VTI or AVUS For My US Allocation?

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BigDGB
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VTI or AVUS For My US Allocation?

Post by BigDGB »

Good Morning,

Currently a 3 Fund proponent with a slight itch ( 10% in Small Cap Value in AVUV). Although AVUV has had terrific returns over the last year, as a
retiree, the volatility can cause a bit of anxiety on the down days. My inclination as I get older is not to tilt at all and therefore I've been closely
watching the Avantis US Equity etf lately ( AVUS).

AVUS in comparison to VTI( Vanguard Total Stock Market Index etf ) does contain less holdings at 2142 vs. 3658 , however that is still extremely
diversified. AVUS is spread much more deeply across market size, with a makeup of approximately 54% LC, 25% MC and 15% SC vs. VTI at 71% LC,
18% and 7% SC per the Morningstar style boxes.

I understand that AVUS is not a " pure" index fund in the strictest sense, since the managers use factor screens around value, profitability , shares
outstanding , cash flow and revenues and for that extra work, the expense ratio is .15 vs. .03 for VTI, which is still very low.

The PE for AVUS appears to be much lower 17.91 vs. 21.36 , due to VTI's higher concentration in big tech companies with higher PE's, so one would
also expect that over the last year that was mostly dominated by the outperformance of large technology and then a shift to more value just lately,
that VTI would be displaying superior returns , however that hasn't been the case.

VTI Returns : YTD: 6.43% 3 Months: 7.43% 1 Year: 60%

AVUS " : YTD: 10.43% 3 Months: 11.3% 1 Year: 67.55%

I understand that AVUS is a much smaller thinly traded etf with larger spreads on purchases and that in reviewing the dividend yields for the last 12
months that VTI has paid out 1.38% vs 1.13 % for AVUS, however the lower dividend payout and higher expense ratio for AVUS appears to be easily
justified SO FAR. ( This new etf hasn't been out in the market long enough and past results are not indicative of future performance many people
would say.)

I'm not saying that wholesale changes should be made to one's portfolio based on this short track record, especially in taxable accounts, but I'm
considering scrapping my 10% tilt in SCV and replacing it with the broad based AVUS product to " dip my toe " in, since I like the concept of the much
deeper allocation to mid and smaller companies with this etf without such large cap growth cap weighting.

Do people on this forum that are much more investment savvy than me see some logic in utilizing AVUS as a part of my US market allocation, or are
there some things that I'm not considering here ? ( This question could also be asked about AVDE Avantis International Equity vs. VXUS Vanguard Total
International etf, however that is for a different conversation.)

Thank You for your thoughts in advance.
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Re: VTI or AVUS For My US Allocation?

Post by geerhardusvos »

BigDGB wrote: Sat Mar 27, 2021 9:25 am Good Morning,

Currently a 3 Fund proponent with a slight itch ( 10% in Small Cap Value in AVUV). Although AVUV has had terrific returns over the last year, as a
retiree, the volatility can cause a bit of anxiety on the down days. My inclination as I get older is not to tilt at all and therefore I've been closely
watching the Avantis US Equity etf lately ( AVUS).

Welcome to the forum.

Edit your post in this format to get better answers: Asking Portfolio Questions

Please read the wiki and check out the 3 fund portfolio‬:

1. ‪https://www.bogleheads.org/wiki/Getting_started‬

2. ‪https://www.bogleheads.org/wiki/Three-fund_portfolio‬

3. https://www.bogleheads.org/wiki/Investm ... _statement

After reading those, what are your thoughts/plans/questions?

I don’t see any need for you to move away from VTI for your US equity exposure. Having an SCV tilt is generally accepted by some in this community, but I see no reason for you to change anything else. Stop tinkering and don’t try to chase returns.
Last edited by geerhardusvos on Sat Mar 27, 2021 10:54 am, edited 1 time in total.
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BigDGB
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

Thank You for your quick response.

I do consider myself open minded to new investing concepts, so in that regard I'm wondering if I'm " chasing returns " as you state , or looking at a
potentially superior long term investment product. AVUS is a broad based market etf, so it's not like I'm referring to the ARK funds here.
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Re: VTI or AVUS For My US Allocation?

Post by geerhardusvos »

BigDGB wrote: Sat Mar 27, 2021 9:37 am Thank You for your quick response.

