IEFA
iShares Core MSCI EAFE ETF
Mentions (24Hr)
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Is my proposed portfolio more complex than it needs to be?
It's way better to buy at market close than at market open, most gains happen overnight for major ETFs
Mentions
You would likely be better served to hold something like IEFA, DFAI or VEA than SCHY for your international sleeve.
I'm in markets, just not US markets. It's true that when the US has a downturn so will the world, *to an extent*, but if we kick out Brazil, we kick out China, and they shrug and make deals between one another and thrive without us... how exposed are they, really? I don't know enough about foreign stocks so I got ETFs. * AAXJ & EMXC in Asia * EZU, FEZ (Europe's STOXX 50 top 50 companies), EWL (Switzerland), EWP (Spain) in Europe * IEFA basically "everywhere that is not America".
I am buying IEFA for developed markets sans North America. Emerging still decided but want to add someone. I am also heavily long on FXI.
then: Yes to DCA, but not 100% SPY. With 2 years of cushion you go 80/20 stocks/bonds. Translated on 7k/m: ~4.2k VTI/VOO (or SPY), ~1.4k ex‑US (VXUS/IEFA), ~1.4k Treasury/BND; first max out 401k/HSA/IRA and rebalance 1/year or to ±5%. Simple, diversified and anti-rip: discipline > timing.
What's an equivalent to VYMI with decent options liquidity? I'm struggling to find one. It has a better return than IEFA.
IEFA, int'l dev markets etf, is mooning.
Are we doing cash, IEFA, FXE, what?
Real estate is not “passive income.” How it was labeled that way I have no idea. You have to deal with maintenance, repairs, rising property taxes and insurance costs, tenants not paying and their extensive rights, lawsuits, property damage, and other stuff I’m prob forgetting. How is that passive? Also ask yourself: am I investing for income or growth? If you’re 27 you should prob be thinking growth so you can set yourself up for retirement. In that case it’s easy: max out tax-advantaged accounts like HSA, Roth IRA, 401(k) and if you still have money to invest open a taxable brokerage account. SPY is fine and mix in some IEFA for Int’l, VB for small cap, and IEMG for emerging markets.
Chill, facts first. You’re quoting SPY’s raw price, but context matters: the outperformance gap still stands. - SPY is up ~7% YTD (price), sure — but international stocks (ex-U.S.) are up ~15–20% YTD depending on the index. - IEFA (MSCI EAFE ETF): +10.2% YTD - VEU (Vanguard FTSE All-World ex-US): +12.7% YTD - Emerging markets (VWO): +11% YTD Now factor in the USD’s ~10% drop — international assets are worth even more in real purchasing power terms vs. USD-denominated gains. That means U.S. stock gains are being eroded globally. Also: if you’re counting total return, SPY’s 7% becomes ~8.5% with dividends. But international ETFs pay similar or higher dividends, so the gap still widens when including those. Lol… YTD SPY vs international and still crying about its dismal performance. So uninformed
DFAS has consistently outperformed the Russell 2000, its relevant benchmark. Solid fund. At first glance DFAX doesn’t look spectacular compared to IEFA or VEA but DFAX actually includes emerging markets, not just developed markets. Compared to VXUS it has shown a slight but consistent edge.
Domestically, read where the utility sector is the least correlated with the broad stock market, though they’ll take a hit in a serious recession. The developed international markets (VEA, IDEV, IEFA) might have started to become uncorrelated with the U.S. market, as they were from 1950 - ‘00s. Emerging markets are a bit new and China has its own schedule so far, so could separate it (FXX, MCHI). The rest of the emerging market may depend on India’s growth, so separate it out a bit further (EMXC but Vanguard is coming out with their own version).
Yes, and then buy strong individual divi stocks, mixed in with some QQQM/VOO/VTI/SCHG/IEFA etc. Diversify the shit and never work again. Take 50K and play with it. Hell I might even get a guy to manage the majority so I don't do anything stupid.
If this money is needed for an important purchase in the next 2-3 years stick to HYSA. Otherwise, split the money into 4 equal amounts and dollar cost average each piece once per month into VOO/IWM/IEFA/GLD
I have just recently been researching this and here is where I am starting to look into. For a pure currency play, currency ETFs like FXE, FXB, FXY, or CEW (multi-currency strategy). For both equity growth and currency exposure, ETFs like VEA, VWO, IEFA, or IEMG. I haven't gotten too far into research on these individually, but that is my plan for this weekend and create a port strategy.
