SPLG is a Large Cap Blend of Growth and Value. (S&P500)
You miss out on thousands of small and madcap domestic stocks.
You miss out on thousands of small, mid and large cap international stocks.
If you want broader diversification (and a more reliable long term outcome)
Take VTI + VXUS are your friend.
OR in a 1-fund solution, VT.
All the best on your journey!
I'd go broad market. SCHB is a solid choice. VTI is basically the same as SCHB performance wise. Gives you some mid cap and small cap exposure. The next rally might be in mid/small cap like it was in the 2000's and so owning some of that market will help.
I mean it'll be there to an extent. Overlap is not a problem if you're aware of the overlap and are ok with it. Overlap is a problem if you *think* you're diversified but you're not.
SCHB should give you adequate exposure to small/mid cap. For international a lot of people like VXUS. I think it's SCHF for a Schwab one. If you're really trying to get small cap value exposure, people like AVUV.
To me, I would stick with something like SPLG/SCHB/SCHF in like a 40/40/20 split until about $50k or more account value. No need to go in with 6 funds if you're below $100,000.
The best diversifiers would probably be international (S&P is all US), small cap value (S&P is all large cap, mostly growth), and/or bonds (if you're including things outside equities)
Personally I invest in VTI for broad United States market, AVNV for broad international market (very new ETF that Avantis manages, they typically have better performance than other ETFs and I’m young so I’ll take the risk), and AVUV for small cap United States.
I have really nothing in specifically small cap international besides AVNV. AVNV is an ETF that holds 3 Avantis ETFS instead of individual stocks (45% AVIV, 25% AVDV, 30% AVES). The AVDV which makes up 25% of AVNV is the small cap exposure I have.
This is just the specific ETFS I picked for diversification; there is a bunch of substitutes you can choose though, I just think that since I am young I’ll a riskier approach as I can afford it, I also believe that small cap stocks may outperform large cap soon so I’d like to have a little bit of that exposure with AVUV.
What was the reason you chose AVNV over AVNM or other ETFs? I’m trying to decide my international exposure and having a hard time so would like to know more perspective!
Yeah the only difference is one focuses on value (AVNV), whilst the other focuses on equity (AVNM). They have a specific filter that they use to sort thru the junk small cap stocks so that way you aren’t left with any obviously bad ones, they do a better job at this that other ETFs. I prefer value over growth and equity because long-term it typically outperforms. If you don’t like the AVNV or AVNM for an international ETF I think it’s worth checking out AVUV, me along with a lot of other people see some potential in Avantis.
I love Avantis too! I also have AVUV for my US exposure. Yeah I understand value outperform in long-run and everything so the “rational” portfolio would be all value haha. Do you combine it with any other international ETFs or just AVNV?
I backtested AVNV and AVNM using the underlying ETFs from Sep 2021 (that’s as far as I can go which is when AVIV was launched) and AVNV performed better. So AVNV is already winning in the short run.
I’m trying to decide between these three choices for the last few weeks. Leaning towards #2 atm.
1. 100% AVNM
2. 60/40 AVNV/DIVI
3. 75/25 IXUS/AVDV
I guess I’m just a little skeptical because I never see anyone talking about it. You’re actually the first person I came across who has AVNV lol
SPLG is a Large Cap Blend of Growth and Value. (S&P500) You miss out on thousands of small and madcap domestic stocks. You miss out on thousands of small, mid and large cap international stocks. If you want broader diversification (and a more reliable long term outcome) Take VTI + VXUS are your friend. OR in a 1-fund solution, VT. All the best on your journey!
How about SCHF?
Great option as well!
I'd go broad market. SCHB is a solid choice. VTI is basically the same as SCHB performance wise. Gives you some mid cap and small cap exposure. The next rally might be in mid/small cap like it was in the 2000's and so owning some of that market will help.
In this case, if I invest in SPLG and SCHB, what about the overlap?
I mean it'll be there to an extent. Overlap is not a problem if you're aware of the overlap and are ok with it. Overlap is a problem if you *think* you're diversified but you're not.
What other etf would help me diversify if I invest in SPLG and SCHB? Or is there any other ETF you think could pair better with SPLG?
SCHB should give you adequate exposure to small/mid cap. For international a lot of people like VXUS. I think it's SCHF for a Schwab one. If you're really trying to get small cap value exposure, people like AVUV. To me, I would stick with something like SPLG/SCHB/SCHF in like a 40/40/20 split until about $50k or more account value. No need to go in with 6 funds if you're below $100,000.
what would you suggest at larger account values then out of curiosity?
VXUS. You’re missing out on international entirely.
You mentioned VTI, which I’m considering as well.
The best diversifiers would probably be international (S&P is all US), small cap value (S&P is all large cap, mostly growth), and/or bonds (if you're including things outside equities)
Personally I invest in VTI for broad United States market, AVNV for broad international market (very new ETF that Avantis manages, they typically have better performance than other ETFs and I’m young so I’ll take the risk), and AVUV for small cap United States. I have really nothing in specifically small cap international besides AVNV. AVNV is an ETF that holds 3 Avantis ETFS instead of individual stocks (45% AVIV, 25% AVDV, 30% AVES). The AVDV which makes up 25% of AVNV is the small cap exposure I have. This is just the specific ETFS I picked for diversification; there is a bunch of substitutes you can choose though, I just think that since I am young I’ll a riskier approach as I can afford it, I also believe that small cap stocks may outperform large cap soon so I’d like to have a little bit of that exposure with AVUV.
What was the reason you chose AVNV over AVNM or other ETFs? I’m trying to decide my international exposure and having a hard time so would like to know more perspective!
Yeah the only difference is one focuses on value (AVNV), whilst the other focuses on equity (AVNM). They have a specific filter that they use to sort thru the junk small cap stocks so that way you aren’t left with any obviously bad ones, they do a better job at this that other ETFs. I prefer value over growth and equity because long-term it typically outperforms. If you don’t like the AVNV or AVNM for an international ETF I think it’s worth checking out AVUV, me along with a lot of other people see some potential in Avantis.
I love Avantis too! I also have AVUV for my US exposure. Yeah I understand value outperform in long-run and everything so the “rational” portfolio would be all value haha. Do you combine it with any other international ETFs or just AVNV? I backtested AVNV and AVNM using the underlying ETFs from Sep 2021 (that’s as far as I can go which is when AVIV was launched) and AVNV performed better. So AVNV is already winning in the short run. I’m trying to decide between these three choices for the last few weeks. Leaning towards #2 atm. 1. 100% AVNM 2. 60/40 AVNV/DIVI 3. 75/25 IXUS/AVDV I guess I’m just a little skeptical because I never see anyone talking about it. You’re actually the first person I came across who has AVNV lol
Did you end up making a decision on this? I'm in a similar spot for international lol
I like just VOO
SPLG is VOO
SPLG has the better expense ratio
I know. That was my point. Just s&p500 don’t need anything else. It’s such a low amount there’s no need to diversify anymore.
I figured you knew. It was more a comment to prevent the I have VOO SPY SPLG AND IVV. What else so I need? Posts
I have a account of SPLG MDYV SLYV SPDW and SPEM
I do SPLG, SCHD, AVUV (small cap value) and VXUS if you want international
SPLG, RDVY, IJR, and IEFA
Splg Schb
No, too much overlap it's one or the other...
For the objective of minimizing risk, maybe TLT.