If I had to try and imitate the original Swedroe concept given your mix, I would likely be 100% Vanguard Small Cap Index (about 30% of your portfolio), and the rest (70%) in ST High Quality Bonds (given current TIPS yields, and once I thoroughly looked under the hood of that ST fund you have there), or some mix of Vanguard TIPS and ST Bonds, as you suggested. Remember, the Swedroe conept is a massive concentration (tilt) but in a small equity allocation.
I would not use the Total International fund for the same reason Larry said not to use the TSM fund, even as Larry's portfolio is internationally diversified. Backtesting this 30/70, above, might show Returns, Max Drawdowns, and a Standard Deviation, not very different to what Larry's portfolio would have done in backtest. Going forward, things may be different. As discussed many times, by Larry and others, understanding how different this design is from a Total Markets portfolio (or even most other portfolios), is important.
Call_Me_Op wrote:I never thought of a "Fat Tails" portfolio as being appropriate for a 529. I see it more as a portfolio for folks who want to preserve most of their current wealth, but want strong upside potential at the same time (i.e., wealthier folks).
UESP currently offers the following Dimensional funds as underlying investments in its customized investment options:
DFA Global Equity Portfolio (DGEIX)
DFA U.S. Large Cap Value Portfolio (DFLVX)
DFA U.S. Small Cap Value Portfolio (DFSVX)
DFA Real Estate Securities Portfolio (DFREX)
DFA International Value Portfolio (DFIVX)
DFA One-Year Fixed Income Portfolio (DFIHX)
Users browsing this forum: Google [Bot] and 20 guests