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Cruian t1_j2faubn wrote

Reply to comment by Upset-North-2211 in VTI or VTSAX which is the better choice long term? by ToenailRS

>I would recommend buying Vanguard US small cap growth ETF (VBK)

Small cap growth is often called a "black hole of investing" (https://www.etf.com/sections/index-investor-corner/20092-the-black-hole-of-investing.html as the first link I found)

Small value is the "golden one" for cap weight + growth vs value.

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Upset-North-2211 t1_j2fe0er wrote

The problem with this study is it ended in 2012. If you look at a comparison between VBK and DFFVX (US small cap value) since 2012 until 2022, VBK had gained 309%, versus 85% for DFFVX. The world has changed since 2012, and my investing approach has changed with it. I used to follow the DFA approach religiously, but have changed my opinion since Value has lagged SO far behind growth for a very long time.

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Cruian t1_j2fip6p wrote

Sometimes the short term (which even 10 years is) can show the opposite of long term expectations.

>The world has changed since 2012, and my investing approach has changed with it.

I've seen more than a few times that "the most dangerous words in investing are 'this time is different.'"

>but have changed my opinion since Value has lagged SO far behind growth for a very long time.

See my first sentence.

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Upset-North-2211 t1_j2fo8h9 wrote

You are saying that the Value Premium over growth is still an important aspect of investing. Some recent academic research has cast doubt on the continued existence of this premium. Im not saying totally avoid Value, but am saying Growth should be held in a Roth. VBK would have to decline almost 200% versus DFFVX to make it better to hold value instead of growth in the Roth. Doesn’t seem likely to me that this will occur any time soon.

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