Roth IRA:
~70% FSKAX
~30% FTIHX
401(k):
68% FXAIX
16% FSMAX
20% VTSNX
Brokerage:
~70% VTI
~30% VXUS
(I have an HSA too but keep it as cash for now)
As you can see, most of my investments are about 70% US TSM and 30% International TSM. However, I have been reading lately about tilts to SCV and REITs, which interest me due to their strong performance in the past. Obviously, I know past performance doesn't indicate future returns. I also know that SCV is inherently more risky due to increased volatility, but I wanted to ask: would SCV benefit from a longer horizon, and as such would it benefit to do a tilt this early?
This is the same logic why I hold 0% bonds right now - because it's too conservative given my long horizon.
If I do end up doing a SCV tilt, I am thinking of an 80-TSM 20-SCV tilt (across all accounts):
56% US TSM
14% AVUV
(70% US)
24% International TSM
6% AVDV
30% International TSM
My last question is: would it be better to hold AVUV only in tax-advantaged accounts, or is it also fine to hold in taxable?
TL;DR- My 3 questions are:
- Does an SCV tilt benefit from a longer time horizon when young?
Is an 80-TSM 20-SCV tilt reasonable?
Is holding AVUV/AVDV in both taxable and tax-advantaged a good idea?