Alternatives
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Alternatives
What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
I’ve seen some 4-fund portfolios that add REIT. But none that increase exposure to natural resources. These would obviously not be put in a taxable account.
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
I’ve seen some 4-fund portfolios that add REIT. But none that increase exposure to natural resources. These would obviously not be put in a taxable account.
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Re: Alternatives
I think 5% of anything is way too small to matter.RamblinDoc wrote: ↑Tue Feb 13, 2018 10:01 pm What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
I’ve seen some 4-fund portfolios that add REIT. But none that increase exposure to natural resources. These would obviously not be put in a taxable account.
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- Joined: Sun Jan 14, 2018 1:26 pm
Re: Alternatives
So forget alternatives or increase the % allocation?MotoTrojan wrote: ↑Tue Feb 13, 2018 10:10 pmI think 5% of anything is way too small to matter.RamblinDoc wrote: ↑Tue Feb 13, 2018 10:01 pm What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
I’ve seen some 4-fund portfolios that add REIT. But none that increase exposure to natural resources. These would obviously not be put in a taxable account.
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- Posts: 11259
- Joined: Wed Feb 01, 2017 7:39 pm
Re: Alternatives
I don't know enough about alternatives to say honestly, but it just isn't for me. Only thing I would hold at <5% would be a single-stock or crypto that has a higher potential return. Sorry for a not very helpful reply .RamblinDoc wrote: ↑Tue Feb 13, 2018 10:12 pmSo forget alternatives or increase the % allocation?MotoTrojan wrote: ↑Tue Feb 13, 2018 10:10 pmI think 5% of anything is way too small to matter.RamblinDoc wrote: ↑Tue Feb 13, 2018 10:01 pm What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
I’ve seen some 4-fund portfolios that add REIT. But none that increase exposure to natural resources. These would obviously not be put in a taxable account.
Re: Alternatives
I don't think VNRR has anything to do with Vanguard the fund company. They just happen to both be named Vanguard.RamblinDoc wrote: ↑Tue Feb 13, 2018 10:01 pm What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
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- Joined: Sun Jan 14, 2018 1:26 pm
Re: Alternatives
Touche’venkman wrote: ↑Tue Feb 13, 2018 10:19 pmI don't think VNRR has anything to do with Vanguard the fund company. They just happen to both be named Vanguard.RamblinDoc wrote: ↑Tue Feb 13, 2018 10:01 pm What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
Perhaps this one then:
Vanguard Energy Fund Investor Shares (VGENX)
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Re: Alternatives
No worries - still helpful thoughts.MotoTrojan wrote: ↑Tue Feb 13, 2018 10:17 pmI don't know enough about alternatives to say honestly, but it just isn't for me. Only thing I would hold at <5% would be a single-stock or crypto that has a higher potential return. Sorry for a not very helpful reply .RamblinDoc wrote: ↑Tue Feb 13, 2018 10:12 pmSo forget alternatives or increase the % allocation?MotoTrojan wrote: ↑Tue Feb 13, 2018 10:10 pmI think 5% of anything is way too small to matter.RamblinDoc wrote: ↑Tue Feb 13, 2018 10:01 pm What are people’s opinions on having fund(s) to bolster a small amount of alternatives (<5% of portfolio)?
For example:
1. Vanguard Natural Resources VNRR
2. Vanguard REIT (I don’t own real estate so this could add exposure to that market)
I’ve seen some 4-fund portfolios that add REIT. But none that increase exposure to natural resources. These would obviously not be put in a taxable account.
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- Joined: Wed Jan 11, 2017 7:05 pm
Re: Alternatives
They will only bolster your portfolio if they go up more than the total market. Whether it works is anyones guess. If you engage in speculative bets, make sure to keep it to a small portion of your portfolio to limit the damage.
Re: Alternatives
One thing to keep in mind if you've been reading various studies etc that talk about "alternatives" is that they usually are talking about an alternative to common stock. What you've suggested as possibles are funds that own stock that invest in real estate or oil, etc. That is, not the commodity itself. Whether a good idea or not for you, just be sure to understand. There have been other threads discussing Dalio all weather portfolio, permanent portfolio, golden butterfly, etc that incorporate alternatives. Maybe useful for you to search for those & get ideas. Good luck!
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Re: Alternatives
Thank you for the great insight!