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Would AVLV theoretically be any more profitable than a passively managed fund like VOO?
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I'd suggest AVGV, golds run has been too insane.
AVGV perhaps, if it is an AI bubble.
AVGV has far less tech giants.
Yea and AVGV does a profitability screen, meaning unprofitable companies are **out** 💰
Dude. I recommend AVGV to everyone like you who is scared that we'll have another decade of negative market returns. With AVGV, that is literally **impossible** because the P/E is already super low **and** you're diversified across the entire globe
Bonds are just as risky as stocks with low return potential. The ten year return of BND is around 1.5% per year, not even keeping up with inflation. They are okay for diversification and peace of mind but I think 70% bonds is reckless. If you are scared of another lost decade I highly recommend investing 70% into funds negatively correlated with big tech. AVUV, AVDV, AVMV, AVIV, AVES, 0r just AVGV to get all of them. I’d recommend 30% AVUQ, 70% AVGV. But it sounds like you need a financial adviser who can teach you emotional management. Behavioral risk is the biggest risk of investing.
Well you could always buy cheaper index. AVGV or something that which has far less AI exposure.
1. Put everything into VT + AVGV (50 50) 2. Stop gambling with individual stocks 3. Go touch some grass and stop bragging to random autists
Full send AVGV is arguably the best for longest time horizon long term hold, globally diversified, and tilted towards highest expected returns.
This guy knows what he's talking about, a total world fund like VT with maybe a 20-50% allocation to a global factor-tilted fund like AVGV would be an amazing long-term investment.
If one wants more risk for additional expected return they can also AVGV and chill.
massive idiosyncratic risk. Quit while you are ahead and just get into VT or if you want higher expected returns for more risk go with AVGV.
Treasuries or HYSA and 10k in AVGV. That's just my take, though. Stocks really aren't something to fuck around with if you only have 2 years. There is no safe 2 years in the stock market. If you've said 20 it would be a different story.
Have you considered AVGV and chill?
Not trying to be insulting but $10k per child isn't close to where you would have serious tax problems. More like $5m per child. An IUL solves problems you don't have. You can stuff $10k in a 529 and help pay for college. That's not substantial but it is impactful. You can create a UGMA at say Wealthfront or Schwab Intelligent Portfolios. You can use any broker and put it AVGE or AVGV or similar all-in-one. I'd suggest the robo (Wealthfront, Schwab...) for now since it sounds like you don't invest and the robo will do a nice job taking the pressure off.
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.
ETFs can serve different purposes. I for example have two, VT and AVGV. Both have completely different purposes and move different from each other. AVGV gives more factor loading with target on Quality,Size,Value. They also screen for investment and momentum.
2. Theres no need for more. VT and AVGV. Loading up on multiple factors.
If you’re actually asking do 50/50 RSSB and AVGV. It basically equates to 100% stocks, 50% bonds with slight use of leverage. Diversified across the world, value tilt, slight small cap tilt. It will probably beat the market slightly over 30 years. If you have to pick just one do AVGE or AVGV and call it a day.
I use a value index fund like VTV or in my case AVGV
If I had $160k to invest, I’d put it 50% gold and 50% Bitcoin. But I’m guessing you’re not up for that, but I do encourage you to study bitcoin and hard money. What is probably for reasonable for you is something like 50% SCHD and 50% AVGV, which I think is probably an appropriate risk tolerance for your age range and time horizon.
This post just made my day. Usually folks hear this and don't listen, they prefer thinking they found a free-money tree. So glad to hear someone got the message! REITs are a sector, it is a sector-tilt. I would avoid it. Want to juice expected returns a bit? Tilt to value, size, profitability, momentum. Avantis has some great products, including some 1-fund solutions like AVGE (modest tilt, 70/30 US/ex-US) or the more cost-effective all-value offering AVGV (60/40 US/ex-US). AVGV would be a fantastic compliment to VTI by giving you some ex-US and value exposure.
AVGV actively manages its holdings to focus on value investing, most actively managed funds don't beat the market over time so careful with this. RSSB is using a fairly new investing strategy that relies on prolonged low interest rates and low inflation. It's popular on Reddit and the Boglehead forum, but isn't widely accepted by investment managers. Basically, I'd exercise a great deal of caution using such a unique strategy.
