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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..
Hey, I’m 69 and looking into asset allocation for my long term buy and hold portfolio.
Those who put money into index ETFs (AVUS, VTI, etc), how often do you check on their contents?
Mentions
Yeah all of the funds are great and not really that expensive for an actively managed solution, even AVUS being the most expensive is only 15 basis points.
Thanks! AVUS seem to look really good. Looked at their holdings and they don't even carry Nvidia in their top 10, and they still manage to outperform VTSAX.
DFUS (none), DFAU (light), DFAC (aggressive), AVUS (moderate)
S&P500 is too narrow for me. SPTM looks like a solid broad market option. Their low fees compared to funds like DFAS/AVUS them attractive. Thanks for the suggestion.
DFUS would be the most similar to vti as it has very minimal tilts to small and value , it just has profitabilty filter. DFAC and AVUS are a lot more tilted to small and value in hopes to out perform the index.
AVUS/FNDX. For a QQQ replacement, iShares GARP is an option.
AVUS. For a Nasdaq replacement, try GARP.
> there's not much you can do Buying better ETFs is an option. Market cap weighted indices worked for a long time, but there's now so many better options for investors that reduce concentration/use fundamentals (eg: GARP, RSPT, FNDX, AVUS).
AVLV and AVUS. VOO has been really expensive recently.
I'm moving a lot of my index fund money to AVUS
I'm getting out of US passive indexes. I'm going with AVUS balanced with VXUS.
For US I personally prefer AVUS or DFUS, but yeah, that would work.
DFAC, DFUS, AVUS - broad market funds that actually enforce rules like a 12 month lockout for new IPOs
AVUS is a total market fund and VOO isn't. You should be comparing it to a total market passive fund like VTI, which it has outperformed.
It's a good idea in theory, but passively managed funds almost always both have significantly lower expense ratios, and outperform profitability funds. For instance, VOO had a 5x lower rate than AVUS and has outperformed it for every time period over a year.
Buy low-fee actively managed funds that have a profitability factor. Avantis (AVUS, AVEG, AVTM, ...) and Dimensional (DFUS, ...) are good. Avoid passively managed funds weighed on market cap like VOO, SPY, QQQ, etc.
If you really feel like you should there is Dimensional/Avantis funds like DFUS, AVUS, etc that bar IPOs for the first 12 months
I believe AVUS would be the equivalent - they are both US stock market ETFs. Both dimensional and avantis are somewhere between passive and active management - they are "rules based". They aren't supposed to just shift stuff around on the whims or predictions of people managing the fund. They set up the rules ahead of time and then just follow them. Rules can of course change as new research becomes available which will hopefully make for better / smarter rules. So it's kind of passive in the say that you just follow rules (but not just the market cap rule) and it's also active in that you gotta set up the rules and potentially adjust them as needed.
DFUS does this. AVUS also I think.
Real answer: AVUS/IVW. Meme answer: KLIC
Friendship ended With VTI. Now DFUS or AVUS is my best friend.
Checked on that earlier AVSU AVUS Both invested on AAQI, Lumentum COHR FAbrinet
OK, but DFUS and AVUS are mentioned all over the the internet in regards to the SpaceX IPO. If you are not a bot then I must surmise that you are then not dedicated enough to browsing Reddit and the internet. Have you considered dropping some of your time consuming hobbies?
DFUS or AVUS for the exit liquidity issue.
Nice suggestion. I’m hadn’t heard of AVUS but it looks like a better alternative to VTI. Just bought some.
I’m shifting to Avantis funds. AVUS, for example is similar to VTI, but they’re not strictly pegged to an index, they don’t buy companies as soon as they IPO. Rebalance timing is at the discretion of fund managers so institutional investors cannot game their buy and sell behavior. And they have a small value and profitability tilt (so Tesla is 0.75% of the portfolio instead of 1.72% in VTI, for example), but it still falls within the large cap blend style box on morningstar and the performance is very close to VTI.
