AVDV
Avantis® International Small Cap Value ETF
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Trying to tilt for value/small cap, am I doing it right?
Would AVLV theoretically be any more profitable than a passively managed fund like VOO?
I have a mental issue when benchmarking my portfolio - looking for advice.
Feedback for shifting an IRA with slight SCV tilt to a full-on 5 factor portfolio.
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..
Ratemyportoflio : 45% VTI 40% VXUS 5% AVUV 5% AVDV 5% AVDS.
Finally settled on an investment plan, wanted to see if it sounds good or not
What is the correct calculation of P/E or P/B for this ETF?
Advice on my Roth IRA portfolio?
What stocks or funds can I add to optimize and strengthen my portfolio?
How to create a VT like portfolio using ETFs like NTSX, NTSI, AVUV, and AVDV?
Does anyone just own SCV, REITs, etc. outright instead of as part of an official "tilt"?
Mentions
I'm late to investing. 40, USA. I finally paid off my high interest debt and have some income stability and I'm planning on retiring at 72. I was thinking of allocating my Roth IRA thusly: 65% FNILX (US large cap blend) 15% AVUV (US small cap value) 15% FZILX (International large cap blend) 5% AVDV (International mid/small cap value)
Here are the performances of VOO (S&P 500), VTI (total US stock market), VXUS (total international stock market), and a DFIV/AVDV/AVES portfolio (international value tilted portfolio, as the value factor has performed much better in international equities). I chose two time frames, since [Inauguration Day](https://testfol.io/?s=aUi41pgL4Sa) and since the [April 8 bottom](https://testfol.io/?s=c6zwkit3ZtK) (which would assume you had perfect insider info): |Returns as of 6/26/25|VOO|VTI|VXUS|Intl Value| |:-|:-|:-|:-|:-| |Since 1/20/25|2.10%|1.29%|14.57%|18.12%| |Since 4/8/25|23.52%|23.87%|24.47%|26.88%| Even if you had insider info telling you to buy on 4/8/25 right before the stock market recovered, you would have still done better to rotate to international.
U.S. companies that do global business are still primarily exposed to the U.S. economy, laws, interest rates, and currency. Their stock prices tend to move with the U.S. market, limiting diversification. Invest where and how you want but if you want true international diversification adding VXUS — or my personal fav AVDV — gives exposure to foreign economies, currencies, and market dynamics, which often behave differently from the U.S., reducing overall portfolio risk.
International stocks have trounced US stocks and actually recovered even more quickly. From a comment I made on r/ValueInvesting , so this includes a value-tilted portfolio. Here are the performances of VOO (S&P 500), VTI (total US stock market), VXUS (total international stock market), and a DFIV/AVDV/AVES portfolio (international value tilted portfolio, as the value factor has performed much better in international equities). I chose two time frames, since [Inauguration Day](https://testfol.io/?s=aUi41pgL4Sa) and since the [April 8 bottom](https://testfol.io/?s=c6zwkit3ZtK) (which would assume you had perfect insider info): |Returns as of 6/25/25|VOO|VTI|VXUS|Intl Value| |:-|:-|:-|:-|:-| |Since 1/20/25|1.30%|0.43%|13.45%|16.75%| |Since 4/8/25|22.55%|22.81%|23.25%|25.40%| That's right, even if you had insider info telling you to buy on 4/8/25 right before the stock market recovered, you would have still done better to be in international.
Yes, the US market is foaming at the mouth. However, there are other opportunities to invest in while you wait for the US market to cook down. You can go ex-US developed markets (VEA) or US small-cap value (AVUV). And if you're feeling really adventurous, you can go ex-US small-cap value (AVDV)
Interesting but AVUV/AVDV just pay you \~1.5–2% in return, right?
The honest intention is to "own the market". There are a lot of manipulative business practices up and down. PLTR is super cringy and creepy the more I read about it. I don't care much for META or TSLA but I buy the S&P 500 because I buy the market. I take a bit of pride that I love AVUV/AVDV and I'm very overweight in them. Those are thousands of companies but I just like the enthusiasm for small caps, and not large banks and AI and all that always being over half my portfolio.
 get VOO , SCHG , AVUV , AVDV , some SCHD depending on age . I got some IBIT , GLDM also
Yeah, the tilts are intentional. SPLG and VEA/VWO give broad global exposure. QQQM is a growth tilt I believe in long-term. AVUV, AVDV, and AVES add small/value exposure in the U.S., international, and emerging markets. Areas with strong evidence for long-term outperformance. Might look complex, but the goal is to diversify globally and tilt toward factors that historically add return.
