Am I diversified in a Roth IRA if I am currently invested in the following: qbts at .24% of my account, Amazon at 2.7 of my acct, schf at 17.29%, spyg at 6.97%, vig at 2.47%, dgro at 6.26%, sptm at 4.56%, ietc at 1.15%, vgsh at .7%, swppx at 25.99%, and swvxx at 31.68%.

``` The deep research logic is organized as follows: Okay, let's tackle this user's question about whether their Roth IRA is diversified based on their current investments. First, I need to look at the assets they've mentioned: qbts, Amazon, SCHF, SPYG, VIG, DGRO, SPTM, IETC, VGSH, SWPPX, and SWVXX. The user is asking if they're diversified, so I need to assess the allocation across sectors, geographies, and asset classes. Starting with the allocations, the user has a significant portion in SWVXX (31.68%) and SWPPX (25.99%). From the references, SWVXX isn't well-documented, but SWPPX is the Schwab S&P 500 Index Fund. That means a large chunk is in large-cap US stocks. Then SCHF (17.29%) is an international equity ETF, which adds some diversification outside the US. SPYG (6.97%) is a growth ETF focused on the S&P 500, so that's more US large-cap growth stocks. VIG (2.47%) is a dividend appreciation ETF, which is also US-focused. DGRO (6.26%) is another dividend growth ETF, but the holdings comparison shows it's similar to VIG but with some differences. SPTM (4.56%) is a broad US market ETF, covering more companies. IETC (1.15%) is a tech-focused ETF, which adds sector-specific exposure. VGSH (0.7%) is a short-term government bond ETF, providing some fixed-income diversification. Amazon (2.7%) and qbts (0.24%) are individual stocks, with Amazon being a large-cap tech company and qbts related to quantum computing, which is a niche sector. Looking at the sector breakdown, the user has exposure to technology (through SPYG, IETC, Amazon), financials (VIG, DGRO), healthcare (VIG), industrials (SCHF), and some bonds (VGSH). However, the heavy reliance on US large-cap stocks (SWPPX, SCHF, SPYG) might leave them underexposed to mid-cap, small-cap, or international markets beyond developed countries. The user also has a small allocation to quantum computing (qbts), which is a high-risk, high-reward sector. The presence of VGSH is good for balancing equities with some fixed income, but the percentage is quite low. Geographically, SCHF provides international exposure, mainly Europe and Japan, but there's no mention of emerging markets. The rest are US-focused. The user's portfolio lacks exposure to sectors like energy, materials, or utilities, which could be a gap. Also, the concentration in a few ETFs (SWVXX and SWPPX) might not be providing enough diversification within the equity space. Considering the user's profile, they're interested in ESG and blue-chip stocks. The current portfolio doesn't show any ESG-specific ETFs, which might be a missed opportunity given their interest. The user is also concerned about valuation and long-term growth, so the inclusion of dividend-focused ETFs like VIG and DGRO is positive, but the lack of mid-cap or growth-oriented ETFs beyond SPYG might limit upside potential. In conclusion, while the portfolio has some diversification across sectors and geographies, there are significant concentrations in US large-cap equities and a lack of exposure to certain sectors and asset classes. The user might benefit from adding more mid-cap, international, or ESG-focused investments to enhance diversification and align better with their interests and risk tolerance. ``` **Conclusion** Your Roth IRA portfolio is **partially diversified** but has significant gaps in sector, geographic, and asset class exposure. While you have a mix of U.S. and international equities, the portfolio is overly concentrated in **large-cap U.S. equities** (SWPPX, SCHF, SPYG) and lacks exposure to **mid-cap, small-cap, and emerging markets**. Additionally, there’s