BiggerPockets Money Podcast Is Small Cap Value Worth It? Ben Felix Explains the Truth About AVUV & Factor Investing
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May 5, 2026 
Ben Felix, portfolio manager and CIO at PWL Capital known for evidence-based investing, joins to unpack small cap value and factor investing. He explains Fama-French models, how providers implement small-value strategies, and why ETFs like AVUV gained attention. Short takes cover regional premiums, implementation differences, and practical allocation trade-offs.
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Labels Hide Big Differences Between Small Cap Value Funds
- Not all 'small cap value' funds are equal: they differ in average size, price-to-book, factor mix, and implementation details.
- Vanguard's small cap value index is larger and pricier on average than Dimensional/Avantis implementations.
How Much Small Cap Value Depends On Your Risk Tolerance
- The right amount of small cap value exposure is subjective and tied to tolerated tracking error and risk preferences.
- Higher potency small cap value funds give more expected premium but can produce prolonged underperformance and large tracking error versus the market.
CAPE Signals Are Noisy Timing Tools
- High market valuations (CAPE) lower expected future returns but are a noisy timing signal and not a reliable reason to change allocation.
- Tilting away from largest, highest-priced companies is sensible regardless of timing, though it isn't a precise market-timing tool.