Yep. I think it's easier to use something like VEA and VWO though if you just want the full caps, rather than needing to extend SCHF and SCHE. Most often what you hear from folks who want to target that segment is that they're trying to capture the factor investing small cap value premium, and so they're looking at ISVL, AVDV, etc. At market caps, those segments are so small that I really don't think it's a big deal. https://www.bogleheads.org/wiki/Blackrock_iShares btw has a good table of etfs from the major providers if you want to compare.
Hey I'm not sure if you've just been born, but people have already been doing this for decades. Ever heard of someone named Warren Buffet or Benjamin Graham? You want more volatility? Use the Russell 2000 instead of the S&P. You want even more? Use small cap international stocks. Funds like this already exists, like AVUV and AVDV. There are already mounds and mounds of academic studies based on your "original idea."
The wide variety of similar DFA funds is confusing to me. I wish they had documentation that was more succinct. I’m a weekly DCAer of AVUV and AVDV currently. I like the idea of adding AVUS and AVNM to compliment buys of S&P500+Ex-US funds in my retirement account but I’m concerned about AUM and volume levels.
Thanks for the info. I am indeed aware of Avantis, but feel like I am not ready to make the jump (although I currently own AVDV and AVUV for factor exposure- still debating to switch those positions to dimensional equivalents) with them as they are still quite new compared to dimensional and don't have the same long track record. The increased TER of DFA ETFs don't bother me too much to be honest as from history it looks like it comes with expected returns that outweigh the increased costs when compared to corresponding index funds
4/10. Small caps are for trades and not good during high rate cycles. They will be good coming out a recession. Why make it so complex? 10% AVDV seems high. I’d rather buy some global ETF’s. KSA, a German one, Mexico maybe, EUAD a good European defense. Add gold or silver. I have PAAS and AEM, but SIL or SIVR for less risk maybe for you. BTC is missing. And long term treasuries I don’t see the point.
AVDV would work well for a falling dollar, it’s international (value).
If you really want it to be all-weather-ish, I would reduce the stock allocation. You should know that utilities are no longer considered "boring" "safe" stocks - if they were ever. I would also increase your gold + commodities allocation a little bit. Replace XLU or AVDV with something that can work in a long-term inflation environment, or, in a falling dollar value environment.
Is there certain % allocation to AVDV you are targeting? What about EM exposure?
I personally dont hold either. I do have the mutual fund version of VEA in my 401k cause its my only good intl option. I hold some AVDV in my IRAs and VEU to hit the large and midcaps for international. I have the most faith in AVDV personally. These handle the bulk of my ex-US allocation, then I have leverage on SPY to increase my US beta, and then long bonds and managed futures to round out the diversification.
AVUV/AVDV... !remindme 5 year
My Roth is 100% small cap value ( 50:50 AVUV:AVDV ) exactly because i don’t plan to touch it for at least another decade or two and I want it to grow as much as possible.
I've own AVUV and have had AVDV on my Buy? watchlist. Just haven't started it yet in the ETF corner of my portfolio. Probably not a great time to start now but time > timing so I may just doing nibbles here and there.
My ex-US small cap value ETF (AVDV) is on fire lately. YTD it is +19% (price return). It's been a much more useful diversifier than the general ex-US stocks. By contrast, my US SCV (AVUV) pick is -7% YTD. It's probably a bad comparison due to start dates but for fun, the 5 year total return for AVDV is 15.4% annualized (it pays a sizeable dividend). This compares to 15.6% total return annualized for VOO. AVUV is +19% annualized on the 5 year. But this is very misleading due to Covid crashes. So let's do 3 year total returns, perhaps a bit more fair: - AVDV: + 11% - AVUV: +5% - VOO: +12.1% - VXUS: +8% Not a bad showing for ex-US SCV if you ask me. SCV definitely is not as dead as it was proclaimed recently. I wrote about this a long time ago but ex-US SCV is known for suddenly going on massive bull runs when rest of the market is stagnant. Greatest example is in the 1980s.