minimal **fixed-income diversification** and no **ESG-focused investments**, despite your interest in ESG themes. Let’s break this down: --- ### 📊 **Current Allocation Breakdown** | Asset Class/Strategy | Allocation (%) | Key Concerns/Opportunities | |----------------------------|----------------|-------------------------------------------------------------------------------------------| | **Large-Cap U.S. Equities** | 64.2% (SWPPX 25.99%, SPYG 6.97%, SCHF 17.29%) | Overweight in S&P 500 and international developed markets; limited exposure to growth or value factors. | | **Dividend Growth** | 9.73% (VIG 2.47%, DGRO 6.26%) | Concentrated in high-quality U.S. dividend payers; no international dividend exposure. | | **Technology** | 10.88% (IETC 1.15%, Amazon 2.7%, SPYG 6.97%) | Heavy reliance on U.S. tech giants; no exposure to quantum computing beyond qbts (0.24%). | | **Fixed Income** | 0.7% (VGSH) | Minimal bond exposure; no inflation-protected securities or international bonds. | | **International Equities** | 17.29% (SCHF) | Focused on Europe and Japan; no emerging markets or Asia-Pacific exposure. | | **Niche/Specialized** | 1.39% (qbts, IETC) | High-risk, high-reward assets (quantum computing, tech independence) with limited diversification benefits. | --- ### 🚨 **Key Diversification Gaps** 1. **Sector Exposure**: - **Missing Sectors**: Energy, Materials, Utilities, and Industrials (beyond SCHF’s industrial holdings). - **Overweight in Tech**: 10.88% in U.S. tech (Amazon, SPYG, IETC) vs. negligible exposure to quantum computing (qbts 0.24%). 2. **Geographic Exposure**: - **No Emerging Markets**: SCHF focuses on developed markets (Europe, Japan, UK); no exposure to China, India, or Latin America. - **No Asia-Pacific Beyond Japan**: SCHF’s 20.64% Japan allocation is the only Asian exposure. 3. **Asset Class Balance**: - **Low Fixed Income**: VGSH (0.7%) is insufficient for risk mitigation. - **No Alternatives**: No real estate, commodities, or private equity exposure. 4. **ESG Focus**: - **No ESG ETFs**: Despite your interest in ESG, the portfolio lacks dedicated ESG funds. --- ### 🛠️ **Recommendations for Better Diversification** 1. **Add Mid-Cap and Small-Cap Exposure**: - Consider ETFs like **IWM (Russell 2000)** or **SCHH (Schwab Small-Cap ETF)** to balance large-cap dominance. 2. **Expand International Markets**: - Add **EEM (iShares MSCI Emerging Markets ETF)** for exposure to China, India, and Latin America. - Consider **SCHE (Schwab Emerging Markets ETF)** for a lower-cost alternative. 3. **Enhance Fixed Income**: - Increase bond allocation to 10-15% with **TIP (Treasury Inflation-Protected Securities)** or **BNDX (Vanguard Total International Bond ETF)**. 4. **Incorporate ESG Themes**: - Add **VSGX (Vanguard ESG U.S. Stock ETF)** or **ESGD (iShares ESG Aware MSCI EAFE ETF)** for sustainable investing. 5. **Diversify Tech Risks**: - Reduce reliance on Amazon (2.7%) and SPYG (6.97%) by adding **QD (Invesco QQQ Trust)** for broader tech exposure. 6. **Add Alternatives**: - Consider **REITs** (e.g., **VNQ**) or **commodity ETFs** (e.g., **GLD**) for non-correlated returns. --- ### 📊 **Proposed Allocation Adjustments** | Asset Class/Strategy | Current Allocation (%) | Recommended Allocation (%) | |----------------------------|-------------------------|----------------------------| | Large-Cap U.S. Equities | 64.2% | 50% | | Mid/Small-Cap Equities | 0% | 10% | | International Equities | 17.29% | 20% | | Fixed Income | 0.7% | 15% | | ESG/Alternative Assets | 0% | 5% | --- ### 🎯 **Final Takeaway** Your portfolio is well-positioned for **long-term growth** but lacks **balance** across sectors, geographies, and asset classes. By addressing the gaps above, you can reduce risk and align your investments with your **ESG interests** and **long-term goals**. Let me know if you’d like a tailored portfolio adjustment plan! 🚀