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ETF Investment Plan-in-Progress with Questions: Criticism Welcome
This is my first entry into the market. It is my intention to invest in the asset classes and corresponding ETFs below through zecco.com as part of a long-term buy-and-hold strategy.
10% US Large Cap - Vanguard Large Cap ETF (VV) 10% US Small Cap - Vanguard Small Cap ETF (VB) 10% US Large Cap Value - Rydex S&P 500 Pure Value (RPV) 10% US Small Cap Value - Rydex S&P Smallcap 600 Pure Value (RZV) 10% US REITs - Vanguard REIT Index ETF (VNQ) 10% INT Large Cap - 5% Vanguard European Stock ETF (VGK) & 5% Vanguard Pacific Stock ETF (VPL) 10% INT Small Cap - WisdomTree International SmallCap Div (DLS) 10% INT Large Cap Value - iShares MSCI EAFE Value Index (EFV) 10% INT Small Cap Value - WisdomTree International SmallCap Div (DLS) 10% Emerging Markets - Vanguard Emerging Markets Stock ETF (VWO) Most of my final decisions on which ETF to choose were based on this page and its resulting links: http://www.altruistfa.com/dfavanguard.htm I had to double-up on DLS as my International Small Cap and Small Cap Value because of the lack of offerings in the International Small Cap Value asset class. I plan to go with ETFs instead of index funds because I plan on investing ~$20,000, which at Vanguard would leave me below the minimum initial investment amount for their index funds based on the # of asset classes I am interested in. It would also require me to pay the $10/yr. fee for all of my funds because their balances would be below $10,000. Also, investing solely through Vanguard’s index funds would not allow me to satisfy the asset classes I’m targeting as well as I would like. Since I’m in the spring of my junior year, I don’t expect to be making any substantial income or any more deposits into these funds for around 18 months and don’t believe I should be too concerned with bid-ask spread “fees” adding up. A couple questions for anybody generous enough to answer: How much of a mistake is it to have Vanguard REIT Index (VNQ) in a taxable account? And what options do I have? (besides filing professionally when I earned ~$15,000 this year from poker and little to nothing from anything else.) This question is for jively specifically if he reads this, but I would appreciate anybody else’s feedback as well: I noticed in many of your recommended equity-only asset allocations you allocate 30% of your assets to International. Reading at fundadvice.com favored allocating 50% of assets to International investments. Could you explain this difference? Does anybody recommend/not recommend using limit orders between bid/ask spreads? Is this something I should be concerned with? All feedback is appreciated. Matt |
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