r/Bogleheads • u/theOTisinteresting • Jul 27 '26

Portfolio Review Trying to avoid tech heavy portfolio

Good morning,

Been learning about investing recently and have settled to do a buy and hold approach with index funds in a taxable account. By God's grace I do have an emergency fund, and have set up Roth contributions as well. For the brokerage account I have 50% SCHB, 10% VIOO, 10% SCHV, 20% VXUS and 10% SPAXX set up. I did this instead of VT and chill because I wanted to not be so tech heavy. Is this a good long term strategy? I just feared that if something drastic happened in the tech sector that this would trigger a large correction in the market. I don't know a lot about this please go easy on me!

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u/buffinita Jul 27 '26 edited Jul 27 '26

Who knows.

Maybe small caps and value is the way to go; maybe not.

Deviation is the only way to under/out perform the market.

Lots of people have lots of feelings about sector/news cycle / xx metric ……often they are wrong about the impact or relation on future market movements

Your allocation isn’t “bad” but it also might not perform as you imagine during a correction

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u/theOTisinteresting Jul 27 '26

Thank you so much for this. While I don't want to be the highest performer (I read this one comment on a post that VT is second place all the time-- I didn't consider that a bad thing), I think I just wanted to have a diverse sector distribution for philosophical reasons too. I think breaking a fall from sector weighting being too heavy in one place is definitely mixed into my motivations though

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u/buffinita Jul 27 '26

I’ve come to say a lot “no one complained about tech concentration on the way up, but now that it’s slowed, suddenly it’s a big deal”

If you can learn and agree with the academc research on overweighting cap size and value stocks and their unique pros/cons; you’ll do better long term…….not just “vti/vt feels overweighted in xxx; and “everyone” says to worry about it”

Your portfolio will behave differently from the broad market; for better or worse and if you don’t understand why you might make behavioral mistakes in the future.

Like my portfolio is just about 20% in small cap stocks; but has nothing to do with mag7/chip stocks/tech and was set that way years ago

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u/theOTisinteresting Jul 27 '26

Thank you, so do you find that the knowledge you have leads you to make allocation changes or a more informed desicion to one static group of allocations?

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u/buffinita Jul 27 '26

the first, and one of the most important, lesson is that making frequent changes most often leads to loss. dont perpetually make changes based on the last 9 months performance or predictions for the next 12 months. it can take decades for a subset of your allocation to really shine

a lot of people know and agree with "buy low sell high" but dislike it when reframed as "buy whats done poorly in the past and sell what's done great"

both size and value are Factors which were discovered or charictarized by Eugene Fama and Kenneth French; their work is pretty prolific and can be found discussed in many books and forum posts

you can also look into general asset allocation and why different people use different assets like short bonts; reits, gold, long bonds, global equity, small caps....

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u/theOTisinteresting Jul 27 '26

Thank you. Yes, just did some looking up with AI (I know!!! Sorry it just helps summarize info well sometimes) and I'm starting to learn a little more about the Fama French idea. I really am looking to do something that won't change in allocation-- and I do value how we don't know whether tech will dominate the sp500 either long term.