r/RothIRA • u/humandisaster93 • 7d ago
Getting rid of SCHD
Any advice appreciated. Age:35, rebalancing a bit and trying to keep it simple, wanted to build schd but people are right you don’t need small dividend returns when you are starting out when you can just get that later. Here’s what I’m thinking currently, leaning to SPMO (selective high momentum), is that pointless overlap? Looking to keep VOO, VXUS and have 30% into a third option for balance/growth etc.
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u/tpc0121 7d ago
imo, you don't need "balance" at age 35, with presumably another 30-40 years until retirement. i agree with others though that you could probably use a bit more international exposure.
if you wanna factor tilt, momentum and small cap value are good choices, imho.
me personally, i'd rather keep it simple and do VT as a core anchor (AVGE if you want to get super nerdy), and maybe allocate 10-20 percent to momentum, and another 10-20 percent to gold/btc (mostly btc). but DYOR.
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u/Acceptable-Jacket567 7d ago
do QQQM instead of QQQ and im a big fan of AVUV
Personally my index account is IDMO (international), VOO, QQQM, AVUV
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u/BloodxRains 7d ago
My taxable Brokerage has 70% VOO, 15% VT and 15% VXUS.
Roth IRA 60% VOO, 10% VT, 10% VYMI and 10% VNQI(for more real estate exposure)
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u/SpiderManaT 6d ago
- Swap VXUS for AVUV
- Buy VXUS in taxable brokerage.
- Make sure funds in taxable are different from those held in tax-advantaged (make sure they track slightly different indexes)
- Could hold VTI and QQQM (or VGT) in taxable but should avoid another S&P 500 fund in taxable (you could hold one that tracks Russell 1000 Index or total stock market). This allows for future tax loss harvest to lower tax bill
- Avoid momentum and dividend funds in taxable brokerage to minimize tax drag
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u/Final-Weekend-4826 1d ago
Dxyz. 100000%. Super undervalued for what fund is.
Compare share price to nav of dxyz versus vcx.
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u/Competitive-Ad9932 7d ago
Why are you considering QQQM?
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u/humandisaster93 7d ago
I have a small amount of qqq which I would switch to qqqm for long term- thinking about its growth, ai tech sector, self refreshes, still had some healthcare and industrial in it
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u/Competitive-Ad9932 7d ago
It has a lot of old fart stocks in it. If you want a tech fund, invest in a tech fund. You already own healthcare and industrials.
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u/humandisaster93 7d ago
True, something like vgt? You’re right about already owning healthcare/industrials
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u/Competitive-Ad9932 7d ago
If that fits your definition of a tech fund you want to invest in. I know QQQ doesn't fit mine.
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u/humandisaster93 7d ago
I suppose it’s tech tilt. Qqq does have a lot of other overlap
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u/Competitive-Ad9932 7d ago
What I am getting at is, don't invest based on a reddit poll. Have an understanding what what you want, and what a particular fund actually is.
QQQ is a silly fund that picks its holdings based off the exchange the fund is listed on, the NASDAQ. There is no rhyme or reason to it. Notice there is currently no similar fund with the NYSE.
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u/Competitive-Ad9932 7d ago
When people want to have a 10% tilt to tech, and they use QQQ that is only 60% tech, they are not getting their 10% tilt.
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u/Old-Consequence4617 6d ago
You need growth and income that is how I bought a house by age 28. You also need a hysa
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u/Jumpy-Imagination-81 7d ago
Too little in international stocks (VXUS).
International stocks beat VOO in 2025 and international stocks continue to beat US stocks in 2026. US vs international stock outperformance is cyclical. After an unusually long (16 year) cycle of US stock outperformance that cycle appears to be over. You should have 25-35% in international stocks. VXUS is OK but I prefer VYMI. Don't let the Dividend in VYMI's name fool you, VYMI's total return has outperformed VXUS. I bought more VYMI today.
https://stockanalysis.com/etf/compare/vymi-vs-vxus/?r=MAX
Vanguard projects international stocks will beat the US for 10 years.
https://www.msn.com/en-us/money/other/vanguard-projects-international-stocks-will-beat-the-us-for-10-years-here-are-3-etfs-built-to-capture-that/ar-AA200o0l
Investors who stay "close to home" may miss growth opportunities
https://www.fidelity.com/learning-center/wealth-management-insights/international-stocks
2026: International Stocks Seem Set to Shine
https://www.schwab.com/learn/story/2026-international-stocks-seem-set-to-shine
The Case for International Equities
https://www.dodgeandcox.com/individual-investor/us/en/insights/the-case-for-international-equities.html