M1 Finance Portfolio Review

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
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M1 Finance Portfolio Review

Post by rafkg29 » Wed Apr 10, 2019 2:24 pm

What are your thoughts on holding the m1 finance expert pie domestic dividend portfolio in taxable account?
It consists of 83% in Vanguard dividend appreciation (VIG), 13% Wisdom tree u.s dividend mid cap fund (DON), and 4% in Wisdom tree u.s small cap dividend fund (DES).

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Re: M1 Finance Portfolio Review

Post by aristotelian » Wed Apr 10, 2019 2:53 pm

Dividend funds have the same expected return as total stock market, but less diversification and higher expense.

If you do use this strategy, it would be more tax efficient in an IRA.

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Re: M1 Finance Portfolio Review

Post by ThrustVectoring » Wed Apr 10, 2019 3:16 pm

All dividends do is move money from the companies you're invested in to your cash account while incurring taxes. It's pointless to optimize for them.

The M1 Finance portfolio you "should" have is Vanguard's total market ETFs: 60% VTI / 40% VXUS for the equity portion, and whatever fixed income products make the most sense to you (BND is fine here)
Current portfolio: 60% VTI / 40% VXUS

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Re: M1 Finance Portfolio Review

Post by MotoTrojan » Wed Apr 10, 2019 3:20 pm

Agree with above. Plus 4% of one equity fund is unnecessary complexity.

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