My Roth IRA is 45% RSSB, 45% AVGV, 5% managed futures. I don’t have any unique insights or analysis but it’s definitely a sane, /r/Bogleheads approved thesis with a lot of potential upside down the line. Just make sure you’re ready to hold AVGV and RSSB through any downturns and don’t second guess yourself if they lag VT for the next decade or more.
AVGV will give you global diversification and highest expected retuens via largest discount rates.
You have three basic choices and you can start with any of them, and then educate yourself about equities and make changes based upon risk tolerance, time frame, and goals. 1. Invest in any low-fee S&P 500 ETF each month, don’t worry about if it’s up or down. 2. Split your investment into two ETFs- one that is small cap value (VIOV) and the other in large cap growth (VOO or VOOG). 3. Same as above but add a small amount of international exposure or other equities that appeal to you such as BRK/B or ETFs like VGT, SCHD (beware of tax considerations), or AVGV. Bottom line: invest in 100% equities and don’t fall for annuities, bonds, CDs, or other “low risk” investments. You are young enough to ride through any future equivalents of past corrections. Fisher Investments would charge you 1.5% to invest you in 100% equities, although they will buy individual stocks and have beat the S&P for the last few years. Not an endorsement, but they aren’t terrible..
UPRO and XDTE? Just give me your money it’ll hurt the same. Why not buy AVGV and get global value exposure if you’re so nervous about megacap valuations?
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).
VOO/VT+AVGV if you’re more fee conscious.
FYI Share price does not make a stock cheap. I'd highly recommend accumulating index/ETF and not trying to pick stocks. I personally think a combination of VT and AVGV is all you need.
AVUV, AVDV, AVES. Or just AVGV for global value all in one.
Slap it all into AVGV next trading day
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.
I would just go with a small-cap value fund like AVUV. You can also up your international allocation to move away from tech. And I wouldn’t abandon tech entirely even though I share your skepticism regarding expected returns. A simple equities portfolio combining these two strategies is 80% VT, 20% AVGV. That puts you 40% into international stocks, and a bit overweight into value and small cap.
Cap gains distributions are based on 2 things: the success of the assets the fund owns and the turn over rate of the fund. RSSB is an actively managed fund that does a lot of leveraged investing, as such it's very likely to issue cap gains every year. AVGV on the other hand focuses on keeping turnover low, making cap gains less likely to be sent out. A passive index fund is even less likely to issue gains. VOO for example basically never issues gains. Also, tax efficiency has to with how a fund distributes funds, not how large the distribution is. Because of the way they are structured mutual funds force tax activity of other investors on to everyone. ETFs are designed to do the opposite. So, one ETF isn't really more efficient then the next.
How do you figure out how much an ETF is likely to distribute? For example I'm invested in both RSSB and AVGV would like to determine which is more tax efficient and should belong in my taxable brokerage.
I'm looking to go 50/50 RSSB and AVGV ETF's, split between a Roth IRA with approximately 160k and an individual brokerage with 80k. How would I determine which fund would be more tax efficient and should belong in the individual account?
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.
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.
I'm looking to go 50/50 RSSB and AVGV ETF's, split between a Roth IRA with approximately 160k and an individual brokerage with 80k. How would I determine which fund would be more tax efficient and should belong in the individual account?
I have AVGV with like $2500 along side this. For a small cap value tilt. Been thinking about ditching that and adding something more risky.
This is beyond over-complicated, this is nuts. Also AVGV is not an international fund, it is a global fund (60/40 US/ex-US). Just buy AVGE (70/30 US/ex-US, modest value tilt) while you learn more (or hold it for your entire life, you really don't need anything more).
Here we are basically talking about Dimensional Fund Advisors and Avantis fund advisors. The make the best value /size/profitability factor tilt funds. Classics involve AVUV/DFSV, AVES, DFIV, AVDV, AVGV, AVMV, AVLV, AVNV, etc
You can withdraw your contributions at any point for any reason. You will be penalized if you withdraw any earnings. Remember, you don’t want to withdraw contributions unless it’s absolutely necessary. If you want one investment idea, I’d put it all in VOO (ETF that tracks the S&P 500). If you want some international companies, add AVGV (fund of international companies). 80% VOO, 20% AVGV is a really solid portfolio. Or you could do 100% VOO.
I’d told more meaningfully. These are closet index funds. AVUV, DFSV, QVAL. Could also look ex-US. Or do both in a fund of funds like AVGV.
