Author Topic: recommended Vanguard ETFs?  (Read 1467 times)

mistymoney

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recommended Vanguard ETFs?
« on: July 13, 2019, 11:30:11 AM »
Hi all,

I have about 150k in my retirements not invested. Want to put into one to 3/4 ETFs. I do like Vanguard, but money is with tdameritrade so could do others.

What would you recommend?

Laserjet3051

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Re: recommended Vanguard ETFs?
« Reply #1 on: July 13, 2019, 12:01:02 PM »
What is your preferred asset allocation?

MDM

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Re: recommended Vanguard ETFs?
« Reply #2 on: July 13, 2019, 12:58:09 PM »
Consider things discussed in Three-fund portfolio - Bogleheads.

terran

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Re: recommended Vanguard ETFs?
« Reply #3 on: July 13, 2019, 09:00:52 PM »
If you want to stick with TD Ameritrade they have a number of high quality index tracking ETFs, but I don't think Vanguard are among them. Here's a good list of the ETFs you should be looking at along with their Vanguard equivalents: https://www.bogleheads.org/wiki/TD_Ameritrade. Looks like SPTM and SPDW are what I would go with along with SPAB if you want bonds.

MustacheAndaHalf

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Re: recommended Vanguard ETFs?
« Reply #4 on: July 13, 2019, 11:15:44 PM »
I thought TD Ameritrade charges $7/trade to buy Vanguard ETFs?  I would up with them for my HSA, but the rest is at Vanguard.  At Vanguard, almost all ETFs are $0/trade.  Not just Vanguard ETFs - you can buy iShares, Schwab or other ETFs for $0 as well.

You should aim for 20% or 33% in international, depending on your comfort level.  Start at 20% if you're uncertain.

Most people's bond allocation starts at about 10%, but as you approach retirement it needs to go up to protect what you've saved.

So I'd favor:
10% BND (Vanguard Total Bond), or $15k
70% VTI (Vanguard Total Stock Marlet), or $105k
15% VEA (Vanguard Developed Markets), or $23k
05% VWO (Vanguard Emerging Markets), or $7k

Note the 20% international should be applied to the 90% equity portion, not the entire retirement account.  So in theory you'd want 18% international and 72% VTI... but this is a rough draft version.

mistymoney

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Re: recommended Vanguard ETFs?
« Reply #5 on: July 14, 2019, 10:55:45 AM »
What is your preferred asset allocation?

Generally as close to 100% equities as I can get. I do favor small caps.

With this 150k, I'd like to do a profile of a good asset allocation.

Maybe 50% sp500, 25% mid to small cap, 25% value and/or dividend? Something there to anchor down volatility, but not sacrificing growth too much.

mistymoney

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Re: recommended Vanguard ETFs?
« Reply #6 on: July 14, 2019, 11:01:22 AM »
Consider things discussed in Three-fund portfolio - Bogleheads.

This might be my ticket! or a good basis to work off of.

for vanguard, the suggestions were

Quote
When investing in Vanguard ETFs, investors can create a three-fund portfolio using: [note 9]
Vanguard Total Stock ETF (VTI)
Vanguard Total International Stock ETF (VXUS)
Vanguard Total Bond Market ETF (BND)

but thinking to sub out the BND with the wellington fund?

mistymoney

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Re: recommended Vanguard ETFs?
« Reply #7 on: July 14, 2019, 11:05:00 AM »
I thought TD Ameritrade charges $7/trade to buy Vanguard ETFs?  I would up with them for my HSA, but the rest is at Vanguard.  At Vanguard, almost all ETFs are $0/trade.  Not just Vanguard ETFs - you can buy iShares, Schwab or other ETFs for $0 as well.

You should aim for 20% or 33% in international, depending on your comfort level.  Start at 20% if you're uncertain.

Most people's bond allocation starts at about 10%, but as you approach retirement it needs to go up to protect what you've saved.

So I'd favor:
10% BND (Vanguard Total Bond), or $15k
70% VTI (Vanguard Total Stock Marlet), or $105k
15% VEA (Vanguard Developed Markets), or $23k
05% VWO (Vanguard Emerging Markets), or $7k

Note the 20% international should be applied to the 90% equity portion, not the entire retirement account.  So in theory you'd want 18% international and 72% VTI... but this is a rough draft version.