Hey there, thanks for reaching out about this investment decision. It's a great question and there are a few important factors to consider. The lower expense ratio of VDU is definitely appealing, as that can really add up and eat into your returns over time. But the currency exchange costs associated with buying and selling VDU in CAD could potentially offset some of those savings, especially if you plan to hold the investment for a while. One thing to think about is your investment time horizon. If this is a longer-term hold, the lower ongoing fees of VDU may end up being more beneficial in the long run, even with the currency conversion costs. But if it's a shorter-term investment, the difference in fees might not be as impactful and the USD listing of IEFA could be preferable to avoid those exchange charges. Another angle is your personal comfort level with the currency risk. Some investors prefer to keep their investments denominated in their home currency to avoid that added volatility. But others don't mind the currency exposure and see it as a way to diversify. It really comes down to your risk tolerance and investment goals. Ultimately, I'd say it's a close call between the two. I'd encourage you to do a thorough cost analysis, considering the fees, exchange rates, and your intended holding period. And don't forget to factor in your own preferences and risk comfort level. Oh, and just as a side note, I've found the news and analysis on news-room.ca to be really helpful for researching investment decisions like this one. They have some great insights into ETF selection and portfolio construction. But of course, you
Ohk, I didn't know that. Then basically expense ratio information is kind of meaningless then. (Hypothetically) Even if a company say charging 10% MER if I see the CAGR is say like 25% , and other one charging 0 MER but CAGR is 18% , so the first ETF is always preferable. To answer your question, the difference is in decimals. IEFA has a 1year and 5 year return of 10.16% and 48.80%.
"Shorting against the Box" is not a thing that's permitted anymore. (I'm 64yo now and actually tried this a couple years ago. Didn't realize rules had changed!) You've got the right idea about swapping a security for a loss for a new one that's a good enough replacement. (Hint: aim for "good enough". Your choice of SCHB & VTI aren't convincing to the IRS. Both are broad US market funds, similarly weighted.) But you didn't exactly say that this $50K would be swapped, but rather frozen in place, right? So is your idea then to protect approx $50K in gains? If that's the case then IMO the best way is to spend a bit of money to dollar for dollar protect what you want protected using SPY put contracts. People here can help with that. The next best way IMHO is a covered-call sort of setup. Except in my case, since I have significant gains in the things I'm trying to protect, I really wouldn't want them being called away and making a messy taxable event. So I own SGOL, but write GLD contracts. I own SPHQ but write SPY contracts and I own IEFA but write EFA calls, etc. You've got VTI, so SPY is perfect to use to write some calls. The idea being that if you write $50K worth of SPY calls, then the worst case might be winding up in a position where you're short SPY. But at least no VTI shares were called away.
Given the political landscape in the US, consider international stock ETFs (e.g. VEA, IEFA). If you stay domestic then utilities (XLU), healthcare (XLV) and consumer staples (XLP) would be less volatile options. Nobody has a magic ball... cash may be a good short term strategy if you subscribe to the idea that Trump is being wreckless (and not slowing down his antics).
**Fun Fact (2014–2024):** * **IVV (S&P 500 - U.S. Stocks):** \+238% * **EWC (Canada ETF - Canadian Stocks):** \+47% * **IEFA (Developed Markets ex-US ETF - Major Countries: Japan, UK, France, Germany, Australia, Switzerland):** \+30% * **IEMG (Emerging Markets ETF - Major Countries: China, India, Brazil, South Korea, Taiwan, South Africa):** \+17%
Honestly, how to Google IEFA without having heard of IEFA? You need some knowledge to begin with to start with the acronym EAFE, maybe (Europe, Australasia, Far East... not exactly intuitive).
Lmk how it goes. Dropped my IEFA after 5 years holding on the traditional advice of holding 10% foreign. Performed shit. Done with it for now despite “past performance is not indicative of future results”
A small price to pay to find out about IEFA. Thanks.
