Thanks for watching everyone! Here are some follow-up videos: Factor Investing Explained: kzitem.info/news/bejne/k6-E13ZmqGaha2U Vanguard Total World Index Explained: kzitem.info/news/bejne/sIqmtoKajoRjmmk Mutual Funds vs ETFs: kzitem.info/news/bejne/joadx5hjcJifapw Asset Allocation Explained [Modern Portfolio Theory]: kzitem.info/news/bejne/soqd3IuGepuZfJg
@AliPez
3 ай бұрын
Hands down, VT is my favorite ETF. This is a one stop fund with broad diversity and relative minimum volatility. Thanks for a great video, Nick!
@gmo709
3 ай бұрын
Simplies things. And just one fund to purchase vs his 2 fund method.
@nickdoyle-achievefinancial2464
3 ай бұрын
It's definitely simpler and am sometimes tempted to switch to VT for the simplicity :). Thanks Ali!
@foodguy3435
3 ай бұрын
VT for the win!
@nickdoyle-achievefinancial2464
3 ай бұрын
Cheers!
@richreitz5815
3 ай бұрын
Excellent video!
@nickdoyle-achievefinancial2464
3 ай бұрын
Thanks Rich!
@Tay04723
3 ай бұрын
AVGV all day it being actively managed makes it the best
@nickdoyle-achievefinancial2464
3 ай бұрын
To each their own :) cheers!
@gmo709
3 ай бұрын
Own the world. Nice n simple. So it rebalances itself. Nice Burger King hat!
@nickdoyle-achievefinancial2464
3 ай бұрын
I made a special trip to get one for this video :) Cheers!
@falsificationism
3 ай бұрын
I'm with Nick on VT/VXUS. I like having a bit more fine-grained control with minimal overlap, so I've selected a handful of Schwab and Vanguard funds as well...VBR and VBK, small cap value and growth...SCHG and SCHV for large cap growth and value, etc. Careful with this strategy and double check funds for overlap, but as markets fluctuate this can be a reasonable way of rebalancing or scaling into positions as well. It could be more work than its worth in some markets of course but depending on your situation and existing positions, it might be worth considering.
@falsificationism
3 ай бұрын
Oh and just as a heads up for anyone (like me) with multiple accounts such as taxable and untaxed retirement accounts... I keep some funds (such as overseas funds) in my TAXABLE accounts, which is a savvy way of reducing a bit of my tax burden. Obviously if you've got real estate exposure somewhere it might be wise to remove that from your taxable and put it into something like a Roth, if, for no other reason than you don't have to deal with those forms and weird distribution rules. [Not tax advice of course but something else to consider.]
@gmo709
3 ай бұрын
He uses VTI and vxus, not VT and vxus.
@falsificationism
3 ай бұрын
@@gmo709 Correct, my bad, VT would be redundant obviously.
@nickdoyle-achievefinancial2464
3 ай бұрын
You have more of the slice & dice method. Are you also trying to achieve certain tilts towards small & value? Good points about the tax considerations. I am thinking about making a video on the foreign tax credit. During the 2022 downturn I TLH'd and moved most of international exposure to 401k accounts. It can still make sense for many people to keep them in taxable, but I'll share why I did it.
@falsificationism
3 ай бұрын
@@nickdoyle-achievefinancial2464 great idea for that video! I don't see a lot of coverage of that particular issue. And yep, I'm slicing and dicing what amounts to a synthetic VT right now (with a fairly large portion in money market earning ~5% yield for the time being). I'm not retired yet, but as I get older, or as interest rates change, the allocation will change. It's not a "zero management" strategy, but it's still really minimal effort!
@ES.4315
3 ай бұрын
Hello Nick, in theory if you were to factor tilt in a Roth IRA would you prefer the simplicity of an all-in-one fund such AVGE or DFAW? Or would you use a two fund strategy combining VT + AVGV in order to control the tilt?
@nickdoyle-achievefinancial2464
3 ай бұрын
If it were me, I would use VT + other funds to get more control over the fees and tilt. Thanks for your comment, cheers!
@gchime
3 ай бұрын
VT and chill.
@nickdoyle-achievefinancial2464
3 ай бұрын
Cheers Gordon!
@jl_andreu
3 ай бұрын
Hi Nick! Very interesting video! I like VT, the only weird thing I see is that the country allocation. How come UK has more allocation than China? That’s simply not possible. That would mean UK stock would be tremendously overpriced and Chinese stock would be undervalued?
@nickdoyle-achievefinancial2464
3 ай бұрын
Hi JL, that's a good point. As far as I can tell it's due to limits on foreign investors and tradability factors (ex: free float). They have the second largest equity market, but it seems it is mostly domestic investors. I suspect that may change gradually in the future. An argument could be made to dedicate some exposure to China for this reason.
@gmo709
3 ай бұрын
By Active , u mean actively managed, on your spreadsheet. All the funds are active or have activity and money flow in, but not all actively managed.
@nickdoyle-achievefinancial2464
3 ай бұрын
Yes, I mean actively managed. I should clarify that in the future!
