Who Invests 100% in Passive Index Funds/ETFs

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G-Money
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by G-Money »

100% of equity.

Fixed income is split between TBM in 401(k) and PenFed CDs. So total portfolio is 86% passive index funds.
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geoff2
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by geoff2 »

I am more than 90%. There's a bit in a 401(k)-equivalent that's in the TIAA Real Estate Account, but besides that the only non-index funds I own are 10 shares of Disney and one share of Apple that are leftover from gifts given to me in 1986. There's also 5 shares of the company my brother works at that I purchased late last year, the first individual stocks I've purchased in 15 years, just so I can give him a hard time. :)
Sriracha
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by Sriracha »

BrandonBogle wrote:
Sriracha wrote:I'm old-fashioned enough to still carry a separate emergency fund, and I consider it to be distinct from the long-term retirement portfolio. The EF is not in an index fund.
I think most of us would have EFs, I at least do. That said, my EF is in cash (1.99% savings), though even a CD with a decent EWP would be good.
1.99% Savings Account ... wow! Where's that, if I may ask?

I've noticed many threads about EFs over the years on this forum and it's my understanding that many Bogleheads don't have dedicated emergency funds in the traditional sense of segregating in some taxable account a certain level of cash or near-cash for emergencies. In any event, mine is split between a tax-exempt MM and PenFed CDs.
Don't reach for yield.
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InvestorNewb
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by InvestorNewb »

I'm 100% index funds (equities). See sig.
My Portfolio: VTI [US], VXUS [Int'l], VNQ [REIT], VCN [Canada] (largest to smallest)
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nedsaid
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by nedsaid »

When it comes to investing, NIsiprius is the equivalent of an organic investor. Certified "tilt free", "factor free", "manager free." We need to find a nifty logo for those who invest organically and keep out all those harmful additives. A "Certified Organic Investor" seal of approval or something like that.
A fool and his money are good for business.
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StealthWealth
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by StealthWealth »

100% of liquid assets are in 3 passive funds.
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BHCadet
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by BHCadet »

98%...
2% in VCADX - Vanguard California Intermediate-Term Tax-Exempt Fund Admiral Shares.
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g$$
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by g$$ »

Proud to say my retirement portfolio is 100% passive.
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k66
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by k66 »

Yes, 100%...

Except for my Employee Stock Ownership Plan (I buy company stock and get 50% match provided I don't sell for 2 years... once a year I cull all the >2 yr stock and transfer to my primary portfolio, sell it, and buy ETF units). Straight off the bat, I get a 50% RoR and that buys my complacence in the face of the ultimate undiversified portfolio (i.e. all your holding are sitting in your employer's stock!).

Then I go back to sleep for another year. Zzzz!
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berntson
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by berntson »

nedsaid wrote:When it comes to investing, NIsiprius is the equivalent of an organic investor. Certified "tilt free", "factor free", "manager free." We need to find a nifty logo for those who invest organically and keep out all those harmful additives. A "Certified Organic Investor" seal of approval or something like that.
Image

To keep up in the marketing department, tilters should refer to their portfolios as "handcrafted artisans" portfolios. :D
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ofcmetz
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by ofcmetz »

If there is an organic portfolio, does that mean there is a non-organic one that uses lots of growth hormones and extra fertilizer? Cause I want my portfolio on that stuff that makes chickens grow super fast and big. :)
Never underestimate the power of the force of low cost index funds.
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nedsaid
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by nedsaid »

Bernston, I love it. Thanks for the Logo. Perhaps Nisiprius can use it in his posts from now on.

I wondered if anyone would get my humor. Thanks for the post.
A fool and his money are good for business.
Dave55
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by Dave55 »

50% Passive Vanguard ETF's for equity: VTI, VXUS , VWO, VNQ
50% Fixed Income: Combo VTBM and some actively managed FI mutual funds
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Quasimodo
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by Quasimodo »

Vanguard Total Int’l Bond Index ETF (BNDX)

Vanguard Total World Stock Index ETF (VT)

Central GoldTrust (GTU) (unencumbered gold bullion)

Market Vectors Gold Miners ETF (GDX) (NYSE Arca Gold Miners Index)

John
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INDESAKOSJ
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by INDESAKOSJ »

Equities : 99% index funds in my portfolio with excellent results.
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LarryG
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by LarryG »

It took me time, but at present I am 99.8% in index funds. The non-indexed are a municipal bond fund and I bonds.
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longinvest
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by longinvest »

CdnAppraiser wrote:Hey everyone,

I find most people are affraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs?

Cheers
I am 100% invested in broad based index ETFs.
Bogleheads investment philosophy | One-ETF global balanced index portfolio | VPW
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grabiner
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by grabiner »

I am 100% indexed, but I haven't always been. I use the best option available for my investment needs, which is usually an index fund because of the low costs and taxes. Thus, for example, I held Vanguard International Explorer in my Roth IRA to get international small-cap before there were any ETFs, and continued to hold it when the ETFs were more expensive than the actively-managed fund.
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by bayview »

93% in passive index funds, 7% in VG short-term and intermediate-term investment grade funds, which aren't index, but they're on file and forget (= passive.)
The continuous execution of a sound strategy gives you the benefit of the strategy. That's what it's all about. --Rick Ferri
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slowmoney
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by slowmoney »

ROTH portfolios:
Vanguard Total Bond Index
Vanguard Total Stock Market Index
Vanguard Total International Stock Index
Vanguard REIT Index
Vanguard Small Cap Index

Complicated?...mmm, not really. We just use the traditional mutual funds and not the ETFs. The ROTHs make up most of retirement funds.

