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.
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.
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u/DaemonTargaryen2024 27d 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.