AVDE
Avantis® International Equity ETF
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Is VOO (US Megacap) plus AVDE (International All Market) a good balance of simple and diversified?
Looking for advice for ETFs around Health, esp GLP-1 Agonistics etc
Playing around with a possible portfolio of ETFs.. tel me what you think and why and possible suggestions.. I’m wanting something we diversified and to be able to set it up on auto invest. I think these are ETFs so I believe that leaves me with M1 or E*Trade..
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Nice. i'm essentially 55/15/15/10 VTI/AVUV/AVDE/AVEM
Could also throw into internationals AVDE or VXUS are two recs
Imagine if you would have done AVDE or AVNM instead.
on the other hand rethinking your entire investing strategy because of 61 upvotes on reddit is probably also not a great idea. IMO the US for the next 50 years will PROBABLY outperform cumulatively the US Market. the US is uniquely set up (aka very much more business friendly) than anywhere else in the world to provide a well diversfied insulated porfolios. BUT because I'm not certain, I carve out an allocation for international investing. I don't use VXUS. I used/use DFA/Avantis for this by way of DFIEX/AVDE. They are very index like but run some profitability screens to kind of screen out the "shitty companies"
Hey man, I saw you a lot around here and your advice is pretty easy for a beginner like me to understand. Mind if I ask you a question? Right now, I’m in a similar position. I only hold SPYM but want to add more international diversification. If I plan to hold long term, what do you think of IDMO + AVDV. I feel like this cover both ends of developing markets. But I’m also willing to switch out IDMO for AVDE, IDEV or FENI. I also plan to add some forms of EM like AVEM, AVES or FRDM. Personally, what do you think about these funds? I plan to do 20% for DM and 10% for EM.
Open Fidelity brokerage and Roth accounts, move HYSA to brokerage and buy 50% SGOV and 50% PAAA. Max out Roth IRA for this year and every following year. After maxing out Roth account(s) (another Roth account if you're married and they have a job too), put the rest in your brokerage account. The other investments for your brokerage and Roth(s) should be something like 40% VOO, 20% SCHG, 20% SPMO, 20% AVDE.
Yes, I love IDMO! I'm going to add AVDE, too. I also have IDVO. Yes, it's technically a covered call fund, but really, it's a dividend growth fund with a splash of strategic calls.
IDMO & AVDE have done me very well this year for sure 1YR total return: IDMO +33.21% AVDE +24.15% SPTM +18.2% (reference) https://stockanalysis.com/stocks/compare/sptm-vs-idmo-vs-avde/
PLMR, NVO, UUUU, AVDE all seem tasty to me atm
I like AVDE myself, but second the rec for DFIV. I also like DFIC, IVLU, and SCHF.
Our household income iS mainly in the 15% tax bracket. Some years it goes into 22%. Our Roth IRAs hold mainly SPMO/IDMO and AVUV/AVDV. Taxable is mainly VTI, SCHG, SPLG. We’re holding 10% of the household portfolio in AVDE in our taxable, but realize we’re not catching all international markets. Do you have any recommendations for this strategy? Or just leave as-is?
Depends on your tax bracket. The bracket that benefits most from optimization is the 35% ordinary/15% qualified or the 37% ordinary/20% qualified bracket. For this group, I recommend splitting tax-efficient developed from the tax-inefficient emerging: - DFIV in taxable for large cap value, this is actually better than US equities since it is nearly 100% qualified plus gives you foreign tax credits - DISV or AVDV in taxable for small cap value. DISV is more tax efficient but AVDV has performed very slightly better - AVDE is reasonable too, but less tax efficient - Your choice of emerging market fund. AVEM, DFAE, DFEM are pretty good with better liquidity than heavier tilted options, but you probably want them in tax advantaged if you have some room there. The DFA funds are more tax efficient but haven’t performed as well. If you’re in a lower tax bracket (for instance 20-22% ordinary/15% qualified), then it’s actually better to get them all in taxable. This is because the advantages of the foreign tax credit outweigh the disadvantages of lower QDI.
