"In investing, what is comfortable is rarely profitable." — Robert Arnott

In This Edition

AAII- 2 Funds to Own Forever, and How to Invest in Small Caps⁠
Giving Tuesday- December 3, 2024
Latest Podcast
Testimonial

On November 16, 2024 Paul will speak to the L.A. Chapter of AAII via a Zoom presentation. Here is the link: 2 Funds to Own Forever, and How to Invest in Small Caps⁠.

Please note the L.A. Chapter has a charge for attendance with the exception of first time visitors who get a free ride.

We get lots of questions about the numbers behind the studies we have on our site. It is often noted that the returns for the same years can be different in 2 sets of returns.

4 reasons your index funds failed you

The following is a detailed answer from the Table Creator himself, Daryl Bahls: The best way to know which database I’m using is to look at the time frame of the study.Please note the L.A. Chapter has a charge for attendance with the exception of first time visitors who get a free ride.

1: If the time frame starts in 1970 (e.g., Ultimate Buy and Hold Portfolios), or specifically mentions using mutual fund returns, then the mutual fund returns are, for the most part, obtained from the Dimensional Fund Advisors Returns Web database. The specific fund returns used in that case are identified in this disclosure statement: Data Disclosure Notice – Funds (1970-Present)

2: If the time frame starts around 1928 (e.g., 4 US Asset Class Indexes & 4 Fund Combo Relative Return Ranking (1928-2023), or specifically mentions using index returns, the index returns are also obtained from the Dimensional Fund Advisors Returns Web database. The specific indexes used are identified in this disclosure statement: Data Disclosure Notice – Indexes (1928-Present)

All the standard reasons why fund returns may be different than index returns apply (e.g., fees, 'active' management, etc.). Another reason for a difference may be how a specific asset class is identified and the companies that would go into a “small” or “value” group of securities. These differences in screening criteria can sometimes lead to quite striking differences in returns for the same asset class when comparing index and fund returns.

I think it's important to point out that for the educational work we do, the actual individual returns for an asset class are not as important as the relative returns between asset classes.

Giving Tuesday- December 3, 2024

Mark your calendars! Giving Tuesday is on December 3, 2024. This global day of giving occurs after Black Friday and Cyber Monday, when communities come together to support causes that matter.

Consider supporting the Merriman Financial Education Foundation this Giving Tuesday. Your donations will help us provide essential financial education programs and resources to empower individuals and families toward a secure financial future. To donate, visit our website at https://donate.paulmerriman.com and follow the easy steps on the donation page. Every contribution, no matter the size, makes a significant impact!

Join us this Giving Tuesday and help us spread financial literacy and empowerment in our community!

Latest Podcast- Selecting the best small cap value, gold and the challenges of buy and hold

On November 16, 2024 Paul will speak to the L.A. Chapter of AAII via a Zoom presentation. Here is the link: 2 Funds to Own Forever, and How to Invest in Small Caps⁠

In this podcast Paul addresses 4 major considerations when selecting a small cap value ETF. His discussion compares the returns, along with 4 major factors, for AVUV, VBR, VB,, VIOV, DFSVX and DFSV. Is gold worthy of a place in our portfolios? Probably not but Paul talks about his gold position and why bonds are likely a lot better. He also discusses the important decision to choose buy and hold over market timing. He references the following article from Truth Teller Ben Carlson: ⁠Don’t Take Financial Advice From Hedge Fund Managers⁠

Testimonials

Excellent work gentlemen. Thank you for your devotion and for the time that you invest into making these recommendations.
-Comment on video on Best in Class recommendations

The 4 Fund Strategy Beats the S&P 500

In This Edition AAII- 2 Funds to Own Forever, and How to Invest in Small Caps⁠Giving Tuesday- December 3, 2024Latest PodcastTestimonial

In This Edition

AAII- 2 Funds to Own Forever, and How to Invest in Small Caps⁠
Giving Tuesday- December 3, 2024
Latest Podcast
Testimonial

Small cap differences make a big difference in returns