Friday, January 8, 2016

Value vs Shareholder Yield

As a huge fan of Meb Faber, I recommend reading everything he writes on this blog and it's also a good idea to read all of this books

My personal investing strategy is 50% the Ivy Portfolio (adapted for the ASX) and 50% Relative Strength. For the Ivy Portfolio, definitely read Faber's book, and for Relative Strength, Faber has written a white paper you can find on his blog, but go here for a more practical explanation.  

But Diploducet is not about telling you things you can find elsewhere. I found something strange by accident. On this graph, the blue line is the price of the Vanguard Value ETF. The green line is Fabers ETF for Shareholder Yield, SYLD. That is quite a correlation, and I have no idea why two vastly different strategies would end up with such similar results. 




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