At 24 I’m doing: Tax Deferred: 4500-5000 equities 40% SPTM | 40% SCHG | 20% AVDE Roth: 400 equities 40% SPMO | 40% XMMO | 20% IDMO
International funds . AVDE for example
I mainly do 3 fund portfolios 40/40/20 One is SPTM/SCHG/AVDE One is SPMO/XMMO/IDMO One is CWB/JAAA/BIL
Hey dude. You're totally justified in your beliefs about AI growth promises being a bit lofty. So I would recommend underweighting US and overweighting international to match your personal investment convictions. Maybe do 40% US instead of the 65% suggested by current market cap weight. That will put you in a very nice defensive position if AI doesn't meet expectations. I'd suggest AVUS for US and AVDE for international
I was a bit free so I took a look at what you currently have. *SPTM* .03% expense ratio 90% of the equity market, pretty normal *SPMO* .13% expense ratio 99.8% domestic stock, 100 holdings classified as non-diversified, top 10 holdings constitute 56.8% of the ETF's assets. 0.2% foreign stock. Measures performance of 100 holdings in the S&P Index that have the highest "momentum score". *AVDE* .23% expense ratio 97.9% Foreign stock, not a lot of restrictions on how they create this one, they mention investing at least 80% of assets in equity securities and has no issues investing in derivative instruments. *FSCO* management fee: 1.35% 7.9% Expense ratio (closed ends funds report interest expense as part of total expense ratio by regulation) Closed ended fixed income fund with high dividend (9%\~) Of note: No Analysts reviewing, an average estimate of growth is 14% by next year. Global credit investor that invests primarily in secured and unsecured floating and fixed rate loans, bonds, and other credit instruments that other companies use to finance their operations. Most professions recommend not going above 5% of your portfolio on FSCO which you did. *FTWO* .49% expense ratio Index tracker, follows performance of companies engaged in national security and natural resource security. Mid/Large capitalization companies. \---- personal thoughts: I still prefer something simpler at your age, just a broad index fund and "maybe" an international fund is all you need. The rest is overkill. and just adds extra fees weighing down performance a bit. If it sounds boring, it is because it is while also being more effective and the most efficient while giving you enough diversification. I just have two funds, domestic index and international and very small amounts of SCHD and SGOV that I am too lazy to do anything with, it's mostly for fun, compared to the rest of the portfolio. If I could do everything over again, I would probably have gone all in on just the index fund domestic, ignored thrashing my money around in multiple funds (i did lots of individual stocks and questionable funds in my 30s) and I would have twice as much as I do right now over the last 15 years. Most of my small bets were a huge drag and went nowhere, I wised up after I turned 37 or so and just stuck to the two index funds.
If you want to be more aggressive with international, you can look into IDMO (developed momentum) + AVEM (emerging markets) or AVDE/AVNM (value + profitability tilts).
my bad, I thought your AVDE was an analog of the MSCI World with US inside, instead it is non-US. However, it could be useful to give more weight to markets uncorrelated from those of developed countries, giving more weight to emerging markets and perhaps raw materials, so as to live peacefully and not worry too much about wars and global financial crises. But this is not financial advice, it is just what I think I would do.
Let me give you some options of systematic value investing ETFs, each group with its own methodology (it should be easy finding thorough descriptions of their methodology online in their websites, in podcasts, etc.): 1. Avantis is a rules-based manager that focuses on stocks with small cap, low valuations and high profitability. They have ETFs that are meant to be a substitution for total market funds, but instead of market cap weighting, they tilt towards small cap and value (AVUS, AVDE, AVEM for US, Developed ex US and Emerging Markets). They also have ETFs that focus specifically on value stocks. AVGV for all markets, AVUV for US small cap value, AVDV for Developed ex US small cap value, etc. 2. Cambria has also a sweep of ETFs that focuses on companies with high shareholder yield (dividend, plus buybacks plus paying down debt). SYLD and others. 3. Alpha Architect has two ETFs (QVAL and IVAL) that also focus on value stocks. These ETFs are more concentrated.
You could just do the Schwab index Target Date Funds. It's mostly stocks early on and then leans into fixed income later on. Or you could do 80-100% VT (world index fund) and 0-20% BND for US bonds or BNDW for world bonds. AOA and AVDE are examples of a low cost all in fund that don't change their allocation over time. AOA is 80% global stocks and 20% bonds straight up and forever. AVDE is a small cap value tilted fund of funds but mostly sticks to the low-cost broad market exposure with that factor tilt. Factor exposure is a whole other can of worms that may or may not be worth getting into. Or you could just stick with the robo advisor, that's likely going to do OK, basically the same thing you should be doing anyway but 8% cash is kind of high for a retirement account especially with so long to compound. Any of these options highlights varying degrees of simplicity and automation, but I like them because , and to be honest, for most people, the more simple the method, the better. Less likely to tinker and make active choices/mistakes if whatever you have is mostly set it and forget it.
If you have no other pre-tax (non 401k) accounts then yes you would want to backdoor Roth (contribute to IRA then CONVERT to Roth). You would contribute to the IRA to a money fund typically then convert to Roth, then make your investment choice in the Roth. ​ Personally, I would do something like 60% VOO 20% AVUV 20% AVDE or you could just do 70-80% VTI and 20-30% AVDE or VXUS something like that. There's no right or wrong answer of course, everyone does something different.