Good points. Regarding the $7, I'm not too concerned as this is going to be lump sum investing, and not regular amount, no adding to it. This is from an old rollover IRA, and unfortunately, on the sidelines for a few years.

Trying to get my act together.

mistymoney

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Re: recommended Vanguard ETFs?
« Reply #8 on: July 14, 2019, 11:08:24 AM »
If you want to stick with TD Ameritrade they have a number of high quality index tracking ETFs, but I don't think Vanguard are among them. Here's a good list of the ETFs you should be looking at along with their Vanguard equivalents: https://www.bogleheads.org/wiki/TD_Ameritrade. Looks like SPTM and SPDW are what I would go with along with SPAB if you want bonds.

thank you this helps! I could easily go with the td accounts, I didn't know they had their own ETFs!

Looking at this comparison, seems that the td etfs have lower expense ratios - so for indexes seems best to go that direction I think.

mistymoney

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Re: recommended Vanguard ETFs?
« Reply #9 on: July 14, 2019, 11:10:59 AM »
Really appreciate everyone's thoughts and recommendations on this.

I feel like I know a lot more about this kind of stuff than family & friends, which is scary considering how very little I do know!!


mistymoney

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Re: recommended Vanguard ETFs?
« Reply #10 on: July 14, 2019, 11:18:02 AM »
Consider things discussed in Three-fund portfolio - Bogleheads.

This might be my ticket! or a good basis to work off of.

for vanguard, the suggestions were

Quote
When investing in Vanguard ETFs, investors can create a three-fund portfolio using: [note 9]
Vanguard Total Stock ETF (VTI)
Vanguard Total International Stock ETF (VXUS)
Vanguard Total Bond Market ETF (BND)

but thinking to sub out the BND with the wellington fund?

Just thinking out loud here......or.....typing....I don't see the exact IDs on the vanguard/td equivalents page....the td equivalents I'm assigning here based on descriptions would be
SPTM          for         Vanguard Total Stock ETF (VTI)
SPWD         for         Vanguard Total International Stock ETF (VXUS)
SPAB          for         Vanguard Total Bond Market ETF (BND)

mistymoney

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Re: recommended Vanguard ETFs?
« Reply #11 on: July 14, 2019, 11:23:37 AM »
I thought TD Ameritrade charges $7/trade to buy Vanguard ETFs?  I would up with them for my HSA, but the rest is at Vanguard.  At Vanguard, almost all ETFs are $0/trade.  Not just Vanguard ETFs - you can buy iShares, Schwab or other ETFs for $0 as well.

You should aim for 20% or 33% in international, depending on your comfort level.  Start at 20% if you're uncertain.

Most people's bond allocation starts at about 10%, but as you approach retirement it needs to go up to protect what you've saved.

So I'd favor:
10% BND (Vanguard Total Bond), or $15k
70% VTI (Vanguard Total Stock Marlet), or $105k
15% VEA (Vanguard Developed Markets), or $23k
05% VWO (Vanguard Emerging Markets), or $7k

Note the 20% international should be applied to the 90% equity portion, not the entire retirement account.  So in theory you'd want 18% international and 72% VTI... but this is a rough draft version.

using tds I'm not seeing anything equivalent to VEA but SPEM seems to sub for the VWO,

maybe this one:
SPDR S&P International Small Cap ETF (GWX; 0.40%) for developing markets?


terran

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Re: recommended Vanguard ETFs?
« Reply #12 on: July 14, 2019, 01:48:14 PM »
Not that it really matters, but the boglehead recommended commission free at TD Ameritrade ETFs aren't actually TD Ameritrade ETFs, they're SPDR ETFs from State Street Advisors: https://us.spdrs.com/en/product/. They're definitely the way to go for index investing at TD Ameritrade since they trade commission free though.

Vanguard Total Stock ETF (VTI)
Vanguard Total International Stock ETF (VXUS)
Vanguard Total Bond Market ETF (BND)
[/quote]

Yes, I think you have the mapping right.

SPDR S&P International Small Cap ETF (GWX; 0.40%) for developing markets?

A small cap fund wouldn't be the same thing as developing markets. Small cap is small companies, developing markets are companies in countries with small economies. Looks like SPEM is what you'd want if you want a developing markets fund (although I didn't check if it was one of the TD Ameritrade options): https://us.spdrs.com/en/etf/spdr-portfolio-emerging-markets-etf-SPEM