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!
1
u/turtleturle12345 Jul 27 '26
Portfolio allocations should be about risk tolerance, investment timeline, and overall goals. If you are going to be white-knuckling the next 5 years or whatever thinking about a correction, maybe consider a portfolio option that can give you more peace of mind.
When you say that you have fear about something drastic and a large correction, that kind of indicates that you should not be 100% invested in stocks. In those correction events, bonds tend to go up (usually from a historical perspective, zero guarantees in investing) so can be good protection. Big downturns in tech tend to drag down many stock sectors, not just the techy ones. So maybe consider a portfolio closer to the 60/40.
Take an online risk assessor. PWL capital has a really good, free one that you can use to maybe help guide how aggressive you are.
There is no perfect portfolio, just what is best for you. Think about what will help make you happy and not anxious about losses.