Index fund diversification

[SlowHabit]

[ QUOTE ]
Any opinion on my spread of vanguard funds?

10k in VEIEX
10k in VFINX
5k in VGSIX
5k in VHGEX
5k in VISVX
5k in VPACX

I don't mind a decent amount of risk and I have more money available to invest too.

[/ QUOTE ]
I like it. Although I don't understand why you chose Vanguard Global Equity (VHGEX) instead of Vanguard International Value Fund (VTRIX). VHGEX is an actively-managed fund that allow investors to be "diversified" with the both the US and international market. But since you already have 50% in US Equity and I can tell by your choices of index funds that you love international equity, why not go for VTRIX?

I have the Total Stock Market instead of the Vanguard 500. My reasoning is that I need some midcaps since I don't have a midcap fund. Perhaps I'll get the Vanguard 500 once I get the new midcap value fund Vanguard just opened.

Also, is this for retirement? If yes, get yourself a SEP-IRA because SEP-IRA is better than 100% rakeback.

[hedgeyerbets]

DCA when you have a ton of money is analogous to the following poker situation: you have an adequate bankroll to play 25/50nl (risk of ruin is very close to 0). at 25/50, you make 1k an hour in the long run. instead, you play 10/20nl where you make 750 an hour in the long run - b/c the variance is lower in the 10/20nl. you are giving up ev for lower variance by going the DCA route. for some people this may make sense, but for a young poker player ir likely doesn't.

[stupoman44]

Being as young as you are you can fully diversify using some (individually) risky assets, but together will be less risky if they have a low correlation coefficient (according to modern portfolio theory).

Your percentage of assets will vary depending on your risk tolerance (as mentioned in previous post) but these are some of my recommendations that you can use. You probably won't be able to use all of them at once, but as assets grow you can add more accounts to diversify further over the next 5-10 years.

U. S. Equities
Vanguard total stock market index
" " Value Index
" " Small cap Value
" " Real Estate Investment Trust Index

International Equities
Vanguard International Value index
" " International Explorer Fund (Int. Small Cap)
may be closed to new investors though(bummer)
Vanguard Emerging Markets Index
Fidelity International Real Estate

Specialty
Vanguard Precious Metals Fund

Passive asset class investing is the best in the long run. Vanguard or DFA (Diversified Fund Advisors) are the best.
Fidelity has their group of "Spartan" funds that have very low expense ratios. As good as Vanguard.
Good luck

[arsoisaen]

[ QUOTE ]
Any opinion on my spread of vanguard funds?

10k in VEIEX
10k in VFINX
5k in VGSIX
5k in VHGEX
5k in VISVX
5k in VPACX

I don't mind a decent amount of risk and I have more money available to invest too.

[/ QUOTE ]

looks good except...

i believe vanguard needs 50k total to bypass fees? so your looking at quite a bit of unnecessary costs. but then im not sure about your individual funds because i know that vanguard also some that are min balance 2500

[Misfire]

[ QUOTE ]
Being as young as you are you can fully diversify using some (individually) risky assets, but together will be less risky if they have a low correlation coefficient (according to modern portfolio theory).

Your percentage of assets will vary depending on your risk tolerance (as mentioned in previous post) but these are some of my recommendations that you can use. You probably won't be able to use all of them at once, but as assets grow you can add more accounts to diversify further over the next 5-10 years.

U. S. Equities
Vanguard total stock market index
" " Value Index
" " Small cap Value
" " Real Estate Investment Trust Index

International Equities
Vanguard International Value index
" " International Explorer Fund (Int. Small Cap)
may be closed to new investors though(bummer)
Vanguard Emerging Markets Index
Fidelity International Real Estate

Specialty
Vanguard Precious Metals Fund

Passive asset class investing is the best in the long run. Vanguard or DFA (Diversified Fund Advisors) are the best.
Fidelity has their group of "Spartan" funds that have very low expense ratios. As good as Vanguard.
Good luck

[/ QUOTE ]

This is very similar to the things I've been reading. With 18k today, where should I start? U.S. total market and international value perhaps?