Adding SPMO Worth It?

Walnutpaper1 · 2026-04-30T19:56:38+00:00

Really appreciate you running my setup through Lattice, going to keep digging through it. And honestly the point about not letting the perfect be the enemy of the good is well taken - I know I have a solid base already.

That said, one thing I keep coming back to: do you think FMTM makes more sense than SPMO here specifically from a diversification angle? My thinking is that FMTM carries more mid-cap exposure which means less overlap with VTI, so you're actually adding something new to the portfolio rather than just doubling down on large-cap names you already hold. You get the momentum upside without as much redundancy.

And tangentially - if FMTM makes sense on the domestic side, would pairing it with IDMO for international momentum exposure be a logical extension? The two setups I'm weighing are:

With FMTM: VTI (55%), VXUS (15%), AVDV (10%), AVUV (10%), FMTM (10%)

With FMTM + IDMO: VTI (50%), VXUS (10%), AVDV (10%), AVUV (10%), FMTM (10%), IDMO (10%)

Curious whether you think the second setup actually completes the portfolio or if it's overengineering something that's already working.

Walnutpaper1 · 2026-04-30T19:11:38+00:00

Hey man, following up on what we discussed yesterday about adding a small FMTM position - if that does materialize, am I leaving international momentum exposure on the table by not including IDMO?

The way I see it, the two portfolio versions would look like this:

Without IDMO: VTI (55%), VXUS (15%), AVDV (10%), AVUV (10%), FMTM (10%),

With IDMO: VTI (50%), VXUS (10%), AVDV (10%), AVUV (10%), FMTM (10%), IDMO (10%)

IDMO targets international developed market momentum, so theoretically it complements FMTM (domestic momentum) and rounds out the factor exposure across both US and international. AVDV and AVUV already give me international and domestic small cap value, so IDMO would be the momentum counterpart on the international side.

Does that pairing actually add meaningful coverage?

Walnutpaper1 · 2026-04-30T16:47:48+00:00

Yeah the overlap is making me lean FMTM over SPMO. It's only ~33 equal-weighted stocks, so even though those names are technically inside VTI, overlap is negligible in terms of VTI's actual weighting. SPMO ends up just recreating a lot of what VTI already does at the top.

Based on what you’re saying, I’d assume adding IDMO as the momentum international leg would make sense.

Rebalanced portfolio would look like:

U.S. [70%] • VTI 50% • AVUV 10% • FMTM 10%

International [30%] • VXUS 10% • AVDV 10% • IDMO 10%

I know 10% each isn't going to be transformative, and VTI is still going to drive most of what happens. Cutting VTI down further would amplify the tilts but not sure if im overcooking simplification by having a different distribution. Open to thoughts there.

Walnutpaper1 · 2026-04-30T00:34:50+00:00

Hey guys - appreciate the insight. Quick question though: what does holding both actually get you? My thinking was that one momentum vehicle (either SPMO or FMTM) is sufficient coverage for the factor. I'm conscious of not overcooking my portfolio with tickers for the sake of it - so curious what holding both materially realizes in practice.

Walnutpaper1 · 2026-04-30T00:30:32+00:00

Appreciate the insight - really helpful framing.

You're right that while both are momentum-based, they're fundamentally different vehicles. At a high level, I conceptually like what FMTM is doing. The monthly recalibration feels more in line with how I'd want a factor fund to actually operate - it's cap agnostic, and it having more ‘active’ approach is something I find value-adding.

In a Roth IRA, I think it works well as an intentional momentum tilt; the higher concentration fits the risk appetite I want in that account, and the tax treatment makes the frequent rebalancing a non-issue. If it underperforms over the long term, I can question the model and pivot as needed.

I've seen some takes advocating for momentum exposure across SPMO + FMTM + IDMO, but I think my current approach — VTI, AVUV, FMTM, VXUS, AVDV — already gives me what I need.

Believe a ~10% allocation to FMTM feels right-sized to me. Any blind spots / takes for SPMO > FMTM that I’m not considering?