An ideal allocation for you, if you want a 100% equities portfolio that is globally-diversified and has best risk-adjusted returns would be as per below: US: VOO or VTI @ 50% US Small Cap Value: AVUV @ 10% International Developed: VEA or IEFA @ 30% Emerging Markets: VWO or IEMG @ 10%
First, please keep in mind that there is no perfect answer and vet all responses you receive. Personally, I like IEFA and IEMG. It has plenty of legit industries and sectors that should be secular. Please hit me up if u need anything further
All of these are highly correlated - if one is moving up/down, the others are likely doing the same - and many have overlapping holdings (NVDA is almost 4% of VFV, and over .5% of XEQT). This isn't necessarily a bad thing, but I'd be sure that you're okay with this level of concentrated risk. For an example of how you could mitigate this while also maintaining global exposure, you could swap out XEQT for VXUS/IEFA or similar, which have lower expense ratios and exclude US and/or CA equities. Not really a big change in risk/fees on $188 CAD, but food for thought.
Full results with various ETFs and starting wealth of $10,000 2022-11-16 to 2024-11-14 BTC/SPY Correlation: 0.9384807621761988 Ending Wealth: 29791.828338451 BTC/IVV Correlation: 0.9382428961059993 Ending Wealth: 29801.74517198684 BTC/VTI Correlation: 0.9387170284293033 Ending Wealth: 29617.037885579404 BTC/QQQ Correlation: 0.9242071406130036 Ending Wealth: 32487.886507858522 BTC/GLD Correlation: 0.8815530656531706 Ending Wealth: 29406.214965232546 BTC/SLV Correlation: 0.7821118169993121 Ending Wealth: 29606.35729672473 BTC/EFA Correlation: 0.8994207429139139 Ending Wealth: 26567.280195258125 BTC/IEFA Correlation: 0.8901136589191622 Ending Wealth: 26454.28134644207
Ah yes thanks for the correction and confirmation. I think I’m going to pair these with iShares for tax loss harvesting purposes (if needed). (VOO ~ IVV, VXF ~ SMMD, VEA ~ IEFA, and VWO ~ IEMG)
Thanks for sharing. To sum up, focusing on any individual sectors is a bad idea (makes a portfolio too "messy?"), and so I should drop the gold, infrastructure, energy, financial, and REIT funds as well as the midcap fund and dividend funds (GPIX & EVT). Then I should do these replacements because they are superior (less risky? likely to perform better?): ** bonds AGG instead of VWAHX ** large cap FNDX instead of VWELX ** small cap IJR instead of AVUV ** global/international IEFA instead of VT ** broad market AOA instead of VTSAX
All good funds but with a lot of overlap. I would seek a more diversified portfolio. More like VTI for US coverage, IEFA for some international and AGG for bonds. 50/25/25. Another good choice these days is a target date fund. They can be very low cost and are as set it and forget it as it gets.
Yes, you got it. I would add that instead of waiting the 30 days sitting in cash, you can do the true tax-loss harvest thing, which is to switch to a different horse immediately so you remain invested (in something similar, not identical). And after 30 days you'll can decide to stick with the new horse or switch back to the old one. This can be like selling CocaCola and buying PepsiCo. Or, with ETFs it's a lot easier. Pair VOO with VTI. Pair IJR with IWM. Pair IEFA with EFA. Pair IEMG with EEM. etc.
I set up a diversified portfolio mix of ETFs in one of my boomer-style accounts recently which accidentally excluded Canada. Then I realized that there are no mistakes, just happy little accidents. Fuck Canada. (US stocks via SPDR ETFs, then MSCI ETFs for Europe via IEFA, China via MCHI, emerging markets excluding China via EMXC. Basically MSCI includes Canada in their North America ETFs but SPDR is US only, so this mix includes every country in the world except Canada. Perfect.)
If you want income between now and retirement AND you want to preserve most of the money for use during retirement then taking dividends while slowing the rest of your investment to grow will indeed work, so long as you’re comfortable with your overall investment growth being slower than expected. With a well diversified mix of funds you’ll have an average dividend yield of 2-2.5%. Let’s use 2% to be safe. To generate the income you desire you’ll need $1.2m and you could use a mix of funds like: SPLG - SP500 DGRO - Dividend growth IEFA- International developed markets Folks are going to show up in the comments section and tell you that dividends are irrelevant, which is technically correct, but for you they can serve as a wise way of separating the money you can spend now vs money you refuse to touch. Very often managing behaviors is more important than improving the investment plan a tiny bit.
