NAESX

Typical_Web_2125

This custom portfolio is **significantly overweight in U.S. stocks** and **tilted toward Growth** compared to the [Vanguard Total World Stock ETF (VT)](https://investor.vanguard.com/investment-products/etfs/profile/vt). While VT provides a "market-cap weighted" slice of the entire global investable market, your portfolio is an active bet on the continued dominance of the U.S. and large-cap growth companies.  **Geographic Exposure** * **Heavy U.S. Tilt**: Your portfolio allocates **87% to U.S. equities** (combining VFINX, VIGRX, VIMSX, and NAESX). In contrast, VT maintains a roughly **62.5% U.S. allocation**, reflecting the global market's actual composition. * **Underweight International**: You have only **13% in international stocks** (10% Developed, 3% Emerging). VT holds nearly **37.5% in non-U.S. stocks**, providing much broader exposure to markets like Japan, the UK, and China.  Vanguard +2 **Market Cap and Style Tilts** * **Growth Concentration**: By adding 12% in Vanguard Growth Index (VIGRX), you are "tilting" away from the total market's neutral stance and betting on high-valuation sectors like Technology. * **Complex Mid/Small Cap Mix**: While VT naturally includes mid and small-cap stocks at their market weight, your portfolio manually allocates **15% to Mid (VIMSX) and Small-Cap (NAESX)**. This may result in a higher concentration of smaller companies than a market-cap weighted fund would typically hold. 

harrison_wintergreen

Just FYI here's a chart of 2000 to 2012. VFINX for the S&P 500, TPINX for bonds, NAESX for small cap and VFINX for international. https://imgur.com/a/s-p-500-2000-to-2012-XXkJTOx

harrison_wintergreen

Just FYI here's a chart of 2000 to 2012. VFINX for the S&P 500, TPINX for bonds, NAESX for small cap and VFINX for international. https://imgur.com/a/s-p-500-2000-to-2012-XXkJTOx

harrison_wintergreen

Ditto that I'd swap out the large cap growth fund for the S&P 500. Growth stocks have had a dynamite decade, but it may not last. These things move in big long cycles that takes years to play out. Make sure you're not fighting last year's battles. I disagree with everyone recommending 100% S&P 500. They are probably young and have never experienced a long periods of time when the S&P 500 will be the worst performing option in your 401k. IMO you want a healthy percentage of the overall investments in small cap stocks, international stocks and bonds. See this chart for the years 2000 to 2012, which uses VFINX for the S&P 500, TPINX for bonds, NAESX for small cap and VFINX for international. https://imgur.com/a/s-p-500-2000-to-2012-XXkJTOx

harrison_wintergreen

your TDF is fine. leave it alone, keep investing. just FYI, what you're doing is called "returns chasing" or "performance chasing." you're sort of assuming performance of the last 10 years will somehow predict the next 10 years. but that's rarely what happens with investing. I made these charts recently on Morningstar to illustrate the point. There are few ETFs with long enough histories, so I used mutual funds that were popular in this era.from 1989 to 2000, the S&P 500 was by far the best performing option. Chart uses VFINX for the S&P 500, TPINX for bonds, NAESX for small cap and VFINX for international. https://imgur.com/a/s-p-500-1989-to-2000-atg1a3Q but 2000 to 2012, because The S&P 500 was by far the worst performer. https://imgur.com/a/s-p-500-2000-to-2012-XXkJTOx In the US small caps and mid caps beat large caps from 1995 to 2015. https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png and your plan has only tiny international holdings, but from 1975 to 2020, an international developed markets index beat the S&P 500 over 40% of years. https://www.blackrock.com/us/financial-professionals/literature/investor-education/why-bother-with-international-stocks.pdf and the US was the 5th best performing developed market from 2001 to 2020, and nations 6-10 underperformed the US by less than 1%/ year average. https://topforeignstocks.com/wp-content/uploads/2021/09/Single-Country-Stock-market-Performance-From-2001-to-2020-934x1024.png

thewimsey

In general, it's easier and better and more efficient to have as few funds as possible. If you want to have an international component, just use one of the several all world indexes; that will give you global exposure at the proper ratios and you won't need to rebalance or realize gains. Alternatively, you could use VTSMX (or equivalent) for your US portion, and an ex-US fund in the percentage you want for for a separate international portion. You will still have to rebalance, and realize gains but only between two funds. With five funds, you might find yourself after a year with 35% VTSMX, 20% NAESX, 20% VEURX, 10% VPACX, and 15% VEIEX. (or whatever) Meaning some tedious selling and buying to rebalance, plus capital gains taxes to pay.

