r/investing
What do you think of the growth section of my portfolio?
User seeks advice on rebalancing the 40% growth portion of their portfolio, considering swapping QQQM for AVUV, VXUS, and XMMO.
Currently I have 60% of my portfolio in VOO.
The rest (growth section) I have allocated to QQQM, SPMO and VGT.
Currently thinking about reducing or removing QQQM and adding AVUV, VXUS and possibly XMMO. (This is all contained in the 40% growth section outside of VOO. Do these changes make sense? Or would sticking with QQQM be better? How would you organize the growth section of a portfolio after having a foundation in the SP500?
Your instinct to swap out QQQM is solid, but maybe not for the reasons you
think. VOO already has heavy mega-cap tech exposure (NVDA, AAPL, MSFT are
~20% of VOO). Adding QQQM, SPMO, and VGT on top of that gives you massive
overlap — basically your whole portfolio is US large-cap growth.
Swapping QQQM for AVUV (small-cap value) and VXUS (international) would
actually diversify you. AVUV gives you exposure to smaller companies that
are historically cheaper and have higher expected returns (the Fama-French
value premium). VXUS gives you non-US exposure, which reduces your
country-specific risk.
For the remaining "growth" allocation, VGT already covers tech. You could
drop SPMO as well (it's momentum factor, which overlaps with growth) and
just hold VOO + VGT for US, then add AVUV + VXUS for diversification.
It’s all basically the same.
Nvidia alone makes up nearly 12% of your entire portfolio, and just four stocks (NVDA, AVGO, MSFT, AAPL) will be over 30%.
Consider value and international stocks.