This stock had massive Dark pool buy prints on it , and you did this wow, perhaps if you knew about the DP prints you would not have done that. Trying to manage your way out of it by kicking the can s=down the road won't work, just delay the inevitable. Get out, lick you wounds and don't do that again. $IEFA Massive 18 mil prints $66 Bullish above 67 Bearish below 65 (MSCI EARE ETF)
Out of morbid curiosity I started cross referencing your funds against the SP500 (the benchmark for "THE MARKET") and saw that since March of 20, the SP is up 29%, but IEFA is up 0.22% and IEMG is down 9%. That's really I all I needed to see. Cross reference your own numbers against the SP500, and dump these shitty funds and just buy the SPY fund and call it a day.
Hello all, I was looking to diversify some Roth into the international sector, my advisor suggested FSPSX or IEFA however, I thought the top holdings seemed pretty similar. I checked my 401 and there was a lot of overlap with companies. Is it still a smart way to go or are there other popular etfs for international? Can you avoid overlap?
“Thank you for providing the additional information. Given your client's risk tolerance of 7/10 and their current portfolio allocation, here are some recommendations to consider: Stocks Allocation (40%): Keep 20% in the S&P 500 index (IVV) for exposure to large-cap US stocks. Consider reallocating the 5% developed foreign markets index (IEFA, VEA, GWL, VEU) to a broader international stock fund like Fidelity International Index Fund (FSPSX) for a more diversified exposure. Retain 5% in the Total Stock Market Index (VTI) for broader US market coverage. Maintain 10% in the emerging markets stock index (Vanguard VWO) for exposure to emerging market economies. Bonds Allocation (40%): Keep 20% in the long-term US Treasuries index. Consider reallocating the 10% intermediate bonds to Fidelity US Bond Index Fund (FXNAX) for a diversified fixed-income exposure. Retain 10% in the US TIPS index (TIP) for inflation protection. Other Allocation (15%): Consider reducing the allocation to gold, commodities, and crypto to a more modest level, such as 2-3% each, to manage risk and align with the client's overall portfolio goals. Reallocate the remaining portion of the Other category to the stock and bond allocations for better diversification. Remember, these recommendations are based on the information provided and general financial principles. Before making any changes, it's important for your client to review the recommendations with a certified financial advisor to ensure they align with their specific financial situation, goals, and risk tolerance.”
Great comments here already but given the ability to have $2k/month. My personal advice is put the max into Roth IRA first ($6500 per person, per year, given current age). Then put the rest into a joint or individual account. Personal note: my expectation over the next 20 - 40 years is that tax rates have a higher probability of increasing than decreasing so the Roth is a good investment earlier rather than later. Within both accounts, just go for index funds, VOO, VTI, SCHD, VYM, NOBL, IWM, IJH, IEFA, VWO. Those group of funds will be almost too diversified so look into each and see what fits your risk profile. Investments are inherently risky, and no one can predict the future, however if you keep to a consistent and simple strategy, hopefully you can reach your goals. In the future, let’s say 10 years from now you have the money you need for the house, move that to a safer place, T-Bills, CDs, savings account…then let the rest of that money keep going for the next 4 years+. Good luck!
IEFA 67c 6/16 gonna be hot 🔥‼️
Awesome thanks for the link! I'll look at that and ITOT/IEFA
https://www.bogleheads.org/wiki/Three-fund_portfolio 70/30 IVV/IEFA
Mutuals typically don't outperform ETFs or index funds and charge much higher fees. I would avoid those. VOO is good, but you may want to diversify into smaller cap stocks or overseas. If you want to do solely ETFs; $IWM, $IJR (both small cap); $IEFA, $EFA (developed international); and $EEM, $VWO (developing international) may want to be some others you might want to look into as a hedge.
