I think I didn't write my initial post clearly enough to communicate what I am asking.
Let's say my current portfolio is as below, which is actually close to what my actual allocations are.
Portfolio 1:
40% - S&P 500 (VOO ETF) and US Total Stock Mkt. (VTI ETF)
30% - US Small and Mid Caps (VB ETF)
20% - Total International Stock Mkt.(VXUS ETF)
10% - Total US Bond Mkt. (BND ETF)
In portfolio 1, I currently have a tilt towards small caps, which has been my allocation for almost 20 years.
Let's say, now, I am thinking about reducing my 30% tilt towards VB ETF and adding VGT or QQQ so that my allocation would end up like this:
Portfolio 2:
40% - S&P 500 (VOO ETF) and US Total Stock Mkt. (VTI ETF)
15% - US Small and Mid Caps (VB ETF)
15% - Technology Stocks (VGT or QQQ ETF)
20% - Total International Stock Mkt.(VXUS ETF)
10% - Total US Bond Mkt. (BND ETF)
So, we know that VOO and VTI are already heavily tilted towards tech stocks (about 30%), which means in my original portfolio 1, I already have a tilt towards tech stocks. However, with my 30% allocation to VB I end up tilting towards small/mid caps with VB.
If I re-allocate to the new proposed portfolio 2 with VGT/QQQ am I unintentionally removing the small/mid cap tilt and tilting back towards tech stocks (with VGT/QQQ + VOO/VTI)? As a result, am I unknowingly creating an overall allocation close to that of VTI - Total US Stock Mkt. without realizing it for the US stock portion of portfolio 2?
In a sense, thinking I am tilting towards tech and small/mid caps, but in a complicated round a bout way ending up with an allocation closer to what VTI has without realizing it?
I know it's a weird question and I am sorry for the confusion. I hope this makes it more clear.
Let's say my current portfolio is as below, which is actually close to what my actual allocations are.
Portfolio 1:
40% - S&P 500 (VOO ETF) and US Total Stock Mkt. (VTI ETF)
30% - US Small and Mid Caps (VB ETF)
20% - Total International Stock Mkt.(VXUS ETF)
10% - Total US Bond Mkt. (BND ETF)
In portfolio 1, I currently have a tilt towards small caps, which has been my allocation for almost 20 years.
Let's say, now, I am thinking about reducing my 30% tilt towards VB ETF and adding VGT or QQQ so that my allocation would end up like this:
Portfolio 2:
40% - S&P 500 (VOO ETF) and US Total Stock Mkt. (VTI ETF)
15% - US Small and Mid Caps (VB ETF)
15% - Technology Stocks (VGT or QQQ ETF)
20% - Total International Stock Mkt.(VXUS ETF)
10% - Total US Bond Mkt. (BND ETF)
So, we know that VOO and VTI are already heavily tilted towards tech stocks (about 30%), which means in my original portfolio 1, I already have a tilt towards tech stocks. However, with my 30% allocation to VB I end up tilting towards small/mid caps with VB.
If I re-allocate to the new proposed portfolio 2 with VGT/QQQ am I unintentionally removing the small/mid cap tilt and tilting back towards tech stocks (with VGT/QQQ + VOO/VTI)? As a result, am I unknowingly creating an overall allocation close to that of VTI - Total US Stock Mkt. without realizing it for the US stock portion of portfolio 2?
In a sense, thinking I am tilting towards tech and small/mid caps, but in a complicated round a bout way ending up with an allocation closer to what VTI has without realizing it?
I know it's a weird question and I am sorry for the confusion. I hope this makes it more clear.
Statistics: Posted by saver1 — Tue Dec 12, 2023 11:17 pm — Replies 6 — Views 369