..
Investment Policy Statement 2026
It has been 2 years since I made my investment policy statement in 2024. This is a minor short revision to that document. The reasoning outlined is more or less still the same. The change is a 5% increase to the small cap and value portion of the portfolio. The ratio of domestic to international equities will stay the same.
You can find that original document here.
This post will be strictly about the asset allocation.
Equity
The new allocation is:
- 45% Capitalization-Weighted Total US Stock Market
- 30% Capitalization-Weighted Total Global Ex-US Stock Market
- 15% US Small Cap Value
- 10% Developed Ex-US Small Cap Value
The change in weights were:
- -3% Capitalization-Weighted Total US Stock Market
- -2% Capitalization-Weighted Total Global Ex-US Stock Market
- +3% US Small Cap Value
- +2% Developed Ex-US Small Cap Value
Investment Products
The products we prefer have not changed. For MCW, we will use Vanguard.
| Ticker | Name | Expense Ratio |
|---|---|---|
| VTI | Vanguard Total Stock Market Index ETF | 0.03% |
| VXUS | Vanguard Total International Stock Index ETF | 0.07% |
To capture the size and value factors, we will use Avantis.
| Ticker | Name | Expense Ratio |
|---|---|---|
| AVUV | Avantis US Small Cap Value ETF | 0.25% |
| AVDV | Avantis International Small Cap Value ETF | 0.36% |