If I were you id go 60% AVUS, 30% AVDE, 10% AVEM. Or if you want 1 fund go AVGE.
Thank you for this detailed answer. This has given me stuff to think about. I think I don't like additional risk from EM because I am already heavily invested in one emerging market, my own country. I don't want to budge on that, so having even more EM coverage means I'd have a huge amount of my portfolio in emerging markets. Do AVDE and VOO really have 0.9 correlation? Their graphs look nothing alike, and when I look it up I see 0.79.
*I'd appreciate any critique of my plan* Primarily, I think your plan is fine. I think you already know this, but AVDE isn't a small cap fund - it's a small cap/factor tilted ex-US fund. Hence, your net allocation will still be large cap-tilted significantly. I don't think that's really a big deal - due to the broader correlation of the entire market, I don't think you're really missing out on much. Your proposal is broadly diversified, with international exposure. There is a domestic tilt, but I think that is entirely reasonable for currency reasons - you (probably) can't pay your rent in USD or EUR. You get my Boglehead seal of approval, if that's what you're looking for. *Why AVDE? I like how it's not too correlated with the S&P500* This isn't true. AVDE has a 0.9 correlation with S&P500/VOO. VXUS (total world international) has a 0.86 correlation. VEA (ex-US developed markets) has a 0.90 correlation. None of these are particularly more uncorrelated than the others, and they're all correlated with S&P500. *No Emerging Markets? \[...\] I consider them high risk due to opacity and corruption.* Although I'm not going to try to convince you to invest in something you're uncomfortable with... what you're saying is not a secret. Everyone knows that emerging markets have transparency issues, corruption issues, nationalization issues, etc. That's already priced into the market. It's why the PE ratio of emerging market funds approaches 10 - the market isn't expecting significant future earnings growth. Assets do not need to do exceptionally well to have an outsized return - they merely need to do better than expected. If you really dislike investing in China, there are ex-China emerging market ETFs (EMXC).
Oh that makes more sense. Thank you. Yes of course too, I understand this isn’t financial advice. I forgot to mention that I would be adding international. Just for more information I am now considering a portfolio of: AVUS - 80% AVDE - 10% AVES - 10% What I couldn’t decide is if I wanted to do that Avantis portfolio, or go with a similar approach using VTI, ie; VTI - 70% AVUV - 10% AVDE - 10% AVES - 10% This would obviously be a slightly cheaper portfolio long term as the primary fund would a be a low cost vanguard fund. What I wasn’t sure of and I think you mentioned above is that AVUS DOES include a SCV tilt. I was having trouble finding info on whether it did specifically for SCV. Because otherwise if it didn’t, I would consider even adding a 10% position in AVUV in the first portfolio I mentioned (taking AVUS down to 70%). If AVUS does have a “built in” tilt towards SCV then I really wouldn’t mind the three fund portfolio of AVUS, AVDE, and AVES.
I may have to rethink $AVDE. $AVDV top 10 holdings seem energy heavy. Although the weight is less than 1% of all stocks so maybe I am overthinking things. My individual stock trading portfolio is commodity heavy so I was looking at large cap international. $AVUV seems like the best fit for me so I will start there. I already own $GT and $LPX individual stocks. And their other top 10 holdings are many individual stocks I have been watching like Saia, Alcoa, and Dicks sporting Goods. So that small cap ETF seems to match my investment strategy.
I would recommend that you open a position in $MOO then. You are better at individual company DD analyzing financials than I am. I place too much emphasis on the macro environment trends so my opinions are suspect. I have made my last individual stock purchases today. The last 3 years I wanted exposure to commodities that were not represented or vastly underweight in my 401k S&P index fund. I have reached that dollar amount that was my goal in gold, oil, steel/iron ore, and ag fertilizer stocks, etc. Starting in March I am putting all future contributions into EFT's. I am going to start with $AVUV and then open a position in $MOO and $AVDE and rotate monthly contributions b/w those 3 funds. Somehow I have managed to basically break even since 2020. I now have the diversified exposure I wanted in commodities. Now is the time for me to put new money into the broader market. Good Luck.
> personally I would stick 5% AVRE into the AVUV allocation. That seems to be fairly reasonable. > Just a point of clarification - AVUS, AVDE, and AVEM are blended funds with a modest value tilt, but not explicitly value funds (like VTV for example). Yup this is true. The value tilt is modest and sector weights are capped so you get less FANG exposure.
