In this episode of “What’s the Risk” we take a look at the Fama French Australia Value Research Index. It is a research index from the Fama French model that tracks the performance of stocks with low price-to-book ratios.
This index has data going back to 1975, so it’s a valuable data set to measure the performance of value stocks in Australia against indices like the ASX 300.
While our benchmark comparison is the ASX 300 for this video, we also take a look at Fama/French Australia Value against the Dimensional Australian Value Trust – Active ETF (net of fees) or the DAVA ETF, as Dimensional have spent considerable time using Fama & French’s research, and this was a viewer request from someone who wanted to know more about value returns in Australia.
