We’ve got small-cap value covered with AVUV, but what should we pair it with? In this deep dive, I look at what large-cap growth fund might work best in concert with AVUV. The candidates are VOO, VUG, IVW and DFUS - with VUG and IVW achieving exalted (ha!) status of “preferred asset.”
I wrote in June about my preferred way to invest in small-cap value equities: VIOV. Have learned some things since then, especially how to figure out just how small-cap and value a given ETF actually is. So, I decided to open up the search again.
Although I have long invested in REITs, I’m actually undecided about whether they are a unique asset class and if they deserve an allocation in a RP portfolio going forward. That being said, Vanguard’s Real Estate ETF (VNQ) is my preferred way to invest in REITs…for now.
If you’re looking for more variety within your equity position, consider a portion in a small-cap value fund such as VIOV. Smaller, less popular stocks tend to be on the riskier side of the spectrum for equities, but these can lead to higher expected returns over the long term.
If managed futures are going to be included in a RP portfolio, what’s the best asset? My vote is for DBMF, which has had solid returns and low correlation to stocks and bonds in its short history. Proceed with caution for this asset though, because of that very short history.