Probably not going to make much of a difference but personally I would stick 5% AVRE into the AVUV allocation. Just a point of clarification - AVUS, AVDE, and AVEM are blended funds with a modest value tilt, but not explicitly value funds (like VTV for example).
AVDE for broad developed ex us. FLEH for Europe specifically it's hedged for currency changes.
I'd recommend reading or listening to Larry Swedroe or Ben Felix. I'm not qualified to repeat what they say meaningfully, and I'd do a disservice to factor investing attempting to explain here. Paul Merriman has also done a lot of the work for us tracking SCV and how to balance with other indexes for your particular tolerances. https://paulmerriman.com/ FWIW I am about 15% AVUV with another 5% in AVDE. I might raise AVUV to 20%. I'm happy to tilt to value particularly small cap at the expense of large growth or blend. As Swedroe puts it growth has only outperformed due to inflated P/E and very low rates.
Thanks for the reply. Just to clarify my current allocation as far as ex US, I'm 10% VEA 10% VWO and was considering a 5-10% allocation to DGS (Wisdom Tree EM Small Cap Div ETF). So altogether it would be something like: VOO 25% Core/Lg Growth AVUV 20% US Sml Cap Value VEA 10% Developed ex-US VWO DGS 20% EM w Small Cap Val tilt TLT/SHY 10% Long/Mid Treasuries = ~85% Allocated / 15% Cash currently In your suggestion do you mean adding AVDE & AVEM to my current Int'l allocation? I'm not sure I understand "adding the global mkt cap weighting" wording though. Do you mean trying to emulate those two ETFs or actually adding them? I feel a bit over allocated Int'l wise. (?) Re:TLT Also still trying to understand why one (anyone) who holds TLT at this point like myself, would continue to hold if it's a pretty sure thing that at least 100bps hikes coming by July which would send TLT down to double digits I would think. Ofc, I've held this long, (from 140 to 109) so I've already paper absorbed the downside so idk, maybe should be adding to it. But I try not to add to a losing position. Apologies, still got a lot to learn and digest. Thx Cheers PS. Goes w/o saying that this is all just discussion and informational and ofc I DMOR and NFA :)
I suggest adding the global market cap weighting of AVDE & AVEM for non US diversification. Or the Dimensional core 2 ETFs tilt even more to small and value I believe. For fixed income there are some good ETFs that target term premiums and credit premiums in a systematic way.
DFA is not straight profitability unless you are talking about the three funds out of many that specifically target that factor. DFAC and DFAX are weighted just the same as avantis AVUS, AVDE AVEM.
AVUS - Broad market factor tilt US AVDE - Broad market factor tilt Developed AVEM - Broad market factor tilt Emerging market 10% cash for shorting things. In times like these shorting is easy.
It’s not common to have a pure scv portfolio. Usually the portfolio would be built with broad diversification and then with tilts toward scv. AVUS, AVDE, and AVEM accomplish broad diversification with exposure to value across market capitalizations and with tilts toward scv all in one fund. It’s arguably then not necessary to even include AVUV AND AVDV unless you want an even greater tilt toward scv. Either way tho, most people would want more diversification and exposure to small mid and large cap value, as opposed to just small cap.
Just more of AVUS, AVUV, AVDE, AVDV, AVEM and AVES. The value/growth spread hasn't been as larga as it is now. You need to save much less to meet your retirement needs if you start young.
There are good funds that tilt towards value/profitability in international and emerging markets. ​ Personaly I use 50% funds with a small tilt (AVUS/AVDE/AVEM) and 50% funds with a stringer tilt (AVUV/AVDV/AVES) ​ I wouldn't view crypto as a sensible asset class.
AVUS AVDE AVEM Broad market value tilt (us, developed, emerging market) < 18 NURE short term rentals, rji commodities, QVAL, IVAL highly conentrated value ETFs. The about a month after February I started shorting everything in ARKK top ten minus tesla. Finally closed my shorts new years.
VTI and VXUS or ITOT and IXUS or AVUS AVDE AVEM really just depends on you weighting it yourself.
My 2/3 Bogle 1/3 Ben Felix value tilt portfolio for Roth IRA: VTI 65% SCHD 10% AVUV 7.5% AVDE 7.5% AVDV 5% EMXC 5% I wasn’t comfortable with my international allocation being based on market-cap with VXUS so I broke it up into three funds. Also excluding China means a bigger share of other emerging markets like Taiwan, SK, and India. Even with the value tilt my top holdings are still FAANGM. Overall the portfolio is about 34% LCgrowth and 29% LCvalue (US equity).