Freightliner15

TDFs are good for those who just want to set it and forget it. But, you will more than likely underperform and leave money on the table. Unless that's not a problem for you. If you can make VTI and VXUS out of your 401k options, I would do that or maybe just VFINX and NAESX.

harrison_wintergreen

>nothing has outperformed the S&P 500. plenty of things have outperformed the S&P 500, depending on the period of time. the S&P 400 (mid cap) and S&P 600 (small cap) both beat the S&P 500 from about 1995-2016. https://external-content.duckduckgo.com/iu/?u=https%3A%2F%2Fcontrarianoutlook.com%2Fwp-content%2Fuploads%2F2016%2F11%2F20yr-SPY-SmallCaps-MidCaps-Chart.png&f=1&nofb=1&ipt=d748287931786149a4345c1f394c064608a8df08c7ce9a9d5441711c7727efad&ipo=images bonds beat the S&P 500, 2000-2020. https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html DODGX beat the S&P 500 1990-2020, with total returns of 2555% vs. 1589%, see the purple line on the top chart: https://imgur.com/a/SQmcQkz DODGX also beat the S&P 500 2012-2022 by over 1%/year, and 2002-2022 it underperformed the S&P by only 13 basis points. https://www.dodgeandcox.com/content/dam/dc/us/en/pdf/fact-sheets/Dodge_Cox_Stock_Fund_Fact_Sheet_I.pdf DODGX beat the S&P 500 from 1985-2023, as far back as the data goes on Portfolio Visualizer. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2023&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=VFINX&allocation1_1=100&symbol2=DODGX&allocation2_2=100 DODGX goes back to the 1960s, so I wouldn't be surprised if it's beaten the S&P 500 since inception. NAESX (Vanguard Small cap fund) and FAGIX (Fidelity high-yield bond funds) both beat the S&P 500 from 1999-2023. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1999&firstMonth=1&endYear=2023&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=VFINX&allocation1_1=100&symbol2=FAGIX&allocation2_2=100&symbol3=NAESX&allocation3_3=100 the Templeton Growth Fund TELPX beat the S&P 500 from 1985-2005. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2005&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=VFINX&allocation1_1=100&symbol2=TEPLX&allocation2_2=100 it's really not hard to find things that beat the S&P 500 over long periods. I keep reminding younger investors that the S&P 500 is not magical.

JLucaslucasj

Simple answer is buy the whole market with solid mutual funds and ETF’s. VTI is a good suggestion as this is total US stock market. VGTSX is also good for international exposure. Add perhaps NAESX for small cap. Depending upon your age, you can add bond fund if want have a conservative basket. I would avoid individual stocks as too risky, however, if you enjoy stock picking I would limit this to 10-15%!of your portfolio. Lesson learned, move on, you’ll be fine.

InvestingNerd2020

Going back to January 1990 to December 2021: - VFINX (S&P 500) has returned a MWRR of 10.72% per year - NAESX (Small cap) has returned a MWRR of 10.81% per year.

Anganfinity

We can better backtest with the older brothers of those funds, NAESX for VB and since AVUV is former Dimensional Fund Advisers managers DFSCX is a fair choice [link](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=true&factorModel=5&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=NAESX&allocation1_1=100&symbol2=DFSCX&allocation2_2=100). Looking for the exposure to those factors is what's important if you're looking for access to the SCV risk premium. Will it persist? Who knows. The folks at PWL capital extended the AVUV methodology to look backward to test their approach too [link section 6.3.1 is where they detail AVUV](https://www.pwlcapital.com/wp-content/uploads/2020/12/Five-Factor-Investing-with-ETFs.pdf).