I do consider myself open minded to new investing concepts, so in that regard I'm wondering if I'm " chasing returns " as you state , or looking at a
potentially superior long term investment product. AVUS is a broad based market etf, so it's not like I'm referring to the ARK funds here.
It’s all good, and I don’t think you would necessarily go wrong either way, but I don’t see what is superior about it, especially with AVUS costing 12 basis points more.
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Re: VTI or AVUS For My US Allocation?

Post by retired@50 »

If you want to tilt toward small and mid-cap companies, Vanguard has a variety of index funds that do just that.

Consider VXF - Extended Market Index - contains all NON S&P 500 stocks.

Regards,
This is one person's opinion. Nothing more.
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Re: VTI or AVUS For My US Allocation?

Post by geerhardusvos »

Adding VBR to a target date fund or in place of some of the US equity portion of a three fund portfolio is an often used SCV allocation. Simplicity is key.
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BigDGB
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

retired@50 wrote: Sat Mar 27, 2021 10:47 am If you want to tilt toward small and mid-cap companies, Vanguard has a variety of index funds that do just that.

Consider VXF - Extended Market Index - contains all NON S&P 500 stocks.

Regards,
Thank You for the thoughts..
I think the issue with adding the Extended Market Index would be the much higher volatility vs. the factor screens that AVUS uses to determine value based on current share prices..
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Re: VTI or AVUS For My US Allocation?

Post by grabiner »

I use VFVA (Vanguard Factor Value ETF) rather than AVUS for my US value tilt; the two funds have similar value exposure but VFVA has 0.14% expenses, versus 0.25% for AVUS. (VFVA is evenly split between large-cap, mid-cap, and small-cap, so it has some small-cap tilt as well; I use it for both large-cap and small-cap US value.)

Since Vanguard doesn't have a deep-value or factor-value international ETF, I use non-Vanguard funds, iShares' IVLU for large-cap international value, and Avantis' AVDV for small-cap international value.
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Re: VTI or AVUS For My US Allocation?

Post by grabiner »

retired@50 wrote: Sat Mar 27, 2021 10:47 am If you want to tilt toward small and mid-cap companies, Vanguard has a variety of index funds that do just that.

Consider VXF - Extended Market Index - contains all NON S&P 500 stocks.
VXF doesn't make sense for the purpose of a small-cap tilt, as it holds those mid-caps not in the S&P 500 but does not hold those which are in the S&P 500. The main purpose of the extended market index is to complement an S&P 500 index. If you want to overweight small-cap, use an actual small-cap index such as VB (or VIOO, S&P 600 Index, for a smaller cap range).

Investors in the US Government's TSP need to use the extended market index to overweight small-caps, because that is the only option within the TSP. It would be better to get a small-cap overweight in an IRA or taxable account if that is feasible, but it might not be. (For example, since the TSP I fund has no small-caps or emerging markets, investors who want to market-weight or overweight them have to hold international stocks outside the TSP.)
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Re: VTI or AVUS For My US Allocation?

Post by retired@50 »

grabiner wrote: Sat Mar 27, 2021 4:00 pm
retired@50 wrote: Sat Mar 27, 2021 10:47 am If you want to tilt toward small and mid-cap companies, Vanguard has a variety of index funds that do just that.

Consider VXF - Extended Market Index - contains all NON S&P 500 stocks.
VXF doesn't make sense for the purpose of a small-cap tilt, as it holds those mid-caps not in the S&P 500 but does not hold those which are in the S&P 500. The main purpose of the extended market index is to complement an S&P 500 index. If you want to overweight small-cap, use an actual small-cap index such as VB (or VIOO, S&P 600 Index, for a smaller cap range).

Investors in the US Government's TSP need to use the extended market index to overweight small-caps, because that is the only option within the TSP. It would be better to get a small-cap overweight in an IRA or taxable account if that is feasible, but it might not be. (For example, since the TSP I fund has no small-caps or emerging markets, investors who want to market-weight or overweight them have to hold international stocks outside the TSP.)
I wasn't recommending it for a small-cap tilt. I was responding to this phrase from the OP.
BigDGB wrote: Sat Mar 27, 2021 9:25 am but I'm considering scrapping my 10% tilt in SCV and replacing it with the broad based AVUS product to " dip my toe " in, since I like the concept of the much deeper allocation to mid and smaller companies with this etf without such large cap growth cap weighting.
Regards,
This is one person's opinion. Nothing more.
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Re: VTI or AVUS For My US Allocation?

