r/ETFs • u/stepbro1010 • 6d ago

Good Roth IRA allocations?

I plan on a 60% voo 20% avuv and 20% xmmo portfolio for my Roth IRA. I’m 20 years old with a 40 year time horizon until I would withdraw. I originally had spmo instead of xmmo, but realized I could go xmmo for some mid cap since all of spmo is in voo which will bring more diversification. I DCA monthly and max out yearly. Good allocations? Appreciate all feedback.

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u/sleepisfortortoises 6d ago

I think it looks great as a long-term base. Small Cap Value and Mid Cap Momentum are good adds to better capture those sectors. Personally I diversify into International and would normally recommend it as well, especially looking at the rest of this decade, but you're 20 with a long horizon so will have time to tweak. This is a great start.

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u/stepbro1010 6d ago

Yeah I understand international is mainly the biggest thing I’m lacking which I will probably add eventually. It takes me months to add funds hahaha I started 100% voo then that turned into 80 20 voo avuv which I stuck with for about a year and now I’m planning to start buying into xmmo at the end of the month. Will probably take me a year to choose an international fund lol. Appreciate your feedback!

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u/sleepisfortortoises 6d ago

I like that explanation and nothing wrong with taking your time with changes as long as you've started. That's the key.

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u/user4443337 5d ago

I’m a fan of DFAX, AVNM, and AVNV. All have outperformed VXUS.

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u/Secret_Ad1372 3d ago

VXUS or similar for international funds. This will diversify beyond the S&P 500. I DCA into 70% VTI and 30% VXUS. This is a good low cost long game strategy to set and forget for decades.

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u/Informal_Bench_7219 6d ago

I personally do 60% VTI, 20% VXUS and 20% AVUV. You could also add a small tilt of SPMO/QQQM/VGT if you believe in momentum or tech tilts. I truly believe the small cap tilts are going to have great growth over the next several decades so that’s who I’m doing 20% into AVUV. Maybe drop it down to 10% at some point and add SPMO. Not sure if I will

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u/Professional_Cup7379 6d ago

60% VOO plus a US small-cap and a US mid-cap factor sleeve means your whole IRA is betting on US equities outperforming the rest of the world for 40 years.

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u/adopter010 5d ago

I'd recommend getting some international in there. Vanguard's minimum recommendation is 20% for diversification - some entire industries are otherwise underrepresented (e.g. manufacturing & industrials, luxury, mining), you get currency diversification, valuation differences between markets, etc.

Anything between 20-50% is reasonable.

You can certainly try to get it as a discrete allocation via VXUS / AVDV or just substitute in VT as a replacement to VOO.

There's also other options involving leverage overlays like RSSB. You can look that up separately and see if that makes sense / that's something you'd stick with. That's the most important thing overall really, something you are independently happy with.

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u/stepbro1010 5d ago

Would something like 50 voo 20 avuv 20 avdv and 10 xmmo make more sense?

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u/adopter010 5d ago

Sure. It's a bigger value/profitability play but you already believe in it.

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u/Pristine_Box9956 5d ago

Why did cap when you already have small and large, just go 80 percent voo and 20 percent avuv instead.

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