Author Topic: Thoughts on Fama and VSIAX  (Read 1984 times)

SuperMex

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Thoughts on Fama and VSIAX
« on: January 23, 2017, 12:40:12 PM »
I just put a small amount into Vanguard Small Cap Value Index Fund Admiral Shares

I intend to hold this long term and drop about $1000 a month into it. This will be my taxable investment account. I am already at my TSP and Roth IRA limits.

Any thoughts?

Le Barbu

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Re: Thoughts on Fama and VSIAX
« Reply #1 on: January 23, 2017, 03:38:48 PM »
Should have done this 3 months ago!

What % of your portfolio is that? For myself, I own VSB for 10% of total assets.

Radagast

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Re: Thoughts on Fama and VSIAX
« Reply #2 on: January 23, 2017, 10:20:52 PM »
Seems fine to me. For a person who will be contributing money for a long and not clearly defined period small cap value has potential to give better, or at least not likely worse, returns. If you have the choice you should keep it in your Roth because it is not as tax efficient as total market funds.

SuperMex

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Re: Thoughts on Fama and VSIAX
« Reply #3 on: January 24, 2017, 01:43:17 AM »
It is currently about 20% of my portfolio.

I am maxing out my TSP 18k a year, Roth IRA 5k a year, and I would be putting 12k a year into VSIAX.

I plan on doing this for about four years until my son graduates college, at that point I will increase my savings to 50k a year for six more years and then retire.



Le Barbu

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Re: Thoughts on Fama and VSIAX
« Reply #4 on: January 24, 2017, 06:25:45 AM »
Do you own developed an emerging foreign stocks also?

My actual AA is 30% canadian broad index (home bias), 25%VTI, 10%VBR and 35%VXUS

If I would be in the USA, it would probably be more like 40%VTI, 25%VBR and 35%VXUS

SuperMex

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Re: Thoughts on Fama and VSIAX
« Reply #5 on: January 24, 2017, 09:16:25 AM »
I don't have any emerging market foreign stock I am worried about the effect of the dollar exchange rate eating into the profit margins of these companies.

Le Barbu

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Re: Thoughts on Fama and VSIAX
« Reply #6 on: January 24, 2017, 12:29:21 PM »
I don't have any emerging market foreign stock I am worried about the effect of the dollar exchange rate eating into the profit margins of these companies.

On the long run, US and foreign stock markets (ex.: VTI and VXUS) have about the same expected return. Dollar exchange is also a wash on the long run, except for special cases. Including 20-40% of VXUS in a US citizen portfolio and rebalancing once in a while is a good way to reduce the risk without affecting the expected return on the long run (10+ years)

Guide2003

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Re: Thoughts on Fama and VSIAX
« Reply #7 on: January 24, 2017, 01:33:45 PM »
I just put a small amount into Vanguard Small Cap Value Index Fund Admiral Shares

I intend to hold this long term and drop about $1000 a month into it. This will be my taxable investment account. I am already at my TSP and Roth IRA limits.

Any thoughts?
My only thoughts are what rank are you to be able to max all that out??!! It doesn't sound like you are maxing a spousal IRA, but that's a pretty incredible savings rate. I have been torn between maxing my TSP or splitting it into a taxable account with Betterment.

SuperMex

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Re: Thoughts on Fama and VSIAX
« Reply #8 on: January 24, 2017, 02:42:06 PM »
I retired in 2015, I'm a GS civilian now.