I already shifted about 30% of my overall investment to VDE and XLE and will be doing a small DCA into AVUS index fund, while keeping a little bit of cash in a savings account. Oil prices continue to remain in the +$100 per barrel? At least I get to look at some green in my portfolio, and use the dividends to pay for $5 per gas gallon and more expensive chicken nuggets at Wendy's. The war suddenly ends on Monday? Oil and other commodities will still be impacted for months. I'll be riding the stock market rally.
I would not touch them with a ten foot pole. Fees are ridiculous, the tax-loss harvesting opportunities dry up over time, and you are stuck with a portfolio of nonsense. This just way over complicates something that should be simple. You can invest in low-cost, low turnover, broadly diversified index funds and use the dividends to pay taxes. I would split it into broad US funds and international -- you can get the foreign tax credit for dividends paid out of international funds -- and leave it alone. If you are interested in tax loss harvesting, you can do that on your own without paying fees. Turn off dividend reinvesting so that you don't run into wash sale problems. Sell at a loss, and take the funds you get from the sale and buy something similar but not identical. Example: your VTI has posted losses. Sell the lots with significant losses and use the proceeds to buy DFUS or AVUS or SCHX. I love Fidelity but they are selling you a product designed to help them more than it will help you IMO. If the market helps out, you could be looking at retirement in 7 - 10 years if 2 million is your goal.
Add some PPA SMH AVLV AVUV AVUS Should cover everything
This is a smart strategy. I don't own that particular fund, but Dimensional uses a waiting period post-IPO before buying anything, and it employs factor tilts so that when it does buy SpaceX it'll do so at a lower weight than something like SPY. Avantis's AVUS fund uses similar strategies, with a stronger factor tilt. Personally, I'm using AVLV, which has explicit value *filters* in addition to tilts, to avoid this kind of stock entirely.
What would the similar ones to AVUS be? Obviously VTI is the standard for US exposure, but I am a fan of the slight tilts and a 0.15% expense ratio didn't seem too bad.
Why do AVUS when you can get other similar ETF with less of an expense ratio?
its a fund of funds similar to avge from avantis, but I don't think its as valuey I wanted to keep a somewhat broad market fund without the zombies. I think its mostly the dfa core 2 funds on US/Developed/Emerging side. They don't have super tilts to value like AVGE does. AVGE has about 35% or so dedicated just to their value etfs in addition to their broad market etfs like AVUS/AVDE/AVEM
Your safest bet is VT imho. It will cover the entire market. Or, consider AVUS if wanting to stay US.
If you want to stay in US equities but are concerned about MAG 7, there are some options: AVUS- Very similar to VOO/total market ETF, but generally underweights stocks that are likely overvalued based on fundamentals. DFAT- Small cap value ETF. Pretty much none of these stocks are included in VOO, so its extra diversification VNQ - Real estate ETF. Real estate is a tiny percentage of VOO, so this would provide a bit more exposure
Ha, well I haven't fully either, just know enough to get by. Basically, there are so many types of portfolio designs. For instance, retirees and Ivy league endowment funds may invest similarly. The point is to hold assets that have low correlation to each other. You can run the asset correlation analyzer on [portfoliovisualizer.com](http://portfoliovisualizer.com), basically just plugging in different funds to see the effect. This approach of investing basically takes advantage of the Shannon's demon effect of volatility harvesting. It's not as profitable long-term as 100% equities, but it's designed so something's always up while others are down. Things like AVUS, DFAX, GLDM, EDV, DBMF, etc.
AVUS & QMOM. Historically value and momentum have been the highest returning factors.
