VTI/EDV

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AdamA
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VTI/EDV

Post by AdamA »

What do people think about a VTI/EDV portfolio.  50/50, with rebalancing bands of 25% and 75%?

It would be held in a Roth IRA with Vanguard, so there would be no taxes or trading fees.
Last edited by AdamA on Tue Oct 11, 2011 7:35 pm, edited 1 time in total.
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murphy_p_t
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Re: VTI/EDV

Post by murphy_p_t »

what's your premise for market direction? with EDV being sometimes moving 1.5xTLT, this seems like you're expecting further declines in stock market?
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AdamA
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Re: VTI/EDV

Post by AdamA »

murphy_p_t wrote: what's your premise for market direction? with EDV being sometimes moving 1.5xTLT, this seems like you're expecting further declines in stock market?
No idea.
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moda0306
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Re: VTI/EDV

Post by moda0306 »

I love the pair of stocks & long-term treasuries, and as a VP in a Roth I think that's a decent plan.  EDV is pretty volatile, though.  Why not TLT? Or a 25/25 split?
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Reub
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Re: VTI/EDV

Post by Reub »

This sounds like a Boglehead portfolio.
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AdamA
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Re: VTI/EDV

Post by AdamA »

moda0306 wrote: I love the pair of stocks & long-term treasuries, and as a VP in a Roth I think that's a decent plan.  EDV is pretty volatile, though.  Why not TLT? Or a 25/25 split?
I like the 50/50 split for the sake of simplicity.  The (very limited) backtesting I did didn't have a lot of volatility with that mix.  Not very scientific, I know.
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AdamA
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Re: VTI/EDV

Post by AdamA »

Reub wrote: This sounds like a Boglehead portfolio.
Kind of, but I think they tend to use funds like AGG or BND that track a broader bond index, not just long US bonds.
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Re: VTI/EDV

Post by cabronjames »

Adam1226 wrote:
Reub wrote: This sounds like a Boglehead portfolio.
Kind of, but I think they tend to use funds like AGG or BND that track a broader bond index, not just long US bonds.
iirc, I posted previously about why the Bogleheads don't consider 30 yr T-Bond asset class as their "Bond" asset, as opposed to that Intermediate Bond Index BND.  IIRC, VTI had more of an inverse correlation with TLT & EDV, than VTI did with BND.
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escafandro
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Re: VTI/EDV

Post by escafandro »

What about MDY/EDV, more zig and zag in opposite directions. More opportunities to sell high and buy low on the rebalancing, no?
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