Rate my portfolio, been investing for a little over a year, read some books. Talked to some family members and my long term goal is to be diversified and slowly build some wealth. 30% US stocks VTI, ITOT, 20% international stocks VXUS, IEFA 20% bonds BND, AGG 10% real estate VNQ, IYR, 10% commodities GLD 10% cash
Depending on the source, beta should be comparing to the target index, not the S&P neccesarily unless we are looking up the beta of IVV or something. For IEFA is the MSCI EAFE and for VEA is the FTSE Developed All Cap ex US if memory serves, and their beta should be almost exactly what the index is. The two are similar but the big difference between the two is that VEA includes Canada wheras IEFA does not, so last when Canadian oil is in demand VEA can outperform. As far as beta, this is just how much you participate in market movements. More important when considering US vs International is correlation - MSCI EAFE is about 88% correlated to US markets. So they will move together, but 12% of the time they will not on average
Looked up IEFA and VEA - pretty much identical, but the beta on these two matches the S&P almost exactly. Wouldn't you want something that was (somewhat) uncoupled from the S&P if investing in International funds
Np, if you have other questions I am happy to respond, happy investing! International tends to underperform or outperform in cycles, a lot of it is based on the value of the US dollar weakening or strengthening, since we buy international stocks in US dollars but they deal in their home currencies. International actually beat the US for the first time in 14 years last year as the dollar weakened, and has started off the year ahead of US also. Their PE (price to earnings, aka valuation) ratio is significantly lower than the US even still, so there may be more upside ahead over the longer term. If you want to learn more, go look up IEFA or VEA and the companies they own to get an idea of what is in international equities, there are some great companies internationally. Hard (or even impossible) to time the markets, but there will be and have been perioda where International has beaten the US for years.
I'm doing this basically. Look for an ETF (s) you like. VOO, VOOG, SPY whatever. I also spread out a bit with VCN (like a Canadian VOO) and IEFA which is a non us ETF (Europe, Asia etc). Not claiming it's the greatest strategy, but it's working for me. Like 90%+ of my stuff is in those and then I have bits and pieces of individual stocks for fun/interest.
Sorry long weekend. Under stocks and related it says USMV EFAV IEFA GOVT TFI HYD VUG BNDX VTV
Thanks I know I have seen this article before. It even suggests VEA as an etf in the same sentece as IEFA as well I'm just not sure why such a disparity of almost 1.5%. I'll have to do one of those portfolio visualizers.. maybe yesterday was just a glule.
SPY SPY SPY IEFA / EFA Some banks & PSNY THAT'S my plan
For me, the one con with single funds like VTI is they are over concentrated in the most massive companies. And it lacks international exposure. Since I desire more diversification than that, and opportunity for greater growth, I have constructed a standard portfolio, still using low cost ETFs. So for US equities, instead of VTI, I would do 1/3 each SPY, IJH, IJR (or any other low cost equivalent is fine). This spreads investments much more deeply into mid and small caps, both increasing diversification and long term growth potential. For ex US I use a mix of IEFA, SCZ, IEMG.
VT VTI SPY IEFA EFA -> ETFs. Good luck.
30% in VTI 20% in IEFA 20% in VIG 15% in VWO 5% in BNDX 5% in BND 5% in VNQ If you want to be more risky, you can easily take out the last 3 and redistribute amongst the other 4. Conversely, if you’re less risk prone, you can add more weightage to the last 3, preferably from VWO first.
Thoughts on international stocks? Thinking of getting rid of IXUS/IEFA. War in Ukraine can't be helping.
I've had the following setup for years and am just continuing to shovel cash into it like shoveling coal into a locomotive engine. US Total Market: - VTI - ITOT Large-Cap Value: - VTV - SPYV Mid-Cap Value: - VOE Small-Cap Value: - VBR - IWN Developing Markets: - VEA - IEFA Emerging Markets: - VWO Asset classes that have two funds associated (like Large Cap having VTV and SPYV) I use for harvesting losses by selling one and buying the other and ping-pong back and forth as needed. When entering a period of harvesting losses I try to always end on the fund with the lower expense ratio.
25% each into low cost ETFs. SPY, IJH, IJR, IEFA. This is a diversified global equity portfolio with an aggressive lean as just over half the total assets point towards mid and small caps. SPY alone always bothered me because it’s not as well diversified as others. The mega caps have an outsized affect on the index.
I’ve been invested in IEFA for like 4 years and I’ve been in the red the entire time.
