Alternatives

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Topic Author
RamblinDoc
Posts: 276
Joined: Sun Jan 14, 2018 1:26 pm

Alternatives

Post by RamblinDoc »

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.
MotoTrojan
Posts: 11259
Joined: Wed Feb 01, 2017 7:39 pm

Re: Alternatives

Post by MotoTrojan »

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.
I think 5% of anything is way too small to matter.
Topic Author
RamblinDoc
Posts: 276
Joined: Sun Jan 14, 2018 1:26 pm

Re: Alternatives

Post by RamblinDoc »

MotoTrojan wrote: Tue Feb 13, 2018 10:10 pm
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.
I think 5% of anything is way too small to matter.
So forget alternatives or increase the % allocation?
MotoTrojan
Posts: 11259
Joined: Wed Feb 01, 2017 7:39 pm

Re: Alternatives

Post by MotoTrojan »

RamblinDoc wrote: Tue Feb 13, 2018 10:12 pm
MotoTrojan wrote: Tue Feb 13, 2018 10:10 pm
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.
I think 5% of anything is way too small to matter.
So forget alternatives or increase the % allocation?
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 :).
venkman
Posts: 1338
Joined: Tue Mar 14, 2017 10:33 pm

Re: Alternatives

Post by venkman »

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 don't think VNRR has anything to do with Vanguard the fund company. They just happen to both be named Vanguard.
Topic Author
RamblinDoc
Posts: 276
Joined: Sun Jan 14, 2018 1:26 pm

Re: Alternatives

Post by RamblinDoc »

venkman wrote: Tue Feb 13, 2018 10:19 pm
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 don't think VNRR has anything to do with Vanguard the fund company. They just happen to both be named Vanguard.
Touche’

Perhaps this one then:
Vanguard Energy Fund Investor Shares (VGENX)
Topic Author
RamblinDoc
Posts: 276
Joined: Sun Jan 14, 2018 1:26 pm

Re: Alternatives

Post by RamblinDoc »

MotoTrojan wrote: Tue Feb 13, 2018 10:17 pm
RamblinDoc wrote: Tue Feb 13, 2018 10:12 pm
MotoTrojan wrote: Tue Feb 13, 2018 10:10 pm
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.
I think 5% of anything is way too small to matter.
So forget alternatives or increase the % allocation?
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 :).
No worries - still helpful thoughts.
aristotelian
Posts: 12277
Joined: Wed Jan 11, 2017 7:05 pm

Re: Alternatives

Post by aristotelian »

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.
not4me
Posts: 961
Joined: Thu May 25, 2017 3:08 pm

Re: Alternatives

Post by not4me »

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!
Topic Author
RamblinDoc
Posts: 276
Joined: Sun Jan 14, 2018 1:26 pm

Re: Alternatives

Post by RamblinDoc »

Thank you for the great insight!
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