>If growth doesn't provide a compensated risk premium, why don't we hold all value? If you hold all small-cap value, you are taking way more risk than holding a broad index. Someone here mentioned that SCV beats the index on a risk-adjusted basis which is wrong. If it were the case, why would you buy an index then? Go all in on SCV because it's a free lunch, right? No, because the standard Sharpe ratio measurement for factor portfolios doesn't measure all of the risk that your portfolio has. Sharpe ratio is calculated based on volatility, which is only 1 dimension of risk according to the Fama-French model. Your portfolio's exposure to smaller companies is another independent dimension of risk, your portfolio's exposure to value companies is also another independent risk. In other words, risk is multi-dimensional. You cannot just focus on volatility/Sharpe-ratio. SCV is *not* a free lunch, you are taking more risk and expecting higher returns, which is consistent with the efficient market hypothesis. SCV might drop really hard during some of the worst possible drawdowns (look at the 2008 crash or the COVID crash). While you are getting higher returns per unit of volatility, the extreme drawdowns can be very devastating. That's why some people shy away from it. >Why is the S&P 500 still considered a good general investment for most people 5+ years before retirement when if you did 50/50 VIOV/VOO from early on, you'd probably perform way better just because you're buying out of favor companies? I just don't see the S&P 500 providing better returns going forward than the broader market. Your concerns are not unfounded. Academically speaking, S&P 500 doesn't have a premium, it is being promoted because most people are looking at recent returns (recency bias). Right now, it's very top-heavy, the top 4 companies represent 25% of the index. Out of 500 companies, the top 10 were mostly responsible for the recent growth. People are falling for the AI hype just like they did for the internet in 2000s. If you had 100% VOO in 2000, you were going to experience a brutal crash that recovered only 7 years later, and you would have had a 0 % something CAGR in that period, too. With VTI, you would have had a small but positive CAGR. A properly diversified portfolio shouldn't be betting on large-caps only. A lot of "100% VOO" people assume that 10% CAGRs are just given, but with current valuations, it is foolish to assume you are going to get the same CAGR for the next 10-15 years. Vanguard was recently suggesting moving the allocation to 60% bonds/ 40% stocks (equally split between US and international) because they are also predicting that the future returns for the US market are going to be way lower than the bond returns. VTI/AVUS/DFAC have higher expected returns based on the factor models because they have mid-caps and small-caps.
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
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.
FA just bought a shit ton of AVUS and IVV. How fucked am I?
AVUS, Avantis US Equity ETF. I assumed you didn’t want to deal with a full portfolio rundown lol, these are rough numbers. I feel like my money is in relatively safe hands but naturally am looking for a higher return. Considering leaving this account be, decreasing contributions, and starting a secondary short to medium term growth account. Need to do some thinking 🤔
Also AVUS & AVLV following the Russell 1000
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.
First thing i can think of is AVUS. Avantis likes to tilt away slightly from the market index towards value and profitability. It doesnt avoid AI tech stocks or the mag seven, it just holds less of unprofitablegrowth stocks and a bit more profitable value stocks. Ofc that means its underperformed lately since growthy stocks have had a great run lately.
If your concern is P/E, you're best off buying value based funds like AVUV, or funds that tilt heavier into better value stocks like AVUS if you still want some exposure to growth
Past performance doesn't predict future. You're betting on a very specific industry within the tech sector that just had its largest upwards spike in its history. Sleep better at night and put that 2.1m into a near total US market ETF skewed to value like AVUS. If you're interested in value, no one does it better than Avantis ETFs
Can someone explain what the difference between an Equity fund and a Value fund are? Specifically with respect to Avantis. They have several funds such as X-Cap Equity or X-Cap Value and I don't know what the difference is. My main objective is long term capital appreciation. Moreover, why are ETFs preferred over mutual funds. With respect to Avantis, they have an ETF version and a mutual fund version of their products (ie AVUS vs AVUSX). Why are the ETFs preferred over the mutual funds?
No it wouldn’t be prudent to do 50-50 VTI/VOO pick one or the other. They are 80+% the same thing. If you want small cap exposure swap VOO for VTI 100% swap or add another etf that tracks small cap stocks to your portfolio. Such as : AVUS or VIOV among others
From what I understand you’re proposing some kind of contrarian investing between asset classes, but you could do that within those asset classes in order to not reduce your expected returns by having more bonds than you’d like to.. You could invest in value or international stocks, for example. I myself try not to time the market, but I believe in having some tilts towards securities with greater expected returns. I invest in small cap value as a a way of trying to protect my self a little against possible overvaluations in the total market. There are also some funds that over or under weight stocks according to their over or under valuation. AVUS, DFAC or funds that track RAFI fundamental indexes are good examples.
