AVUS, AVDE and AVEM instead of VT?

Investing / Portfolios
1

Hey guys!

After more than 6 months of lots of reading and starting my investment journey with 100% VT + some TSLA stocks, my IB portfolio now looks like this:

AVDV: 8%
AVEM: 7%
AVUV: 22%
VT: 63%

What do you think about my current portfolio?
And what about getting rid of VT and go for AVUS? I’m definitely consider this option! Maybe too risky?

Opinions and ideas are very welcomed :slightly_smiling_face:!

I’m just taking into account the IB but I’m at VIAC Global 100

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2

You mean replace VT by a market cap weight of AVUS, AVDE and AVEM?

I think it is reasonable.

What do you mean with “risky”?

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3

Yes it’s what I meant. I will update the misleading title.
What kind of allocation would you consider of AVUS, AVDE and AVEM to replace VT? I’m considering to keep EM at 7% (less than in VT) and give more exposure to AVUS like 40%. I would end like this:

AVDV: 8%
AVEM: 7%
AVUV: 22%
AVUS: 40%
AVDE: 23%

I mean risky as my entire portfolio will not be diversified in terms of different ETF providers and only allocated to Avantis.

just saw you are 100% Avantis!

4

Sorry for being lazy: what is the advantage of Avantis ETFs? Tax reasons?

5

For the value ETFs, I’m convinced that they will beat the market in the long run:

  1. Value beats growth on the long run
  2. The implementation done by Avantis is good and strongly value oriented (which is not the case of the VBR ETF from Vanguard)

However, why would AVUS and AVDE have better performances than the VT?

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6

AVUV, AVUS and VTI daily regression.

AVUS still gets quite decent exposure to the different factors. I would expect AVUS to outperform VTI by around 0.5% per year over a 50 year period if factor premia don’t fall below 50% of their historic averages.

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