Post by CZjc1330 »

Sorry, much ado about nothing.
I would stick with VTI.
And chill.
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BigDGB
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

grabiner wrote: Sat Mar 27, 2021 3:56 pm I use VFVA (Vanguard Factor Value ETF) rather than AVUS for my US value tilt; the two funds have similar value exposure but VFVA has 0.14% expenses, versus 0.25% for AVUS. (VFVA is evenly split between large-cap, mid-cap, and small-cap, so it has some small-cap tilt as well; I use it for both large-cap and small-cap US value.)

Since Vanguard doesn't have a deep-value or factor-value international ETF, I use non-Vanguard funds, iShares' IVLU for large-cap international value, and Avantis' AVDV for small-cap international value.
Thank You. I will take a look at this .
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Re: VTI or AVUS For My US Allocation?

Post by Bitzer »

I am also considering a switch from VTI to AVUS or DFAU.

From this discussion, I'm concluding that AVUS has a value tilt and a small cap tilt. I'm not interested in either.

Would a Russell 3000 investment be a good substitute? That's the benchmark for AVUS.
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Re: VTI or AVUS For My US Allocation?

Post by mrpotatoheadsays »

Paul Merriman and Chris Pedersen's research concluded the "best in class" "US large cap blend" ETF was AVUS; alternative recommendations were: VOO, VTI, IVV, SPLG and SCHX.

The smallness and valueless of AVUS is insignificant; it is a US large cap blend fund. If you want value or small, look elsewhere.

Remember, US large cap blend, specifically the S&P 500, returned -0.9% over 2000 to 2009 while US small cap value returned 12.5%. If you can't handle long periods of underperformance, you need a more diversified portfolio.


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Re: VTI or AVUS For My US Allocation?

Post by livesoft »

I have a small-cap and value tilt to my portfolio and have done that for many years. I no longer ask for advice about my allocation on this formum (did I ever?) because I already know what the answers will be. There will be folks who say Total Market Weights is all you need and it lets them Sleep Well At Night. There are folks who do not do that and also who sleep well at night.

For myself, I love the volatility. Indeed, AVUV had an RBD last week, so I bought some more shares. That's one of the benefits of small-cap and value and their Alter Ego, momentum investments: There are I think obvious days to do something to maintain one's asset allocation and to rebalance. If volatility bothers an investor, then they probably should go for more staid investments. Hiding out in Total US Stock Market is not a problem at all.
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Re: VTI or AVUS For My US Allocation?

Post by Bitzer »

I use VTI as a domestic multi-cap core holding and am looking at AVUS as a better performing substitute. Is AVUS' tilt towards large cap sufficient to make it make it a poor substitute for a multi-cap holding, all other things equal?
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Re: VTI or AVUS For My US Allocation?

Post by obamamama11 »

The good premium is in small cap value. The size premium just gets better as the cap gets smaller. Most of the premium in small caps is of value. The problem with AVUS is that it tilts value in all cap sizes. So, it's small cap value exposure isn't all that high. By having 10-15% of your US exposure in AVUV and the rest in VTI you are going to have more small cap value than if you only had AVUS. The mid cap and large cap value tilts in AVUS aren't as good of a premium. It sounds like what I said above is the reason you have your tilt in the first place, but that was my reasoning for not choosing AVUS for my whole portfolio. My US allocations are 85% VTI and 15% AVUV. That percentage is around what the five factor model is for a US investor proposed by Ben Felix.
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

obamamama11 wrote: Fri Apr 02, 2021 6:12 pm The good premium is in small cap value. The size premium just gets better as the cap gets smaller. Most of the premium in small caps is of value. The problem with AVUS is that it tilts value in all cap sizes. So, it's small cap value exposure isn't all that high. By having 10-15% of your US exposure in AVUV and the rest in VTI you are going to have more small cap value than if you only had AVUS. The mid cap and large cap value tilts in AVUS aren't as good of a premium. It sounds like what I said above is the reason you have your tilt in the first place, but that was my reasoning for not choosing AVUS for my whole portfolio. My US allocations are 85% VTI and 15% AVUV. That percentage is around what the five factor model is for a US investor proposed by Ben Felix.
Thank You for your thoughts. My goal is to move away from small cap value tilting completely , due to the increased volatility in that sector, as well as the extended periods of underperformance and simply attempt to improve my performance with a broad market equity position vs VTI.
Paul Merriman and his group have determined from their studies that theoretically AVUS should beat VTI by .3 % annually after expenses and over time that can amount to a tidy little sum, however so far AVUS is outperforming VTI substantially more than that, ( 9.7% over the last year.)
I replaced my 10% stake in AVUV with AVUS and will continue to monitor vs. VTI side by side to determine a future allocation increase , decrease or reversion back to all VTI.
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Re: VTI or AVUS For My US Allocation?

