IVLU
iShares Edge MSCI Intl Value Factor ETF
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I'd go with IVLU or VYMI. Around 4% income and 1 year total returns around 24%.
Exactly. The "risks" that were becoming apparent were crazy ass tariffs and who knows what else to come. The amount of anti-US sentiment generated is part of the fallout. No need to accept these risks. I went 70% VUSB (short term bonds) and 30% spread across international (IVLU and a couple others) and some SCHD and one or two homeowners ball stocks (ASTS, which i have been holding). VUSB will likely return 5%+ this year, so 70% getting 5% return, plus whatever from the 30% equities, is not nothing. "Cash" does not mean 0 return
Please don't buy anything that's not going up, even if it's just to DCA in. There are literally over 3500 other ETFs available to us. Consider these tickers I screened in for myself today; just look at their charts and see what you think: **HEDJ** & **DBEU** - "Europe Hedged Equity" **IVLU** - "International Value" **EWG** - Germany
I needed a new ETF today, and what screened in from 577-ticker watchlist sorted by past-3-month return were: **EWG** - Germany **HEDJ** & **DBEU** - "Europe Hedged Equity" **IVLU** - "International Value" They all had very similar charts, but I went with **HEDJ**.
VXUS and VLUE will help with diversification. Or replace VXUS with IQLT, IVLU and EMGF if you want to outperform.
Watching some videos by the Plain Bagel will help you gain a basic understanding of the market. As for stock picks, I'd recommend Apple, Nvidia, and Berkshire Hathaway. I wouldn't recommend an ETF because XQLT doesn't have a high enough trading volume for putting $8,000 in and other ETFs may provide inferior returns. Unless you're allowed to buy US ETFs, in which case I'd recommend QUAL, IQLT, VLUE, IVLU, and EMGF. These are more diversified and less risky than individual companies would be whilst providing better returns compared with VT or ACWI. If you want to invest in individual companies, stick with large companies with a market capitalisation above $500 billion because they're less risky and better for beginners.
true diversification means you hold (a) different stocks and/or (b) different strategies, with the goal of boosting long-term returns and having holdings that are more likely to offset each other or move differently. if you buy VUG, VTI, VOO, QQQ and XLK that's not well diversified because you're just doubling up on all the same large-cap growth stocks in the US. these ETFs will all move the same because they're all dominated by the same stocks. if you bought VOO (S&P 500 US large cap), SPSM (S&P 600 US small cap) and IVLU (international large cap value stocks), that would be more diversified with 3 ETFs than with the 5 in the first example. these will not all move the same, they will likely offset each other ... one will be dominant for a few years while the others lag. in my Roth IRA at Fidelity, I hold FLPSX, which is a global value fund mostly mid-cap stocks. despite the higher fee, I use this one specifically because it has a very different strategy from most funds or ETFs. I don't want to be concentrated in all the same stocks, I want to see different top-10 holdings in some of my investments.
When SP500 hits 3400, with my cash reserves ill be buying VTI (50%), IVLU (10%), GNR (20%), VWO (10%), physical gold (10%).
it's a good time to invest, but not the best time for 'growth stocks' that dominate VOO, VTI and QQQ. when inflation is rising and interest rates are higher, 'value stocks' tend to perform better. so the next few years, things like VOOV for US stocks and IVLU for international will probably perform better.
Obviously not financial advice; AVUV/AVDV for small caps specifically RPV/IVLU for large cap value side QVAL/IVAL if someone wants a concentrated fund cap-agnostic (more expensive relative to the other funds above) All have extremely low overlap with VBR. VBR neither captures small nor Value effectively unfortunately. QMOM and IMOM worth looking into for anyone that believes specifically in Momentum and not just Value. Usually held at weighting of 60 Value: 40 Momentum. Pairs well with the above too. Tool for testing overlap https://www.etfrc.com/funds/overlap.php
93% IVLU (iShares MSCI International Value Factor ETF) 7% SQQQ (3x short NASDAQ) Nvidia is highly speculative and will be a bubble if it isn't really true that Jenson & crew are way smarter than the rest of the industry (and they just made a few good calls and benefited from a chip shortage). MSFT looks like a relatively good tech stock to me since they don't seem as threatened by upcoming antitrust battles compared to the other tech giants (mainly the The European Union Digital Markets Act). But I'd still be concerned about companies with high P/Es due to fed members talking about the possibility of 50pt rate hikes.
I buy IVLU, but there are several competitors...
I've been buying IVLU, VDE. Inflationary environment benefits oil companies and international value. Both have decent dividends and good P/E.