AVDV has been on a tear lately. Up 17.5% YTD and hitting new ATHs every other day. Besides falling USD I'm kinda stumped as to why it's going up so much.
True, and I have AVDV, which is sm cap international, developed countries .
Well, I can tell you what I use. But I don't think you actually _do_ care about that - you want to know what _you_ should use. And since we are different people with different situations, it would be intellectually lazy of me to just jump to the end, and not helpful (and being helpful is why I'm here). If you insist though: portfolio: - 85: # equity - 60: # US - 85: SCHB # broad - 15: AVUV # small cap value tilt - 40: # international - 75: # developed ex-US - 85: SCHF # broad - 15: AVDV # small cap value tilt - 25: # emerging - 85: SCHE # broad - 15: AVES # value tilt - 15: # bonds - 100: SCHQ # long-term treasuries
AVUV is US small cap value, not growth. AVDV is ex-US developed small cap value, not a US dividend fund.
This is a better version to your allocations: **VOO = 45%** **AVUV = 15%* **VXUS = 25%** **AVDV = 15%**
Yea remove it and buy AVUV and AVDV for SCV tilt
32. I've been at my current job for 2 years, opened Roth and brokerage this year. Plan on retiring when I'm 67. Focusing on emergency fund (20k) and down payment for house (40k) over the next 3-5 years (minor investments into Roth and brokerage to keep them warm), 401k at 8%. 401K (High priority) SP 500 50% World Equity Index EXUS 25% SP 600 Smallcap 15% Midcap Index 10% Roth IRA AVUV 40% AVDV 25% AVEM 25% QQQM 10% Brokerage (low priority) VTI 75% VXUS 20% BRKB 5%
I recently started a Roth IRA and have been doing 60% FZROX, 20% VXUS, 10% AVUV, 10% AVDV. Are the small caps worth it or should I simplify to just the first two? Or any other recs in general
Global with a SCV tilt. Both AVUV and AVDV.
It hasn’t done as well lately. US tech has just been crushing it. But I’m a huge fan is small cap value. I’m basically buying Paul’s four-fund every week except that because of my employer savings plan I am buying large blend in both US ( s&p500) and a fund close to VXUS meaning my small caps are AVUV and AVDV. If the next 20 years go like I think they will my retirement should be excellent.
Weekly buys of 25% each of VOO, VXUS, AVUV, and AVDV
I use AVDV for most of my intl, and thus my portfolio is way above an american port this year. " Most Companies are global" What? You literally have the data showing thats *useless* right in front of your eyes these last three months. US megacaps are the most global companies in the world, selling products *everywhere*. Its not about sources of revenue streams, its about exposure to political and regulatory risks that drive correlations between stocks within their own country and see lower correlation with other countries indices. The US right now is the perfect example why international diversification, aka holding companies from *other* countries helps portfolios. Extraordinary policy decisions like tarrifs hurt US companies. When you turn the entire world slightly antagonistic against you, the former regime where earnings per share growth was priced bullishly into a trade war environment where the US is the one rocking the boat, you get outflows because the risk of future US earnings is way higher, thanks to retaliatory tarrifs on US goods, thus the US market is down for the year and the rest of the world is investing in themselves instead because they can trade with each other without new tarrifs while the US is tarrifing everyone and getting tarrifed in return. Its about politics, regulations, foreign trade policy, forex, thats why you diversify internationally. It literally doesnt focking matter if you have international revenue streams. Thats so far far down the list of what matters.
I would rather invest in SCHD/DGRO over JNJ and VXUS. I know it is not the boglehead way, but I believe that SCHD diversifies me away from the S&P500, and I do agree with people that say most companies are global these days so international exposure is not as important. If I bought international I would probably go AVDV + IPKW/JIVE but have not looked into it that closely.
Imagine calling VFMF and AVDV a "value" ETF. Sure, value is one of their screens in their methodology, but they are so so so much more.
VXUS is a standard as well as IXUS. I’m not buying them anymore but if you are into dividend plays VYMI and DIVI are nice. AVIV is a good international value play. Of course, AVDV is a good International small cap value ETF.
