I'm glad I was busy today and now have the opportunity to read all of your thoughtful replies.
It's definitely a unique ETF, and newsworthy because it's the first ETF put forth by...a guy in finance we all know.
During the podcast interview he said some things that made sense, and some other things that jibe with the general consensus provided above on this thread.
At least he acknowledges that at its heart, it's a deep value, maybe mid- to small value play. As mentioned above, that's important because there are myriad ways to get exposure to that. He also mentioned that a great part of the effect is just reversion to the mean--which from a behavioral finance standpoint is appealing. Reversion to the mean doesn't care about the market's feelings.
Another thing I find intriguing is that these stocks that were once in the vaunted SP500, once deleted find themselves as stock persona non grata. That doesn't seem right.
Add to that the fact that when they get dumped their price plummets because of forced selling. NIXT waits a year and buys them at what he describes as a "deep discount"--beauty is in the eye of that beholder.
I'm pretty stodgy with my Swedroe-inspired portfolio and I doubt I'll make any change to my SCV holdings to include this as a part of it.
But, I searched the forum and did not see a discussion of this new interesting ETF so I thought it would be of some small value to have the discussion. You all did not disappoint.
It's definitely a unique ETF, and newsworthy because it's the first ETF put forth by...a guy in finance we all know.
During the podcast interview he said some things that made sense, and some other things that jibe with the general consensus provided above on this thread.
At least he acknowledges that at its heart, it's a deep value, maybe mid- to small value play. As mentioned above, that's important because there are myriad ways to get exposure to that. He also mentioned that a great part of the effect is just reversion to the mean--which from a behavioral finance standpoint is appealing. Reversion to the mean doesn't care about the market's feelings.
Another thing I find intriguing is that these stocks that were once in the vaunted SP500, once deleted find themselves as stock persona non grata. That doesn't seem right.
Add to that the fact that when they get dumped their price plummets because of forced selling. NIXT waits a year and buys them at what he describes as a "deep discount"--beauty is in the eye of that beholder.
I'm pretty stodgy with my Swedroe-inspired portfolio and I doubt I'll make any change to my SCV holdings to include this as a part of it.
But, I searched the forum and did not see a discussion of this new interesting ETF so I thought it would be of some small value to have the discussion. You all did not disappoint.
Statistics: Posted by woof755 — Wed Sep 18, 2024 11:31 pm — Replies 7 — Views 601