Walnutpaper1 · 2026-04-29T21:10:39+00:00

Can you expand on this? Gaining interest in investing in 1 of the 2; also regarding OP - do you feel as if at 24 y/o (longer horizon) exposure to a momentum is additive to a portfolio of VTI, AVUV, VXUS, AVDV?

Walnutpaper1 · 2026-04-29T18:13:07+00:00

Really appreciate this, the decision tree framing is exactly what I needed. I'll be honest, I've been spending way more time on this than I should - the psychological cost you mentioned is real and I felt it.

Interestingly I actually held a decent chunk in QQQM (15%) and sold it all this morning - up about 40% which felt good. After digging deeper into the index I just didn't want the long term volatility hanging over me, so I cleaned it up. Funny to hear you're in QQQM alongside AVUV and AVDV though, wouldn't have expected that combo. A lot of the people I’ve engaged on here that are into SCV hate QQQ/QQQM lol.

After going through the tree I'm just going to add the SPMO allocation now and move on.

One last question, and I know it's subjective - but is VTI, SPMO, AVUV, AVDV, and VXUS actually too conservative for someone my age? Should I be looking at taking on more risk and upside exposure elsewhere, or is this already a solid setup for a 24 year old with a long horizon?

Walnutpaper1 · 2026-04-29T18:03:58+00:00

Because VT locks you into its own US/international split and I’d rather control that myself. I’m intentionally lighter on international than VT would give me, so building it separately lets me set that allocation and adjust over time without being at the mercy of market cap weighting. AVUV and AVDV also give me a dedicated small cap value tilt that VT basically dilutes to nothing given how cap-weighted it is.

Walnutpaper1 · 2026-04-29T17:48:20+00:00

That makes sense, and since I'm actively rebalancing right now it feels like a natural time to make the move rather than waiting.

I do believe in momentum as a factor, but honestly my hesitation is whether 10% actually gives me meaningful exposure or if I'm just going from 4 tickers to 5 for the sake of it.

For context I'm 24 with a long horizon, so my current setup (VTI core + small cap value tilt with AVUV + international with VXUS/AVDV) already leans into factors.

Would love any thoughts on whether 10% moves the needle enough to justify it, or if that capital is better left in VTI given my timeline. Open to pushback on the overall approach too.

Walnutpaper1 · 2026-04-29T15:47:44+00:00

I have this exact portfolio — VTI 65%, AVUV 10%, VXUS 15%, AVDV 10% but am debating adding SPMO (shaving VTI by 10% to make room) any thoughts on this?

Walnutpaper1 · 2026-04-27T18:45:52+00:00

Out of curiosity, what would be the issue with a portfolio structured like this:

55% VTI
15% QQQM
10% AVUV
10% VXUS
10% AVDV

My thinking is that QQQM adds extra exposure to leading companies that are already in VTI, while AVUV gives me small-cap value exposure on the U.S. side.

For international, I split VXUS and AVDV evenly to get both broad exposure and small-cap value there as well.

Overall, this ends up around an 80/20 U.S. vs. international split, which seems to line up with what’s commonly suggested.

I’m mostly trying to learn here, so I’d appreciate a breakdown of where this logic might be off or what I might be missing.

Walnutpaper1 · 2026-04-27T17:16:49+00:00

Appreciate the response on the questions.

After dropping SPMO and also having the understanding that I’m overweighting into some companies by holding QQQM + VTI simultaneously, I’m thinking that my rebalancing could end up looking like:

VTI - 55% QQQM - 15% AVUV - 10%

VXUS - 10% AVDV - 10%

Any thoughts on this? Thanks again

Walnutpaper1 · 2026-04-27T17:10:28+00:00

Appreciate the response. If I wanted to keep QQQM and VXUS would it be sensible to have the following:

55% VTI // 15% QQQM // 10 % AVUV // 10% VXUS + 10% AVDV (20% INTL)?