VOO and QQQ are practically the same thing. look at the top 10 holdings for each ETF, and you're buying a lot of the same stocks twice. Apple, Microsoft, Nvidia, Tesla, etc. completely dominated by American large tech-leaning companies. QQQ is also more concentrated, only 100 stocks basically in a single industry, so potentially more risk than 500+ stocks in different industries. it's had such a red-hot run the last few years, I anticipate it'll cool off eventually. I'd recommend VOO + VXUS (60/40 or so) or VTI + VXUS (60/40) or VOO + VB (small cap) + VXUS (50/25/25) >so does it really matter how the market is right now? potentially. the S&P 500 under-performed 1-year T-Bills from about 1968-1982, and from 2000-2012. QQQ reached a peak in 2000, crashed, and needed 13+ years to recover. the Nikkei, main Japanese index, peaked in the late 1980s and needed 30 years to recover. in all cases, there was a big bubble that crashed. so buying at the peak can be a problem. I'm not saying there's reason to panic, but the US market, as measured by the Shiller P/E ratio, is at its second-highest point in history. historically, that's a bit of a red flag. https://www.multpl.com/shiller-pe you could offset this risk by adding a total market fund (like VTI) or a healthy chunk in small-cap stocks (small cap dominated in the 1970s and after 2000). or add a small position, maybe 10%, in something completely different by holdings and strategy -- maybe DVYE (emerging market high dividend stocks), IGRO (developed markets international that have increased dividends historically). or perhaps a value-investing option that screens out overvalued stocks (VOOV, IVLU, etc)
There are a few important concepts to establish. The first is that financial markets are pretty [efficient](https://www.youtube.com/watch?v=rbPVTqd468c&ab_channel=BenFelix). The practical implication of this knowledge for investors is that increasing your returns can be done mainly by increasing the risk you take, but beating the market through active management is accomplished by very few people over long periods of time. Selecting active managers or picking stocks on your own nearly always results in [underperforming](https://rickferri.com/wp-content/uploads/2018/05/WhitePaper.pdf) the market in the long run. So invest in a portfolio of broad index funds, which are diversified and rules-based. The second concept is that the study of asset pricing has found that some categories of stocks are riskier than others (i.e., more volatile), and generate greater long-term returns. Perhaps the most robust finding is that value stocks outperform growth stocks in the very long run. Value stocks are those with prices lower than would be expected from their fundamentals; growth stocks are the opposite. See videos [here](https://www.youtube.com/watch?v=2MVSsVi1_e4&ab_channel=BenFelix) and [here](https://www.youtube.com/watch?v=kYO7xrHhqsY&ab_channel=BenFelix) for more on this. The value premium is particularly strong in small cap stocks, so small cap value is an important category. The basic approach to applying these findings is to start with a globally diversified core fund, like Vanguard's total world stock fund [VT](https://investor.vanguard.com/etf/profile/VT). You could stop here and have a great portfolio with global diversification in one fund. But we can overweight certain subsets, particularly value. We do this by including allocation to small cap value in the US with [AVUV](https://www.avantisinvestors.com/content/avantis/en/investments/avantis-u-s-small-cap-value-etf.html) and internationally with [AVDV](https://www.avantisinvestors.com/content/avantis/en/investments/avantis-international-small-cap-value-etf.html). We can also include mid and large cap value with funds like [VOE](https://investor.vanguard.com/etf/profile/VOE), [VTV](https://investor.vanguard.com/etf/profile/VTV), and [IVLU](https://www.ishares.com/us/products/275382/ishares-msci-international-developed-value-factor-etf). It depends on what level of complexity you want to deal with. Personally I'm comfortable having a lot of allocation to small cap value. But it's volatile and you have to go into it knowing that value stocks won't always beat the total market. If they did, investing in them would be easy and everyone would do it (and then it wouldn't work anymore! haha). But based on historical returns and a solid theoretical understanding of why value stocks have outperformed, we can confidently say that in the long run, they will continue to outperform. If you'd like to read more about this, I wrote a guide to the fundamentals of investing [here](https://github.com/investindex/Intro). It has links to videos and other readings to make it as easy as possible to learn. I explain as clearly as I can what index funds are, what the risks of stocks and different kinds of bonds are, how to build a stock portfolio, how to plan for retirement, etc. If you decide to take a look at it, maybe let me know what you think, or if there's anything I didn't explain clearly.
If you want to keep VOO as a core position could offset that with some international options that are more focused on under-valued stocks. things like IVLU, IDV, GVAL, FIDI, FNDF ...
