Author Topic: Asset Allocation Optimization: Newbie Investor  (Read 1108 times)


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Asset Allocation Optimization: Newbie Investor
« on: July 06, 2016, 08:17:48 AM »
Hello all,

I shared my proposed asset allocation in my journal and it made me wonder whether it is optimal. Putting things in writing often do that to me :) .
Being in Europe, I do not have access to vanguard and I'm also limited by the small options offered whithin my tax advantaged account.
I do have access to a 'total market' ETF but teh TER on that one is 0.38% and the US is 58.47%, it is the AMUNDI ETF MSCI WR.

This is what I have decided to do for now:

     Large Cap US     45%    AMUNDI ETF SP 500         0.15%
     Large Cap EUR   35%    VAN FTSE EU ETF EUR      0.12%
     Mid Cap US        10%    TBD (S&P400?)                TBD
     Mid Cap EUR      10%    AMUNDI ETF EUR MID      0.23%
     Emerging Asia   10%    AMUNDI ETF EM ASIA       0.20%

My questions are:
-Is it worth it to try covering most of the capitalized world by having different ETF just to reduce the TER? Or is it better to stick to the World Index?
-If I stay with this allocation, is it better to add mid cap to large cap or should I choose add small cap instead?
-Any advie on a good Mid Cap US ETF? Anyone familiar with the S&P400 ?

Any other comment, suggestion or advice is welcome.
Thanks in advance.


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