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QVAL and IVAL changed from actively managed to index based

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asked Feb 14, 2017 05:31 PM by
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Hi Jin

You're probably aware that Alpha Architect converted QVAL and IVAL from actively managed to index based as of Jan 31 but they have not changed the MER which is still at 0.79% quite high for a index based ETF. Do you still consider keeping those two in your portfolio after those changes?

Thanks

Cristian

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answered Feb 15, 2017 04:46 PM by
Jin Won Choi gravatar image Administrator

Hi Cristian,

I emailed the QVAL's issuer, and they said nothing has fundamentally changed with regards to the ETF. While there are changes, they are mainly for tax efficiency and for minimizing trading costs. QVAL and IVAL have always followed indices, but the indices themselves have always been actively managed, so there are no changes in this regard. If there's a good cheaper substitute for QVAL and IVAL, I would certainly consider it. However, I don't know of any such ETF at this point.

Jin

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answered Feb 16, 2017 09:52 PM by
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Does this mean you wont be changing the regular portfolio at this point?

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Well, I'm considering changing other aspects of the portfolios

Jin Choi ( Feb 17, 2017 08:26 PM )edit
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