r/AusFinance • u/Crab_Apple31 • 13h ago

New to ETFs. Roast my portfolio Investing

So like I said, I’m new. I like to think I’ve done some research and have come up with what I think is a sound strategy, but am a total n00b and looking for feedback or suggestions. Main goal is ‘savings’ - fortnightly deposits into each of the below for the long term (10+ years). Looking for low fees, minimal overlap between ETFs and a broad spectrum so I’m not overexposed to risk (particularly with the uncertainty of Trump about to take office in the US). So here goes:

1) IOZ 2) IVV 3) VEU

Idea would be to have 33% of my portfolio in each but any suggestions in that regard would be welcomed!

Currently I hold IOO also, thinking of keeping that but not investing any more and moving all future deposits (for that particular component) to IVV instead.

So have at it! Is this dumb?

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u/Crab_Apple31 13h ago

Thanks. I’ll be really honest and show my naivety, I had not come across where they were domiciled so far in my research so that helps a lot. I think I’ll stick with IOZ/IVV/IVE. Thoughts on adding QUS into the mix as well as/instead of either IVV or IVE?

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u/Spinier_Maw 12h ago

I do hold MVW and QUS which are equal weight counterparts for Aus and the US. They have different risks from the usual market cap ETFs, so be sure to read up a bit.

You shouldn't hold QUS instead of IVV, but you can hold QUS with IVV.

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u/Fast_Economist_8917 12h ago

I’m curious as to the basis for your last comment beginning “you shouldn’t”.. why shouldn’t OP?

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u/Spinier_Maw 3h ago

Because equal weights and market weights may take turns outperforming.

If you only have QUS and magnificent seven keep outperforming, QUS will underperform IVV. If magnificent seven crash, QUS will outperform IVV. Who knows which way the market will go.

For me, I hold almost 50/50 of market cap and equal weight for that reason.

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u/Fast_Economist_8917 2h ago

Ah ok, yes that makes more sense than just a direction that OP “should” do something with no rationale or objective in mind.