Post by obamamama11 »

Definitely can't go wrong with AVUS. 10% allocation won't probably make that much of a difference in the long run. It's holdings are pretty similar to VTI. You do get some good exposure to factors which you don't get with VTI. The evidence is pretty sound backing up factors in my opinion
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

Thank You for the feedback.
The value factors are very appealing to me and may result in me increasing my allocation in 10% increments over time as I review results..
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Re: VTI or AVUS For My US Allocation?

Post by drumboy256 »

BigDGB wrote: Mon Apr 05, 2021 5:40 pm Thank You for the feedback.
The value factors are very appealing to me and may result in me increasing my allocation in 10% increments over time as I review results..
Another one on your train to factor land, I have my main 401k in the SP500 FXAIX funds, my wife's IRA in VT and my IRA in AVUS. IMO, the AVUS ETF is probably the best ETF to factor invest in US markets based on the lowest cost available of the Avantis funds and doesn't kill you like their SCV fund if it doesn't perform. Overall, it ensures my overall portfolio is not above a 0.35 ER overall and keeps things simple. :sharebeer
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

drumboy256 wrote: Sat May 08, 2021 9:02 am
BigDGB wrote: Mon Apr 05, 2021 5:40 pm Thank You for the feedback.
The value factors are very appealing to me and may result in me increasing my allocation in 10% increments over time as I review results..
Another one on your train to factor land, I have my main 401k in the SP500 FXAIX funds, my wife's IRA in VT and my IRA in AVUS. IMO, the AVUS ETF is probably the best ETF to factor invest in US markets based on the lowest cost available of the Avantis funds and doesn't kill you like their SCV fund if it doesn't perform. Overall, it ensures my overall portfolio is not above a 0.35 ER overall and keeps things simple. :sharebeer
Agreed Drumboy256! I'm now getting ready to up my stake to 20% in AVUS ( taking this in 10% increments as stated previously) on the US Core Equity side. This fund also further diversifies our US holdings without taking on the potential long term underperformance of a stand alone small cap value fund, while providing better performance than VTI .
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Re: VTI or AVUS For My US Allocation?

Post by pkcrafter »

BigDGB wrote: Sat Mar 27, 2021 9:25 am Good Morning,

Currently a 3 Fund proponent with a slight itch ( 10% in Small Cap Value in AVUV). Although AVUV has had terrific returns over the last year, as a retiree, the volatility can cause a bit of anxiety on the down days.

You are correct, and small caps can go long periods (5+ years) with very poor performance.

My inclination as I get older is not to tilt at all and therefore I've been closely watching the Avantis US Equity etf lately ( AVUS).

Oh, no, another investor believing Avantis has something no one else does.

Avantis...


https://www.prnewswire.com/news-release ... 26169.html

AVUS in comparison to VTI( Vanguard Total Stock Market Index etf ) does contain less holdings at 2142 vs. 3658 , however that is still extremely diversified. AVUS is spread much more deeply across market size, with a makeup of approximately 54% LC, 25% MC and 15% SC vs. VTI at 71% LC, 18% and 7% SC per the Morningstar style boxes

I understand that AVUS is not a " pure" index fund in the strictest sense, since the managers use factor screens around value, profitability , shares outstanding , cash flow and revenues and for that extra work, the expense ratio is .15 vs. .03 for VTI, which is still very low.

The PE for AVUS appears to be much lower 17.91 vs. 21.36 , due to VTI's higher concentration in big tech companies with higher PE's, so one would also expect that over the last year that was mostly dominated by the outperformance of large technology and then a shift to more value just lately, that VTI would be displaying superior returns , however that hasn't been the case.

VTI Returns : YTD: 6.43% 3 Months: 7.43% 1 Year: 60%

AVUS " : YTD: 10.43% 3 Months: 11.3% 1 Year: 67.55%

I understand that AVUS is a much smaller thinly traded etf with larger spreads on purchases and that in reviewing the dividend yields for the last 12 months that VTI has paid out 1.38% vs 1.13 % for AVUS, however the lower dividend payout and higher expense ratio for AVUS appears to be easily justified SO FAR. ( This new etf hasn't been out in the market long enough and past results are not indicative of future performance many people would say.)

