Advice sought: Int'l large cap value fund

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TomP10
Posts: 238
Joined: Tue Mar 18, 2014 4:13 am

Advice sought: Int'l large cap value fund

Post by TomP10 »

I currently have a tilt to my international holding using EFV (iShares MSCI EAFE Value ETF). I am thinking of switching to AVIV (Avantis International Large Cap Value ETF). The benchmark index varies. Notably, AVIV gives me Canada and is cheaper. But, it has a lot fewer assets.

Below is a comparison table. Any advice? I only hold EFV in an IRA account so there are no tax consequences to switching.

Thanks in advance


EFV

Code: Select all

Numb of holdings     502
Expense ratio        35 bps
Net Assets           About $15B

Country Weights
Japan 24.33% 
United Kingdom 17.62% 
France 11.41% 
Germany 11.05%
Switzerland 7.1% 
Other 28.49%
Index             MSCI EAFE Value
The MSCI EAFE Value Index captures large and mid cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the US and Canada.

Developed Markets countries include: Australia, Austria, Belgium, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.


AVIV

Code: Select all

Numb of holdings      391
Expense ratio         25 bps
Net Assets            About $11M

Country Weights
Japan 21.7% 
United Kingdom 15.72% 
Canada 10.78% 
France 10.18%
Germany 9.86% 
Other 31.75%

Index	MSCI World ex-USA Value
The MSCI World ex USA Value Index captures large and mid-cap securities exhibiting overall value style characteristics across 22 of 23 Developed Markets countries.

Countries included: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK.
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ramink
Posts: 51
Joined: Thu Oct 11, 2007 9:46 am

Re: Advice sought: Int'l large cap value fund

Post by ramink »

There is also DFIV with 3.6 Bin assets and a long (15+ year) track record. It was recently converted from the DFA Tax Managed Intl Value fund. AVIV with a smaller asset base might be able to tilt towards smaller of the large caps. I had the DFA Intl Value fund in my 401k until a few years ago.
To be honest, I am not sure there is much "value" in tilting for large caps. I will leave that to the pundits on this board. DFA Intl Value used to be my sole exposure to Intl large caps when I had it. Once the fund was removed from my 401k plan, I went back to regular blended Intl large cap index.
stan1
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Joined: Mon Oct 08, 2007 4:35 pm

Re: Advice sought: Int'l large cap value fund

Post by stan1 »

If I wanted to invest in international large cap value as a separate asset class I absolutely would change. The Avantis expense ratio is lower, and I think they have a superior methodology (although no way to predict which will actually perform better in the future).

I would not be concerned about the low asset level of AVIV. It will grow with time. If you want to wait 6-24 months to see how it grows in assets that would be fine too. I am confident that Avantis will continue to attract assets from a certain group of advisors and family offices who feel DFA has been unresponsive.
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grabiner
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Re: Advice sought: Int'l large cap value fund

Post by grabiner »

I use iShares' IVLU, MSCI EAFE Factor Value ETF, for my own international large-cap value holdings. It has better value exposure than EFV, is less expensive, and has been very tax-efficient (important for me because I hold it in my taxable account).

I don't know how this will compare to AVIV, which is relatively new, but for now, I am committed to IVLU for my current holdings because I have a large capital gain on the shares I have already bought. (I use AVDV for international small-cap value, which I hold in my IRA and HSA.)
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Chip
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Joined: Wed Feb 21, 2007 3:57 am

Re: Advice sought: Int'l large cap value fund

Post by Chip »

If you can live with "fundamental indexing" FNDF is an option. ER is .25%.
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