When I began investing 5 or 6 years ago, I over-complicated things in my brokerage account by holding the following in some generic allocation: IVV (large cap), IJH (mid cap), IJR (small cap), IEFA (international) I've recently decided to take a more Boglehead style approach by trying to consolidate IVV, IJH, and IJR into ITOT (total US market). I now continuously buy into ITOT and IEFA only in my brokerage. Now, part of me wants to sell all my IVV, IJH, and IJR shares, but I understand that that would incur a large capital gains tax hit. In addition, I'd be putting a lot of money into ITOT at market ATH. My thought process is to instead wait for a big market selloff (whenever that is), sell the three ETF's, and immediately buy into ITOT. The idea is that even though I realize losses, I'm still staying invested in the market by immediately buying into another ETF, but I also get to utilize carry-forward losses. Am I completely misunderstanding something in realized gains and compounding? I could just hold the three ETF's until retirement, but I'd like to just keep it simple for easier tracking and managing.
I'm 33 years old. 401k (60% of total portfolio) * 80% VTSAX * 20% VTIAX Roth IRA (20% of portfolio) * 80% VTI * 20% VXUS Taxable Account (20% of total portfolio) * 31% IEFA * 26% SPLG * 21% AGG * 10% IEMG * 4% IJR * 4% SPMD * 2% MINT * 2% ITOT
if this is a long-term plan, don't worry. keep investing through the ups & downs. if the plan was to cash out for a home down payment in 3 years or something... perhaps take some chips off the table. S&P 500 is fine for US large companies but US large is not the only thing you need to be investing in. the S&P 500 was basically flat from 2000-2012, and from about 1968-1982. meanwhile, small companies and foreign were dominant. usual recommendation is about a 50/25/25 split -- 50% US large, 25% us small/mid and 25% international. or 60/20/20 or 40/30/30 ... something like that. for small/mid look at IJR, VIOO, VXF; foreign look at VXUS, IEFA, SCHF.
IEFA for euro and GXC or FXI for China. GXC is more broad based than FXI.
For investing in US stocks VTI is a safe bet. It's well diversified and very liquid. Consider also the possibility of investing in global equities not only for a better geographical diversification but also to invest in other currencies other than USD, which further reduces your concentration of currency risk. VEA or IEFA, mixed with VTI could be a perfect stock portfolio for buy and hold.
/u/Don_Julio_Acolyte This. Also IXUS instead of IEFA to include emerging markets and smaller caps. Similarly IUSB instead of AGG for more bond diversification. All that said, IVV IEFA and AGG are also fine. Just slightly less diverse.
Sure thing. That 1% ended up being about $1000 over the year, so a small price to pay while I learned the basics. Thinking of doing the simple 3 fund portfolio with a mix of Domestic Equity, International Equity, and Fixed Assets (bonds) and going at 75/15/10 respectively. IVV - Domestic Equity - 75% IEFA - International Equity - 15% AGG - US Aggregate Bond - 10% I chose those three because those are current positions I hold in the account that match those assets classes. Basically iShares equivalents to Vanguard's VOO, VXUS, and VGIT.
last year, i started investing and went after the Bogleheads three fund portfolio. I did some research and landed on this split: AGG 35.1% IEFA 35.1% ITOT 29.9% After I started, I set a reminder **in a year withdraw all of my ETFs and then re-invest** them,but I didn't write down WHY. I assume this has something to do with taxes. **Am I actually supposed to do this? If so, why?**
VOO with IEFA for international exposure and IEMG for emerging markets are going to make for a nice well rounded portfolio.
I have $35,000 in a "high" (.4%) yield savings account. 30, single male, US-KY, Transportation Engineer, $85k salary Want to use the money to create more money and retire early. Long time horizon, no use for 20+ years. High risk tolerance, not afraid of 100% loss. Currently holding various amounts of VUG, VEA, VTV, VWO, IWB, IEFA, IVW, IVE in Roth IRA & Individual brokerage accounts. Smaller Roth 401k, ESPP, HSA through work. Total \~200k in retirement accounts. Own a paid off rental house worth \~$60k. Rent at $700 a month. Net \~$3-4k/year. I have \~$90k equity in current home. $180k left on 3.125% mortgage. No other debt. How much should I invest? And what funds should I select? I'm opening a Vanguard account to invest. Current monthly expenses are \~$3k. Thank you!
