|Ticker|Allocation|| |:-|:-|:-| |FXAIX|40%|Core| |VUG|20%|Growth tilt| |IJR|12%|Small cap| |VXUS|12%|International| |VHT|8%|Real estate| |VNQ|8%|Healthcare|
Fidelity - I like the ease of use with their platform for automatic investing
Started taking my retirement seriously this year and spent a lot of time researching before landing on this allocation. Happy to hear feedback but wanted to share the thought process for anyone in a similar spot.
I wanted more control over my exposure and growth tilt versus just VTI and chill
FXAIX - Tracks S&P 500 at a 0.01% expense ratio. Chose it over VOO and VTI because it's cheaper, pays monthly dividends instead of quarterly.
VUG - Has a 20-year 12.67% CAGR (Compound Annual Growth Rate) and 17.97% at 10-year. Chose this over VOOG because it has a lower expense ratio and stronger historical returns. Overlaps with FXAIX but I am tilting towards growth instead of diversifying at this stage.
IJR - Fills the gap that FXAIX and VUG don't cover and small caps have outperformed large caps over very long horizons. IJR tracks the S&P SmallCap 600 which requires positive earnings for inclusion. 20-year CAGR of 8.5% with a 1.7% dividend paid quarterly.
VXUS - 10-year 9.88% CAGR International fund for valuation and currency diversification. I know that my allocation is smaller than what's typically recommended.
VNQ - 20-year 6.3% CAGR. Wanted this inside my Roth for because of the 3.9% quarterly dividends and the diversification from pure equities.
VHT - 20-year 10.21% CAGR Healthcare exposure. Covers entire healthcare sector including pharma, biotech, medical devices, and health services.
Please let me know your thoughts, and if you would change anything.
Sources:
https://finance.yahoo.com/quote/FXAIX
https://stockanalysis.com/quote/mutf/FXAIX/dividend/
https://www.mutualfunds.com/funds/fxaix-fidelity-500-index/
https://www.financecharts.com/etfs/VUG/performance/total-return