VEU and AVDV go pretty well together, since they have basically zero overlap. VEU is like VOO for the rest of the world, its large and mid caps at market cap weight. AVDV is small cap value for developed ex-US countries.
Its as simple as purchasing ex-US etfs like VXUS or VEA or VEU or AVDV or AVES, etc
If you’ve already got VOO/QQQ you’re skewed to large cap growth. That’s fine but you should mix in some small cap value. If you want to go international too, that’s fine. So maybe AVDV and AVES. Rebalance with the large caps once a year or so.
40% AVUV; 40% AVDV; 10% AVES; 10% VNQ YTD performance: something like +.95%
Is there an “optimal” strategy in terms of splitting which ETFs are in a taxable brokerage vs Roth IRA? I’m aware that for stuff like bond ETFs and REITs the Roth IRA is preferred, so I was wondering if there are other similar “strategies”? If so, what’s the play with my (27m) current portfolio: Brokerage: VOO 45% AVMV 15% AVUV 15% VXUS 10% AVDV 10% AVES 5% Roth IRA: SPLG 40% SCHG 10% AVMV 15% AVUV 15% AVNM 20%
Any foreign ETFs or stocks that you like? I've mainly been buying VIGI, SCHY and AVDV lately. I've got some VXUS but haven't added to it in a long time.
I (27m) just started investing end of January, thanks to my supervisor suggesting not to start in my late 30’s like him (thanks man). Since I’m trying to go the long-term investment route, my portfolio will be all/mostly ETFs. (I did buy 5 shares in the Nvidia dip when it was like $117) From my “quick” research this is my current portfolio in my taxable brokerage: Vanguard S&P 500 ETF (VOO) - 55% Avantis US SCV ETF (AVUV) - 20% Vanguard Total Int’l Stock ETF (VXUS)- 10% Avantis Int’l SCV ETF (AVDV) - 10% Avantis EM Value ETF (AVES) - 5% I’ve been on the fence about adding either a large-cap growth ETF or a tech ETF. The former makes more sense to me to have more ✨diversity✨ and Schwab US Large-Cap Growth ETF (SCHG) is what I’d choose. But after doing some research into the value vs. growth debate, I’ve admittedly been hit by paralysis by analysis and I’ve come to you all to break the tie in my head. Should I invest in Large Cap Growth/SCHG? If so, what percentage of my portfolio should it take? Or should I go into a more large cap value tilt? If so, what ETFs do you recommend and what percentage should that be? Or should I stop overthinking and stick with my original portfolio since we don’t know the future? (Probably) Either way, how does the portfolio look? P.S. My Roth IRA is similar but with SPLG (VOO equivalent) and replaced all my ex-US with Avantis All Int’l Markets Equity ETF (AVNM). I did also invest 15% of my portfolio into SCHG, since I can sell within the account tax-free if I have regrets. P.S.S. Does anyone else like to compare their daily performance with the S&P 500? Like in a fun “I hope I’m beating my gym rival (who doesn’t even know me) today” way.
Buying individual stocks is an unrewarded risk, I would buy smallcap value like AVUV/AVDV if I wanted a high risk/reward, and would buy 40% BNDW/60% VT if I wanted more stability.
Ahh… a case for AVDV and AVES! Hehehe. 10% each and call it a day for international diversification?
How about “to switch”? I hate VXUS. The Brits sip tea or make a toast every time somebody buys VXUS and stimulates their boring economy. Hehe. Instead, consider: VEA + VWO at a 2:1 or 1:1 ratio VEU + VWO VEU + AVDV CQQQ (maybe just a sprinkle for fun?! Sort of like the Chinese NASDAQ)
It looks like too many. I would just combine AVDV into VXUS and SCHG into VOO. There could be a lot of overlap between those funds.
Guessing it is a combination of: - Different weights into Canada, developed, emerging, frontier. (I am pretty sure MSCI All Country does not invest in frontier at all) - Currency effects with the Canadian dollar versus USD/Euro/Pound/Yen. - Possibly different dividend policy - Weighting of small/mid caps within all of these regions My international exposure is basically just VXUS + AVDV (ex-US developed small cap value). Also, I think you realize this, but the above charts are about valuation, not the actual price performance. It is showing that the discount on the P/E multiple on ex-US stocks relative to US stocks is 2 standard deviations below its historical norm. This could therefore be caused both by earnings / price.