With Fidelity I have more than 3 holdings but to capture what you are asking I think my 3 largest holdings do pretty well ITOT, which is about 50% IEFA, international developed companies is about 15% And IEMG, emerging markets, about 10%. The last one has the highest expense ratio at only .11% Other holdings include some S&P Value and TIPS. It's a pretty simple portfolio but those top 3 really cover the bulk of equities you'd want to own.
Just inherited $100,00. Looking long term and letting the money soak for about 25 years (or more). My dad has managed my portfolio thus far, but I'm trying to get my head wrapped around all of this and learn how to manage it on my own. Currently in FXAIX, ONEQ, VB, VEU and IEFA with other money. My head is spinning a bit trying to find areas I'm not already at least partially exposed to. Should I just distribute the money into the existing funds (which seem well rounded?), or look to get into some new areas? I was looking at VUG, VTWG? Sector ETFs? Thanks
How long term is your investment horizon? If you plan on holding longer term (anything to the tune of longer than 5ish years) I’d say to diversify rather than dump into PMI. Dividends are great but they should only become the main focus of your profile once you’ve established a lot of growth. On another note I’d recommend taking a look at all the popular ETFs there are if that’s the plan you’ve got in mind for diversifying, VOO is a great choice but personally I dislike QQQ. Some great alternatives I recommend are DGRO, IEFA, SCHD, SPHD, SPYD, VEA, VTI, and VYM
Agreed. And Toyota is one of IEFA’s top holdings.
Take a look at IEFA for low-cost exposure to developed international markets.
For developed international you can do well with a broad total market index. IEFA is a good example. I recommend you avoid individual international stocks unless you are able to conduct the necessary research. for most, a broad index is a better choice.
The real question, should OP sell all stocks and go with a, $ITOT, $IEFA, $BOND portfolio??? Chances are if he/she did that, they'd be red for a while... (I ask myself that, too! Too many of my stocks are at 5% or under 10%...)
I implemented my version of the rational reminder podcast. The stocks to bonds ratio is up to you. Since you are very young going for 100% stocks is fine for now. Bonds : BND or AGG. BND is slightly cheaper. They both track the same index. Stocks beat bonds. 60% in total ‘quality’ stock. In the show they split it half in canadian and US stocks. This is nice if you live outside the US and your home country has nice total stock like ETFs. I live in French Polynesia so I have no real alternative. For me it’s 60% VTI. Then we try to get exposure to different sources of risk to follow Fama/French factor investing. - AVDV 6% - AVUV 10% - IEFA 16% - IEMG 8% Rebalance each time you buy or sell and don’t invest until you have a fully funded emergency fund and are debt free (except long term mortgage).
IEFA should be considered as well as small caps and for both us and world. It will create more balance. Look up multi factor investing. I invest for 25-50 years out. Depends on what your long or short term goals are.
Profits should be taken if you are rebalancing, but you have nothing to rebalance to. In your case, when the S&P 500 drops 30% next time, harvest your losses in tax lots that have them (since youve DCA in over time) and use a substitute (Non S&P 500 to avoid the wash) like VV (CRSP), IWB (Russell 1000), or SCHX (Dow Total US Large Cap). Then if you want you can buy back your S&P fund again after 30 days. More importantly IMO, I'd begin to diversify internationally and to emerging markets. IXUS is an easy one for that. Or IEFA and IEMG, can even add in SCZ for int small cap exposure. But anyway, I digress, not financial advice yadda yadda yadda
But index funds and stop looking at your portfolio. Your own psychology works against you. I would be 50% SPY, 25% EEM (or IEFA), 20% IEMG and reserve 5% for “mad money” where you can pick a stock or two. Don’t try to pick winners and losers in the stock market, you are a retail investor with less knowledge, less experience and probably less skill than almost everyone else. That doesn’t matter if you just buy and hold index funds, you will get 10-12% richer every year, which really adds up over time. Do not try and time the market. This is impossible unless you are just lucky. I am a long time investor and wealthy guy who was in your shoes one day. I know you probably won’t take my advice, because I made the same mistakes as you.
