分组1 - The Shiller P/E ratio is a normalized valuation metric that compares the real price of an index to the average real earnings over the past decade, adjusted for inflation [1] - This ratio is utilized to assess the valuation of stocks and can indicate whether they are overvalued or undervalued based on historical earnings [1] 分组2 - The author of the article has a background in mechanical engineering and finance, indicating a blend of technical and financial expertise [1] - The author employs evidence and factor-based investing strategies in their personal portfolio, suggesting a disciplined approach to investment [1] - The article does not provide specific investment recommendations or advice, focusing instead on the analysis of the Shiller P/E ratio [3]

Core Insights - The article compares two iShares ETFs: ISCV, which targets small-cap value stocks, and IJJ, which focuses on mid-cap value stocks, highlighting their different investment strategies and characteristics [4][5]. Group 1: ETF Characteristics - ISCV tracks a Morningstar index of small-cap U.S. value stocks, encompassing 1,093 holdings, with a sector mix leaning towards financial services (21%), consumer cyclicals (16%), and industrials (13%) [2][4]. - IJJ targets mid-cap value through the S&P 400 Value, consisting of 309 stocks, with a heavier tilt towards financial services (19%), industrials (15%), and consumer cyclicals (12%) [1][4]. - ISCV has a lower expense ratio of 0.06% compared to IJJ's 0.18%, and offers a slightly higher dividend yield of 1.89% versus IJJ's 1.66% [3][9]. Group 2: Performance and Liquidity - IJJ has a larger asset base of approximately $8 billion, providing greater liquidity, while ISCV holds about $575 million in assets [5][9]. - ISCV offers broader diversification with nearly four times as many stocks as IJJ, which may appeal to investors seeking a wider range of small-cap opportunities [5][8]. - The historical performance indicates that IJJ has experienced a gentler drawdown compared to ISCV, which may be more volatile due to its focus on smaller companies [5][10]. Group 3: Investment Considerations - Investors must consider their risk tolerance and target company size when choosing between ISCV and IJJ, as ISCV may offer higher growth potential but with greater volatility, while IJJ provides more stability [7][10]. - Both funds deliver solid value exposure, making the decision largely dependent on whether investors prefer small-cap growth or mid-cap stability [4][10].

Core Insights - The international ETF space has shown strong performance in 2025, with a focus on the Avantis International Small Cap Value ETF (AVDV) as a notable investment option [1][2] - AVDV has achieved a year-to-date return of 47%, significantly outperforming its ETF Database Category average of 33.1% [1][2] - The fund's strategy combines active fundamental research with passive investment benefits, emphasizing flexibility and low costs [1][3] Performance Metrics - AVDV has consistently outperformed its category average over various time frames, including three- and five-year periods [2] - The fund's performance has been bolstered by its focus on small-cap value companies, which may thrive amid geopolitical and economic uncertainties [4] Investment Strategy - The management of AVDV employs fundamental criteria to identify highly profitable value firms, focusing on metrics such as shares outstanding, cash flow, revenue, expenses, and price-to-book value [3] - The appeal of international equities lies in their potential for diversification away from domestic U.S. uncertainties, making AVDV a compelling option for investors as the new year approaches [5]

Group 1: Market Overview - International equities have gained significant importance in investor portfolios in 2025, with a shift from underweight positions in ex-U.S. equities driven by tariff changes and a declining dollar [1] - A notable increase in assets under management (AUM) has been observed in international equities ETFs, with one ETF adding over $500 million in AUM within a week [1] Group 2: Fund Specifics - The Avantis International Small Cap Value ETF (AVDV) focuses on small-cap and value opportunities, leveraging Avantis Investors' fundamental research [2] - AVDV has attracted $550 million in net inflows over the last five days, bringing its total AUM to approximately $13.5 billion [3] Group 3: Performance Metrics - AVDV has delivered a strong year-to-date return of 40%, outperforming its ETF Database Category average [4] - The fund's active management strategy allows it to adapt to market changes, potentially benefiting from a further weakening of the U.S. dollar and enhancing its ability to identify strong opportunities in low information environments [4]