I think you'd be better off just buying a strategy that naturally tilts more towards this direction. Also if in taxable, you would avoid the tax-hit to rebalance. A Fundamentally Weighted index like FNDB would be one such example that will avoid the tech overweight. Something like AVUS will also get you within this 25% cap right now (this would be my preference). If you want even more tilt to value, could use AVLV but AVUS is a well designed fund with less tracking error. Both of these options hold all the large-cap names but just adjust weights, so you aren't excluding anything outright, just over/under-weighting at the sector AND stock level.
Makes sense. At end of the day it’s all noise as VOO/VV/VTI are incredibly correlated, but personally I’m put off by the poorly constructed inclusion rules. VV would be better. Or if you are an Avantis fan, AVUS is an option. Could also really lean into factors and use large cap momentum (MTUM).
It very much depends on what they are. If they are quality companies temporarily having a downturn, it could be more of a loss to sell than having waited until they are less down or break even to move to an index fund. I'd consult in a value sub or look at them individually online. They could recover or stay depressed for a long time. You could sell them, place them in an index fund, and then that could go down in a correction. It's all about hedging risks and knowing what the possibilities are. If the stocks are indeed just poor choices, I wouldn't wait for them to recover, and I would just take the loss and reinvest in an index fund for the long. I like AVUS, VTV, JQUA right now if wanting to mitigate risks in the S&P 500 surrounding AI speculation. JQUA would be higher risk/high reward long term theoretically. Nobody knows what will happen this year with a soft landing or not, but if we come out of the high interest rates with minimal pain, relatively, any quality companies should see recovery.
Thoughts on AVUS and NTSX ?
Let it be, but perhaps exit (strongly suggested for any amlunt you cannot lose) once you hit plus 5% or something conservative (a win). There is no guarantee they will beat earnings consistently and repeatedly and you could be waiting awhile for the gains seen in recent history. That's reality... put that money in a total market index like AVUS and leave it alone. If it goes down, it will definitely go back up. Don't do what you did again until you are ready to lose what you invest in a single stock with lots of speculative, optimistic buying. You'll be fine though, no need to be anxious.
The real question is can you stick with it for the long term? Factor investing takes patience and discipline. For instance, factor funds can lag or underperform the market at times. You could keep it simple by investing in a multi-factor ETF such as OMFL. However, I would only hold in a tax-advantaged account due to the high turnover. You can also do a combination of VTI and AVUS.
If I were you id go 60% AVUS, 30% AVDE, 10% AVEM. Or if you want 1 fund go AVGE.
If it was me I'd probably do something like this: 25% VOO, 15% AVUS, 10% AVUV, 20% QQQM, 20% VXUS, 10% AVES
I like AVUS - full market with a value tilt.
I like active funds with low expensive ratio and some factors applied: AVUS DFUV DFAX
Someone mentioned AVUV: that contains mostly companies smaller than what'd be in the SPY AVUS is a much better balanced, actively managed fund that has a whole range of companies, from what's in AVUV to the mega caps (both tech and not) It's my largest position RSP is SPY equal weighted. Lesser known is equal weighed EUSA: https://www.ishares.com/us/products/239693/ishares-msci-usa-etf
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.