You’re missing international equity exposure and possibly bond exposure in your recommendations. Don’t allow your personal bias to influence OP’s decisions. These are average options for U.S. equities exposure… VTI or VOO + AVUV will suffice. For a properly diversified portfolio you should add VEA + VWO or VXUS for a total international exposure. If you’re looking to increase compensated risk AVDV + DGS would be a solid compliment to VXUS or VEA + VWO. Finally adding bond exposure could be beneficial with STRIPS if you have a long investment horizon or short/mid term treasury bonds otherwise.
I am new to investing and wanted to get some advice on how to set up my Roth IRA. After doing some research I am thinking about investing it into VOO AVUV and AVDV at 70-20-10 splits. I would like to know if this would be a good investment over the next 30-35 years and if I should tweak my splits? All advice would be helpful. Thank you
Diversifying internationally can be beneficial due to attractive valuations outside the U.S. and the potential for higher returns. While U.S. stocks have performed well, international stocks provide exposure to different economic forces and can reduce portfolio volatility. Although many U.S. companies generate revenue overseas, investing directly in international markets captures opportunities in mid-large cap companies not represented in the S&P 500. For me, I like $AVDV and $FRDM plus some companies like $HESAY and $MELI for stock plays.
Consider this mix: 1. S&P 500: Use an index fund or ETF for broad market exposure. 2.Small-Cap Value: Check out AVUV (Avantis U.S. Small Cap Value ETF) and AVDV (Avantis International Small Cap Value ETF) for potential high returns. 3. Emerging Markets: Go with AVES or FRDM for growth in developing economies. 4. Managed Futures: Add a sprinkle of DBMF or KMLM to hedge against volatility. This combo balances growth and risk across diverse asset classes. Happy investing!
Avantis has some of the best… I personally use AVUV and AVDV
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.
If you’re looking to maximize gains over the long-term then why avoid small caps? I’d recommend adding AVUV (small cap value) to VOO for your U.S. stock allocation. Then for international you could use VXUS or VEA + VWO and tilt towards small cap value with AVDV and DGS. International markets do not have lower expected returns long-term to U.S. stocks as many assume due to recency bias. You could also consider adding 10% STRIPS for greater diversification, but that is certainly debatable.
5 year horizon till retirement but also a long retirement, so lets take a long term view. You should buy the whole US market at least, SCHB or VTI or whatever. Its recommended to hold 20-30% international equities. Im not saying VXUS since its not my favorite. I prefer VEU (intl large and mid caps) + AVDV and AVES/DGS, some dude a few days ago likes LVHI for its lower vol large cap value approach. Whatever you choose, *long term*, international diversification makes the portfolio more robust, hedges country and currency idiosyncracies, and is one of the only free lunches in investing. 10-30% of your portfolio should be long treasury bonds. This will hedge your fear of a market correction or recession. When stocks crash fast, flight to safety assets like long treasury bonds spike up. Historically this method of holding 10-30% long T bonds like ZROZ along with equities like VTI or VT outperforms 100% equities by a lot, with far smaller drawdowns.
Here’s a few good ones… - VEA international developed total market - VWO emerging markets total market - AVDV international developed SCV - DGS/AVES emerging markets SCV - VXUS total international markets
I personally invest in AVUV (US SCV) and AVDV (international SCV).
I would highly recommend going with a globally diversified portfolio but VXUS at 5% is a meaningless exposure. I would recommend closer to 40% ex U.S. exposure to match market weights. You could avoid mid-cap growth and there isn’t a great argument for large cap growth outside of recency bias. Alternatively there is research that supports tilting towards small cap value and large cap value. Personally I’m VOO – 25%AVUV – 25%VEA – 10%AVDV – 10%VWO – 10%DGS – 10%EDV – 10% This gives you 55% U.S., 22.5% International developed, and 22.5% emerging markets with small cap to large cap held at roughly a 1:1 ratio but avoiding small cap growth. It’s also 90/10 stocks to bonds which is the optimal allocation for the accumulation phase. If you’re wanting to tilt make sure you understand factor/risk premiums. Otherwise just go either 100% VTI or VTI/VXUS or add 10% bond and hold stocks at 90%
So I mean, this isn’t necessarily a bad portfolio… BND/VTI/AVUV/AVDV is a fairly standard portfolio with a small cap tilt. Given that you don’t seem to know the exact percentages I don’t think we can help you determine if it’s a good portfolio or not… but it *seems* like it might be. 50% in BND seems way too conservative but I also have no idea what your parents age is too.