@AhmedAbdelghany-p8t
2 ай бұрын
Great video Nick! I have one comment & a question. Re FTC (which VT doesn’t get): I read that, in a taxable brokerage, for low-tax brackets, the FTC may offset the low QDI percentages of most international ETFs (QDI of VT is above 90%, AVGE & AVGV is 70%, AVEM & AVES is only 40%). Whereas, for high-tax brackets like 30%, the tax drag from a low QDI% is not offset by FTC. Knowing I’m 56 & aim to retire within 5-10 years, in my taxable would you advise that I use AVGE or VT+AVGV ? I only have a space in my taxable (my employer’s pension account will be paid out mostly as annuity, which is zero risk at the expense of forgoing a lump sum).
@Kep19901
3 ай бұрын
I just use AVUS and AVUV. Thanks nick.
@nickdoyle-achievefinancial2464
3 ай бұрын
Those are good funds Keith, and lets you optimize placement.
@Kep19901
3 ай бұрын
@@nickdoyle-achievefinancial2464 I put avuv in Roth ira and avus in hsa. Thoughts? 🤔
@yippie6862
3 ай бұрын
What happens if one buys VT on the Fidelity Platform? Are there additional fees? Or Does Fidelity make its money from the 0.01% "Spread" and the 0.07% "12 Month Median"? I assume the Expense Ratio of 0.07% costs would still all go to Vanguard? Thank you in advance and great video.
@jtsandig
3 ай бұрын
not sure how fidelity makes money in this but there's no fees for buying vanguard etfs on fidelity
@gmo709
3 ай бұрын
No fees to buy this on Fid. Same exp ratio. And call Fid. They will answer your questions directly vs youtubers' takes.
@nickdoyle-achievefinancial2464
3 ай бұрын
+1 to clarifying details with Fidelity. I'm not sure how they execute their trades. Fidelity might get a portion of the bid/ask (www.investopedia.com/terms/b/bid-askspread.asp). The premium/discount is just part of the "market price," where it trades above NAV. I went into more details in my video on Mutual Funds vs ETFs: kzitem.info/news/bejne/joadx5hjcJifapw. You may recoup the premium when you sell shares, or you may not depending on the market. This is one of the reasons I hold mostly mutual funds. I just like the simplicity. I suspect Fidelity makes most of their money from providing people other services, not on free ETF trades or their index funds.
@PresentPratap
3 ай бұрын
Well presented video.. Btw I wanted to offer you something with respect to your channel, but I'm not really sure if it is the best time to ask ?
@Ehhhh123
2 ай бұрын
Thanks for the video. How do you mirror the us/international weighting of vt in your vti/vxus holdings?
@Austin-fc5gs
3 ай бұрын
I prefer lower fees, if the fees were equivalent id be tempted
@gmo709
3 ай бұрын
Yes, VG has low fees, low trading costs in the funds
@nickdoyle-achievefinancial2464
3 ай бұрын
I would also be more tempted at comparable fees. The ~0.2-0.25% hurdle is a bit to overcome.
@evanhughes9576
3 ай бұрын
VTI & VXUS at market cap weight for me
@nickdoyle-achievefinancial2464
3 ай бұрын
Great portfolio :) Cheers!
@cbqmrbqm8972
3 ай бұрын
75% VT, 15% AVGV, 5% AVUV, 5% AVDV
@nickdoyle-achievefinancial2464
3 ай бұрын
Solid, cheers!
@NivHaramati
Ай бұрын
@@nickdoyle-achievefinancial2464 I agree - I also say why not combine them both (VT and AVGV for the value factor tilting) and I added AVUV and ADVD too to tilt a little more towards Small Cap Value. Why won't you tilt to value as the research shows one should?
@gmo709
3 ай бұрын
VT wins iut in the end. Best to match mkt imo. Expense ratios are important...over time. They create drag or a force of friction on your returns... Anyway, u make too much sense or cents. Thx for the logical and sobering info. This is probably the best way to invest long term ..if u are investing more than 15 yrs, etc
@gmo709
3 ай бұрын
Also, one purchase each time..vs two.. but i guess u can set up auto inv if using mut funds vs etfs. He is using 2 etfs so cant do auto inv right? So VT wins imo for simplification and overall pita. Reduced pita.
@nickdoyle-achievefinancial2464
3 ай бұрын
I've come to value simplicity more over time and question my choice to use equivalents of VTI/VXUS and just go with VT for simplicity, but I like the finer control. Most of my investments are in mutual funds (VTSAX is my largest holding). My cash flow & spending are a little irregular, so I don't auto-invest but that's a great feature of mutual funds.
@ryanotis7289
3 ай бұрын
Taxes on gains mean you have gains. Not a bad thing
@nickdoyle-achievefinancial2464
3 ай бұрын
Good point. It's still wise to avoid future changes that can cost ~25-35% of your gains, pending your tax bracket + state. In very low tax brackets it could be much lower, but the tax to change can be high for a lot of people.
@BB-cs3kk
3 ай бұрын
I don’t use VT, however I agree that VT with AVUV would be a great option
@nickdoyle-achievefinancial2464
3 ай бұрын
AVUV is a great fund for some factor exposure. Cheers!
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