AVNV
American Century ETF Trust
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Im a huge fan, using a partial allocation to LETFs to increase exposure to the market to make room for uncorrelated diversifiers. Bonds, managed futures, gold. Uncorrelated assets offer the opportunity to rebalance on a fixed schedule like a target date fund but with more juice. I use UPRO, GDE, RSST to provide leverage, and add in ZROZ and AVDV and AVNV for long term treasury exposure and intl value exposure.
Tech stocks have been doing well for years even before AI hype for other reasons. Innovation has been rapid in this sector. It’s worth investing in long term even with a bubble burst. Consider 25% QQQM 25% CGDV 25% AVMV 25% AVNV.
Small cap value? E.g. AVUV or AVNV. Better yet, have an allocation in mind and rebalance to it annually no matter what.
AVNV if you believe in value premium
Yeah, these high valuations make me nervous. When the market hit highs like this, I buy VALUE over growth, as well as international . I'm going with BRK.B, SCHD, AVNV, and maybe AVUV and even SCHY for now. When the market is in correction, I go all in with aggressive growth.
You really like paying taxes I see. AVUV for US, AVDV/AVES or just AVNV for ex.
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).
S&P500 index is mostly large blend. if you want to diversify, you can add some small or mid cap funds. AVUV is popular for a SCV tilt. small cap funds like AVUV have gone up since the Large Cap funds started dropping. of you could diversify into some international funds. VXUS or similar. I use AVNV for my international exposure. I have VOO for Large Cap Blend AVUV for SCV XMHQ for mid cap (quality tilt) AVNV for international Or you could just go with an total market type fund like VT which has a bit of everything.
Not a single one of your investments has returned anywhere close to the S&P 500 except for VINIX (which is the S&P 500). The vanguard target date has returned 14% total over the last 5 years. VOO has returned 85% over the same time. I think I would consider moving all investments into a Boglehead portfolio. It can be as simple as 1-3 funds. VTI or VOO for 60-80% and an international etf for the remainder (I like AVNV).
AVNV would be your ex-US value fund across all caps and countries.
I use a international fund that has a value tilt to it. AVNV (fund of funds) it holds: 46% AVIV (International Large Cap w Value tilt) 30% AVES (Emerging Market w Value tilt) 23% AVDV (International Small Cap w Value tilt)
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’re looking at factor funds thus I think it’s worthwhile to consider cost-per-unit-factor-loading. AVNM has a lower fee than AVNV but you may be better of paying a little more for a lot more factor exposure. Don’t think in absolutes (is 20bp more worth it) think in relatives (is 20bp worth it for a factor loading of X, Y, and Z to HmL, SmB, and RmW. Personally I think so. My entire equity port is in small/deep value and momentum funds with weighted ER around 38bp plus pay ~1% for a managed-futures overlay. But I wouldn’t be likely to pay for a fund like AVNM personally… even though I get the arguments for using it rather than say VXUS plus deeper tilted funds.
If you have the option to select your funds in your 401k which usually isn’t the case, then yes. You could use VOO at 80% and AVNV at 20%. For your other account, you could use VTI for the 80% and VXUS for the 20%. Those 2 portfolios will perform pretty closely to each other. VTI adds a few smaller and mid size stocks compared to VOO. But for the most part, they’re very similar. If you want to mirror the 2 portfolios, use whichever combination you like. I prefer VOO and AVNV
Do you invest in your company’s 401k? If not, that’s where you need to start. If you currently are maxing that out, you can contribute another $7k to a Roth IRA. I would look up VOO, SPLG or VTI and use that as 80% of your portfolio. These 3 funds are all pretty similar and track the best American companies. They have averaged 12.8% a year for the last 10 years. If you make 12.8% on your portfolio, your $ doubles every 5.5 years. The other 20% I would allocate towards international funds. I use AVNV. International stocks have not performed as well over the last decade. But experienced investors recommend owning anywhere from 20-40% international. I’m attaching the Bogleheads (investing group named after Vanguard founder Jack Bogle) priority of investments as it will be more thorough than my comment: https://www.bogleheads.org/wiki/Prioritizing_investments
AVUV: US small cap: 15-25% AVNV: International: 15-25%
AVNV seems like a good idea, but it's pretty thinly traded at the moment. I'm seeing an avg bid/ask spread of like .21% on that one. doesn't seem to be much liquidity.