I didn't know they had non us versions. If that is the case and you have access to avantis AVUS, AVDE, AVEM they have been killing it as far as performance is concerned since they debuted. There portfolio holdings are hard to really track though because they typically have at least 2000 stocks per etf outside of there small cap value AVUS. I personally went with fidelity FLRG, FDEM, FSMD, FDEV just because they have the best technicals cashflow, cost of equity, price to book etc. Avantis ETFs have been beating my holdings and choices so far this year significantly until the last two months.
Avantis is apparently launching a targeted EM value ETF in September: https://twitter.com/EtfHearsay/status/1407015072673714176 AVEM is their lightly tilted equivalent to AVUS and AVDE. Presumably AVES will be closer to an AVUV/AVDV.
I would add AVDE, AVDV, VFMF and AVEM to that list. They are probably the best Small cap Value or Multifactor ETFs that are available. AVUV and AVUS recently grew past 1B in AUM and the others will likely follow in the next few years.
Why? These have a higher expense ratio, fewer holdings and the geographic distribution of AVDE seems worse (no or low China holdings)
I'd rather go with 60% [AVUS](https://www.etf.com/AVUS) and 40% [AVDE](https://www.etf.com/AVDE).
For an US investor, the following comes pretty close with a slightly higher factor tilt and no home country bias: ​ |Fund|Ticker|Weight| |:-|:-|:-| |Avantis International Equity ETF|AVDE|25%| |Avantis International Small Cap Value ETF|AVDV|10%| |Avantis Emerging Markets Equity ETF|AVEM|10%| |Avantis U.S. Equity ETF|AVUS|40%| |Avantis U.S. Small Cap Value ETF|AVUV|15%|
AVUS, AVUV, AVDE, AVDV, AVEM. VT is also a good option.
>What are some best practices for buy ETF shares? Is there a certain time of day that is best? Generally it is always a good time during trading hours. Spreads for most ETFs are quite small, so I don't think it is worth spending much time on microoptimizing it unless you want to invest a large amount. ​ >Is it a bad idea to hold off on investing until covid is over? I feel like the markets may still be more volatile than usual as the impact of covid is not fully realized Time in the market beats timing the market. ​ >If you need to sell some stocks/ETF once a year or so, is it best time to do this? Is a bear or bull market more ideal to sell? I would sell when you need the money. Your asset allocation and risk capacity should consider your liquidity needs. Do not try to time the market. >Does the CRSP stock market index perform better than the SP500 index? Articles like [this](https://www.valuewalk.com/2020/02/sp-500-vs-total-stock-market-index/) say it doesn't. However, when I backtest VTI vs S&P500 funds, VTI has always outperformed them VTI is better than VOO because it covers a larger portion of the market cap. VT is even better because it covers the entire stock market. >Is there an index fund that track the stock market that has a better return than VTI? DFSVX has outperformed the SP500 since its inception in 1994 by 85 basis points per year even with fees of 51 basis points. AVUV is a fund that has a similar methodology as DFSVX and only has fees of 25 basis points. Note that the reason for that is exposure to the value and size risk factors (and profitability since 2013) and doesn't cover the whole market. The fund should be combined with a total market fund. (I hold a portfolio with AVUS/AVUS/AVDE/AVDV/AVEM)
Nice, in that case I would check out AVEM and AVDV as they have best in class expense ratios for what they offer and reasonable sector balance. Note for some reason AVDE doesn't have a very aggressive value tilt so it's a toss up it's worth it over VEA with the higher expense ratio.
As far as ETFs go, I'm a big fan of the recent Avantis ETFs (no, I don't work there). Smart group of quants working there and their ETFs are weighted on fundamentals rather than market cap. Unlike most "value" or fundamental funds however they try to keep sectors balanced. Developed Ex-US: AVDV, AVDE Emerging Markets: AVEM They have US ETFs as well but I don't own them. I also have a pretty sizable holding in DGS which is an emerging market small cap dividend ETF. Rationale for the dividend screen is that small cap financials aren't very trustworthy in EM, but dividends don't lie. The risk-on side of my portfolio isn't for everyone, 25% in AVEM/DGS..about half of that ends up being China/Taiwan/Hong Kong. I hold a sizable amount in defense stocks to hedge China conflict risk. I like at least 1 defense dollar for every 5 dollars in Chinese exposure. Almost all my recent US purchases are in individual stocks. It's getting very hard to find things that look safely valued. Mostly REITs, utilities, defense, natural gas, tobacco, reinsurance, farming.. Some climate change stuff as well, but very hard to find deals in that sector.