First, obviously not a recommendation, I don't know the specifics of your situation through and through and am not a financial advisor. Do your own due diligence to see what's best for you and your situation. With that disclosure out of the way, I'm not sure why someone would go 100% US if they wanted to pursue a factor tilt. Factors (including the market factor) tend to outperform at different times across geographies. [https://www.aqr.com/Insights/Research/Journal-Article/International-Diversification-Still-Not-Crazy-after-All-These-Years](https://www.aqr.com/Insights/Research/Journal-Article/International-Diversification-Still-Not-Crazy-after-All-These-Years) The Key Findings: >US equities have outperformed other markets for over 30 years, making international diversification a losing experience for a generation of investors. As a result, few are inclined to shift away from persistently overweighting US stocks. > >The case for international diversification remains strong. Both theory and long-run evidence underscore benefits of diversification, particularly for active investors. > >Looking back, US outperformance since 1990 can largely be explained by relative richening against other equity markets. Investors betting on continued US outperformance may be making a perilous assumption that this richening will continue, despite historically high relative valuations suggesting the opposite is more likely—valuations tend to revert to the mean (eventually). It's well worth a read as the most recent published research on the subject of international diversification that I'm aware of. ​ As for your specific question, AVUS would be roughly equivalent to an efficiently traded, auto-rebalanced 15% AVUV 85% VTI. ​ I would not 'just go for' one option without carefully considering your alternatives and thinking through the risks inherit in the investment. Especially if you expect to check on the performance often and toss it away if it underperforms for any number of years. Without conviction, you could end up flip-flopping across different investment approaches with no end in sight and nothing to show for it. ​ As a quick example: 1. A hypothetical investor invests in strategy A over strategy B 2. Strategy B outperforms strategy A across ten years straight, complete with outperformance over the prior ten years. 3. Stuck in the middle, the investor might withdraw from A and move over to B at any point within the ten years. 4. Strategy A continues to underperform over the ensuing ten years, despite outperforming over the twenty-year period for investors who remained invested over the full period. 5. The hypothetical investor, having moved on, only sees the last ten years and their increased performance since making the switch relative to what they had experienced prior. Note that this result can go both ways between a total stock market strategy and a factor-tilted strategy. Investing is hard and not looking at investment performance after making your decision can often be the best strategy.
Thank you so so much for the Greta info and fantastic write up! Do you think it’s worth holding VTI + AVUV or just go all with AVUS instead since it’s supposed to be geared towards SCV?
I don't know if it's a bull trap or how long it can last or if we're at the beginning of a new bull market. I'm mostly invested in JEPI/VOO/AVUV/AVUS/KMLM/TLT, with a good chunk still in i-bonds and a 5 percent CD. I do think, though, that those people are right when they say say we're in serious macro uncharted territory with inflation, global debt, asset price bubble everywhere, reversing globalization and demographic tailwinds, and slowing global growth It's some new normal. Until it isn't. And it comes down to valuations that don't reflect all of this, and mean reversion can be a bitch Here's one of the best pieces I've read on this: https://www.hussmanfunds.com/comment/mc230221/
Looks like DFAC focuses on slightly smaller companies, tilts a little less towards value, and favors profitability. Their performance is similar to AVUS though. If it was me, I'd hold one of those instead of VTI. The effects of the tilts are small enough that they won't show up unless they're substantial holdings. [Factor regression](https://www.portfoliovisualizer.com/factor-analysis?s=y®ressionType=1®ressionMethod=1&symbols=DFAC+AVUS&sharedTimePeriod=true&factorDataSet=0&marketArea=0&factorModel=5&useHMLDevFactor=false&includeQualityFactor=false&includeLowBetaFactor=false&fixedIncomeFactorModel=0&timePeriod=1&rollPeriod=36&marketAssetType=1&robustRegression=false)
Any thoughts about DFAC vs AVUS as a core holding in addition to VTI. Or is this splitting hairs? Very interested in their small cap and profitability tilts.
Hey u/greytoc! Saw you talking about Market, Ask, and Bid. I posted a related question on this thread a minute ago - wondering if you can help with the answer. In u/shaggyout's example, let's say I want to sell some AVUS. What's stopping me from placing a Limit Sell, at say, $90. The ASK price is $100+, so potential buyers get a 'deal'. I come out ahead of both Market ($70) and BID ($53 - which I'd get if I placed a Market Order). This *seems* too good to be true, but I feel like I'm missing something.
AVUS is a thinly traded ETF. Unfortunately, because the market is now closed, there is not a way for me to see what the spread typically would be during the trading session. But I would expect it to be narrower during the trading session. Generally speaking, if you want to invest on a security like this - you would have to place a limit order below the mid and walk the limit up to get a fill. A decent broker will normally price improve a marketable order but I would never count on it. Hope that makes sense.
