Please rate the vision of my portfolio 🙏
So, I originally had VWCE + VFEA + SXRV + AVWS. Dropped SXRV (just doubled up on VWCE's mega-cap tech, no real diversification) and VFEA (was giving me a ~25% EM overweight I didn't intentionally choose, plus EM has structurally underperformed for 15 years). Redirected the freed capital into a multi-factor approach instead.
Why factors: Quality, Momentum, and Small-Cap Value have decades of academic data showing long-run premia. They're partially uncorrelated, so when one lags the others tend to work, which means a smoother ride at higher expected return than market beta alone. Quality also dampens drawdowns, which fits the mid-high risk profile I had in mind when building this.
The other percentage left out of this image (7%) will be allocated to occasional swing trades/individual stocks investing where I'm setting a 2-3% max alloc per stock as long as it's not high conviction and I want to do more.
This will be my main long term investment portfolio so I'm committing to it (7-10+ years).
Geographic split lands around 55% US / 32% developed ex-US / 7% EM, basically global market-cap weights, no active country bets.
The only 2 bigger "concerns" I have: Should I allocate more to EGLN or just remove it completely? And I might consider giving a couple more percentages towards the individual stock plays I'm taking (maybe towards 13-15% of portfolio) since I will be actively watching those a lot more and I do like swing trading.
Open to feedback. Anything obvious I'm missing or over-thinking?