32 years old. Thoughts? 40% VOO, 20% QQQM, 10% AVUV, 10% AVDV, 10% VEA, 10% VWO
Oh i definitely have a ton of small cap value etfs specifically (exclude unprofitable small cap growth companies which is the worst segment of the market in all timeframes). The golden child of small cap value investing is Avantis fund advisors, who were founded by employees from Dimensional (the OG small value mutual fund provider, super duper academic finance. Their board is full of nobel laureates and the father of the efficient market hypothesis). Avantis split off and were the first to offer really good systemic factor tilted small cap value etfs like AVUV (USA small value profitability etf) and AVDV (the same but for developed ex-US).
Seems reasonable. I recently reallocate my market portfolio to the Ginger ale portfolio after learning about factor premiums. Any reason to not go 50/40 on AVDV and VEA for your developed international exposure? Also, I'd probably up DGS to at least 5%, not much purpose of such a small allocation
Index fund advice? 13.73% VOO 20% VUG 13% VGT 7% FXAIX 4% IHI 5% VXUS 3.5% AVDV 5% XLE 3% FPHAX Recently new to investing. What do you guys think about this fun? Long term goals are to retire comfortably, any advice on if any of these are redundant or not worth? TYIA
More aggressive would be buying small value (AVUV, AVDV, AVES), not mega growth stocks.
If you want a fund to do this all for you, consider AVGV. Great compliment to VOO. It’s global 60/40 US/ex and all value. AVGE is a less tilted one, 70% US, and could be your entire portfolio. Or add small value directly with AVUV (US), AVDV (DM), and AVES (EM).
Stick to your funds. Maybe tilt to small value with AVUV, AVDV, AVES. Defense or growth? Nah.
Foreign stocks, small value, and especially foreign small value is ridiculously cheap. Priced at recession lows. If the worst doesn’t come, we could be looking at another 2000-2007 situation (20% CAGR) for those stocks. AVUV, QVAL, AVDV, IVAL, AVES.
Should have added AVDV to my comment. That's moving along with VXUS and up a nice 13% YTD. Nothing as crazy as SPY/NASDAQ, but it's substantially cheaper on a fundamental basis while the US large cap indices are as expensive as they've ever been. So happy having it as a diversifying portion.
Buy VT and forget about it forever until you need it. Or if you want factors, added risk in the risk/reward ratio, then buy something like: VTI – 42% VEA – 24% VWO – 12% AVUV – 14% AVDV – 8%
You really like paying taxes I see. AVUV for US, AVDV/AVES or just AVNV for ex.
You want systematic exposure to it. AVUV for US. AVDV/AVES for international.
I would put 500k in ETF's (VTI/VEA/DFEV/AVUV/AVDV/EDV in portion of 37.8 / 21.6 / 10.8 / 12.6 / 7.2 / 10), then I would set aside 300k in money market and corporate bond etf's until 2030 (adjust for your living cost needs) and the rest (1.7M) I would put into Harrow. Because I want to get rich fast, and I rarely see an opportunity like it that has such a large margin of safety and huge upside.
Silly. 70% VT 15% AVUV 15% AVDV
AVUV, AVDV, AVES. Or just AVGV for global value all in one.
Someone that is a child can very easily buy AVUV, AVDV, and AVES. Or just buy AVGV which invests in global large and small value stocks. Or if you want a bit less tracking error, just invest in AVGE which has a bit more US (70% vs. 60%) and is a more modest tilt. None of this is difficult to implement, the hard part is dealing with tracking error. But to say that investing in small-value as a young person with a long horizon is a "terrible" idea is just flat wrong, but I get it, you just learned what the term means. But for someone with a truly long horizon, it is your best chance at outperforming.
