AVUV
Avantis U.S. Small Cap Value ETF
stock NYSE ETF

Optimal portfolio theory would tell you to seek higher leverage with smaller funds because large percentage losses are still much easier to make up for.
I use 2X leverage (writing SPX-Box spreads for low-cost, tax-efficient credit) on a 200k Portfolio with internationally diversified small-cap-value funds (25% AVUV, 25% AVEE, 50% AVDV), deleveraging as my portfolio grows.
I aim for 1X leverage at 500k and about 0.8X at 1M. These numbers need to slowly be adjusted upwards with inflation. (e.g. 1M now might equate 2M in 30 years).
Also, I would double those numbers if I had a spouse to support.
The rationale is, that I wont ever need more than 1M in retirement if I factor in social security and a paid-for house, so there is no point going high risk at that point, whereas using high leverage now gives me the highest chance of getting there.

I was wondering if I should get AVUV, specifically. So should I get that, leave my profile alone, or get another small cap ETF?

AVUV is not bad but VTI holds them also & unless your talking BIG$ 10% is small. I like the 50 25 25 but VOO you dont get the small caps like you do in VTI

I’ve heard that AVUV underperforms a lot of the time for many years at a time. I am thinking of just putting that 10% into VOO then splitting the rest 20/20 QQQM and VXUS. Is that good or would it be better to increase VXUS and QQQM like you suggested?

yes but if you want MAX growth switch VOO for VTI that gives you the small/mid cap pop & with QQQM gives you acceptable tech overlap which helps with growth & you young enough to handle dips 10% AVUV is to small just fold it onto the other 2 do 50% VTI 25% QQQM 25% VXUS

I have a degen account, and a VOO, AVUV, VXUS, QQQM account at ~50, 10, 15, 25 weights account.
Exposed to US large and small with the ability to re-weigh easily, as well as to international stocks. I know QQQM is a lot of overlap with VOO, but I’ve got 45 years and want the added tech exposure.

VOO is excellent, but it is just US large caps. To supplement with no overlap you could add AVUV (small cap) and VXUS (non-US).

50% SCHK (US Large-Cap + Mid-Cap, Market Weight)
15% SPMO (US Large-Cap Momentum)
15% AVUV (US Small-Cap Value)
5% SCHF (International Developed Large-Cap + Mid-Cap, Market Weight)
5% SCHE (International Emerging Large-Cap + Mid-Cap, Market Weight)
5% IDMO (International Developed Large-Cap Momentum)
5% AVDV (International Developed Small-Cap Value)

This is what I do for minimal overlap.

AVUV and hold on for dear life.

It's a totally fine portfolio, and would probably serve you well.
If you are looking to be diversified, you should probably get rid of Nasdaq, and put more into the S&P. If you are looking to bet big on tech (and therefore are ok being more concentrated), it's not a bad idea.
If you truly wanted to be more diversified, you could replace the Nasdaq with a Small-Cap value ETF like AVUV. Small-Cap Value has a higher expected returns than the S&P, but you might have to deal with years of underperformance.
The only other thing you a missing is Mid-Caps, but it's not a huge deal.

>AVUV is redundant with VTI
I do not currently tilt, but if one is actively convinced by the factor literature, it isn't redundant to overweight SCV using AVUV because the goal is to increase one's exposure to factors other than market beta. (Holding AVUV for any other reason would be redundant, however, so I am not necessarily completely disagreeing)

SPMO was also very popular for a while. AVUV is another popular one.

AVUV is redundant with VTI
Cash for buying the dip on average gives lower returns and is the opposite of boglehead
10% gold and 5% Bitcoin is very excessive, 0% preferred but maybe a couple percent if you really need it
If your dollar exposure feels high risk to you, international stock is great, 40 % is about the current VT ratio, go 50% VXUS if US exposure gives you anxiety. And consider non US bonds if you want lower risk

This is what I go with. Some might argue that there is not enough international, which may be true, maybe not. I tried to cover everything, with no overlap. Just an idea.
50% SCHK (US Large-Cap + Mid-Cap, Market Weight)
15% SPMO (US Large-Cap Momentum)
15% AVUV (US Small-Cap Value)
5% SCHF (International Developed Large-Cap + Mid-Cap, Market Weight)
5% SCHE (International Emerging Large-Cap + Mid-Cap, Market Weight)
5% IDMO (International Developed Large-Cap Momentum)
5% AVDV (International Developed Small-Cap Value)

Would do 75% VOO (or VT) - 25% AVUV. Yeah, and the one-spouse for life approach (if you’ve got to have one) is the way to go. Divorce is costly.

Active does not really tell you much about what is actually happening with those dollars. Active has an actual definition for filing the prospectus primarily defining the rules the fund must abide to about the timing of rebalancing and relationship to an index.
For instance, there was a period where AA funds QMOM/QVAL were registered passive.
Within active funds there is a big difference between systematic and discretionary active funds. Funds that systematically deviate from an index such as Avantis AVUS (which is highly correlated to VTI) and AVUV will behave very similar to a passive fund in the sense that they can be replicated easily by matching their factor loadings. Discretionary stock picking funds are going to be much more akin to what people think of when they hear active management.

I would have you do VOO and AVUV, and her do VOO and IXUS and pray you guys stay together till retirement lol 🤞🏼

Hi all,
I’m finalizing my asset allocation and wanted some honest feedback. My investment thesis involves diversifying away from the US Dollar, so I am intentionally tilting my portfolio a bit toward international markets/non-USD assets.
My Questions:
Allocation Risk: Am I overweighting on weak dollar and rate cut?
US Exposure: Is 50% US Large Cap sufficient, or am I underweighting the US economy too much?
Rebalancing: How do you all rebalance the portfolio, and how frequently.
Thanks for the feedback.
|**Allocation**|**Ticker**|**Asset Class**|**Expense Ratio**|**Role in Portfolio**|
|:-|:-|:-|:-|:-|
|50%|VTI|US Stocks|0.03%|Half allocation on US economy|
|10%|AVUV|Small Cap|0.25%|Rate cut winner|
|10%|VXUS|International Stocks|0.05%|Dollar hedge|
|10%|SGOV|Bond|0.09%|Cash for Buying the Dip|
|10%|GLDM|Gold|0.10%|Dollar hedge, Growth|
|5%|IBIT|Bitcoin|0.25%|Dollar hedge|
|5%|\-|High Growth/Speculative|\-|Hyper-Growth, Bet|

If you can tolerate volatility and are holding long term, you want something with a high ceiling potential. Not solely that but you want that somewhere in your portfolio. Emerging markets and small cap value fit that bill. They fit that bill more than the buzzword “growth”.
Large cap growth and tech/ai is popular but think about, in terms of growth it’s already hit its ceiling pretty much and is way overvalue and built on hopes and dreams but is currently at its limits and money is being thrown at it in hopes it will break that ceiling. Small cap value and emerging markets are still young and have an actual ceiling that is visible to attain and can actually truly grow. Two things that are just hopes and dreams currently for AI, tech and growth.
If you can handle volatility and are in it for the long game, AVEM and AVUV are the smarter plays in my opinion.

In a similar situation.
* If I make some new money and want to make a donation, I use these stocks (organization gets full value, I get full deduction regardless of cost basis). Then use the new money to buy some other stocks/ETFs.
* Direct new stock investing money into VTI/VXUS/VGIT and I plan to start adding AVUV to tilt further away from big cap.
So... nothing groundbreaking here but this is what I've come up with.