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REDDIT

Is adding bonds really lowering the risk?

7
Apr 12, 2026 · 03:16

I’ve constructed my portfolio like this:

80% VWCE
10% Small Cap Value Europe
10% Small Cap Value USA

What I’m afraid it that this will underperform for quite some time and cause me a headache. When things go bad I tend to search for a way to „optimize” or exchange for „better performing” instruments. I was thinking:

a) yolo go full VWCE and chill
b) selling small cap for something like VAGF

The thing is - I know the bonds are lowering the overall performance of the portfolio and I’m honestly not sure that they will help me get through things like -40%. What do you think?