Thanks, npg, for the Ron Baron fund link. It only requires $2K for the initial investment. The cost is slightly less than 1%/year.
While researching for value ETF and mutual funds, I came across this article from
Money. It's about the concept of value investing as a fad, and it gave warning that the "value bubble" may soon burst. It underscores npg's point about how big a cut these funds take:
What's more, fundamental index funds charge higher fees than many traditional index funds. The expense ratio for Arnott's RAFI 1000 ETF is 0.60 percent vs. 0.18 percent for the Vanguard 500 Index fund. So the ETF starts out in a pretty big hole.
Here's a short list of value funds from Money. These are meant just as examples of what are out there and potentially stimulate our discussion.
Actively-managed funds
Ticker
Fund name
1-yr return
3-yr return
5-yr return
Exp. ratio
Min. inv.
Style
LARGE-CAP
AMRMX
American Funds American Mutual A
6.6%
9.8%
11.8%
0.6%
$250
Value
SSHFX
Sound Shore
6.3%
10.5%
14.5%
0.9%
$10,000
Value
PRFDX
T. Rowe Price Equity Income
6.8%
10.8%
13.3%
0.7%
$2,500
Value
VWNFX
Vanguard Windsor II
8.4%
11.7%
15.2%
0.3%
$10,000
Value
MIDCAP
FDVLX
Fidelity Value
6.1%
13.0%
17.6%
0.7%
$2,500
Value
JMCVX
Janus Mid Cap Value Investor
9.2%
13.2%
17.7%
0.9%
$2,500
Value
SMALL-CAP
BRSVX
Bridgeway Small-Cap Value N
4.6%
15.3%
N/A%
0.8%
$2,000
Value
FOREIGN
DODFX
Dodge & Cox International Stock
17.7%
21.4%
27.6%
0.7%
$2,500
Large Value
OAKIX
Oakmark International I
4.5%
16.4%
20.1%
1.1%
$1,000
Large Value
Data as of: December 7, 2007
-JD