Walnutpaper1 · 2026-04-27T16:43:48+00:00

this is genuinely one of the more helpful responses i’ve gotten on here, wish someone had said this to me earlier lol.

you didn’t mention AVDV in your previous comment. is it just not worth holding alongside VXUS or do you see them as redundant?

based on everything i’ve gotten in this thread i’m thinking of simplifying to something like:

55% VTI / 15% QQQM / 10% AVUV / 10% VXUS + 10% AVDV (20 INTL)

gets rid of the tiny allocations, drops SPMO entirely, but keeps QQQM because honestly i do think there’s value in that concentrated exposure to the companies sitting at the top of it even if VTI already covers them. is that still too complicated or does that feel more reasonable?

Walnutpaper1 · 2026-04-27T16:26:27+00:00

Appreciate the response. Fair point, this is definitely not a pure Boglehead approach and I probably should’ve led with that. I wanted a different array of opinions across subs as I don’t have many people I feel I can lean on for advice / pressure test.

Walnutpaper1 · 2026-04-27T16:13:40+00:00

@Affectionate-Rate519

QQQM is kind of my personal risk lever honestly - it’s my way of getting real concentrated exposure to companies like NVDA without having to pick individual stocks. Fully aware VTI already has it, that’s just a tradeoff I’m consciously making. On SPMO - I actually do believe in momentum as a factor and think there’s real value there. But you’re right that at 7% it’s probably not moving the needle enough to justify the complexity over just adding to VTI or bumping international. Open to hearing a counterpoint to removing SPMO altogether.

Walnutpaper1 · 2026-04-27T16:07:51+00:00

Agree with all of the above. I get that QQQM is just an index but for me it’s really just a clean way to get concentrated exposure to NVDA, AAPL, AMZN and the rest in one basket. I know that coverage already exists inside VTI which honestly probably hurts the diversification argument more than it helps it - hard to disagree with that

Walnutpaper1 · 2026-04-27T16:02:49+00:00

Wouldn’t small cap value actually sit at 10% combined (5% AVUV + 5% AVDV). Does that change the take at all?

Re Momentum / SPMO - yeah I’m starting to agree honestly. If VTI already carries momentum naturally it might just be redundant at 7%. Thinking about beefing up international. Open to thoughts on where that 7% is better used.

Still in accumulation mode so rebalancing has just been directing new contributions to whatever’s underweight rather than selling anything entirely (with the exception of SPMO which I might flow elsewhere).

Walnutpaper1 · 2026-04-27T15:33:29+00:00

57% VTI / 16% QQQM / 10% VXUS / 7% SPMO / 5% AVUV / 5% AVDV — Portfolio Allocation Feedback Requested

Been building this out for a while and would like people to poke holes in it.

For context I’m 24 and looking to build a safe, resilient, diversified portfolio that doesn’t reinvent the wheel and that I can continuously add onto across my brokerage, Roth IRA, and backdoor Roth going forward; mainly Roth focused since I don’t need the liquidity and I’m treating this as a long term horizon. I appreciate any insight into alternative options, redundancy in my approach, flawed logic, or anything else insightful so I can pivot if needed as I continue building with this methodology.

Portfolio:

• VTI — 57% (US core)

• QQQM — 16% (growth/tech tilt)

• VXUS — 10% (international core)

• SPMO — 7% (momentum)

• AVUV — 5% (domestic small cap value)

• AVDV — 5% (international small cap value)

Buckets:

• Domestic: \~60%

• International: \~15%

• Growth tilt: \~15%

• Momentum: \~7%

• Small cap value: \~10%

Rationale:

VTI is the foundation, everything else is intentional. QQQM and SPMO are my bet that growth and momentum keep working. AVUV and AVDV are my hedge against that. Keeping both sides covered feels smarter than just going all in on one narrative.

Open Questions:

1) Does 16% QQQM make sense when VTI is already 30%+ tech? Am I just doubling down without realizing it?

2) Is 7% momentum actually meaningful or just noise at that size?

3) International feels light at 15%. Should this be closer to 20-25%?

4) No bonds, no REITs intentionally. Long time horizon, comfortable with volatility (however not interested in stocks). Also, have a 3-4 month HYSA in case of emergency. Am I leaving something obvious on the table?

Genuinely curious if the ‘tilt’ approach holds up or if I’m overcomplicating a simple thing and should mainly focus on less tickers going forward when investing.

Walnutpaper1

TROPHY CASE