Wow, Jeff - this video gets 5 stars, A++. Thanks! I have been very happy after moving over some poor performing money into VBR about 6 months ago, and I bought some FSMD (Fid) just for comparison. AVUV blows FSMD out of the water - for only a moderately higher expense ratio! I love the PE ratio analysis. I am even more convinced the market is ripe for another nail-biting correction. This ETF makes perfect sense to me moving into the unknown 2025. Thanks again!
Hey Kent. Thanks for watching and for the kind words. I'm with you on the unknown coming into 2025. I think AVUV (and small cap + value) has a selection process that will make it a big winner in the coming years. Of course, I have absolutely no idea WHEN that will happen, but it's a solid one to look into.
SCHD Stan! Thanks for tuning in for this one. I am always watching AVUV & small-cap value ETFs in general. So far, our favorite value out there, SCHD, has allowed me to stay the course. But it may need a value little brother eventually. Time will tell. I think I'll end up staying put because I love simple, and SCHD has everything I need long-term, including that juicy & growing dividend. I get my impressive outperformance from VGT. Each ETF has a rule.
Love it! Also, have had AVUV in my portfolio for several months now. I would love a video on all of the Avantis funds. I’ve had my eye on their international small cap value fund as well as a couple of their large cap US funds. Great info as always!
Hey Austen. Thanks for taking the time to watch the video and for the positive feedback. I started poking around the other funds a while back (historically only followed AVUV). That might make for a good future video.
I definitely think it would be interesting! I hesitate to invest in many other Avantis funds due to the lack of history, but I do find them very intriguing! Like you mentioned. I really like the focus on profitability. Especially, if they might have an edge in international funds. I already hesitate to invest internationally due to the underwhelming recent history, but using their factors in an international setting might be interesting. Currently I’m 40% VOO, 5% AVUV, 20% SCHD, 10% VGT, 15% QQQM, 5% VEA, 5% BRK.B. Thanks again!
Good morning Jeff, when i researched small cap value compared to S&P I noticed an eight to fourteen year wave. Typically after S& P has done well for a run of 8 years or so you will start to see that as it drops the small cap value rises. For some reason they typically take turns out performing each other. Since value, SCHD for me, is about a third of my portfolio, I add AVUV to add small cap to balance the large cap that SCHD consists of. Since VGT is the biggest portion of my large cap growth, and it contains large, mid and small caps to cover the totality of the tech growth...i figured mimicking that same strategy with my value portion of my portfolio could be a subjectively a long term good thing. Balance and consistency have proved to perform best. My analogy for this is eating healthy. To eat a well balanced meal, we need a little bit of everything on our plate. I have around 3% AVUV currently and plan on adding 1% per year until I reach 7 to 10%, depending on variables with other etf considerations. Thanks for the video. Who doesn't love Teeps time.
Hey Roy. Thanks for the feedback on this one and for being a pillar in the community. You've helped a lot of people just in these comments! I think you have a great strategy with your additional of AVUV. You're right, it does come in streaks of about that time frame. We are in the middle and likely towards the end of the a large cap run is history repeats itself. I do think picking up AVUV is a very solid move right now (value & small cap after being held down for a while).
Great presentation of AVUV! I currently have AVUS and it has a lower expense ratio, but it's the total market, similar to VTI in Vanguard, only difference is it's actively managed. It's doing well so far and there's about $8 billion AUM. Now from watching your video here, I'm thinking of getting AVUV for my ROTH portfolio.
Thanks for watching the video and for the kind words. Interesting on AVUS. I was curious how the 15 basis points would eat away the returns compared to the 3 bps of VOO and VTI. Ran a quick backtest and was pleasantly surprised. Since AVUS inception (9/26/2019 is when it first has data): VOO: 120.84% AVUS: 118.06% VTI: 114.99% It has done well! I'll be curious to watch this one moving forward. AVUV has been on my radar, but not that one. You may have yourself a nice 1-2 punch when you add some AVUV.
ThanX Jeff. Great video. Love AVUV. I hold it as well as aforementioned JEPQ. Yes my Three Fund program has a lot more than three funds. lol. As long as I’m heading north 🤑 I’m good. We may be looking at heading into the full income phase as my wife is going to go part time so will use dividends if and when needed. Take care. Looking forward to future TEEPS quality educational videos. Be well.
Hey Lance. Thanks for watching, commenting, being a member, and for all of your general channel support over time. I'm glad to have you here as a pillar of this community. Hey, I'm all about that 3-fund portfolio too, but I don't blame you at all for having AVUV. It has been great, even during a down time for small-cap in general. I think the winning factors will do well into the future.
Thanks for the breakdown, Jeff. It's good to see the recap of AVUV and the sector. Many think we'll get a surge with small caps if the interest rates get a chance to continue going down.
