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Post by mattm on Jun 19, 2023 19:52:07 GMT
As I mentioned in another thread, I am looking for a "compliment" to FXAIX (Taxable acct.) and PRILX (IRA), to take a little edge off of my portfolios growth tilt, in particular these two LCB funds lean growth these days.
Although CGDV (div. value) is classified by M* as LCV, it's short life has been as a LCB (equity income), whereas CGUS (core equity) is classified as a LCB (growth and income) but has a strong growth lean. There appears to be some overlap but from what I can tell, nothing too crazy. Correct me if I am wrong, please.
From what I have read about Capital Group and their venture into the ETF world, is that they do not adhere religiously to the M* categories and are free to go where the best ideas are (actively managed). I'm considering CGDV because I like that it leans Value although it resides in the M* LCB category. Will this be the case going forward; I certainly do not know. A fund like this seems to better fit my goal, but I am torn.
Any suggestions, recommendations, insights, or thoughts on these or similar funds will be greatly appreciated!
Thank you, Matt
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Post by Chahta on Jun 19, 2023 20:22:40 GMT
As I mentioned in another thread, I am looking for a "compliment" to FXAIX (Taxable acct.) and PRILX (IRA), to take a little edge off of my portfolios growth tilt, in particular these two LCB funds lean growth these days. Although CGDV (div. value) is classified by M* as LCV, it's short life has been as a LCB (equity income), whereas CGUS (core equity) is classified as a LCB (growth and income) but has a strong growth lean. There appears to be some overlap but from what I can tell, nothing too crazy. Correct me if I am wrong, please. From what I have read about Capital Group and their venture into the ETF world, is that they do not adhere religiously to the M* categories and are free to go where the best ideas are (actively managed). I'm considering CGDV because I like that it leans Value although it resides in the M* LCB category. Will this be the case going forward; I certainly do not know. A fund like this seems to better fit my goal, but I am torn. Any suggestions, recommendations, insights, or thoughts on these or similar funds will be greatly appreciated! Thank you, Matt "From what I have read about Capital Group and their venture into the ETF world, is that they do not adhere religiously to the M* categories and are free to go where the best ideas are" Something I have found out is it is the opposite of what you said. M* categorizes funds per their standards. The funds do not operate to meet M* categories. Are you trying to stay away from SCHD? |
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Post by mattm on Jun 19, 2023 20:40:34 GMT
Chahta, I was trying to say that the etf’s do not have to adhere to a M* category. Am I wrong on that?
I am considering moving away from or at least reducing my investment on SCHD. I know it’s long-term record is impeccable and I may be performance chasing, that’s why I am posting my thoughts and hoping investors like yourself will help me make a wise choice and keep me grounded.
There are many investors on this platform that are far better versed that I am. I do not want to make rash or emotional decisions. I know they usually backfire!
I do ask myself why I bought SCHD and that reason has not changed. I guess its performance this year has me concerned, maybe unjustly.
Please share your thoughts, insights and experiences! Thx.
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Post by Chahta on Jun 19, 2023 20:49:48 GMT
Chahta, I was trying to say that the etf’s do not have to adhere to a M* category. Am I wrong on that? I am considering moving away from or at least reducing my investment on SCHD. I know it’s long-term record is impeccable and I may be performance chasing, that’s why I am posting my thoughts and hoping investors like yourself will help me make a wise choice and keep me grounded. an you.There are many investors on this platform that are far better versed that I am. I do not want to make rash or emotional decisions. I know they usually backfire! I do ask myself why I bought SCHD and that reason has not changed. I guess its performance this year has me concerned, maybe unjustly. Please share your thoughts, insights and experiences! Thx. You are correct. The funds do their own thing then M* categorizes them to "help" us. I have talked to several fund managers and they have no input, and mostly do not understand why M* does what they do. M* is the 800lb gorilla in the room. CGUS/CGDV looks fine to me. I prefer the 3%+ div from SCHD. I use 5% AKREX (growth), 15% SCHX and 15% SCHD to balance out. I also bought 5% DGRS to get some SC since the other funds I mentioned do not. BTW, I am no better versed than you. SCHX has been pretty growthy this year. |
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Post by mattm on Jun 19, 2023 22:51:04 GMT
Chahta, I was trying to say that the etf’s do not have to adhere to a M* category. Am I wrong on that? I am considering moving away from or at least reducing my investment on SCHD. I know it’s long-term record is impeccable and I may be performance chasing, that’s why I am posting my thoughts and hoping investors like yourself will help me make a wise choice and keep me grounded. an you.There are many investors on this platform that are far better versed that I am. I do not want to make rash or emotional decisions. I know they usually backfire! I do ask myself why I bought SCHD and that reason has not changed. I guess its performance this year has me concerned, maybe unjustly. Please share your thoughts, insights and experiences! Thx. You are correct. The funds do their own thing then M* categorizes them to "help" us. I have talked to several fund managers and they have no input, and mostly do not understand why M* does what they do. M* is the 800lb gorilla in the room. CGUS/CGDV looks fine to me. I prefer the 3%+ div from SCHD. I use 5% AKREX (growth), 15% SCHX and 15% SCHD to balance out. I also bought 5% DGRS to get some SC since the other funds I mentioned do not. BTW, I am no better versed than you. SCHX has been pretty growthy this year. Chahta you are being modest about your knowledge and expertise! I agree the 3%+ is very nice. That was one of the reasons invested in SCHD. Although divs are not my top priority, it is a good thing. I’m willing to stay with SCHD at this time, but I thought looking into other options would be prudent if SCHD has a prolonged downturn. I usually don’t have a big problem with under performance but there are limits. It’s hard to believe that SCHD is still negative even though value is having a relatively rough year. Hopefully this is an aboration and we’ll see better returns in the near future. Any other thoughts are very welcomed! |
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