My Roth IRA Asset Allocation
(updated 7/7/09) I’ve received a few emails asking about my personal IRA allocation. As my balance grows larger, I will probably add another asset class or two such as foreign small/mid value and maybe some commodities exposure. In any event, I’ve kept things fairly simple. Here goes…
- 10% Vanguard 500 Index fund (VFINX)
- 10% Vanguard Value Index fund (VIVAX)
- 10% Vanguard Small Cap Index fund (NAESX)
- 10% Vanguard Small Cap Value Index fund (VISVX)
- 10% Vanguard REIT Index fund (VGSIX)
- 10% Vanguard Short Term Treasury fund (VFISX)
- 10% Vanguard FTSE All-World ex-US Index fund (VFWIX)
- 10% Vanguard International Value fund (VTRIX)
- 10% Vanguard Emerging Markets Index fund (VEIEX)
- 10% Vanguard FTSE All-World ex-US Small Cap Index fund (VFSVX)
Notice that with the exception of the International Value fund, my Roth IRA portfolio is completely indexed. The reason for the inclusion of the actively manged International Value fund is that, sadly, Vanguard has no indexed option for this asset class. But with a low (for an actively-managed fund) expense ratio of 0.41%, I feel fairly comfortable getting my international large-cap value exposure here. Needless to say, I will swap it out for an index fund if Vanguard ever feels fit to launch one. What do you think? Any suggestions or comments?
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Look into commodities please. I prefer them to bonds at this point in the cycle and think they are vital to an asset allocation program but perhaps you should look into it for yourself and blog the results? Try the Simply Rich wiki as a starting point…
Best,
N
I was curious why you chose value index funds. What is the benefit of having all those separate large cap and small cap index funds as opposed to just owning the total stock market index fund?