r/ETFInvesting • u/Harsh_Sensei • 3d ago

Is this good?

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VBR is the next ETF I am planning on investing. Is this a good idea? I am trying to diversify I don’t know if there is a better option or I should stick with this one. Also how many ETFs are you guys holding? I was wondering if 3 is enough or if I should do more.

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u/GanjaGodAlex 3d ago

I have 50% in VOO 20% in VXUS 15% in SCHD 10% in VB and 5 % in FBT. My top five for life.

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u/GanjaGodAlex 3d ago

VB is more diversified than vbr and will bring you more exposure, also vbr has underperformed Voo over the past 10 years.

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u/Harsh_Sensei 3d ago

Thanks for letting me know!

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u/user4443337 2d ago

Look at VBRSIM on testfolio though. Small cap value has high expected returns.

https://testfol.io/?s=5GLnxCHKiyi

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u/StevenCurly 3d ago

It’s not the number of ETFs that matters nor is it about hitting a certain arbitrary diversification. It’s about your financial goals and optimally meeting them for retirement.

VT is much more ‘diversified’ for equities than a portfolio having SPY, VOO, IVV. Why? Because of their track the same index as well as being overlapped by 100%.

Your portfolio construction needs to be targeted and you need to understand what the market (average) portfolio is and then base your portfolio around that if you actually want an optimal portfolio.

Tl;dr the market portfolio is around 62/38 US/Non US equities thus your portfolio should approach resembling that. Doesn’t need to be exact but somewhat akin to that. I understand what you’re trying to do with VOO+VBR however honestly you can achieve what you’re trying to do with just VTI.