.

How are you tying these two things together? (or are you?)

My thoughts would start by considering whether: tariffs and a trade war might not be so good for int'l/EM equities.

What do you think?

captainspoke wrote: ↑Thu Nov 21, 2024 11:46 am What is your rationale, given your other post:

ChapInTokyo wrote: ↑Thu Nov 21, 2024 3:47 am I was reading this article about how the proposed tariffs under Trump could very well lead to the US dollar climbing higher.

What are your guesses?

Donald Trump’s policies risk making the US dollar a source of global instability

https://www.chathamhouse.org/2024/11/do ... nstability

Although Trump favours a weaker exchange rate, his policies are likely to have the opposite effect. The risk is that the US dollar could become too strong, which is bad news for the global economy.

How are you tying these two things together? (or are you?)

My thoughts would start by considering whether: tariffs and a trade war might not be so good for int'l/EM equities.

What do you think?

I’m no expert but I believe that (i) diversification is a good thing, and (ii) companies which are making profits are more likely to survive economic turmoil.

TokyoWart wrote: ↑Thu Nov 21, 2024 12:03 pm I use some of the Avantis ETFs in my portfolio. The company is very similar to DFA in their approach to factor investing and rules-based stock selection. There is a blog post below which might be of interest:

https://www.whitecoatinvestor.com/avantis-vs-vanguard/

Thanks!