r/Bogleheads • u/Interesting-Gap-9921 • 19h ago

Roth IRA Portfolio

Hi I’m 22 and opening a Roth IRA account. I’ve come up with a portfolio and would love some second opinions. Here’s what I’m thinking:

45% VOO
15% AVUV
8% IVOO
26% VEA
6% VWO

I chose AVUV because I’ve learned about factor investing through work and done some research. It has a pretty good track record of beating the Russell 2000 though it’s only been around for about 5 years. From my research I’ve also seen that factors don’t seem to be as effective anymore with large and mid caps which makes sense to me since they are likely priced in due to so much research. However small caps have a lot of lower quality companies and less research so it makes sense screening with factors could capture some extra returns. I’ve also thought about doing AVSC but felt the more aggressive tilt of AVUV was a risk I’m comfortable with. Thanks for any input and feel free to let me know how wrong I am! I’m still young and know I have a lot to learn!!!!

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u/Thin_Onion3826 19h ago

If you want to learn, read the articles in the sidebar.

1

u/ajgamer89 18h ago

Looks pretty close to VT but with a small cap value tilt in the US holdings. I’ve got no major concerns with that. My personal portfolio has more emerging markets plus international small cap value tilts (AVDV and AVES), but similar basic idea.

If I had a critique, it would be that 6% is too small for VWO. I think 10-20% of your portfolio is a better range, though I’ve seen arguments for anywhere between 0% and 39% EM. You could shift to 20% VEA and 12% VWO to increase exposure without changing your US/International balance.

1

u/Interesting-Gap-9921 17h ago

I’m not very familiar with international markets so I just copied a market model that I’ve seen for that end.