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.
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.
The mainstay of many portfolios, VTI is my choice in the test portfolios when you want just one, all-around equities fund. With an ultra low expense ratio and over 4000 companies inside, this does the job of capturing the equity risk premium in the stock market.