Am 40yrs & hv $100k available for investing. Wud the below portfolio make sense to invest and hold & also, lumpsum or DCA? *am a new investor. 50% ($50k) - VOO 20% ($20k) - VXUS 30% ($30k) - BND. Any advice? - Seedly
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Anonymous

Asked 2w ago

Am 40yrs & hv $100k available for investing. Wud the below portfolio make sense to invest and hold & also, lumpsum or DCA? *am a new investor. 50% ($50k) - VOO 20% ($20k) - VXUS 30% ($30k) - BND. Any advice?

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Hi there,

In my opinion, your picks are okay. Vanguard has traditionally low expense ratios. Your exposure is quite balanced, between US Equities and Int. Equities.

BND is mostly structured around US Gov backed securities, so its a relatively conservative option. Depending on your risk appetite, if you are looking for more aggressive growth during this period, you can take up defensive ETFs. such as VDC or VHT.

Its a very challenging time on where to put your assets, as the market is quite overvalued at this point. Doing DCA with your capital, would be better at this point, in the event there is a downward shift you can still capture the price movements vs lump sum investing. Doing DCA also opens up your capital to enter the market, should there be an opportune time.

Hope i was able to shed some insight on your situation!

*This does not constitute as investment advice, please do your own due dilligence before investing, as there are risks involved.​​​

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Duane Cheng
Duane Cheng

1w ago

You are not wrong that the composition falls under the S&P 500. If you have some time, look against VOO and VHT, the whole point for a defensive position is to ensure that during an adverse market condition, there will be an inverse correlation between your portfolios to ensure growth. There will definitely be stocks that overlap between the S&P500, due to the market capitalization of the company. At the end of the day, DYODD, because your goals might not be the same as others. The difference between roboadvisory and DIY, is your knowledge level. You definitely can diversify your portfolio holdings by doing both at the start. When you become more proficient in investments, you can start to gravitate towards DIY. TD Ameritrade's thinkorswim is one of the best platforms available today. $0 commissions has become a norm in the US, to remain competitive, other brokerages might follow suit as well.
Question Poster

5d ago

This is so helpful 👍 Thank You!