VT and chill. Focus on improving your earning power and savings rate and throw all of that extra fuel into VT. If you want to be a bit more aggressive while remaining properly diversified, then 70% VT 20% AVUV 10% AVDV would be an aggressive factor-based approach. Both of these approaches assume you can stomach the volatility of a 100% equities portfolio. If you can’t, then you should add a reasonable bond allocation. Investing is 10% asset allocation and 90% psychology and behavior. The best asset allocation is the one you can stick with through all the ups and downs. Being super aggressive is pointless if you cave and sell at the bottom. Suggested reading: All About Asset Allocation, by Rick Ferri.
VTI/VXUS is the core of my portfolio, and because I believe in some factor tilting, I own AVDV/AVUV for small cap value. (Not that I'm recomending it). You don't need to own many overlapping ETFs, the whole point is that the ETF covers all your bases at once. So I would advise against the trap of buying SPY, QQQ, SCHD, etc. all at once because that's just making your portfolio more complex for no reason.
Out of curiosity, what's your thesis for forward investments in AVDV? What signals would you look to in order to re-evaluate the tilt there?
The article refers specifically to US large cap stocks. This, more or less, means the S&P 500.Large caps are the stocks with the largest market capitalization (share price multiplied by number of shares outstanding). You can invest in small cap value (AVUV). These are stocks with small market capitalization and with low valuations. You can invest in international markets (VXUS). They have lower valuations than US markets. Within them you can also invest in small cap value (AVDV). You can invest in bonds (BND). However, don’t think that I’m telling you that any of those funds are going to outperform the S&P 500. I just don’t know what’s going to happen in the future, so I think the best course of action is diversifying.
I have 6 that have a value and small cap weight overall, with world market cap allocations based on US, International, and Emerging Markets. Historically weighting towards small caps and value provide the best return, whether that holds up is anyone’s guess… anyway these are my 6 that I think are tilted as aggressively as possible and give me the best change for the highest risk adjusted return without going overboard and doing something wild like 100% small caps. This is 65/35 us to international weighted, and 8% is emerging value. Small cap to med/large cap is around 1:1. AVUV-32.5% RPV-32% AVDV-14% DFIV-13.5% DGS-4-% AVES-4% Edit: There are no bonds here since you are in your 20s. Personally I am 100% stocks because I have diamond hands and don’t sell and don’t get emotional no matter how bad things get…I also have a pension when I retire which replaces the need for bonds for me
I have 6 that have a value and small cap weight overall, with world market cap allocations based on US, International, and Emerging Markets. Historically weighting towards small caps and value provide the best return, whether that holds up is anyone’s guess… anyway these are my 6 that I think are tilted as aggressively as possible and give me the best change for the highest risk adjusted return without going overboard and doing something wild like 100% small caps. This is 65/35 us to international weighted, and 8% is emerging value. Small cap to med/large cap is around 1:1. AVUV-32.5% RPV-32% AVDV-14% DFIV-13.5% DGS-4-% AVES-4%
Assuming everything is tax-advantaged. High-stock allocation (early saver): - VT (total world stock) - AVUV (US small-cap value) - AVDV (developed international small-cap value) - EDV or VGLT (extended-duration or long-term Treasuries) Low stock allocation (pre-retirement and early retirement): - VT - AVUV - VGLT - SCHP (all-term TIPS)
VT, AVUV, AVDV, AVEE. VT, AVGV, GOVT, and something like cash or gold or managed futures if you need less volatility than a 100% equities portfolio.
Just counted. Across my retirement + non-retirement accounts, I own 19 individual stocks. The average individual stock position size is ~ $1900. The ETFs/Funds are VTI/VXUS + AVUV/AVDV + SMH in taxable, and a Target Retirement Fund in retirement. Largest individual stock positions: $META, $GOOG, $XOM, $HCC, and a microcap
AVGE was initially an option I was considering for a 1 fund portfolio but I find it does not have enough weight on small cap value for my taste, so figured I could make a blend of ETFs of my own. I find rebalancing not to be too complication when both rebalancing and contributing is done once yearly. Another simpler approach I have seen around is VOO+AVUV and VXUS+AVDV but this one lacks exposure on emerging markets to my understanding, while my custom blend splits ex-US and Emerging into 50/50. Appreciate your input, instead of the usual "Complicated. Just buy *Vanilla.*"
Small-value. AVUV, AVDV, AVES. Or just buy AVGV and get global value exposure tax-efficiently (holds those funds plus some large-value ones). Will be true diversification to VTI/VOO which are dominated by mega-cap growth. Want even more diversification but still want your S&P500 exposure? For every $1 into RSST you get $1 of S&P500 plus $1 of a managed-futures replication overlay, which historically was uncorrelated to equities but had a \~3% excess return. Not quite as tax-efficient but stellar in an IRA.
