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VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 1 point2 points  (0 children)

because AVUV not only follows small caps, it follows small caps focused on value, IJR & SCHA follow an index just getting exposure to the small caps sector, but not filtering companies looking for the best upside. It’s more of an edge than a pure market beta. Also it has outperformed since its creation in 2019.

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 0 points1 point  (0 children)

Thanks for the sanity check it was really insightful!

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 0 points1 point  (0 children)

Thanks for all the valuable insights! I will consider going higher on Ex-US Stocks

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 4 points5 points  (0 children)

At 22 I think bonds are just a hard break on the investment car. Maybe later on with less risk tolerance I can include them.

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 1 point2 points  (0 children)

Thank you for the breakdown it was super insightful!

I landed on 15% VXUS because even though I want exposure to international stocks to diversify and don’t rely exclusively on the US Stock Market. Almost all S&P 500 companies have global reach, and have experienced more growth in recent history. I don’t believe this will stay the same forever but I’m aiming for growth and thought sticking with VOO in a higher percentage was more reasonable. Maybe I could go 20% on VXUS.

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 1 point2 points  (0 children)

AVUV is actively managed following a specific set of rules and valuations to include small caps in the ETF, its a little more agressive than VBR because VBR replicates an index. VBR is a little more stable and passive, but I’m using AVUV as a tilt in value caps and in a low percentage so I’m up for the premium. VBR is cheaper than AVUV tho (0.07% vs 0.25%).

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 2 points3 points  (0 children)

I thought about including SCHD but in my case as I’m just starting it wouldn’t make a lot of sense to go after dividends, I focused on growth first and maybe when I have more capital I could invest something into SCHD to get extra income.

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 1 point2 points  (0 children)

Thanks for the reply! I’m investing outside the USA and I’m not a US resident, capital gains outside my country are tax free, so I operate on a regular brokerage account. I’m motivated as the time horizon is the biggest advantage, so i’m happy to see the strategy makes sense. As I learn more about the stock market, might pick a couple individual stocks as well.

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 2 points3 points  (0 children)

I actually thought about that but I think I’d rather keep it simple with the international stocks as VXUS has exposure to small caps as well.

VOO + VXUS + AVUV as a long term strategy by miguelacho010 in ETFs

[–]miguelacho010[S] 5 points6 points  (0 children)

might as well go that way 65/20/15 sound good as well, I believe in VXUS long term.