ppnewbie wrote: ↑Mon Apr 17, 2023 4:13 pm
Does anyone know of a good Small Cap Value fund without a large allocation to Small Cap "Value" financials. I want to make a purchase but Vanguards VBR, I believe, has over 20 percent in financials at the moment.
A few that come to mind:
Mutual funds:
TNVCX
2.3% in financials
HFMDX
Around 3.5% in financials
AVALX
Around 3.6% in financials
RYPNX
Just under 4.3% in financials
PMJIX (or the retail share class PMJAX)
6.8% in financials
SHDPX
Around 8% in financials
BSCMX
Around 9.2% in financials
WCMFX (or the retail share class WCMJX)
Just over 11% in financials
ETFs:
CALF
As of the moment, 0% in financials (note that unlike the mutual funds mentioned above this one is an index fund and not actively managed...also note that while it is an index fund the index's rules don't exclude all financial stocks per se but they at this point do happen to do so)
XSHD
As of the moment, 0% in financials (but again, note that unlike the mutual funds mentioned above this one is an index fund and not actively managed...also note that while it is an index fund the index's rules don't exclude all financial stocks per se but it just so happens that at this point in time they do happen to do so)
RWJ
Just over 7% in financials (As above.....this is an index ETF but its construction rules aren't designed specifically to exclude--or for that matter, include--financials per se at all)
RZV
Just under 10.7% in financials (again, this is an index ETF but its construction rules aren't designed specifically to exclude--or for that matter, include--financials per se at all)
As far as I can tell there
are no broad-based index funds that track a specific small cap value index (i.e. S&P 600 Value, MSCI US Small Value, CRSP US Smallcap Value, or Russell 2000 Value) but in an ex-financials version (indeed, I am not sure ex-financials versions of said indexes even
exist).
The one other thing you might try is rather than directly looking for "ex-financials" small value ETFs to instead find a screener for Shariah-compliant ETFs (i.e. ETFs that an observant Muslim would be allowed to invest in without violating Islamic law on profiting from lending at interest) if there is such a screener out there; any ETF or mutual fund that meets the standards for Shariah compliance by definition cannot include companies with more than 5% of their income from lending at interest or even any more than 33.333% of their income from traditional financial services at all; as a consequence any ETFs that include banks in any large percentage of their portfolio don't pass the screener.
One final question, though....why do you specifically want to exclude banks/financials from your small value holdings? Yes, some banks are absolute trash but some of the more conservatively-run smaller and medium sized community/regional banks are excellent investments IMO.