ill definitely check out AVNV
I agree the obvious missing piece here is ex-US equities. Since you are open to a value tilt (AVUV), and I presume you won't be willing to hold a meaningful amount of ex-US stocks given you are 100% US at the moment, perhaps add 20% into AVNV, an ETF-of-ETFs from Avantis that includes AVIV, AVDV, and AVES, giving you coverage across all ex-US regions with a nice value/size tilt? A 60/20/20 VOO (I would use VTI but not a big difference), AVUV, AVNV portfolio is a solid setup much better than what you often see here. VGT/VUG is just recency-bias, no real reason to expect outperformance there in my humble opinion. If open to alternatives you could also replace some of your VOO with RSST. For every $1 into RSST you get $1 of S&P500 exposure plus $1 of a managed-futures trend replication system, basically a levered long/short portfolio of equities, bonds, currencies, and commodities. Historically this has added 2-3% of excess return while reduce drawdowns and volatility since managed-futures has a \~0 correlation to equities (and often negative during crises). But at a minimum, I would add some international value...
First off in the future I would buy VOO, or perhaps VTI (total market) since the expense ratio of SPY is a good bit higher, and you don't need the added liquidity. AVUV (US small-value) would be a good option to diversify. If open to International equities you could buy AVNV, a fund-of-funds that is developed and emerging-market value stocks.
VTI(80)+AVUV(10)+AVNV(10) maybe.
It's always a great time to be in the market. The best time is 50 years ago and the second best is 49 years ago and the third best is now. It's also a great time to maybe not overweight the market cap portfolio due to the megacap overpriced conundrum. Value and international look attractive. AVUV, AVNV, IDEV, stuff like that.
No one's going to listen to me because "mUh mEricAn stOcKs alWayS ouTpErFor- #NO THEY DONT All US outperformance that's expressed over the rest of the world occured since 2009. Most of the American market is fairly valued, except for the mega caps which are making the s&p ridiculously overpriced just by the relative weights of a handful of overpriced companies. International has enormously better valuations on average, and obviously so does value oriented funds. Time to buy AVUV, AVNV, VXUS, DFSV, stuff like that. I do not omit the S&P, it's just a much smaller part of my portfolio down to 35%.
AVNV. It's international value investing. Good stuff, excellent diversification.
The only functional reason to do this these days, since 401k and IRA accounts can be pre or post tax now, is that IRAs have greater investment options. With fidelity, my IRA can invest in the entire market. In my 401k with fidelity, all I have are a bunch of TDF, some garbage cap weight funds like mid cap or small cap, and then FXAIX/FTIHX which is basically VOO/VXUS. I max my Roth IRA ASAP before I max my 401k because I want to access AVUV and AVNV, American and international value ETFs from Avantis. Still, that flexibility isn't as important as tax advantages, so I do not fill a brokerage account before contributing the limit on a 401k.
Historically, it's skewing averages due to the easy money era and bull run starting 2009. Same with the US stock market. All of the outperformance in US megacaps is since 2009. Your friend is going to get f***** in the ass in the dotcom bubble part 2. Mark my words, remind me. I'm upping my allocations to Avantis value funds and international. AVUV, AVNV, AVDV, FTIHX, and of course FXAIX (VOO basically, can't ignore 48% of the global stock market).
Please don't look at options. Don't buy options contracts bro please. Yeah, focusing on dividend stocks is "noobish" but it's not really that bad. The reason it's a newbie "trap" is because a dividend payout means nothing in investing. All it tells you about a company is that it is returns some value to share holders. It tells you nothing material about it's exposure to undiversifiable risks like value, profitability, reinvestment, and size, which are 4 of the 5 factors in the 5-factor capital asset pricing model. For example, if you targeted the dividend king stocks, you'd have done well compared to the s&p, but only because you were coincidentally targeting large cap value companies. The sector of the market with the highest expected returns is small cap value. Look into AVUV and AVNV. Those could really do wood ears for your long term portfolio performance. Check out "five factor investing with ETFs" by Ben Felix on YouTube. There is a whole world of financial literature about what risks in the market are compensated by greater discount rates on future cashflows, and targeting these findings has shown that the theory works in practice. Dimensional fund advisors (and now Avantis, who makes those two funds above) invented small cap value mutual funds over forty years ago, and those funds have outperformed the S&p by over 2% per year for decades. That's why David Booth, the founder, is a multibillionaire now.
AVNV, AVUV, AVES. The Avantis respecter has logged on. He is me. I am him.