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ETF Showdown
Don and Tom tackle the “big three” global equity ETFs—Vanguard VT, Dimensional DFAW, and Avantis AVGE—breaking down their diversification, costs, risk/return assumptions, style tilts (small/value vs large/growth), and geographic/sector weights. They highlight how DFA and Avantis add microcaps and factor tilts that Vanguard’s index omits, why fees are “pennies” but differences in construction matter, and why “rules-based” is more accurate than “active.” Listener questions cover lottery winnings (lump sum vs annuity), the collapse of Publishers Clearinghouse payouts, and Ameriprise’s pricey SMA accounts. The theme: investing lives in the middle ground—balancing risk, cost, and logic.
0:04 Middle-dweller banter and show open
0:54 Why ETFs replaced mutual funds as the easy route
1:23 The “big three” global ETFs: VT, AVGE, DFAW
2:34 Which is “better”? Spoiler: none—or all
2:56 Diversification: DFAW 13,700 stocks vs VT’s 10,000
4:00 Expense ratios: Vanguard’s cost advantage
4:32 Risk/return projections and why they’re guesses
6:22 Microcaps explain much of the differences
7:55 Why small/value stocks historically outperform
8:55 Style box breakdown: small vs large allocations
9:45 U.S. vs international exposure: “pandering portfolios”
10:57 Tech vs financials: sector allocations diverge
12:09 Recent performance snapshots, short vs long term
13:34 Index (VT), Factor (DFAW), Rules-based tilt (AVGE)
15:25 Long-term results: Avantis beats Vanguard despite higher fee
16:15 Risk/return symmetry: you could make a lot, lose a lot
16:45 Listener Q&A: $2B Powerball jackpot—lump sum or annuity?
18:01 Publishers Clearinghouse collapse leaves winners unpaid
21:07 Listener Q&A: Ameriprise SMA fees and pitfalls
23:48 Why Ameriprise’s “nice” advisors are still costly
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Published on 2 months, 4 weeks ago