No. of Recommendations: 4
>IJS, SLYV and VIOV all follow the S&P SmallCap 600 Value Index.
Thanks AdrianC, you are absolutely right there and I stand corrected. IJR already has the positive earnings requirement (which is the same as what as S&P600 has, and even the S&P500) so IJR is really trying to map the ordinary S&P600. The IJS ETF has extra value criteria price/book and price/sales added on top. It is just remarkable how similar the performance of IJS and IJR are over the long-term.
S&P Global did create the "S&P600 Small Cap Value" index, distinct from "S&P600 Small Cap", however they don't make it clear at all how the value criteria is selected. I don't think it does much though for the long-term performance either positive or negative.
With value stocks somewhat out of favour today (and IJS having temporarily trailed IJR a little), though, perhaps IJS (expense ratio 0.18%) will slightly outperform IRJ (expense ratio 0.06%) for the next decade. However I do like the low expense ratio of IJR so I don't have an opinion as to which is better - there's nothing in it.
Comparing the different value ETFs options however should not get us away from the larger picture of whether the S&P600 will outperform the S&P500, which was the main subject in the thread. The data is very strongly supporting S&P600 outperforming S&P500, with a central expectation of 5% outperformance over the next decade - fairly unprecedented.
- Manlobbi