Hey Charlie. I think you nailed it. Nobody (definitely not me) knows exactly when the big run will happen, but it will eventually if things play out like the last 50+ years. Small-cap and value have both been struggling by comparison to the norm, but the mean will be found in time. I think our new interest rate environment could get the ball rolling.
Excellent review Jeff. I was going to pair SCHA with IWMI for my small cap exposure but you convinced me to take a look at AVUV and I think it’s going to push SCHA out.
Thanks for watching and for the kind words. I think it is worth taking a look at for the small-cap section of the portfolio. I wish I could see the specific screens and scoring it uses. I love how it finds profitability to pair with the value!
I own some of both AVUV and VBR. If the inflation numbers keep coming in soft, it will be good. 🎲🎲🎲 VBR will remain until we get further into the interest rate cuts, at which point it will all be moved over to AVUV. I really enjoyed this video. Thank you!
Hey Ray. Thanks for watching and for sharing the comment. I think you have two of the best ones out there for small-cap value. It is only a matter of time until they take off like they have historically. Stay the course.
Nice look back Jeff, now AVUV is getting crushed is it time to dollar cost average or lighten up considering inflation and rising rates? I've listened to Chris Pederson and Paul Merriman I guess patience is a key factor during times of inflation and rising rates as it relates to AVUV. Your thoughts?
Hey Mike. I agree with the general flow and reasons of why AVUV (and value in general) has been beaten up pretty bad lately. I'm a strong proponent of buy in all markets. Right now, I think AVUV, SCHD, VTV, and many other value stocks and ETFs are great buys for the portfolio. The reversion to the mean will happen with value vs growth. When it does, I will be saying it is a great time to buy QQQM, VGT, SCHG, etc (after a huge growth crash). Basically, always DCA in, stick to the target allocations and stay the course. Usually it is wise to do the opposite of the masses. If people say you're an idiot if you buy AVUV or SCHD because VGT and QQQM are going to the moon!!!! Buy SCHD or AVUV, lol.
Great video Jeff! I’m 19 holding 50%voo 30%qqqm 10%avuv 5%ibit 5%schd is that good for my age should I adjust anything have been in the market since may of this year and so far so good with all
Hey Braiden. That is an incredible mix for your age. Seriously, it is almost identical to what I do for my nieces and nephews. I do 50% VOO, 40% split between growth ETFs VGT and QQQM, and 10% other stuff. Very similar. Congratulations on investing so young. You are going to be very happy in a few decades from now. Remember, there will come a time, multiple times, where you portfolio absolutely tanks. Never panic sell when everyone else is running for the hills. Stay the course, and if anything, buy more. The market always bounces back over the long run. Just add as much money to the mix as you can over the years and chill. The passively managed ETFs will do the heavy lifting for you.
What are your thoughts on having a long term track record before investing in an ETF, when the metrics that ETF uses are tried and true? I’m thinking specifically of VFLO (it’s only about a year old). It uses trailing and forward FCF. Would love to get your take on this ETF.
Hey Chris. I put a TON of emphasis into track record, personally. This is mainly because any stock or ETF can do extremely well in the short-term. I like to see at least 5 years, and I prefer 10 years. Then I can see how it did against like ETFs over that timeframe. JEPQ is the one exception I have invested in, but it is because I know the Nasdaq-100's index performance well over the past 40 years & I love the premium income strategy compared to most covered call ETFs. But even then, I feel a little skeptical. I would keep an eye on something like VFLO (which has done well btw) for at least 3 years before investing in it. The 39 basis points expense ratio isn't horrible, but it is enough to make me wonder if I could do better in passively managed, low-cost ETFs. It may be a long-term winner, but it's always nice to see more data before investing too deep.
I think that is a solid portfolio to roll with. I'm curious how it will do over a long period of time. Stay the course and buy to those target allocations and I think you'll likely come out looking great. The main strategy for most mixes is to never panic sell when things look dicey. Keep accumulating those shares.
Was wondering this exact same thing. Been looking into SMH. Adding 10% of something like smh seems intriguing, but also don’t know if it may be too sector specific
Hey there. I had IWM in there. It is VTWO (exact same holdings, Russell 2000 Index). This is like VGT and FTEC being identical. I don't put both in the video because they are the same thing. But IWM is one of the two main small-cap indexes. I need to make a video on SMH (I feel like I have, but I'm probably wrong). It is a fantastic ETF that has dominated other growth funds. It is too specific for me, personally, but has proven to be a great holding. I will look to see if I haven't made a video on it. If I haven't, I'll put it on the short list. But I think it is a fine growth ETF to know as long as you have a high risk tolerance and patience when it goes way down at times.
Hey Janis. Thanks for the kind words and for leaving a comment. I am not a huge fan of leveraged funds that track specific indexes in general. Not saying they are objectively bad, but they aren't for me. They will perform VERY well, of course, when the underlying index increases. However, it is double (in this case, sometimes triple) the disaster when things come crashing down. These are the ultimate example of past performance not guaranteeing future results. Plus the 95 basis points expense ratio is way over my 50 hard cap. The fund has done well in the past 10 years, though. There is that (:
Hey Oldrin. I'll take interesting! I've been called worse haha. Really though, I appreciate you watching the videos and for being a part of this great community.
