I have recently written about Vanguard's Small-Cap Value ETF (VBR), after noticing the fund's underperformance over the past couple of years at least. In my analysis, I isolated the ETF's small cap and value factors and concluded that:
- value has been a drag on returns for a multi-year period, but
- some of that weakness seems to be associated with sectors that are generally cheaper (e.g. financial services, industrials) being out of favor compared to the more richly-priced technology space, a beneficiary of the "internet revolution" of the past couple of decades.
Today, I