It took me about 3 years, I averaged making $63k/year. I make more now so getting to $200K took about 2 and a half years, but that was with a worse market. Baring a big sustained draw down I should hit $300K in about a year and a half. I mostly have MCW EFTs, and a small value tilt with AVUV, and AVDV.
The last two days I bought ~$500 each of VTI/VXUS, AVUV x3, AVDV x3, CELH x5, APP x3, and sold UI x2. Have about $5K in excess cash have been sitting around on. Should the sell-off accelerate I'll be focusing mostly on index funds. But I'll be looking out for anything unfairly caught in the crossfire. If this is a real recession trade, could definitely see my coal stocks (or any commodity) crushed hard. But tbh the US is not as relevant to steel demand as say India/China. Not aggressively chasing dips on my coal stocks. Haven't bought any in a while. Earnings were mostly fine to my understanding. But overall pricing is pretty grim lately. On natural gas, the US domestic side is definitely getting hit hard recently. Several LNG projects keep getting taken offline for maintenance (Freeport, why are you so annoying) or delayed (e.g., today Golden Pass said 6 more months). But as a result, European natural gas is rising pretty fast to YTD highs (as were Asian LNG prices recently). Japan delaying nuclear restarts, Taiwan actively shutting downi ts nuclear plants. Probably more bullish ex-US energy (seaborne coal / LNG).
Assuming that you're in the accumulation phase, one method of rebalancing equities is to only contribute to the funds that are lagging behind your allocation targets. This minimizes rebalancing needs. If AVUV grows faster than AVDV in 2025, allocate only ot AVDV until your percentages are balanced again.
Eduardo Repetto was the chief investment officer at DFA and left in 2019 to lead Avantis. Avantis's small-cap value ETFs are best-in-class. The US SCV fund is AVUV and the International SCV fund is AVDV. Rick Ferri's interview of Repetto on[ the Bogleheads podcast](https://bogleheads.podbean.com/e/episode-043-eduardo-repetto-on-factor-investing-host-rick-ferri/) is very worth your time if you're interested in factor-based investing.
US Small-cap: AVUV International Small-cap: AVDV
How are you evaluating the 5 year prospect of ex-US returns? This makes no sense at all. If you really must be 100% US, at-least add some small-value (AVUV) to further diversify (and boost expected returns). Similarly if you can only stomach a small amount of ex-US, put it into some factor funds to diversify further (AVNV would include AVIV, AVDV, and AVES all in one fund, giving you global ex-US exposure to value/size/profitability factors). 100% S&P500 is a bit silly frankly, but even more silly is changing how much ex-US you have every 5 years based on feelings... if you were using any form of fundamental analysis it would suggest ex-US has higher expected returns over the next 5 years (see Vanguard and every other major brokers market predictions).
AVUV (US), AVDV (dev ex-US), AVES (EM value, smaller cap but not actually small)
What ETFs for smallcap are you buying? Incredibly my broker does not have AVUV and AVDV
Yes also look at AVDV & AVUV.
Lol, then that's just the alphabet! Exposure helps you remember, but ideally you won't need to care much later once you've picked your allocation for the long haul buy and hold. Personally, I use an S&P index fund, AVUV, AVDV, AVES. Yeah, I left out international market cap weight.
Without knowing which company you work for, you could look into the holdings of SPXT. Problem might be that Meta, Amazon, and Alphabet are not technically considered "tech". Better strategy might be to just hold VTI but also sure you have a healthy dose of Ex-US exposure (both developed and emerging markets) with something like VXUS. It will give you better sector diversification because Ex-US stocks are more heavy in industrials and financial sectors. Like you said, your human capital is already heavily invested in the U.S. market. You could also consider a heavy tilt toward small cap value stocks (AVUV, AVDV, AVEE). Also, you might want to make sure you have a bigger emergency fund than most people do (maybe 12 months worth of expenses rather than 6).