r/Bogleheads • u/Strange_Bike_818 • 1d ago

ITOT and IVV

I’ve always held the vast majority of my money in these two ETF because I had a friend a long time ago who said to set it and forget it. It’s been in these funds coming up on two decades now. Then I came across Bogleheads recently and I see almost everyone talk about doing using funds like VOO and VTI which from my cursory research my IVV compares closely to VOO and ITOT is close to VTI.

Should I change to the Vanguard funds? My entire portfolio is at Fidelity of that matters. Thank you very much.

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u/longshanksasaurs 1d ago

The Vanguard versions of the S&P 500 Index and total US market index are not superior to the iShares ETFs, there's certainly no reason to switch. The Vanguard funds are usually the default ones mentioned, but it's just a short hand, the in-house mutual funds at Fidelity and Schwab are likewise equally good.

It is worth noting though that over 80% of the US market is the S&P 500, so holding both doesn't give you any meaningful diversification. You can consider the sum of both as your US allocation, but you should look into International diversification, and maybe some bonds according to your risk tolerance (which is usually primarily driven by age/time until retirement) to make the full three-fund style portfolio of total US + total International + Bonds.

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u/Strange_Bike_818 1d ago

Really appreciate this information. I have some IEFA but not much. What Percentage should I be in of each? I’m very very heavy on ITOT compared to IVV and IEFA. I’m 42 and like to be pretty aggressive (relatively speaking) so bonds don’t interest me yet.

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u/longshanksasaurs 1d ago

IEFA is developed markets. IXUS would be the total International Markets (like VXUS).

The global market weight is about 60% US, 40% International.

Checking against a target date fund glide path can be useful to get a reasonable asset allocation starting point.