Author Topic: Critique my portfolio weights?  (Read 1130 times)


  • 5 O'Clock Shadow
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Critique my portfolio weights?
« on: July 24, 2018, 01:25:54 AM »
I currently have my portfolio mostly split between VPMCX and a Vanguard Target Retirement Date Fund. Twice a year I rebalance my portfolio and the next time around I plan to split the retirement date fund up into individual ETFs (for tracking and fee reasons) and likely divest heavily from VPMCX, in which I am over-indexed.

Thoughts? I'm fairly young so I'm not that risk-averse, but I'm maybe 7-10 years away from FIRE.


  • Magnum Stache
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Re: Critique my portfolio weights?
« Reply #1 on: July 24, 2018, 08:48:45 AM »
It looks like you have 17/90 allocated to international, or just under 20%.  US and international tend to alternate which one outperforms, so that in any given decade one or the other wins.  Or just look at the target date fund you used to use - Vanguard allocates 2/5th international.

Why split your assets between the S&P 500 and total stock market?  Why not combine those two?  I think there's about 4/5ths overlap between the two - Total Stock Market also includes the S&P 500 companies.


  • Walrus Stache
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Re: Critique my portfolio weights?
« Reply #2 on: July 24, 2018, 01:46:53 PM »
Yeah, if you overlay the S&P and Total, they have very similar returns and vol. There's probably a graph on bogleheads somewhere.

International market cap is around 47%. Your 20% could be considered low.

A 2.5% slice probably won't have much effect on your returns or stability. (But I have the same allocation in bonds.)

Rebalancing twice a year seems excessive. The oft-repeated recommendation is once/year.

In the end, what you have works except for the health tilting. A 20% slice in one industry is huge. When do you sell? When do you buy more? What's your ISP say about that?


  • Magnum Stache
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Re: Critique my portfolio weights?
« Reply #3 on: July 24, 2018, 02:05:46 PM »
Your overall stocks/bond ratio should be fine. I think you're making it too complicated though. You'd probably be just as well served with just the three VTI/VXUS/BND. I agree that Primecap looks over-weighted here.

Have you read the stock series yet?


  • Handlebar Stache
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Re: Critique my portfolio weights?
« Reply #4 on: July 24, 2018, 10:20:12 PM »
VTI, VOO and prime cap have big large overlaps and are very redundant. Primecap attempts to be something different and better which may work or not, up to you. At the least I would sell VOO for more international stocks or even some of those and some US small stocks. And of course drag Primecap down to your target allocation.

Also those dinky little bond allocations are also pointless and redundant. Simplify to at most two of them, but realistically with those selections  and only 10% total, all in BND is just as good.