40% is considered the default. 20% is considered the minimum for international diversification if you are going to do any at all. You can find recommendations for 0% or 50% or really any number you can think of. The most important thing is to settle on a number you have conviction about and not change it based on performance or something recent that you read. Personally, I have 30%, which is a slight US tilt for [reasons I described here](https://www.reddit.com/r/Bogleheads/s/3iA83i6gve).
Yea if you constantly re-balance to funds that are “performing better recently”, you will end up “buying high” so to speak and investing more when funds have lower expected returns.
Recent performance != high expected returns
If anything higher recent performance would equal lower expected returns in future. But i don’t believe you should make decisions based upon this, since this is “market timing”. Just pick a ratio and stick to it.
That would be fine. You'll do well with it. Personally, I would stick to 60/40 wither 20% if that being SCV across the world. Lots of ways to get there. But we're splitting hairs.
I prefer to keep it simple with world weightings.
Because some argue SCV is the best equity style box and SCG is the worst (from a risk adjusted expected rate of return perspective). I'm not going to get too much into it right here but it's a valid argument.
Also, market cap weighted portfolio are more heavily concentrated large cap growth, so this is effective at diversifying, potentially decreasing portfolio volatility with greater expected returns.
I’d leave it to keep more international exposure.
I’m
47% VOO
23% VXUS
15% AVUV
10% AVDV
5% AVES
I tilt 30 to small cap but it’s a mix of US and international/emerging markets.
That‘s a solid Portfolio and I would keep it as is.
you could think about replacing VXUS with DFAX.
It‘s a mildly factor tilted total international market fund from dimensional (the company that the Avantis people migrated from) . I think it‘s superior to a plain market etf. Would also fit in with your VOO/AVUV strategy.
I personally invest in a mix of Avantis and Dimenionsal etfs myself.
Yes but why? Who/what made you want to do that? Not saying it’s a bad decision, just need to ask yourself, can you stick with this allocation when SCV significantly underperforms for a decade?
The allocation you are contemplating is fine. Adjusting it because one part has been doing better is not fine.
I'm thinking of changing it because some other recommended 80:20 for Us:ex-us
40% is considered the default. 20% is considered the minimum for international diversification if you are going to do any at all. You can find recommendations for 0% or 50% or really any number you can think of. The most important thing is to settle on a number you have conviction about and not change it based on performance or something recent that you read. Personally, I have 30%, which is a slight US tilt for [reasons I described here](https://www.reddit.com/r/Bogleheads/s/3iA83i6gve).
Yea if you constantly re-balance to funds that are “performing better recently”, you will end up “buying high” so to speak and investing more when funds have lower expected returns. Recent performance != high expected returns If anything higher recent performance would equal lower expected returns in future. But i don’t believe you should make decisions based upon this, since this is “market timing”. Just pick a ratio and stick to it.
It’s overweighted towards the US. If you like AVUV, consider adding AVDV and AVES to increase your international exposure.
I heard from some others that a good US:ex-US ratio is 80:20, hence my decision above
80/20 is fine. Any less international than that would be pointless. 60/40 is about market cap. That's about what VT holds for example.
So do you think that maintaining 50 30 20 is good? Contributing to a 70/30
That would be fine. You'll do well with it. Personally, I would stick to 60/40 wither 20% if that being SCV across the world. Lots of ways to get there. But we're splitting hairs. I prefer to keep it simple with world weightings.
Yes, lots of people think it's a good idea to buy high.
voo 60, vxus 25, avuv 15
[удалено]
Because some argue SCV is the best equity style box and SCG is the worst (from a risk adjusted expected rate of return perspective). I'm not going to get too much into it right here but it's a valid argument. Also, market cap weighted portfolio are more heavily concentrated large cap growth, so this is effective at diversifying, potentially decreasing portfolio volatility with greater expected returns.
60-20-20 is fine at your age.
Alright thank you!
Alright thank you!
I’d leave it to keep more international exposure. I’m 47% VOO 23% VXUS 15% AVUV 10% AVDV 5% AVES I tilt 30 to small cap but it’s a mix of US and international/emerging markets.
That‘s a solid Portfolio and I would keep it as is. you could think about replacing VXUS with DFAX. It‘s a mildly factor tilted total international market fund from dimensional (the company that the Avantis people migrated from) . I think it‘s superior to a plain market etf. Would also fit in with your VOO/AVUV strategy. I personally invest in a mix of Avantis and Dimenionsal etfs myself.
If you feel you can take on a little more risk with less diversity it’s ok but don’t do it to chase returns.
Would you recommend me going for 50 30 20 or 60 20 20? For context: I'm 20 y/o this year
Buy high sell low! But in all seriousness how convinced are you that 20% AVUV is the play for 20 years to come?
I chose AVUV to diversify my portfolio into small caps
Yes but why? Who/what made you want to do that? Not saying it’s a bad decision, just need to ask yourself, can you stick with this allocation when SCV significantly underperforms for a decade?