I've seen that ETF around a little bit. I've never closely tracked it because it breaks my hard rule of having an expense ratio of over 50 basis points (coming in at 0.70%). But it has very solid 10 year total returns that have easily outperformed the S&P 500. I don't love that 90% of the fund is industrials, however, I'm the same guy that holds VGT, so I get the 'sector-bull' mentality in general.
I looked at my TNA initial buy on July 26th. Since this date I am up $13.55% on TNA compared to AVUV where I would have been up 4.60%. I know TNA is a 3X ETF but I was only looking to be in this through maybe 2025. With you I am set on Growth/Core/Dividend. Small cap has never been in plan. What are your thoughts on this play. I know the risks of 3x. This just .89% of my portfolio.
Hey Daman. Thanks for watching and for the question. I appreciate your support of the channel. I am not a fan of leveraged ETFs that seek to 2x or 3x indexes. But at the same time, I hold Bitcoin, which I know is different, but point is it has its skeptics as well. I don't like the lack of floor with leveraged ETFs and the high expense ratios (108 basis points for TNA will have compounding costs over time). It has done well, and it may continue to do well. I think you're okay with it being 1% of your portfolio if you have conviction in it. Worst case scenario is that your overall portfolio drops a little more than it would have. Sometimes the high ceiling plays pay off big within a portfolio. For me, my high ceiling yolo play is Bitcoin. So far, so good.
OMG, love it Jeff !! Looks like I am making right decisions, I added AVUV to my portfolio from this month already. With the fed taxes going down, I am thinking AVUV will be a good addition in 2025. Right now my portfolio with a target to retire in 10 years 😅 (VOO - 50%, QQQM - 30%, AVUV - 10% and SCHD - 10%)
Hey Vikram. I think you have an incredibly balanced mix that will do well over long periods of time. I'm not one to predict the market, because I don't think anyone knows what will happen next and when. But with small-cap value, like AVUV, I think there is a VERY strong chance for a positive reversion to the mean in the coming years. This based on past data (decades worth, not magic 8-ball stuff) and the recent dominance (overall) of large cap over the past decade and change.
@vikramkaushik - Hey Vikram, if you don't mind sharing, what's your % goals when you retire in 10 years? Are you planning on bulking up SCHD or other dividend focused funds with new money as you get closer?
@@charlielipthratt7291 Hi- my plan is to rebalance and dial up from growth to SCHD once I get closer to retirement. At this stage, I am more on foundational ETF and Growth funds
Great video, Jeff!!! I’ve been eyeballing AVUV for a little while, as well (probably since your last video on it). It feels like it should complement the SCHD / value portion of a portfolio, but is it worth creating space for it? SCHD will do well, right?!? 😉
Hey Nick. You nailed it as far as the potential role for AVUV in the portfolio. That is how I look at it as a fit too. A nice holding next to the other value ETF, SCHD. I think I will stick with my simple portfolio setup for now. But small-cap value has been SO good for SO long that it makes it a tough pass for me. It is one I'll probably be thinking about for a while and who knows, maybe I make the move on a perfect storm. Laziness and simplicity usually win the day for me, though (:
@@JeffTeeples I'm with you on simplicity. But, I'll be watching AVUV from a distance (like Rick Springfield singing about Jesse's Girl lol!!!) Though, #FOMO is a real thing. Off topic (and maybe a new video), lots of chatter on crypto currencies doing well with the new administration... thoughts? I'll admit I did buy a small piece of FBTC because "why not?"...
Man, I think the new administration has been huge for crypto. It has been interesting to watch. I'm not at the point where I feel comfortable making a video about it, personally. I know my videos aren't the most exciting and news worthy, but I care way more about keeping them 'time-tested' and 'as accurate as possible' for the long run to help people reach time freedom with stability. I don't want it to be a place that features all the hot news and gets tons of clicks and views for the wrong reasons. Don't get me wrong, I think the new administration IS great for crypto, and the results are reflecting that so far. But this isn't something I have a deep understanding of and that I think will remain intact as time moves forward. I do hold Bitcoin and (partially) believe in its future, though, so definitely enjoying the ride! I probably am due for another general Bitcoin video, and the recent changes would definitely be in it. I'll go to the drawing board.
@@JeffTeeples Thank you for the perspective and rationale. I understand where you're coming from. There's plenty of content out there that feels "click-baity" and that's where your content is different (and appreciated) - grounded in data and it's literally your portfolio (and results) you're talking about. BTW, I chuckle at your "niiice" (69 ref) comments every time I hear them. My wife finally figured it out today (I got the "aw geez" eye roll) HAHA!!!
