Depends. In 99% of cases I recommend a mix of VT (total world) and BND (total bond).
For those who are contrarian by nature. Have immense personal discipline. I recommend a tilt or all in on multifactors. AVDV, AVUV, AVES. The psychological makeup of someone pursuing strategies with tracking error is vital. Most people simply cannot do it. Many have tried only to capitulate at the worst time. So it’s dangerous l, behaviorally. But “should” earn 1-3% annual premium net of fees over the long term.
If you are someone who paints within the lines, needs the comfort of crowds, or caves when things don’t look good… stick with 2 or 3 fund bogleheads style
For those who are contrarian by nature. Have immense personal discipline. I recommend a tilt or all in on multifactors. AVDV, AVUV, AVES. The psychological makeup of someone pursuing strategies with tracking error is vital. Most people simply cannot do it. Many have tried only to capitulate at the worst time. So it’s dangerous l, behaviorally. But “should” earn 1-3% annual premium net of fees over the long term.
If you are someone who paints within the lines, needs the comfort of crowds, or caves when things don’t look good… stick with 2 or 3 fund bogleheads style
Statistics: Posted by Iknownothing2 — Tue Dec 26, 2023 1:03 am — Replies 30 — Views 2820