You will have to decide for yourself, but I would not bother with small cap value. As you have noticed, the premium is just not there and it has made you underperform the market index.Hi all, OP here.
It has been a week since I posted, and thank you for your interest. However, the responses have de-railed from the topic in some cases, and turned into 1:1s that could be taken offline.
After 1 week, I was hoping to have an action item for myself: 1) Either drop SCV investing from my future investments (and don't sell existing SCV due to tax consequences) 2) Continue SCV investing, but with a different fund (AVUV?), 3) Continue what I'm doing (SCV investing with VBR) (which I suspect will be the case.
After all that you discussed and talked about, what is my action item? Answer from maybe one person, one action item, no discussions. What is the action item among the three choices above?
If there are tax consequences then just keep the existing investment and stop adding new money to it. There is no point to continue with it. Direct new money into your three fund portfolio.
If the tax consequences are acceptable (only you would know) I would seriously consider selling VBR. The simplicity of the three fund portfolio provides peace of mind. Constantly worrying if small cap value will provide the premium or make you underperform the market is not worth the trouble.
Consider that small cap value can outperform and provide you the alpha you are looking for, but then in the last few years of investing it can completely lose all the alpha and even cause you to underperform the market. Are all those long years waiting around for the premium to show up worth it only to lose it at the end? This means that you have to time your entry and exit out of it in order to capture the premium. We all know that market timing has a low probability of working out well.
Statistics: Posted by saver1 — Wed Nov 19, 2025 12:00 am — Replies 233 — Views 15123