Nice Michael. I think, and again, I don't know anything special at all here, but I think small-cap value will do well in the coming years if the trends are anything like the last 40 to 50 years. Large-cap and growth are on way too big of a run in the past decade. I think there will be a reversion to the mean. And the mean is 'better' historically with value and small-cap, in general.
Hey Jeremy. My thoughts exactly. With both small-cap & value winning the return game as individual factors over the long run, *and*, with both lagging the last 10 years, I think alpha will be created with the AVUVs of the world in the next decade or so. This doesn't mean I'll dive in, but I do think the odds are in its favor.
I would slot it in with SCHD in my portfolio. It is a value play, and belongs in the value section (at least for my portfolio). VBK would go in the growth section if I were to add it. I look more at the valuations than the market cap when allocating my portfolio. But I do like AVUV better than VBK, personally. AVUV is my favorite small-cap value ETF (I think, need more data over the years) as of right now. I would probably add maybe 5 to 10% (reducing the value section, in my case, SCHD). But I think I'm going to stick with SCHD for now and keep my eye on AVUV.
@@JeffTeeples thanks..I was thinking same regards to AVUV and I dont like to invest until there is a history for about 10 years..I am currently doing 20% in SCHD, 30% Large Blend like VOO and rest 50% in Growth (QQQM,SCHG etc)..
Hey Russell. XSMO is a solid momentum ETF. I'm a bit more of a fan of AVUV as profitability and value are factors I think produce better long-term wins. The 5 years total returns are as follows: AVUV: 111.16% XSMO: 88.67%
Thanks for watching and for the question. I completely understand that thought process. However, the same can be said at all transitional levels (micro to small to mid to large). The small-cap market has had quite the big win again large cap when we look back 50+ years. I like large cap, personally. I'll take the steady Eddy because I run a little more conservative. But just think of all of the Apple companies that were once small cap (: I guess I'm flipping the same argument up-side-down. So many companies went from nothing (just becoming a small cap) to BOOM, mid cap. AVUV got all the gains along the way, and then found the new crop of companies. *Usually* the large caps chill out and become blue chip (not a ton of AAPL out there that KEEP going crazy).
@ this is like investing in kindergarten for kids from wealthy families instead of investing in kids themselves, there will always be kids, they will grow fast and healthy and make other kids :D
Great video as always. But I think your results are not as clear as you rebalanced. You should run the results without rebalancing to be completely fair.
Thank you for watching and for the kind words. The backtest results will not change with rebalance selected when it is single holdings. I think that may be what you are referring to? I just re-ran the scenario in portfolio visualizer with rebalance turned off and it gets the same results. This is because each portfolio is set to 100%, so there is nothing to rebalance. It will change the results of portfolios with 2 or more holdings. Sorry in advance if this isn't what you are referring to, lol.
Hey Anderson. Thank you for watching and for the question. I think AVUV belongs in the value section, or, a section of its own. For example, I'm a third of each (VOO, VGT, SCHD). I would replace some SCHD or make it new money and take each of the 3 sections from 33.3% each to 30% (with 10% being AVUV). This is just an example, you could add 5%, 15%, or anything that seems reasonable.
I think those are reasonable flags. I would turn them to yellow flags, personally (: But I know what you mean and I also like to see as much history as possible. I'm 99% sure it is passively managed behind the scenes (I do something similar with my individual stock screener and scoring system on factors). But your point still stands. We will see how this thing does long-term.
Jeff, per your norm, "nothing but the facts", thanks. Excellent. Sgtfish.
Thank you Ron! I appreciate you taking the time to watch the video and for leaving a comment.
Wow, Jeff - this video gets 5 stars, A++. Thanks! I have been very happy after moving over some poor performing money into VBR about 6 months ago, and I bought some FSMD (Fid) just for comparison. AVUV blows FSMD out of the water - for only a moderately higher expense ratio! I love the PE ratio analysis. I am even more convinced the market is ripe for another nail-biting correction. This ETF makes perfect sense to me moving into the unknown 2025. Thanks again!
Hey Kent. Thanks for watching and for the kind words. I'm with you on the unknown coming into 2025. I think AVUV (and small cap + value) has a selection process that will make it a big winner in the coming years. Of course, I have absolutely no idea WHEN that will happen, but it's a solid one to look into.
You know what time it is. It is Teeps time :)
Watching your videos every Sunday morning has become a habit...like coffee. 🙂
Love it! Thank you for the consistent support, kind words, and for being a part of this community!
Thanks!
Thanks Brianna! You're the best. I am out of things to say for these because you have been beyond generous and I appreciate it!
keep pumping out those financial informational videos Jeff!!!!
Will do Kevin. Thanks for the support!
It’s Teeples Time! 🎉 Great stuff Jeff, this ETF looks very interesting, I’m going to keep an eye on it. Thanks!
SCHD Stan! Thanks for tuning in for this one. I am always watching AVUV & small-cap value ETFs in general. So far, our favorite value out there, SCHD, has allowed me to stay the course. But it may need a value little brother eventually.