Don't read too much into the chart. It happened to begin trading in late September, which was a low in the market. Most things should be up since then. You can get a better feel for the effectiveness of their approach by looking at AVUV, AVUS, AVDV etc. which have data going back for several years. Compare AVUV to VBR, AVUS to VTI. AVGE is a fund of funds, combining Avantis's other ETFs into one package. Avantis ETFs are very popular among value and factor investors. The ETFs aren't actively managed in the sense of some random dude picking stocks he likes, but they aren't pure market cap indexing. Instead they use some proprietary algorithms to pick stocks based on valuations, profitability, and momentum screens, while keeping portfolio turnover low (which is good for taxable accounts). AVGE is basically VT with a tilt towards US markets, small cap and value.
[https://paulmerriman.com/4-fund-portfolios/](https://paulmerriman.com/4-fund-portfolios/) According to this there are some variations. The simplist being 25% each AVUS/RPV/IJR/AVUV for just US equity. The 5 other variations include international or bonds.
Fees on fees, and given that its an ETF, you look at the very low daily volumes, a recipe for poor executions. Average daily volume appears to be about 35,000 shares, not good. The underlying Avantis funds are reasonable but I'd steer clear of AVGE. Their largest holding is AVUS, their US equity fund, nearly half of AVGE. Its got a 3+ billion in assets, much lower expenses. I suspect that if AVGE can't gather more assets they'll be wound up -- even at their relatively high %0.23 expense ratio, a fund that small has a hard time paying for itself.
> 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).
This is great advice. I’d put 2 above 3 and exclude 4 and 6 while including an SCV tilt of about 15% with AVUS/AVUV but that’s just me
This is great advice. I’d put 2 above 3 and exclude 4 and 6 while including an SCV tilt of about 15% with AVUS/AVUV but that’s just me
If you hold VT, you don’t need further VXUS. When holding index funds, you must think from first principles like risk diversification and not from metrics like growth, yield etc. VT diversifies market risk across the world. If you subscribe to small-cap value risk, look into AVUS/AVUV. Or else supplement with some bond fund like BND and sit tight for the next 30 years doing some rebalancing. You should be good
Not in VTI. If I had investments in AVUS I'd probably keep a slightly closer eye on them. I have BRK and I do try to read the reports/shareholder letters; again, not because I think I can evaluate Warren B of all people but I'm just curious what's up.
Just go with a total stock market ETF like VTI/SPTM/AVUS and a dividend ETF like SCHD/VYM. Set these two at 50% each on recurring investment and don’t look at your portfolio.
I would dearly love a version of VTI that leaves out TSLA and META AVUS is the closest I have found.
Invest in ETFs AVUS is a good one.
AVUS is not equal weighted but is a little more balanced than a standard S&P 500 index. For example, they don’t hold nearly as much Tesla
Condolences to you and your family. It’s great you are doing a lot of research. The most important concept to remember is higher concentration = more risk. Be diversified in everything. By number of stocks, by sectors, and by asset class. I have a CPA and CFA, so I can provide some guidance from both angles. 1- tax; it’s not about what you make, but about what you keep. Some investments are extremely tax inefficient. You should balance between having good investments that may be tax inefficient, but also core holdings that provide solid tax efficient investments. For example, check out BREIT.com as most of the distributions are categorized as return of capital, which means it’s really tax deferred 2- investments I recommend broadly diversified ETFs with tilt towards small caps and profitability. In this case, a position like AVUS covers the entire US market cap with smart tilts. Good luck
AVUS and VTI have performed almost identically in that time frame. They’ve alternated being slightly ahead of one another. As for small cap vs total market, there’s a selection bias in the time frame. 3 years is a very short period of time.
If that was true then I don't think we would be seeing these types of returns relative to the market in more recent products either... https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=AVUS&allocation1_1=100&symbol2=VTI&allocation2_2=100&symbol3=AVUV&allocation3_3=100
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.
I believe AVUS is based off of DFA US core equity mutual/etf , since most of the avantis people are former DFA employees. While I like avantis etfs the data is far too short , so I think you need to use DFA to get a better gauge of how they will do for longer time periods. According to porfolio visualizer with 6000 dollar annual contributions, VTI beats both DFA US core equity funds, DFEOX and DFQTX. The data goes back to 2005 only. Its just something to keep in mind. VTI also has a lower standard deviation than both of those funds, and higher risk adjusted returns calculated with sharpe and sortino ratios.