Adding an extra etf to portfolio?

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Topic Author
rafkg29
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Joined: Tue Oct 09, 2018 1:07 pm

Adding an extra etf to portfolio?

Post by rafkg29 » Fri Dec 28, 2018 8:35 pm

I am 22 years old, so far my AA is 75% Vanguard total market fund (VTI)
15% Vanguard total bond market fund (BND) and 10% Vanguard total international (VXUS)
I’m considering on adding SPHD as well to this portfolio. Thoughts on this, and what spread might work best if added.

mortfree
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Re: Adding an extra etf to portfolio?

Post by mortfree » Fri Dec 28, 2018 8:40 pm

Before someone asks/complains.

SPHD The Invesco S&P 500® High Dividend Low Volatility ETF (Fund)

What are you hoping to accomplish?

Is it a taxable account?

Are you thinking of it as possible Tax Loss Harvesting partner in your taxable account?

mhalley
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Re: Adding an extra etf to portfolio?

Post by mhalley » Fri Dec 28, 2018 11:56 pm

If you are thinking it will help in a crash, think again. This is from Feb 2018
.
A number of exchange traded funds (ETFs) designed to protect investors from sharp stock market gyrations lost more money than mainstream US stocks during a sell-off this month, underperforming in precisely the conditions in which they were meant to thrive.
https://www.ft.com/content/5999fbda-126 ... 320fc2a277
If you feel you need less valatility, decrease your stock allocation.

Topic Author
rafkg29
Posts: 29
Joined: Tue Oct 09, 2018 1:07 pm

Re: Adding an extra etf to portfolio?

Post by rafkg29 » Sat Dec 29, 2018 4:17 am

I’m assuming that with the SPHD fund it will help me as far as dividends, diversifying and low volatility

Topic Author
rafkg29
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Re: Adding an extra etf to portfolio?

Post by rafkg29 » Sat Dec 29, 2018 4:18 am

It is a taxable account. How is my overall AA should I just leave it as is?

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oldcomputerguy
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Re: Adding an extra etf to portfolio?

Post by oldcomputerguy » Sat Dec 29, 2018 6:17 am

rafkg29 wrote:
Sat Dec 29, 2018 4:18 am
It is a taxable account. How is my overall AA should I just leave it as is?
Your AA is fine for someone 22 years old. I'd leave it. Since this is a taxable account, adding a high-dividend-paying fund will increase your tax liability, so I'd suggest you don't do it.
"I’ve come around to this: If you’re dumb, surround yourself with smart people; and if you’re smart, surround yourself with smart people who disagree with you." (Aaron Sorkin)

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vineviz
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Re: Adding an extra etf to portfolio?

Post by vineviz » Sat Dec 29, 2018 7:56 am

oldcomputerguy wrote:
Sat Dec 29, 2018 6:17 am
rafkg29 wrote:
Sat Dec 29, 2018 4:18 am
It is a taxable account. How is my overall AA should I just leave it as is?
Your AA is fine for someone 22 years old. I'd leave it. Since this is a taxable account, adding a high-dividend-paying fund will increase your tax liability, so I'd suggest you don't do it.
I agree.
"Far more money has been lost by investors preparing for corrections than has been lost in corrections themselves." ~~ Peter Lynch

petulant
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Re: Adding an extra etf to portfolio?

Post by petulant » Sat Dec 29, 2018 8:01 am

For a certain kind of young person in their 20s--the kind who would get on the Internet to ask about their asset allocation--there's a temptation to fret and make the portfolio perfect (one I share). However, at our age (I'm 28), the far larger impact for now is on actually keeping up savings habits that grow the portfolio. Beyond just having a healthy allocation to stocks, the AA doesn't have that much impact for the first few years. So, in the grand scheme of things, OP will be much happier leaving their AA intact for the next eight years and learning to enjoy life at a moderate spending level, then asking the question again at 30.

student
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Re: Adding an extra etf to portfolio?

Post by student » Sat Dec 29, 2018 8:34 am

Although I don't think adding it to your portfolio will add benefits but I don't harm it will cost harm either. You are young so it is fine to treat this as a learning experience.

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