ETF Portfolio for the long term (ROTH)

May 31, 2007 1 Replies

Hello all,



Does a diversified ETF portfolio for an IRA or any long term savings require that you invest in both Mid-cap and Small-cap?? Is that the way it is mostly done? I am looking at a fairly aggressive ETF portfolio... one that is still diversified, but concentrated in higher risk areas. here is my thought so far...



EEB (BRIC fund (Brazil, Russia, India, China) EFA (MSCI EAFE Index) ILF (latin america, this may be redundant with EEB holding a large position in brazil) VBR (Vanguard Small-cap Value) VOE (Vanguard Mid-cap Value)



Off the bat I'm thinking perhaps ILF isn't necessary. but I'm also not sure about VBR and VOE, are both a good idea, or should I choose 1 and get rid of the other?



What are your thoughts on the above? If I were to get rid of ILF and/ or one of the vanguard funds what would you replace them with, bearing in mind this is for an IRA and I still have 30+ yrs till retirement.


Thanks, Shhhh



That would help.

You need more funds, so that you can rebalance when one sector of the economy grows faster than the others.

If I were to get rid of ILF and/

You need to be 10 - 20% in energy (natural resources) depending on your exposure in the other funds.

-- Ron

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