By Dr. Rikki Racela, WCI Columnist

When I read Dr. Jim Dahle’s excellent post on choosing the best small cap value ETF, I was floored by how different the performances of these ETFs were despite their indexes all tracking small and value factors. My written financial plan calls for an asset allocation of 10% small cap value, and since I do my investing at Fidelity, I chose FISVX, which is Fidelity’s Small Cap Value Index Fund. It has the lowest expense ratio of any small cap value index fund—even beating Vanguard’s cheapest small cap value ETF, VBR, at a rock bottom cost of 5 basis points.

But to my dismay, after reading Jim’s post, I looked under the hood of FISVX to see the small cap value index it tracked, and there it was on my computer screen: the Russell 2000 Value Index. According to Jim, this small cap

Keep reading this article on The White Coat Investor.

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