Ok I'm back. You asked me to compare vs your initial target. Again, I will lead with my last comment which is that since none of us know your intended goals, financial aptitude, or desire to actively manage a portfolio, then we cant provide any meaningful recommendations. For example, I would have very different feedback depending on whether or not you intend to actively manage the portfolio or just buy and forget for 30 years. Specifically, there are certain opportunity sets based on the current market climate (value, international/emerging, small cap) that look very appealing compared to broader market exposure, and doing an overweight tilt in those directions \*could\* yield alpha. BUT, in the same way that current dislocations have made those opportunities attractive to buy, at some point in the future they will be more attractive to sell -- if you don't want to (or cant) manage your portfolio actively, then it doesn't make sense to tilt like that and holding broader market funds is definitely the solution. Let's make a few assumptions....let's assume you have a decent understand of markets/economics, intend to maintain moderately active as far as managing your portfolio, and have a high risk tolerance, and maybe most importantly you don't need this money within the next 5-10 years for a major purchase, emergency, etc. Given the above, here is my feedback: \- Way too much s&P exposure. While it feels good now because it has been going straight up for 20 years, the s&P is at record valuations by almost every metric. And yes I know, interest rates, and this and that and \*insert excuse here\*. The fact is that price and time are the two largest determinants of return. If you buy at a bad price it's going to be ugly. Historical 10yr equity returns at current valuations are around 1-2% real. S&P has basically become a large cap tech index -- listen to any intelligent market commentary right now and basically everybody agrees that large cap US tech is the most richly valued asset class right now. No thanks. [https://www.tradingview.com/x/xyk4Lmzq/](https://www.tradingview.com/x/xyk4Lmzq/) \- International developed and EM are currently way cheaper than the US. Personally I have 60% of my 401k going into international markets right now (10% going to s&P although I do have another account about the same size with much more US exposure). There are lots of good ETFs to get broad exposure that range from simple (ie: IEMG, or VXUS) to more complex (IVLU, EYLD). Technically, EM chart is looking beautiful right now too. As you can see in the first chart, US has basically gone parabolic since 2000....as you can see below, EM has been range bound and is JUST starting to break out. [https://www.tradingview.com/x/8YMv8wlX/](https://www.tradingview.com/x/8YMv8wlX/) \- Value. Not much to say here besides the fact that buying cheaper assets while everything is inflated seems like an obviously preferential option. Value has been DEAD for the last 20 years but these sorts of risk factors have historically always mean reverted. This first chart below is vanguard value index (vtv) vs ndx (nasdaq)....basically value vs growth. Value has underperformed growth by around 70% since 2005. [https://www.tradingview.com/x/KOft8Cme/](https://www.tradingview.com/x/KOft8Cme/) \- Buy equal weight instead of cap weighted. This is just something to think about generally as it does make a difference. Small caps have a different return profile than large caps (generally higher but more volatile) so if your goal highest growth possible, then you would want to hold equal weight indexes (instead of cap weight) and effectively overweight small/mid caps (that "overweight" is on a relative basis compared to the cap weight benchmark). \- The value factor is proven to exhibit itself more strongly in small cap stocks. In this moment (as size and value risk factor have been out of favor for 10-20 years), it's looking like small cap value will have a pretty strong run of outperformance over s&p. \- Why are you holding gold? I assume just to diversify or inflation hedge? Why not also buy a commodities index and/or TIPS? I like metals/commodities right now but this is definitely a VERY cyclical asset class and will require some degree of "timing" or sell discipline in the next 3-5-10 years. Generally, the cyclicality of these assets is what causes them to underperform equities on a long term basis, but that doesn't mean that there aren't periods of opportunity (like now). ​ I realize that was a lot that I just typed up there....and a lot of reference to fairly dense academic concepts. My point is just that there are a lot of good opportunities in the markets right now but you need to be slightly contrarian if you want to take advantage of them. If I were to make very quick recommendations: \- take 30% of the 64% s&P exposure and put it into a int developed ETF \- opt for a value tilted s&P etf instead of just the s&P (there are tons of options). \- Add small cap value US Tilt (SLYV) \- If you really want to go out on a limb, look for small and or value funds for the international exposure Ie something like EYLD or AVDV. ​ If you want to lean more on any of that, do some googling on risk factors, Fama-French factor investing, etc. Also, this guy Ben Felix provides the best videos (that I have found) on these acemic concepts.....he has a TON of really good content and breaks down the pillars of academic investing theory. https://www.youtube.com/watch?v=jKWbW7Wgm0w https://www.youtube.com/watch?v=RR7e1Y-HJxQ ​ This is not financial advice...i'm just some retarded nerd with too much time. Cheers.