u/New-Function-6250 ·
Reddit — r/investing
· March 27, 2026 at 00:58
· ⬆ 21 pts
· 💬 35 comments
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AI Summary
Summary
A 37-year-old investor is asking for portfolio strategy advice, specifically whether to continue concentrating in SCHG (large-cap growth ETF) or diversify into other growth funds like IWO or MTUM.
The author's thesis is that an aggressive growth allocation in a taxable brokerage account is appropriate for an 8-10 year horizon, seeking higher returns than HYSA/bonds.
Quality assessment: This is a personal strategy discussion and request for advice. It is not deep due diligence (DD), speculation, or noise, but a legitimate portfolio allocation question.
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I am 37, and have been putting around $1500 a month into fidelity brokerage account, all into SCHG since past 18 months or so. Considering my growth appetite for next 5 years, should I keep doing this or split 30%-40% with another growth fund like IWO? Also came to know about MTUM, but it may have some overlap with either of those funds depending on the market.
**Update #2:**
Just brief on retirement accounts - my wife and I have separate 401k accounts through our employers - with total combined yearly contributions at approx. $19k.
My current 401k mix:
Fidelity 500 Index Fund - 30%
Vanguard Growth Index Institutional Fund - 30%
Principal SmallCap S&P 600 Index Separate Account - 10%
American Funds New World R6 Fund - 10%
Vanguard Developed Markets Index - 20%
**Update #3:**
We do keep some emergency fund in hysa. Even though the investment into brokerage account is meant for retirement, the reason for contributing into this versus increasing investment in 401k is to just have some flexibility in case the money needed to be withdrawn for some reason. At the same time, we want to be a bit aggressive for next 8-10 years to get some benefit of higher returns of growth funds compared to typical hysa/bonds/value funds.
Any suggestions are appreciated.
The author explicitly asks about splitting 30-40% of contributions into another growth fund like IWO (small-cap growth ETF). This suggests consideration of diversifying growth exposure from large-cap to small-cap to capture potential outperformance. IWO is on the author's radar as a potential complement to reduce concentration and tap into small-cap growth. Higher volatility and underperformance of small-caps, plus potential overlap concerns noted by the author.
The author mentions they "came to know about MTUM" but note it may have overlap with their other funds. The author is aware of the ETF but is signaling caution due to potential redundancy, not immediate interest in adding it. The post implies MTUM is being screened out as a potential holding due to overlap concerns, suggesting an "avoid" stance for now. Overlap may not provide intended diversification; momentum factor may be cyclical.
The author has been consistently allocating $1500/month to SCHG for 18 months and is considering continuing this strategy for growth over the next 5-10 years. This indicates a strong, ongoing conviction in large-cap growth stocks as a primary vehicle for capital appreciation in a taxable account. The author is executing and considering a continued dollar-cost averaging strategy into a high-growth segment of the market. Concentration risk in large-cap growth, which is vulnerable to prolonged high-interest rate environments or style underperformance.
This Reddit post, published March 27, 2026,
features u/New-Function-6250
discussing IWO, MTUM, SCHG.
3 trade ideas extracted by AI with direction and confidence scoring.