Meb Faber who runs Cambria replied "I doubt this will happen again in my career, but at least for today, cheers!" While it was probably just an off the cuff reaction there is a useful point of understanding embedded in the comment.
The exposure that GVAL provides is certainly a valid way to go, no question, but it is not always going to be optimal. Whatever strategy you believe in will not always be optimal which is just fine.
Yes GVAL has lagged ACWX but in 13 full and partial years in the backtest, per Testfol.io GVAL has been the better performer six times which is almost a coin flip. If you look for yourself year to year, although they are both proxies for foreign equities, GVAL does differentiate quite a bit, in four out of 13 years, the spread between GVAL and ACWX was more than 1500 basis points. Differentiation is a positive attribute in my opinion but it can be difficult to endure.
Short one, a lot going on...even on a Friday night!
The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.
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