my choice of funds is
55% VT
15% UC99.L
7.5% QCEU.MI
5% QQQM
17.5% AVGV
I sometimes feel that I am complicating my portfolio and adding some additional costs as some of these funds have 0.25% TER
so always the itch to go back to 100% VT or equivalent.
also, adding factors in the portfolio is not only to get superior returns long term (>15 years) but also to hedge against drawdowns or periods of no growth by reducing the weight of the big tech US companies.
In my view it’s tough to build a portfolio which have high US exposure but less US Big tech because this can mainly be achieved by buying US small caps or mid caps or value stocks in higher proportion. I am not sure if that’s so prudent. Reality is that US big tech is big because they are also better businesses
A simpler way to achieve lower big Tech exposure might be to simply reduce US exposure and use regional ETFs
For example
US ETF + Ex-US ETF
Or
US ETF + Dev World ex US ETF + EM
AVGV is fund of funds contains Avantis Value funds (which are really value+profitability rather than value alone). It is 2/3 large cap, 1/3 small cap, and ~60:30:10 US:DM exUS: EM. So it is an all cap, all world, maximum tilted (towards value and profitability) from Avantis. VT + AVGV should be enough if you don’t want to overweight small cap but want to tilt to value and profitability factors. (EDIT: @Tony1337 beat me to it)
If AVGV looks too much value and not enough profitability for your taste, then consider DFA Vector ETFs for US and DM ex US: DXUV and DXIV (no fund for EM yet). DX*V are most tilted all cap solution from DFA - tilted towards value, profitability AND size. They are 60:40 large:small and in essence slightly more profitable and slightly less value than Avantis counterparts.
Another option is pair VT with SCV+Profitability. This will need multiple US domiciled ETFs from Avantis/DFA or in UCITS ( AVWS, or upcoming DFA UCITS ETFs)
Hmm, so sticking to the plan, I’ve been investing in everything but the US these past three months (with the possible exception of the small cap index).
I recalculated with current valuations, but still, the next few months need to be ex-US exclusively to get me back to target allocation.
Well, trying to forget about it.
Hard to tell and no experience, the “standard” advice is asking yourself if you’d be buying these positions today, and if yes then keep them, if not then ask yourself why not and decide if to sell.
I’d personally get rid of Tesla while you’re still in profit and plug the gains in a broad index fund. I’d personally never sell MSFT, even considered buying it myself last year. I only didn’t do it because I want to avoid the stock-picking slippery slope.
Steve Bannon’s “Flood the zone” strategy at work. Everyone not in the inner circle is constantly distracted by a thousand whack-a-moles of depravity and outrage that they can neither regroup nor react.
Until now, nothing substantial really happened except for going after the people who cannot defend themselves (small countries with tariffs threat , Ukraine with removing defence threat, federal employees etc)
I am yet to see the benefit of Flood the zone in anything that actually helps . For example
Everytime I hear this person, most of the things are linked to how well he can praise US President Similar stuff we can hear from other envoys or secretaries. Everything great is credited to Trump and everything bad has nothing to do with him
I wonder if anyone actually does any work these days or just focus on praising Trump.
Musk is atleast doing something . Not that I agree with his style but objective to reduce govt cost is not bad.
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