I tilt to Small+Mid Cap (Domestic and International), International, and EM within International.
I consider my portfolio to be a relative middle-ground (not exactly) between world stock market-cap, extreme-tilting (ie 100% small cap value as domestic holding), and a more US-centric/Jack Bogle portfolio (ie 80-100% total US, 0-20% total international).
My Overall Portfolio (6 family accounts):
Overall cap weights:
56.7% large cap (VG's Total World ETF "VT" has 77%)
23.9% mid cap (VT has 18%)
19.4% small cap (VT has 6%)
66.7% US (VT has 52%)
-->55% large cap (VTI has 75%)
-->22.5% mid cap (VTI has 18%)
-->22.5% small cap, with a small value tilt, which I hope to increase in time (VTI has 9% small-cap)
33.3% International (VT has 48%)
-->61% large cap (VXUS has 80%)
-->27% mid cap (VXUS has 17%)
-->13% small cap (VXUS has 4%)
-->70% developed (VXUS has 82%)
-->30% EM (VXUS has 18%)
I don't know if my tilts are large enough to make a significant difference, but this plan allows me to sleep well knowing that I'm set up for success if either side of this debate does well. Debate being, custom tilting versus investing all in 3 fund portfolio or VT etc. Even if just one of these tilts does significantly better, and I dilute that by having multiple tilts, I have less FOMO. Of course, if all of my tilts do poorly, that would be unfortunate..but I'm OK with that.
PS. I used to tilt toward REITs as well, but discontinued that after much consideration of arguments made on the forum. Commentary at viewtopic.php?t=203059 sold me that REIT investing is not for me:
What do you think? How do you tilt?CppCoder wrote: ↑Fri Nov 11, 2016 9:21 pmOddly enough, I am sort of coming to the conclusion that I don't like holding a REIT fund, but I came to this conclusion when the fund was peaking over the summer. I contribute to bonds in my 401k, stocks in my taxable, and REITs in my IRA; I rebalance with new money; my REIT target is 7% of my portfolio (10% of stocks in a 70/30 AA). I found that I am contributing so much to my 401k and taxable, that I was triggering my buying rebalancing band for the REIT when it was up 18% for the year this summer. I max my IRA every year, contribute it all to the REIT, and even when the REIT outperforms every other asset, my IPS says I'm supposed to buy more. That's not how rebalancing is supposed to work . I haven't decided if I'm going to simply exchange the REIT for total market and be done with it or just leave the existing fund alone and stop trying to rebalance it, which would essentially defeat my reason for owning it in the first place. I know, first world problem...