I tilt to small cap value.I am extremely grateful to this forum for helping us set and keep our investing plan. I am also a longtime reader of White Coat Investor. There is so much to read and learn from people on here and other resources that I feel like there is always room to improve our portfolio (which I know can be dangerous...).
Our overall portfolio:
70% US stocks (VTI - Vanguard Total Stock ETF)
25% International Stocks (VXUS - Vanguard Total Intl. Stock ETF and VEA - Vanguard Developed Intl. ETF)
5% Bonds (BND)
Other assets:
2 homes (Neither are investment properties, so I don't count these in our asset allocation, but should I?)
1 small ownership position in a commercial property
Real Estate Questions
As income and net worth has grown, I'm looking for new ways to invest and diversity. I have absolutely no interest in owning individual rental properties, but I've thought about adding a REIT ETF to our Roth IRA to get exposure to real estate in our portfolio.
1. for those who have added a REIT, why? Do you also invest in an international REIT?
2. do you count your primary and secondary residences as "real estate" for purposes of asset allocation?
Small Cap/Value Investing
I know this is one of the more controversial topics on Bogleheads, much like US vs. international. Having done a lot of reading, I'm coming around to the idea that I would eventually benefit from a small cap value tilt in both international and US.
1. given that I didn't start my investing career with SCV, would it be detrimental to start trying to add it in now? I would likely need to do this in Roth, but the vast majority of our investments are in taxable, since we have such limited tax advantaged space.
2. does an emerging market fund give you similar small cap and value fund for international?
Or, should I just leave things alone and stop trying to optimize?
You already have exposure to real estate. Don’t overweight it.
Your current portfolio is good and reasonable.
Why are you looking for new ways to invest and diversify. I see many investors constantly tinkering and it’s bad.
Go learn about factor investing. Don’t do anything until you have learned more. If you have to ask don’t do anything. Your current portfolio is good. To decide about factor investing you can look for Larry Swedroe information and books. Rick Ferri will give you an opposing view but I think he still has a small factor tilt.
Statistics: Posted by BitTooAggressive — Sun Sep 15, 2024 2:54 am — Replies 16 — Views 786