If you’re an indexer, you can let the market decide for you. Vanguard Total World Market: 38% growth, 26% value, 36% core. Vanguard Total US Market: 46% growth, 23% value, 31% core. Vanguard 500 Index: 47% growth, 22% value, 22% core. So the market’s advice appears to be “tilt growth.”
Seems like some try to time value or growth. Best to diversify and have both. Value guys say value is better over time, but there are long lulls in value performance. For example, ‘The numbers are clear: over the past decade, growth stocks have produced a 14.6% annualized return, vastly higher than the 10.5% returns from value stocks.Mar 8, 2023’. Value ‘gurus’ push a heavy value tilt, but those in value the last 10 years have a lot of catching up to do.
There can be a lot of overlap between growth and value so you should have both.
If you’re an indexer, you can let the market decide for you. Vanguard Total World Market: 38% growth, 26% value, 36% core. Vanguard Total US Market: 46% growth, 23% value, 31% core. Vanguard 500 Index: 47% growth, 22% value, 22% core. So the market’s advice appears to be “tilt growth.”
Seems like some try to time value or growth. Best to diversify and have both. Value guys say value is better over time, but there are long lulls in value performance. For example, ‘The numbers are clear: over the past decade, growth stocks have produced a 14.6% annualized return, vastly higher than the 10.5% returns from value stocks.Mar 8, 2023’. Value ‘gurus’ push a heavy value tilt, but those in value the last 10 years have a lot of catching up to do.
I’d say choose whatever approach you’re most comfortable with, if it will help you stay invested through all market cycles.
Domestic or international, small- or large-cap I bias towards value and quality on top of owning the market.