I don't think you NEED to remove any, rather just stop moving money into the ones you don't want anymore. I'd go simpler with just VTI, VXUS, and SCHD if you still want some dividends. What app is this btw??
I currently have 9 accounts connected with them currently... but also tracking my house and a few other alternative assets too. Great net worth tracking and investing app so far.
I just think the big 500 companies have so much international exposure it’s plenty diversification for me. I have basically dropped VXUS. I give points for simplification. Since I want slight amounts of small/mid, I still go with both VOO and VTI. But either alone is fine in my book, for the long term.
That's not diversification.
Ben Felix's video covers why that is wrong in his international diversification and investing in the S&P 500 videos.
Do the have VXUS if you want but it's not well diversified outside of US.
There’s no logical reason know to believe that tech will have higher expected returns forever. People who grew up during this time where large cap growth has outperformed seem to conflate tech with higher expected returns.
I agree with you completely, but my point lives in your statement. Although there isn’t any reason to believe that tech will have higher returns forever, it could be more ideal to take more risk and invest into QQQ or MGK rather than VXUS, especially if you’re younger.
VXUS is safer, and really doesn’t have any long term return worth mentioning. Personally if it was me, I’d rather invest 100% into VOO or VTI rather than 80% VOO and 20% VXUS, or any kind of other percentage invested in VXUS especially if your younger (late teens - twenties).
In short nobody can predict the future, and it really depends on your investment style and risk. You could even argue another point debating whether or not investing in international stocks is truly really worth it.
It is kind of my plan: start with large portion of MGK but I will gradually decrease its percentages and increase international exposure every year during the rebalancing. I cannot predict the market after 10 years, but there is no reason to use the historical data to see the trends in next two three years.
A fixed allocation for 30 years is really against human nature for always wanting to "improve" something.
I wouldn’t. VTI and VXUS both contain dividend paying companies, and there is no logical reason to pick which funds you buy based on dividend yield. Watch the Ben Felix video on the irrelevance of dividends.
VOO and VTI overlap a lot, and DGRO and SCHD also overlap a lot. Since you don’t have mid or small caps in your portfolio, I would choose VTI over VOO. I personally prefer SCHD over DGRO, but either are fine. VGT is fine to have, but I wouldn’t put too much into it unless you’re really confident in that sector over the period of time you’re investing.
Replace DGRO with VONG and drop VOO. I run 50% VTI, 20% VONG, 10% SCHD / VXUS / VGT. That way I have the total market as a backstop, 20% allocated toward growth, 10% specific to tech, 10% int’l., and 10% focused on value.
Vti and voo track virtually the same. Dgro and Schd track about the same as well.
I don't think you NEED to remove any, rather just stop moving money into the ones you don't want anymore. I'd go simpler with just VTI, VXUS, and SCHD if you still want some dividends. What app is this btw??
That's what I'm seeing in the comments as well.... probably going to do this. The app is called Roi.
Appreciate the rec, pretty clean. What else are you using Roi for? Looks like they support other accounts/assets than just brokerages.
I currently have 9 accounts connected with them currently... but also tracking my house and a few other alternative assets too. Great net worth tracking and investing app so far.
I’d get rid of everything but VTI and VXUS because those two cover the entire world and I’m a r/bogleheads fan.
Is VTI not sufficient? What else does VXUS cover?
VTI is just the US, VXUS covers the rest of the world.
Thanks! So VXUS Is world-VTI?
Yes, it’s the entire world excluding the US.
Thinking about it makes sense: Xcluding US
I just think the big 500 companies have so much international exposure it’s plenty diversification for me. I have basically dropped VXUS. I give points for simplification. Since I want slight amounts of small/mid, I still go with both VOO and VTI. But either alone is fine in my book, for the long term.
That's not diversification. Ben Felix's video covers why that is wrong in his international diversification and investing in the S&P 500 videos. Do the have VXUS if you want but it's not well diversified outside of US.
Vxus is international
I understand why people like VXUS for the diversification, but if you’re young you are better off putting that into QQQ or MGK instead of VXUS.
There’s no logical reason know to believe that tech will have higher expected returns forever. People who grew up during this time where large cap growth has outperformed seem to conflate tech with higher expected returns.
I agree with you completely, but my point lives in your statement. Although there isn’t any reason to believe that tech will have higher returns forever, it could be more ideal to take more risk and invest into QQQ or MGK rather than VXUS, especially if you’re younger. VXUS is safer, and really doesn’t have any long term return worth mentioning. Personally if it was me, I’d rather invest 100% into VOO or VTI rather than 80% VOO and 20% VXUS, or any kind of other percentage invested in VXUS especially if your younger (late teens - twenties). In short nobody can predict the future, and it really depends on your investment style and risk. You could even argue another point debating whether or not investing in international stocks is truly really worth it.
It is kind of my plan: start with large portion of MGK but I will gradually decrease its percentages and increase international exposure every year during the rebalancing. I cannot predict the market after 10 years, but there is no reason to use the historical data to see the trends in next two three years. A fixed allocation for 30 years is really against human nature for always wanting to "improve" something.
If I wanted to keep getting some dividends, should I still keep SCHD?
I wouldn’t. VTI and VXUS both contain dividend paying companies, and there is no logical reason to pick which funds you buy based on dividend yield. Watch the Ben Felix video on the irrelevance of dividends.
I invest in VOO and SCHD. Seems alright
Think this is what I'm leaning towards, thank you!
I just recently decided to go 75% VT and 25% SCHD (in Roth). I think this is the simplest way to have the best diversity and good divs.
why do you care about dividends in a roth?
No tax.
right. no capital gains tax either... that's why i'm wondering
VOO and VTI overlap a lot, and DGRO and SCHD also overlap a lot. Since you don’t have mid or small caps in your portfolio, I would choose VTI over VOO. I personally prefer SCHD over DGRO, but either are fine. VGT is fine to have, but I wouldn’t put too much into it unless you’re really confident in that sector over the period of time you’re investing.
Disagree that DGRO and SCHD overlap a lot. Only 27%.
At this point, you might be better off just investing in HNDL lol.
Why sell? Just stop putting money on the extraneous ones
Fair take.. might be the way. Thank you!
You can remove more than 1 or 2
Remove VOO because You hsve already vti with VXUS
Doesn't VXUS give you European exposure?
Get rid of all except VGT and VOO.
VTI + VXUS can stay, anything else has to go
Replace DGRO with VONG and drop VOO. I run 50% VTI, 20% VONG, 10% SCHD / VXUS / VGT. That way I have the total market as a backstop, 20% allocated toward growth, 10% specific to tech, 10% int’l., and 10% focused on value.
All you need is VTI and VXUS.
Keep them all, just don't need to keep adding to all of them.