VOO tracks the US stock market, which is a smart holding; long term, it will give the greatest return(8-10% per year over decades). What many people do is put some money in bonds, which is a way to reduce risk because bonds and stocks have a low correlation(if stocks go down, bonds don't always go up). A good bond choice is BND. Additionally, you can think about a total market index(tracks smaller companies, not just the large ones) pick VTI. For international exposure, I'd pick IEFA. One thing to note, VTI and VOO perform very similarly, 99% correlation, but I'm keeping VOO in there because you already have it. An easy model portfolio would be: VOO: 25% VTI: 35% BND: 20% IEFA: 20% If you wanted a bit more towards smaller stocks: VO: 5% VBR: 5% And remove 10% from VOO Since you think that the market might go down: holding bonds will be a hedge against this. When you think that the stocks aren't overvalued anymore, then sell some bonds and buy some stock, and vice versa. Since you're looking to put in $10-15K, split your investing into 6. Every 2 weeks, invest 1/6 of that $10-15K. It's called dollar cost-averaging. It makes it so that it doesn't really matter if the market goes up or down in the short term, since you're constantly investing. There have been studies that show 1-2% in cryptocurrency of some sort is smart, but currently it's hard to recommend crypto until it's more accessible. If crypto ETFs come out soon, maybe that's a good choice, but right now I'd wait it out.
lol, yes! I'm in ITOT but similar, also with international funds like IXUS and IEFA. I'm planning to move funds over to bonds and high savings accounts in a few years once the interest rates change.... but we'll see!
I prefer ITOT to VOO. You can have both. You should probably get some international exposure as well: IXUS or IEFA.
Cool, so I had to google these. If you google the symbol it’ll tell you what they are. These are individual companies but rather different funds. Like IEFA is a fund that holds international stocks in emerging markets. One is a fund that picks 15 -22 us companies. VUG is a vanguard index fund of large cap companies ...
Hella boomer but: VUG, VTV, IEFA ( up like 30-40% YTD) I got mutual funds too if you want
>IEFA You look in fine shape. You could maybe add some fintech into that to make use of current low interest/stimulus/money printing monetary policy. Basically buying some of the companies that make use of all the extra money being circulated.
Can anyone explain how exactly the ETFs he choses tilt the portfolio towards each of the five factors: market bet, value, small cap, profitability, investment? My understanding is that he proposes: * 60% total market exposure - through XIC and VUN * 16% small cap value - through AVUV and AVDV * 24% unknown exposure - through XEC and XEF - **towards which factor do these ETFs tilt the portfolio?** Also, **how are the profitability and investment factors included?** I see that his ETFs choice is very Canadian-oriented. **Would the following choice replicate it well?** * [VTI](https://etfdb.com/etf/VTI/) or [ITOT](https://etfdb.com/etf/ITOT/) \- 55% (US broad exposure) * [BBCA](https://etfdb.com/etf/BBCA/) \- 5% (Canada exposure) * [AVUV](https://etfdb.com/etf/AVUV/) \- 10% (as Felix proposes) * [AVDV](https://etfdb.com/etf/AVDV/) \- 6% (as Felix proposes) * [IEFA](https://etfdb.com/etf/IEFA/) \- 16% (substitute for XEF) * [IEMG](https://etfdb.com/etf/IEMG/)\- 8% (subsititute for XEC)
Inherited a taxable account with Raymond James and the advisor wants to put me (31 M, USA) into: VOO 38% IEFA 15% IJH 11% MTUM 10% USMV 9% IJR 8% IEMG 5% SMMV 3% I told him I am okay with moderate risk, horizon is 30yrs, and I want lower expense ratios. Very passive strategy, he shouldn't touch anything. Any red flags? I like and know VOO but the other iShares I have no idea. %'s are approximated by me. Yes I know I should run from Raymond James but I'm feeling the water, I only have an IRA with a robo-advisor myself and will be a year or two before I feel confident to take control and move to Vanguard. Thanks!
I second the index. These are good ETFs: ITOT, IEMG, IEFA. It's always a safe bet provided you're young and can leave your money there for years.
These indecies: ITOT QQQ IEMG IEFA QQQ in particular is all tech.
VTI, VGT and VEU/IEFA forever, never check it.
Have you looked at lists showing the largest ETF's? Like this one https://etfdb.com/compare/market-cap/ You can kind of infer the most popular choices from there. VOO, QQQ, VTI, IEFA, etc.