Time will tell. I think I'll end up staying put because I love simple, and SCHD has everything I need long-term, including that juicy & growing dividend. I get my impressive outperformance from VGT. Each ETF has a rule.
Love it! Also, have had AVUV in my portfolio for several months now. I would love a video on all of the Avantis funds. I’ve had my eye on their international small cap value fund as well as a couple of their large cap US funds. Great info as always!
Hey Austen. Thanks for taking the time to watch the video and for the positive feedback. I started poking around the other funds a while back (historically only followed AVUV). That might make for a good future video.
I definitely think it would be interesting! I hesitate to invest in many other Avantis funds due to the lack of history, but I do find them very intriguing! Like you mentioned. I really like the focus on profitability. Especially, if they might have an edge in international funds. I already hesitate to invest internationally due to the underwhelming recent history, but using their factors in an international setting might be interesting. Currently I’m 40% VOO, 5% AVUV, 20% SCHD, 10% VGT, 15% QQQM, 5% VEA, 5% BRK.B. Thanks again!
That is a fantastic mix! Stay the course with that long-term and you're going to do great.
Good morning Jeff, when i researched small cap value compared to S&P I noticed an eight to fourteen year wave. Typically after S& P has done well for a run of 8 years or so you will start to see that as it drops the small cap value rises. For some reason they typically take turns out performing each other. Since value, SCHD for me, is about a third of my portfolio, I add AVUV to add small cap to balance the large cap that SCHD consists of. Since VGT is the biggest portion of my large cap growth, and it contains large, mid and small caps to cover the totality of the tech growth...i figured mimicking that same strategy with my value portion of my portfolio could be a subjectively a long term good thing. Balance and consistency have proved to perform best. My analogy for this is eating healthy. To eat a well balanced meal, we need a little bit of everything on our plate. I have around 3% AVUV currently and plan on adding 1% per year until I reach 7 to 10%, depending on variables with other etf considerations. Thanks for the video. Who doesn't love Teeps time.
Hey Roy. Thanks for the feedback on this one and for being a pillar in the community. You've helped a lot of people just in these comments! I think you have a great strategy with your additional of AVUV. You're right, it does come in streaks of about that time frame. We are in the middle and likely towards the end of the a large cap run is history repeats itself. I do think picking up AVUV is a very solid move right now (value & small cap after being held down for a while).
Great presentation of AVUV! I currently have AVUS and it has a lower expense ratio, but it's the total market, similar to VTI in Vanguard, only difference is it's actively managed. It's doing well so far and there's about $8 billion AUM. Now from watching your video here, I'm thinking of getting AVUV for my ROTH portfolio.
Thanks for watching the video and for the kind words. Interesting on AVUS. I was curious how the 15 basis points would eat away the returns compared to the 3 bps of VOO and VTI. Ran a quick backtest and was pleasantly surprised.
Since AVUS inception (9/26/2019 is when it first has data):
VOO: 120.84%
AVUS: 118.06%
VTI: 114.99%
It has done well! I'll be curious to watch this one moving forward. AVUV has been on my radar, but not that one. You may have yourself a nice 1-2 punch when you add some AVUV.
ThanX Jeff. Great video. Love AVUV. I hold it as well as aforementioned JEPQ. Yes my Three Fund program has a lot more than three funds. lol. As long as I’m heading north 🤑 I’m good. We may be looking at heading into the full income phase as my wife is going to go part time so will use dividends if and when needed. Take care. Looking forward to future TEEPS quality educational videos. Be well.
Hey Lance. Thanks for watching, commenting, being a member, and for all of your general channel support over time. I'm glad to have you here as a pillar of this community.
Hey, I'm all about that 3-fund portfolio too, but I don't blame you at all for having AVUV. It has been great, even during a down time for small-cap in general. I think the winning factors will do well into the future.
Thanks for the breakdown, Jeff. It's good to see the recap of AVUV and the sector. Many think we'll get a surge with small caps if the interest rates get a chance to continue going down.
Hey Charlie. I think you nailed it. Nobody (definitely not me) knows exactly when the big run will happen, but it will eventually if things play out like the last 50+ years. Small-cap and value have both been struggling by comparison to the norm, but the mean will be found in time. I think our new interest rate environment could get the ball rolling.
Thank for your time Jeff. Can't wait to watch. Just anted to be first to comment.
It's official. You got the number one spot! Thanks for the support lol.
Excellent review Jeff. I was going to pair SCHA with IWMI for my small cap exposure but you convinced me to take a look at AVUV and I think it’s going to push SCHA out.
Thanks for watching and for the kind words. I think it is worth taking a look at for the small-cap section of the portfolio. I wish I could see the specific screens and scoring it uses. I love how it finds profitability to pair with the value!
