Help from those who tilt to SCV requested

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Topic Author
Lviotto
Posts: 3
Joined: Sat Feb 10, 2024 7:46 pm

Help from those who tilt to SCV requested

Post by Lviotto »

Hi all,


My current set up is as follows: VTI/VEA/VWO/AVUV/AVDV, 45%/20%/10%/15%/10%. I'm currently wanting to add either AVES or AVEE for some additional EM value but am unsure how to do this. For those of you that have a similar strategy, how would you make AVEE/AVES fit within my allocation and what is the logic behind your reasoning? Thanks in advance, looking forward to hearing from you.
Topic Author
Lviotto
Posts: 3
Joined: Sat Feb 10, 2024 7:46 pm

Re: Help from those who tilt to SCV requested

Post by Lviotto »

Anybody out there? Haha. I decided to simply do 10% AVES instead of VWO. Thought this would be superior to further slicing and dicing. Probably won't make a huge difference in my future but will help my psychology that I've optimized as much as possible. Curious to hear any ones thoughts. If not, I may reply to myself again soon :D
muffins14
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Joined: Wed Oct 26, 2016 4:14 am
Location: New York

Re: Help from those who tilt to SCV requested

Post by muffins14 »

Lviotto wrote: Fri Feb 16, 2024 7:14 pm Anybody out there? Haha. I decided to simply do 10% AVES instead of VWO. Thought this would be superior to further slicing and dicing. Probably won't make a huge difference in my future but will help my psychology that I've optimized as much as possible. Curious to hear any ones thoughts. If not, I may reply to myself again soon :D
This is fine. I would not have done 5% VWO and 5% AVES.

10% VWO vs 10% AVES likely won’t make a meaningful difference in 20 years
Crom laughs at your Four Winds
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Taylor Larimore
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Location: Miami FL

Re: Help from those who tilt to SCV requested

Post by Taylor Larimore »

Lviotto:

This is an indirect reply, but I think you should consider the many benefits of The Three Fund Portfolio

Best wishes
Taylor
Jack Bogle's Words of Wisdom: "The Three-Fund Portfolio will help you to develop a sound asset allocation strategy, make smart investment selections, and guide the implementation of your plan." -- "The beauty of owning the market is that you eliminate individual stock risk, you eliminate market sector risk, and you eliminate manager risk."
"Simplicity is the master key to financial success." -- Jack Bogle
BackToSchoolDad
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Joined: Wed Mar 18, 2020 6:33 pm

Re: Help from those who tilt to SCV requested

Post by BackToSchoolDad »

Your allocation looks fine. I would rather do a mix of VT and AVGV to taste. Should get you the same factor loadings with only 2 funds.

Edited to add:
My idea wouldn't have as much of a small tilt, but the value of that is debatable.
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grabiner
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Re: Help from those who tilt to SCV requested

Post by grabiner »

My preferred allocation within each region is 1/8 LG, 1/8 SG, 3/8 LV, 3/8 SV. I keep track of this separately for US, developed, and emerging markets, although it isn't possible for emerging markets small-cap value because there is no fund there. This would normally require four funds in each region, although I have only three in the US because Vanguard's VFVA has exactly the LV/SV split I want.

I hold large-cap developed hlend in my employer plan, VSS for small-cap blend, AVIV and AVDV for large-cap and small-cap value.

I haven't added AVEE yet because I haven't yet reached my target in EM value, which I consider more important. I hold VWO (actually the mutual fund class VEMAX) for EM blend, and as much AVES as I have room for in my HSA for EM value. I have large capital gains in my VEMAX, so I can only reduce my allocation by investing elsewhere and by donating some of it to charity.
Wiki David Grabiner
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