Open an account with Fidelity and roll it into either FXAIX, SPLG, VOO or VTI. They are all solid and basically track the S&P 500 (VTI has smaller and mid sized stocks included). If you want to add international, you could add AVGV. So I’ll give you 2 options that I’m fairly confident will beat Edward Jones after fees and shitty funds. Portfolio 1. FXAIX 60% US market AVGV 20% international AVUV 20% small cap Portfolio 2 VTI 75% AVGV 25% I actually have these 2 set ups (very close) in 2 of my accounts.
50% VT 50% AVGV would be good. Rebalancing annually.
Expected returns. So, diversification and factor exposure. 50% VT and 50% AVGV, rebalancing annually. Honestly, investing is essentially solved.
First, dividends are irrelevant. Then, just go with something like VT, it's really one of the best portfolio you can have and the best one fund portfolio (after TDF funds for some). QQQ is performance chasing, unless you have a giant reason to invest in it I don't reccomend it. If you truly want the top 100 companies get OEF, tech then FTEC, growth then SCHG (I don't reccomend any of these). Anyways, mathematically and historically value > growth and small > large. You're very highly weighted on large cap growth which is the third worst performing factor investment. If we both invested 10k in 1972, you in large cap growth and me in small cap value I would be winning by 5.5 million dollars. If you want to complement VT I suggest AVGV, it works great as a two fund solution.
Was your 401k a Roth or pre-tax/traditional like most 401ks by default? If the latter, be careful as moving to Roth is a taxable event. May make sense in your tax-bracket, but just pointing that out. I would focus on small-value personally. AVUV, AVDV, and AVES would give you global exposure. Want to make life simpler? Just buy AVGV which is a global value fund (holds those tickers plus some large-value). Don't want as much value exposure (want less tracking error, but less expected return)? AVGE is a similar product but with more modest tilts, and with 70% US instead of 60%.
Growth funds =/= money growing. Growth funds are simply companies that are growing quick which actually is mathematically and historically worse than value stocks. One of the best possible thing you could do is VT + AVGV + SCV tilt (if you want extra).
I use AVRE (Real Estate) as well. I've seriously considered buying AVGV (fund of funds, all equity markets) as well.
AVLV, AVIV, AVUV, AVDV, AVES, AVMV. Or AVGV that captures them all.
VT, allows diversification across the entire world. Then you can add AVGV to balance out the large cap growth that we see and add bonds and that's it :)
Correction. Over 40 years I would do 50% VT & 50% AVGV. Rebalancing annually.
I like USMV and AVGV as well despite AVGV' higher expense ratio.
Solid option. My main gripe with VT is that for US based taxable investors, you do not get the FTC (foreign tax credit) like you would if you held VTI/VXUS. Personally I recommend using AVGE (or AVGV if you are okay with all-value) for single ticker, globally diversified, tax-efficient (ETF-of-ETF structure does get the FTC) with a modest tilt to size/value/profitability factors. AVGE is 70/30 US/ex, AVGV is 60/40 and all value.
I do two things: - 529 savings. I get a state tax credit for this. Not all states do. - I also have a separate account for my kid where I have a globally diversified portfolio. Nothing crazy, 75% VT, 25% AVGV. I just think the tax free growth of 529 is amazing and too good to completely ignore. If he goes to college, I'll use the 529. If he gets a partial or full scholarship, or he doesn't go to college, I'll just keep it around for his kids or roll it over to his Roth IRA gradually. The separate account, I hope to give it to him in his mid twenties (arbitrary). I'll not use UGMA because I honestly think 18 year olds are still children.
My choice of simple investment is AVGV. If you aren't willing to tolerate much of a value tilt and want to track other all in one stock portfolios better: AVGE. Make sure to leave enough in cashish to cover the taxes.
Big topic: You want to figure out what your spending is going into retirement. Subtract off Social Security. So throughout we'll use Rx denote the after R times your after Social Security annual spending. Your viable level is to be somewhere between 15x-40x that amount saved up. 15x you are going to need to be lucky, 40x a lot can go wrong and you are still ok. The 4% rule puts you at 25x. My guess is you aren't close. The good thing with not being close is you are more tax effecient. A taxable brokerage account will work. In terms of what to do with your money there are plenty of all in one investments like AVGV where you don't need to know much about investing and they'll put together a portfolio designed to grow. As you get within a few years of retirement you will need to get about 5x in bonds assuming you are at least at 20x. If you are not going to get there my suggestion would be semi-retire where you try and earn about 1/3rd what you do now well into your 70s. That's not horrible as it keeps you active but far less stressful than trying to earn your maximum wage. That is often enough to subsidize all or most of your cost of living allowing your portfolio to grow. It also reduces longevity risk and thus decreases the multiple you'll need (i.e. 15x is a lot safer at 78 than at 63).