I own some of both AVUV and VBR. If the inflation numbers keep coming in soft, it will be good. 🎲🎲🎲 VBR will remain until we get further into the interest rate cuts, at which point it will all be moved over to AVUV. I really enjoyed this video. Thank you!
Hey Ray. Thanks for watching and for sharing the comment. I think you have two of the best ones out there for small-cap value. It is only a matter of time until they take off like they have historically. Stay the course.
Nice look back Jeff, now AVUV is getting crushed is it time to dollar cost average or lighten up considering inflation and rising rates? I've listened to Chris Pederson and Paul Merriman I guess patience is a key factor during times of inflation and rising rates as it relates to AVUV. Your thoughts?
Hey Mike. I agree with the general flow and reasons of why AVUV (and value in general) has been beaten up pretty bad lately. I'm a strong proponent of buy in all markets. Right now, I think AVUV, SCHD, VTV, and many other value stocks and ETFs are great buys for the portfolio. The reversion to the mean will happen with value vs growth. When it does, I will be saying it is a great time to buy QQQM, VGT, SCHG, etc (after a huge growth crash).
Basically, always DCA in, stick to the target allocations and stay the course. Usually it is wise to do the opposite of the masses. If people say you're an idiot if you buy AVUV or SCHD because VGT and QQQM are going to the moon!!!! Buy SCHD or AVUV, lol.
Great video Jeff! I’m 19 holding 50%voo 30%qqqm 10%avuv 5%ibit 5%schd is that good for my age should I adjust anything have been in the market since may of this year and so far so good with all
You’ll crush it at that age. Well done. Great mix.
Is this in an IRA or taxable account? In either case, like V31lCl0ud said, you'll crush it, but make sure to reduce the tax burden!
Hey Braiden. That is an incredible mix for your age. Seriously, it is almost identical to what I do for my nieces and nephews. I do 50% VOO, 40% split between growth ETFs VGT and QQQM, and 10% other stuff. Very similar.
Congratulations on investing so young. You are going to be very happy in a few decades from now. Remember, there will come a time, multiple times, where you portfolio absolutely tanks. Never panic sell when everyone else is running for the hills. Stay the course, and if anything, buy more. The market always bounces back over the long run. Just add as much money to the mix as you can over the years and chill. The passively managed ETFs will do the heavy lifting for you.
19, similar portfolio as shown in my videos
What are your thoughts on having a long term track record before investing in an ETF, when the metrics that ETF uses are tried and true? I’m thinking specifically of VFLO (it’s only about a year old). It uses trailing and forward FCF. Would love to get your take on this ETF.
Hey Chris. I put a TON of emphasis into track record, personally. This is mainly because any stock or ETF can do extremely well in the short-term. I like to see at least 5 years, and I prefer 10 years. Then I can see how it did against like ETFs over that timeframe.
JEPQ is the one exception I have invested in, but it is because I know the Nasdaq-100's index performance well over the past 40 years & I love the premium income strategy compared to most covered call ETFs. But even then, I feel a little skeptical.
I would keep an eye on something like VFLO (which has done well btw) for at least 3 years before investing in it. The 39 basis points expense ratio isn't horrible, but it is enough to make me wonder if I could do better in passively managed, low-cost ETFs. It may be a long-term winner, but it's always nice to see more data before investing too deep.
avuv and SCHD will be ok in my brokerage account??
Absolutely! That is where I prefer my SCHD, personally. The Roth gets the ones I expect the most long-term growth from, like VGT.
My portfolio’s
34% VFLO 33% AVUV and 33% SCHG
2 factor tilt ETF and one growth large cap.
I think that is a solid portfolio to roll with. I'm curious how it will do over a long period of time. Stay the course and buy to those target allocations and I think you'll likely come out looking great. The main strategy for most mixes is to never panic sell when things look dicey. Keep accumulating those shares.
No IWM :( would you ever consider adding in semi etf like SMH Jeff? Or is it too specific a sector ?
Was wondering this exact same thing. Been looking into SMH. Adding 10% of something like smh seems intriguing, but also don’t know if it may be too sector specific
Add it to your growth portion of your portfolio. If you use Professor G’s formula, you could add it in to that growth portion %
Hey there. I had IWM in there. It is VTWO (exact same holdings, Russell 2000 Index). This is like VGT and FTEC being identical. I don't put both in the video because they are the same thing. But IWM is one of the two main small-cap indexes.
I need to make a video on SMH (I feel like I have, but I'm probably wrong). It is a fantastic ETF that has dominated other growth funds. It is too specific for me, personally, but has proven to be a great holding. I will look to see if I haven't made a video on it. If I haven't, I'll put it on the short list.
But I think it is a fine growth ETF to know as long as you have a high risk tolerance and patience when it goes way down at times.
I'm putting SMH on my video list. Thank you!
Agreed. This one definitely belongs in the growth section. I'll make a video on it soon to give more detailed thoughts.
Thxs!!! Best video on Avuv!!! What so you think about DDM???
