[Kyle]

Currently I’m investing only in VTI. I’m in my accumulation phase and am looking for recommendations to improve my investing.

I have heard some say having 50% VTI and 50% Small Cap value is a better setup. Any recommendations on ETFs I can look into?

My brokerage and roth ira accounts are with Vangard if it matters.

[Robby]

I would look at the boglehead philosophy. Basically, broad diversification (entire world) with low cost index funds.

A simple way would be to just “VT and chill”.

Whatever you do, don’t overweight some sector or factor that you think is going to do well.

Just diversify and leave it alone.

[Luke]

VIOV if you want a pure small cap value index fund. AVUV or DFSV if you want a slightly active approach that will incorporate other factors.

Active vs Passive isn’t as black and white as others make it out to be.

I think of it more on a sliding scale than either one or the other.

AVUV (from Avantis) jointly targets the value and profitability factors within the Small Cap universe.

DFSV (from Dimensional Fund Advisors) targets value and then uses profitability as a screen to overweight, underweight, or exclude certain stocks within the Small Cap universe.

Both funds use momentum as a screen to influence trading decisions.

That means they don’t add stocks until they have positive momentum, and don’t remove stocks until they have negative momentum.

There are some other minor differences between AVUV and DFSV, but over the long-term they will probably have similar performance.

Don’t use VBR. It is not as small or value tilted as the other products I have mentioned.

[Scott]

You can add size and value and other factors, or you can VTI and chill. The most important thing is to get the one you can live with through thick and thin.

You may end up in the same place (both of these individuals did get silver medals).

[Mark]

it could be a better allocation. it could not be. no one knows the future. it depends on how much u believe in small cap.

there is no such thing as the “best” portfolio.

a popular beginning investor mistake is to think more funds = better. usually this is false

[Author]

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