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Does Value+Profitability actually beat Market Cap (ETFs) in the real world (ex-US Factor Investing)?

#stocks#redditstocks#markets#value#emerging
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I’m currently reviewing my ex-US allocation (Developed ex-US and Emerging Markets) and looking into whether factor tilting is worth it (specifically using Dimensional/Avantis) for a 10-year buy&hold strategy.

When I asked two different AIs to review Fama-French data (particularly the performance of DFEVX vs. the MSCI Emerging Markets/MSCI Emerging Markets Value indices), they suggested that combining Value + Profitability (buying cheaper companies while trying to screen for strong cash flows to avoid value traps) has historically been more effective in ex-US markets than simply opting for Market Cap ETFs. This is something I have also read previously on Reddit a few times before (e.g. here) also Ben Felix

So, do you think it's "probably" (none is expecting a crystall ball here) better to allocate your ex-US investments to a Value+Profitability ETF instead of a traditional market-cap-weighted ETF or where is the "catch" here?

submitted by /u/maedhros256
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