Hey Janis. Thanks for the kind words and for leaving a comment.
I am not a huge fan of leveraged funds that track specific indexes in general. Not saying they are objectively bad, but they aren't for me. They will perform VERY well, of course, when the underlying index increases. However, it is double (in this case, sometimes triple) the disaster when things come crashing down. These are the ultimate example of past performance not guaranteeing future results. Plus the 95 basis points expense ratio is way over my 50 hard cap.
The fund has done well in the past 10 years, though. There is that (:
Am I the only one that says “let’s grow” at the same time Jeff does and the intro lol?
Hey Kevin. I literally just laughed out loud. That is gold. Thanks for the comment. There are people out there 'almost' as nerdy as me (:
You make really interesting videos! Thank you.
Hey Oldrin. I'll take interesting! I've been called worse haha. Really though, I appreciate you watching the videos and for being a part of this great community.
Do you have any thoughts on AIRR? Since its inception, it has beaten SP by a margin and has no overlap with VOO or SCHD.
I've seen that ETF around a little bit. I've never closely tracked it because it breaks my hard rule of having an expense ratio of over 50 basis points (coming in at 0.70%). But it has very solid 10 year total returns that have easily outperformed the S&P 500. I don't love that 90% of the fund is industrials, however, I'm the same guy that holds VGT, so I get the 'sector-bull' mentality in general.
I looked at my TNA initial buy on July 26th.
Since this date I am up $13.55% on TNA compared to AVUV where I would have been up 4.60%.
I know TNA is a 3X ETF but I was only looking to be in this through maybe 2025. With you I am set on Growth/Core/Dividend. Small cap has never been in plan. What are your thoughts on this play. I know the risks of 3x. This just .89% of my portfolio.
Hey Daman. Thanks for watching and for the question. I appreciate your support of the channel.
I am not a fan of leveraged ETFs that seek to 2x or 3x indexes. But at the same time, I hold Bitcoin, which I know is different, but point is it has its skeptics as well. I don't like the lack of floor with leveraged ETFs and the high expense ratios (108 basis points for TNA will have compounding costs over time).
It has done well, and it may continue to do well. I think you're okay with it being 1% of your portfolio if you have conviction in it. Worst case scenario is that your overall portfolio drops a little more than it would have. Sometimes the high ceiling plays pay off big within a portfolio.
For me, my high ceiling yolo play is Bitcoin. So far, so good.
@ Thanks it is not buy and hold just a short play. I have some BITCOIN and IBIT as well.
OMG, love it Jeff !! Looks like I am making right decisions, I added AVUV to my portfolio from this month already. With the fed taxes going down, I am thinking AVUV will be a good addition in 2025. Right now my portfolio with a target to retire in 10 years 😅 (VOO - 50%, QQQM - 30%, AVUV - 10% and SCHD - 10%)
Hey Vikram. I think you have an incredibly balanced mix that will do well over long periods of time.
I'm not one to predict the market, because I don't think anyone knows what will happen next and when. But with small-cap value, like AVUV, I think there is a VERY strong chance for a positive reversion to the mean in the coming years. This based on past data (decades worth, not magic 8-ball stuff) and the recent dominance (overall) of large cap over the past decade and change.
@vikramkaushik - Hey Vikram, if you don't mind sharing, what's your % goals when you retire in 10 years? Are you planning on bulking up SCHD or other dividend focused funds with new money as you get closer?
@@charlielipthratt7291 Hi- my plan is to rebalance and dial up from growth to SCHD once I get closer to retirement. At this stage, I am more on foundational ETF and Growth funds
Great video, Jeff!!! I’ve been eyeballing AVUV for a little while, as well (probably since your last video on it). It feels like it should complement the SCHD / value portion of a portfolio, but is it worth creating space for it? SCHD will do well, right?!? 😉
Hey Nick. You nailed it as far as the potential role for AVUV in the portfolio. That is how I look at it as a fit too. A nice holding next to the other value ETF, SCHD.
I think I will stick with my simple portfolio setup for now. But small-cap value has been SO good for SO long that it makes it a tough pass for me. It is one I'll probably be thinking about for a while and who knows, maybe I make the move on a perfect storm.
Laziness and simplicity usually win the day for me, though (:
@@JeffTeeples I'm with you on simplicity. But, I'll be watching AVUV from a distance (like Rick Springfield singing about Jesse's Girl lol!!!) Though, #FOMO is a real thing. Off topic (and maybe a new video), lots of chatter on crypto currencies doing well with the new administration... thoughts? I'll admit I did buy a small piece of FBTC because "why not?"...
Man, I think the new administration has been huge for crypto. It has been interesting to watch. I'm not at the point where I feel comfortable making a video about it, personally. I know my videos aren't the most exciting and news worthy, but I care way more about keeping them 'time-tested' and 'as accurate as possible' for the long run to help people reach time freedom with stability. I don't want it to be a place that features all the hot news and gets tons of clicks and views for the wrong reasons.
