Marine. Ph.D. Dad x3.
Blog/Education/Indexes/Tools: https://t.co/uYiYwqvK7J
ETFs: https://t.co/D8FDBnV76Z
White Label ETFs: https://t.co/gGlhaJsd2B
Grateful: #USMC #MFTF
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Oct 22 • 18 tweets • 9 min read
Ten years ago, we saw a unique opportunity to launch a tax-efficient version of our focused quantitative value strategy through the ETF structure. This is how the Alpha Architect US Quantitative Value ETF, ticker $QVAL, came to be.
🧵 (1/17) 👇
To learn more head to alphaarchitect.com/funds/qval
Looking back, the past decade has been a challenging period for value investors. While hindsight suggests that an investment in the S&P 500 or large growth stocks may have fared better, the important question now is: where should we direct our clients' capital moving forward?
How you considered dropping your managed accounts ("SMAs"), mutual funds, or private funds, and joining the tax-party in ETF land?
Reader: "Sure, great idea, Wes. I'll pay a monster tax bill to transition into an ETF. Thanks, but no thanks."
Wes: "Hear me out. What if we can transition your current assets into the ETF, tax-free?"
Reader: "Okay. I'm listening..."
Let’s dive in👇
2/ First, what's so great about an ETF? Not to be a dead horse, but transparency, liquidity, and lower fees are native ETF qualities. Transparency: you know what you own every day -- No more waiting for quarterly or sporadic reports. Liquidity: You can act NOW, not tomorrow, in volatile markets. Lower fees: Want higher returns? Start with cutting fees. ETFs generally have lower expense ratios than SMAs, private funds, and mutual funds. Less friction = more performance. Simple.
Jun 24 • 7 tweets • 4 min read
"Should we buy $NVDA or [insert hot stock]???"
Something we hear advisors get asked all the time.
We feel the Alpha Architect U.S. Quantitative Momentum ETF, ticker $QMOM, is your solution.
But why isn't $NVDA in the ETF?
🧵👇🏽 (1/7)
To learn more and to see fund holdings, head over to alphaarchitect.com/funds/qmom
First of all, what is momentum, and why does it work? The strategy is simple: buy the stocks that have done the best relative to others over a lookback period. Though there are many theories as to why this anomaly exists, the momentum factor has robust academic backing. (2/7)
1/10. Some mutual funds will be distributing a LOT OF TAX PAIN in 2021.
ETFs will deliver a lot less pain but THEY ARE NOT PERFECT in all situations.
Here are some reasons why you might see ETF distributions:
2/10. Some stocks cannot be transacted 'in-kind' and must be settled in cash. The bigger markets (e.g., US/dev) can settle 'in-kind' which means ETFs can exchange stocks back and forth without tax consequences...some markets need to settle in cash, which triggers a tax event.
Oct 18, 2021 • 6 tweets • 3 min read
Interesting fact regarding @MorningstarInc fundamental statistics. These are calculated as simple 'averages', NOT holdings-weighted averages.
So the real P/E ratio on SPY is ~27x, not ~20x.
Lesson: if you are looking at mkt-cap-wgt strategies, MSTAR may not be the best source
Why does this matter?
Well, a LOT of investment products are mkt-cap-weighted, which means equal-wgt fundamental stats won't capture reality.
e.g. VBR -- small-cap 'value' p/e ~26x, NOT 13.2x as per Morningstar.
Know what you own.
Sep 1, 2021 • 9 tweets • 3 min read
Cliff started an interesting convo regarding the discussion of the value spread around the globe: aqr.com/Insights/Resea…
We dug into our portfolio architect tool to do a deep dive into the topic...
1/ first the broad passive indexes
spy is definitely expensive...dev/em are similar
Jun 10, 2021 • 20 tweets • 3 min read
I had a great conversation with Roger Mortimer, a long-term hydrogen investor, and an ardent ESG fan.
1/ What I learned was counterintuitive and very relevant for those who invest in 'ESG'.
2/ Key takeaway? STOP investing in ESG portfolios if you want to be a good ESG investor!
3/ Not intuitive, right? I'll explain.
Let's establish the ultimate ESG investor goal: earn higher returns and create positive ESG change.
"Do well by doing good" is what the investment hippies call it.
Please spread the word. Enjoy Memorial Day!
My personal challenge:
--28 mile ruck w/ 35lb+ pack.
--Each mile there is a hero marker. Hit 50 burpees to honor their sacrifice.
--Making this public to ensure I stay disciplined.
My goals are 100% irrelevant to other people.
Everyone has a personal summit. #getafterit
Dec 23, 2020 • 4 tweets • 2 min read
Making no negative judgements here: in fact, I have a POSITIVE bias towards anything that comes from AQR and team.
But I am curious to hear what stories people have that attempt to explain why this chart is a "V" and centers on the end of 2017.
Anything alt, dies. Very weird.
I know it is impossible, but if we can refrain from personal attacks and di#$head responses, I'd appreciate it. Looking for geniune ideas on why this may have happened