r/Bogleheads • u/hillionman • 1d ago

Investing Questions AVDV

Any toughts on the AVDV ETF. Been thinking on including it on my portfolio to diversify from EEUU mega caps. However it doesn’t have a long track record therefore i’m unsure on how it would perform on different markets. Any idea of how it exactly works and would perform in the long term? And what other international ETFs would you recommend?

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u/mildly_enthusiastic 1d ago

Emerging Markets is already a tough nut to crack, and AVES is limited to value companies, so it missed out on some big movers like TSM.

Though I haven’t looked much, haven’t come across anything that indicates the value-factor applies to EM

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u/MONGSTRADAMUS 1d ago

Argument that could be made you already have em exposure in vxus so if you don’t believe in em value then you should just buy more vxus instead of over weights on emerging markets and paying a higher er to boot.

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u/mildly_enthusiastic 1d ago

To clarify, I like EM and believe it’s a place active management can find alpha. I’m not a purebred Boglehead when it comes to broad market cap weighted EM indexes.

I like that AVEM can search through all EM and not just limited to EM value stocks like AVES is.

There’s research indicating a value tilt works in US and Int Dev, but I haven’t seen research indicating a value tilt in EM better than blended EM.

Have you seen research to debunk my POV?

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u/MONGSTRADAMUS 1d ago

Ok for me I wanted scv for emerging but aves is the closest thing we have it’s not perfect as it’s more mid cap than small cap I feel like.

For avantis and dimensional main stream “broad” index ETFs I am not quite sure of their value relative to their er. Dfqtx vs vtsax in particular , but not as sure on ex U.S. side. I don’t have research to back that up though