Don't get me wrong, I think the new administration IS great for crypto, and the results are reflecting that so far. But this isn't something I have a deep understanding of and that I think will remain intact as time moves forward. I do hold Bitcoin and (partially) believe in its future, though, so definitely enjoying the ride!
I probably am due for another general Bitcoin video, and the recent changes would definitely be in it. I'll go to the drawing board.
@@JeffTeeples Thank you for the perspective and rationale. I understand where you're coming from. There's plenty of content out there that feels "click-baity" and that's where your content is different (and appreciated) - grounded in data and it's literally your portfolio (and results) you're talking about.
BTW, I chuckle at your "niiice" (69 ref) comments every time I hear them. My wife finally figured it out today (I got the "aw geez" eye roll) HAHA!!!
My target is to have 15% of my total portfolio in AVUV
Nice Michael. I think, and again, I don't know anything special at all here, but I think small-cap value will do well in the coming years if the trends are anything like the last 40 to 50 years. Large-cap and growth are on way too big of a run in the past decade. I think there will be a reversion to the mean. And the mean is 'better' historically with value and small-cap, in general.
Could be a great satellite position in your growth section.
Hey Jeremy. My thoughts exactly. With both small-cap & value winning the return game as individual factors over the long run, *and*, with both lagging the last 10 years, I think alpha will be created with the AVUVs of the world in the next decade or so.
This doesn't mean I'll dive in, but I do think the odds are in its favor.
What % of portfolio will you allocate to AVUV..do you think its better than vanguard small growth etf (VBK)
I would slot it in with SCHD in my portfolio. It is a value play, and belongs in the value section (at least for my portfolio). VBK would go in the growth section if I were to add it. I look more at the valuations than the market cap when allocating my portfolio. But I do like AVUV better than VBK, personally.
AVUV is my favorite small-cap value ETF (I think, need more data over the years) as of right now. I would probably add maybe 5 to 10% (reducing the value section, in my case, SCHD). But I think I'm going to stick with SCHD for now and keep my eye on AVUV.
@@JeffTeeples thanks..I was thinking same regards to AVUV and I dont like to invest until there is a history for about 10 years..I am currently doing 20% in SCHD, 30% Large Blend like VOO and rest 50% in Growth (QQQM,SCHG etc)..
What about XSMO? XSMO vs AVUV
Hey Russell. XSMO is a solid momentum ETF. I'm a bit more of a fan of AVUV as profitability and value are factors I think produce better long-term wins.
The 5 years total returns are as follows:
AVUV: 111.16%
XSMO: 88.67%
isn't it a problem that next Apple that is sitting in there will eventually be kicked out of this index fund?
Thanks for watching and for the question. I completely understand that thought process. However, the same can be said at all transitional levels (micro to small to mid to large). The small-cap market has had quite the big win again large cap when we look back 50+ years.
I like large cap, personally. I'll take the steady Eddy because I run a little more conservative. But just think of all of the Apple companies that were once small cap (: I guess I'm flipping the same argument up-side-down. So many companies went from nothing (just becoming a small cap) to BOOM, mid cap. AVUV got all the gains along the way, and then found the new crop of companies. *Usually* the large caps chill out and become blue chip (not a ton of AAPL out there that KEEP going crazy).
@ this is like investing in kindergarten for kids from wealthy families instead of investing in kids themselves, there will always be kids, they will grow fast and healthy and make other kids :D
Great video as always. But I think your results are not as clear as you rebalanced. You should run the results without rebalancing to be completely fair.
Thank you for watching and for the kind words. The backtest results will not change with rebalance selected when it is single holdings. I think that may be what you are referring to? I just re-ran the scenario in portfolio visualizer with rebalance turned off and it gets the same results. This is because each portfolio is set to 100%, so there is nothing to rebalance. It will change the results of portfolios with 2 or more holdings.
Sorry in advance if this isn't what you are referring to, lol.
@@JeffTeeples Thank you for clarifying. Yes, with 100%, it wont make a difference. Because you mentioned rebalancing, I got confused!
Jeff what category would I put AVUV in my 3 fund portfolio?
Hey Anderson. Thank you for watching and for the question. I think AVUV belongs in the value section, or, a section of its own.
For example, I'm a third of each (VOO, VGT, SCHD). I would replace some SCHD or make it new money and take each of the 3 sections from 33.3% each to 30% (with 10% being AVUV).
This is just an example, you could add 5%, 15%, or anything that seems reasonable.
AVUV is actively managed. It’s only been around since 2019. Red flags.
I think those are reasonable flags. I would turn them to yellow flags, personally (: But I know what you mean and I also like to see as much history as possible. I'm 99% sure it is passively managed behind the scenes (I do something similar with my individual stock screener and scoring system on factors). But your point still stands. We will see how this thing does long-term.
It’s AUM is 16B… if it has red flags, why are so many people invested in it ? 🤔