My 403b:
Vanguard Inst. 500 Index
Match, when available, is some kind of stable bond fund, no choice.

Her 401k
Principle S&P 500 Index + match

Since just buying and holding index funds does not really work out in the long term, I rebalance on my birthday. Seems like over the past 6 years that I have been buying low and selling high. Nice way to spend some time on my birthday. :sharebeer
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robertalpert
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by robertalpert »

We are 60% indexed: Vanguard {international; total bond; extended market}
and 40% actively managed: equal portions of {Wellington vwelx; Wellesley vwinx; Sequoia sequx}

Annual rebalancing (when contributing to Roths) would be a pain were it not for portfolio tester tool. Simplicity (and lower ER's) are very appealing ---- but it is hard to let go of these.
afan
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by afan »

Almost all new money has been indexed for many years. But I have some old investments from two activities

Active stock funds from long ago. Would have to pay capital gains taxes to get out. Moral impossibility.


For a while I held some large cap stocks as an even cheaper way to mirror the market. The idea was that once one paid a very low commission there were no ongoing expense ratios, and they held out the possibility of capital loss harvesting. But then I decided that the principle was sound, but it was too much trouble to get a good mirror of the large cap market. So I stopped. The stocks I have are way above water, so again I could not bring myself to sell, but I don't do this any more.

Remember, "passive" and "simple" are hardly the same thing. Many people on this site have highly complex portfolios factor weighted to small, value, profit, momentum, whatever. Each fund is passive but the approach is active.
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RyeWhiskey
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by RyeWhiskey »

100% of my retirement assets are in passive index funds. :beer
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6miths
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by 6miths »

I have 1 stock left. More for nostalgia than anything. So pretty close to 100%.
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ASUGrad
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by ASUGrad »

I had a mix of passive/active that included VG explorer, and VG capital oppurtunity.

Then I finished reading the Little Book of Common Sense Investing and did some additional research. Then i switched the two above funds for the extended market index.

100% index.

Reading this article on the WSJ just cemented that! http://online.wsj.com/news/articles/SB1 ... 1451038920
Prof. Barras took a database of active mutual-fund performance between 1975 and 2006 and attempted to count the number of managers whose stock-picking skills were able to add value, after controlling for fees, trading expenses, stock size, style and other factors.

In 1989, about 15% of active managers demonstrated such skill over time, he found. But by 2006, only 12 managers out of 2,076—or 0.6%—did.
Pay someone and hope I'm the 12 out 2076, or Index and be in the top 1% for little cost at all?
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stemikger
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by stemikger »

CdnAppraiser wrote:Hey everyone,

I find most people are affraid of simple portfolio strategies and over complicate investing.

So, I am curious to find out how many of you on this site actually invest 100% of your portfolio in broad based index funds/ETFs?

Cheers
I am 100% passive. In my 401K I own two funds which are the Vanguard Institutional Index Fund and Ishares Core Total U.S. Bond Market ETF and I have an IRA with Vanguard and own the Vanguard Balanced Index Fund.

I love how simple my entire portfolio is. I know I don't own international, but side with John Bogle and feel it is not necessary.

I paid off my house last year, so I now have extra money to build some taxable assets and would also go 100% passive with that portion.
Choose Simplicity ~ Stay the Course!! ~ Press on Regardless!!!
Garlandman
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by Garlandman »

I invest 100% in RSP (S&P 500 equal weight index). Very relaxing -- no "performance anxiety" as I know that my results will almost always be approximately what the S&P 500 does. History of outperforming the S&P by around 2% annually. Very tax efficient -- all capital gains are tax deferred (they do pay 1.5% each year in dividends). And, I love the simplicity.
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grabiner
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by grabiner »

Garlandman wrote:I invest 100% in RSP (S&P 500 equal weight index). Very relaxing -- no "performance anxiety" as I know that my results will almost always be approximately what the S&P 500 does. History of outperforming the S&P by around 2% annually.
The reason for this discrepancy is that RSP is not similar to the S&P 500; it's more of a mid-cap index. The S&P 500 is dominated by the large companies, with more than 1% of its portfolio in each of the largest 15. There are many more mid-sized companies, but they are held in much smaller proportions. M* shows that RSP is about 45% mid-caps (and even that isn't a good measure because it holds more in the smaller mid-caps than their cap weight), while the S&P 500 is only 12% mid-caps.

If you plot a large-biased mid-cap index such as Vanguard Mid-Cap Index against RSP, there won't be much difference; these two funds have tracked almost perfectly for the last eight years.
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JoMoney
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by JoMoney »

The Vanguard Mid-Cap index fund has had a higher return than RSP (since inception of RSP). Most of the top companies in the Vanguard Mid-Cap Index (I just checked the top 30+) are also S&P500 constituents, and VO has less than half the turnover and 1/4th the expense ratio of RSP. Which is essentially what Morningstar says about that fund:
Morningstar's Take on RSP wrote:...While, technically, the fund owns mostly large-cap stocks, by equal-weighting them, the portfolio behaves more like a mid-cap fund, with a greater beta and volatility than a large-cap fund. Thus, this fund should really be compared with a mid-cap fund and that exposure can be obtained more cheaply...
http://etfs.morningstar.com/quote?t=RSP
There is enough differences between all of these funds/indexes though, that I would not be surprised if they do track quite differently at times.
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geekpryde
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Re: Who Invests 100% in Passive Index Funds/ETFs

Post by geekpryde »

Me: 100% Passive
Wife: 100% Passive
Kids: 100% Passive
Brother: 100% Passive
Niece: 100% Passive
Friends: NOT passive :-(
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