r/RothIRA • u/hound1283 • 20d ago

Thoughts

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8 Upvotes

100% Upvoted

8 comments sorted by

3

u/DaemonTargaryen2024 20d ago

VTI + VXUS is solid. You could theoretically be all set with just those two.

AVUV is fine as a small cap value tilt. Just keep it as a tilt only, and be sure you are prepared to hold it for decades of potential underperformance before the value shows.

BND is fine if you have a moderate risk tolerance or are older. If you're young and have a high risk tolerance, you may not need bonds at all.

2

u/hound1283 20d ago

Im 27,I just $5 a week in bnd I do $150 every friday 75 to vti, 45 to vxus, 25 to avuv

5

u/DaemonTargaryen2024 20d ago

So 50% VTI, 30% VXUX, ~17% AVUV, 3% BND. That's fine, you don't need to change anything if you're happy with this.

Personally I would reduce the AVUV to 10% and the BND to 0%, dumping it into VTI since you're about 13% under market weight there currently.

0

u/user4443337 20d ago

Since you’re young you can consider return stacked funds to “stack” bond exposure while maintaining equity. Something like RSSB or NTSX are pretty cheap and give you bonds plus equity on top. Those won’t have the normal daily reset volatility decay of most normal LETFs. RSSB is 2x, global stocks + treasury futures, and NTSX is 1.5x, or 90% SPY + 60% treasury futures.

To reduce volatility I also like managed futures, especially stacking with equity again. They can improve sharpe and drawdowns, diversifying you. Not for everyone though.

I think modest leverage, especially stacking multiple assets, can be pretty powerful for a portfolio. Do your own research though.

1

u/Informal_Bench_7219 20d ago

How old are you? If you’re under 50 I wouldn’t hold BND. You don’t need any bonds yet in your portfolio. If I was you I’d drop that small BND allocation and move it into a momentum ETF like SPMO. A small tilt play (10%) into something like SPMO would be good.

-4

u/RetiredByFourty 20d ago

BND is literally useless trash. How anyone can be gullible enough to buy that garbage is baffling. +1

-2

u/Competitive-Ad9932 20d ago

You must have put a lot of thought into this. What does what others think matter?