You only need VT. Sell VTI and VOO and buy AVGV
Can’t link photos here. But my ROTH is up 13% rn, like $1,100. VT 66 shares at $102, and AVGV 42 shares at $55
I personally am almost all-in on value, so I respect the VOOV pick. I would suggest you research some better fund constructions though. These days you can get a much better designed fund with daily rebalancing. My suggestion would be AVLV. Could even buy AVGE or AVGV and have an all in one globally diversified, tilted fund, but if you prefer VXUS that’s reasonable. S&P500 value gets the job done but it’s not optimal by any means.
With this mindset you should be going 100% into global small-value, not growth. Growth (glamour, expensive stocks) historically has underperformed the market, and even more so value. 10-15 years in investing is noise. Buying something like AVGV would be a nice balanced approach to global value. Want more hardcore? Buy AVUV, AVDV, and AVES.
Personally I believe in the increased factor returns so in that regard yes (I’d use AVGV myself, all value). But there’s also a tangible tax benefit for US investors. VT won’t give foreign tax credit while AVGE will due to ETF-of-ETF structure.
Would it be bad to hold those funds in a taxable account due to them being actively managed? My IRA is 20% AVUV. I've looked into AVGV but it holds a lot of large cap, while the value premiums seem to be with small cap companies. So far, US SCV has done better than any other region in the brief period I've been holding (about a year).
I ended up going with VOO AVUV AVDV VEA VWO and AVES. Probably going to condense the ETF's though because I want to use 10% of my IRA for holding some individual companies. I'll probably switch to VT + AVGV + AVUV to overweight US small cap a little.
What did you end up going with? VT + AVGV or VT + AVUV + AVDV?
Just go US + international Ex-US combo like vti and vxus or a 1 fund solution like VT, or if you want higher risk for higher expected returns you can go AVGV.
To answer your question, I would probably do something like 85% VT, 15% AVGV, but would adjust depending on the time horizon and intention for the money. Now a word of caution about UGMA's and dumb kids: At the age of 22, I inherited a UGMA valued at around $73K with 5 total holdings including HCBK & T with the other 3 in biotech, pharma & tobacco. My uncle did a wonderful job of valuing those companies, as far as I can tell. At that time, I had recently dropped out of college (partially due to illness, partying & not having a clear sense of purpose) and had just managed to join a literal cult. I was fairly well-funded and my father wasn't in the picture to give me any guidance, not that I should expect it. I spent the next 9 years delivering offerings to the divine mother and paying homage to the guardian spirits of the earth, traveling the world and only buying new cars, because used cars had a "negative energy". Essentially, I went way the fuck off the deep end and basically received a lump sum of money at the worst possible time, despite the best intentions of my uncle, father and grandfather. I'm now nearly 33 and have found myself working in plumbing for nearly two years. I'll probably continue because I've got a lot invested in the trade at this point. At 30 I started taking personal finance seriously. I'm not hating on the trades, but if I had received my inheritance in the form of a trust, I would have had a little bit of a tighter leash to restrain my free-spirited impulsivity and would have perhaps taken a different path that included pursuing higher education. I don't know what is involved with opening a trust (or if they can receive it while you are alive...), but it may behoove you to look into it. Even if there's more effort involved than the UGMA, it could keep your child from making rash decisions in early adulthood. If a trust doesn't fit the bill, you could also look into a 529 and pass along, say, 60% of what you want to give to your child in the 529 and 40% in the UGMA. You could even be more conservative, keeping in mind that $35K from a 529 can be rolled over into an IRA if it isn't spent of education-related expenses. Many trade schools can be funded with a 529 as well. Sorry for the doom and gloom, but just thought you'd benefit from the dark side of UGMAs! Hope you find something that works for you.
I mean this isn’t a huge chunk of my portfolio. I also have a ROTH ira I am maxing out VT and AVGV.
AAPL and MSFT right off the bat should be in everybody’s portfolio. If you wanted an easy portfolio you could just buy VT, VTI, SCHD, QQQM, etc. they have all of these. The key thing is to not sell. If it goes down, don’t sell, keep holding. You may find years down the road you are heavily in profit. I personally invest in individual stocks and have VT and AVGV in my Roth IRA.