I'm not saying that wholesale changes should be made to one's portfolio based on this short track record, especially in taxable accounts, but I'm considering scrapping my 10% tilt in SCV and replacing it with the broad based AVUS product to " dip my toe " in, since I like the concept of the much deeper allocation to mid and smaller companies with this etf without such large cap growth cap weighting.

Do people on this forum that are much more investment savvy than me see some logic in utilizing AVUS as a part of my US market allocation, or are there some things that I'm not considering here ? ( This question could also be asked about AVDE Avantis International Equity vs. VXUS Vanguard Total International etf, however that is for a different conversation.)

You're trying very hard to justify using Avantis! No, I'm not biting.

Paul
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Re: VTI or AVUS For My US Allocation?

Post by JonL »

BigDGB wrote: Sat Mar 27, 2021 9:25 am
I'm not saying that wholesale changes should be made to one's portfolio based on this short track record, especially in taxable accounts, but I'm
considering scrapping my 10% tilt in SCV and replacing it with the broad based AVUS product to " dip my toe " in, since I like the concept of the much
deeper allocation to mid and smaller companies with this etf without such large cap growth cap weighting.
When clients ask me about portfolio changes, I'm less concerned about the particular proposed allocation change as I am about the act of changing a portfolio.

If they green light this portfolio now, what about future portfolio changes? If, next week, they feel that inflation is a factor for fixed income returns, will they decide to increase their position to TIPS? What about the week after that, when they feel that real estate is overvalued and want to decrease exposure to REITs?

Much more important than a particular allocation is sticking with a particular allocation.

Consider, does it really make sense to make this change? Is this change really going to make a difference in long-term investing experience?

More importantly, what system or guidelines do they have in place to keep them committed to their existing allocation? Do they have an investment policy statement? If so, it may make sense to review it now. If not, it probably makes sense to create one.

I hope that helps. :-)
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

JonL wrote: Tue May 11, 2021 11:59 am
BigDGB wrote: Sat Mar 27, 2021 9:25 am
I'm not saying that wholesale changes should be made to one's portfolio based on this short track record, especially in taxable accounts, but I'm
considering scrapping my 10% tilt in SCV and replacing it with the broad based AVUS product to " dip my toe " in, since I like the concept of the much
deeper allocation to mid and smaller companies with this etf without such large cap growth cap weighting.
When clients ask me about portfolio changes, I'm less concerned about the particular proposed allocation change as I am about the act of changing a portfolio.

If they green light this portfolio now, what about future portfolio changes? If, next week, they feel that inflation is a factor for fixed income returns, will they decide to increase their position to TIPS? What about the week after that, when they feel that real estate is overvalued and want to decrease exposure to REITs?

Much more important than a particular allocation is sticking with a particular allocation.

Consider, does it really make sense to make this change? Is this change really going to make a difference in long-term investing experience?

More importantly, what system or guidelines do they have in place to keep them committed to their existing allocation? Do they have an investment policy statement? If so, it may make sense to review it now. If not, it probably makes sense to create one.

I hope that helps. :-)
Thank You for your thoughts JonL.
I am a 3 fund portfolio investor with a 10% stake in AVUS, so I am not prone to making rash weekly or monthly changes.
This fund drew enough interest for me based on it's broad market weightings, investment philosophy , low cost and performance.
Are you saying that AVUS has not had enough time in the market ( 2 years in September) to prove it is a viable alternative, or are you predicting that over longer periods of 5-10 years that it will underperform the Total Market ?
I noticed that you are an Investment Advisor, so are you saying that you have all of your clients invested in VTI as their sole US holding ?
If so, isn't that style of investing something they can easily do on their own and if not, what triggers the additions/changes you make in portfolios?
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Re: VTI or AVUS For My US Allocation?

Post by JonL »

BigDGB wrote: Wed May 12, 2021 7:40 am

Thank You for your thoughts JonL.
I am a 3 fund portfolio investor with a 10% stake in AVUS, so I am not prone to making rash weekly or monthly changes.
This fund drew enough interest for me based on it's broad market weightings, investment philosophy , low cost and performance.
Are you saying that AVUS has not had enough time in the market ( 2 years in September) to prove it is a viable alternative, or are you predicting that over longer periods of 5-10 years that it will underperform the Total Market ?
I noticed that you are an Investment Advisor, so are you saying that you have all of your clients invested in VTI as their sole US holding ?
If so, isn't that style of investing something they can easily do on their own and if not, what triggers the additions/changes you make in portfolios?
My point is that changes to one's portfolio should be limited - short of a dramatic change in one's circumstances: such as approaching retirement, a career change, etc.

As investors, we'll be tempted to tinker, to perfect, to optimize. However, one of the most important things investors can do is to stick with the plan.
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Re: VTI or AVUS For My US Allocation?

Post by donaldfair71 »

If you are doing this because you have learned a new appreciation, and belief in, a factor tilt that you did not previously know about, switch to AVUS.

If you are doing this because of recent performance, and by showing recent performance I tend to believe you are, then no, you should not change.
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Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

JonL wrote: Wed May 12, 2021 8:09 am
BigDGB wrote: Wed May 12, 2021 7:40 am

Thank You for your thoughts JonL.
I am a 3 fund portfolio investor with a 10% stake in AVUS, so I am not prone to making rash weekly or monthly changes.
This fund drew enough interest for me based on it's broad market weightings, investment philosophy , low cost and performance.
Are you saying that AVUS has not had enough time in the market ( 2 years in September) to prove it is a viable alternative, or are you predicting that over longer periods of 5-10 years that it will underperform the Total Market ?
I noticed that you are an Investment Advisor, so are you saying that you have all of your clients invested in VTI as their sole US holding ?
If so, isn't that style of investing something they can easily do on their own and if not, what triggers the additions/changes you make in portfolios?
My point is that changes to one's portfolio should be limited - short of a dramatic change in one's circumstances: such as approaching retirement, a career change, etc.

As investors, we'll be tempted to tinker, to perfect, to optimize. However, one of the most important things investors can do is to stick with the plan.
Thank You again.
I think we all like to tinker and it's on a relative scale. I have a brother who tinkers in 100+ individual stocks, funds and ETF's .
I mildly suggest to him that he ' reign it in' to broad index ETF's and 5% play money. That has fallen on deaf ears.
For now, I'll stick with my 10% allocation to AVUS, which won't move the needle much either way and see how I feel down the line.
This holding is in a tax deferred account, so no capital gains tax consequences anyway.
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Re: VTI or AVUS For My US Allocation?

Post by JonL »

BigDGB wrote: Wed May 12, 2021 8:32 am
JonL wrote: Wed May 12, 2021 8:09 am
BigDGB wrote: Wed May 12, 2021 7:40 am

Thank You for your thoughts JonL.
I am a 3 fund portfolio investor with a 10% stake in AVUS, so I am not prone to making rash weekly or monthly changes.
This fund drew enough interest for me based on it's broad market weightings, investment philosophy , low cost and performance.
Are you saying that AVUS has not had enough time in the market ( 2 years in September) to prove it is a viable alternative, or are you predicting that over longer periods of 5-10 years that it will underperform the Total Market ?
I noticed that you are an Investment Advisor, so are you saying that you have all of your clients invested in VTI as their sole US holding ?
If so, isn't that style of investing something they can easily do on their own and if not, what triggers the additions/changes you make in portfolios?
My point is that changes to one's portfolio should be limited - short of a dramatic change in one's circumstances: such as approaching retirement, a career change, etc.

As investors, we'll be tempted to tinker, to perfect, to optimize. However, one of the most important things investors can do is to stick with the plan.
Thank You again.
I think we all like to tinker and it's on a relative scale. I have a brother who tinkers in 100+ individual stocks, funds and ETF's .
I mildly suggest to him that he ' reign it in' to broad index ETF's and 5% play money. That has fallen on deaf ears.
For now, I'll stick with my 10% allocation to AVUS, which won't move the needle much either way and see how I feel down the line.
This holding is in a tax deferred account, so no capital gains tax consequences anyway.
Since you are trading ETFs, consider this white paper by Vanguard:

https://static.vgcontent.info/crp/intl/ ... 8%7C091500

I hope that helps! :D
Topic Author
BigDGB
Posts: 43
Joined: Mon Nov 23, 2020 1:18 pm

Re: VTI or AVUS For My US Allocation?

Post by BigDGB »

donaldfair71 wrote: Wed May 12, 2021 8:18 am If you are doing this because you have learned a new appreciation, and belief in, a factor tilt that you did not previously know about, switch to AVUS.

If you are doing this because of recent performance, and by showing recent performance I tend to believe you are, then no, you should not change.
The factor tilt is not appealing to me in Small Cap Value only , which I wouldn't have the patience for since I'm retired and in my 60's, however various tilts in a broad market based ETF may appeal to me if it can consistently outperform the market over the long term. By that I mean a minimum of .5% annually after expenses and dividends are reinvested.
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