Introducing factor funds to existing passive portfolio
Hey all, I've been investing for a while in the following portfolio, with the idea to have 30% Australian exposure, with some hedging against AUD fluctuations:
| VAS | 30% |
|---|---|
| VGS | 47.5% |
| VGAD | 10% |
| VGE | 5% |
| VISM | 7.5% |
I recently learned about factor investing, and was considering slowly increasing my exposure to factors until my portfolio was 50/50 passive/factor funds. My plan to do so is to start investing in the following portfolio, until it is equal to the above, at which point I will equally invest in the two portfolios:
| DACE | 20% |
|---|---|
| DAVA | 10% |
| AVNG | 30% |
| AVSV | 30% |
| AVTE | 10% |
I know 10 ETFs is a pain to manage, and there's significant overlap between the two portfolios. But I want the transparency of having a clear separation between the passive and factor-tilted parts of my portfolio, and I'm comfortable spending the extra time managing and rebalancing to do so. Unless there's costs from this overlap I'm unaware of.
I'm new to factor investing, so I'm a little unsure whether the chosen funds are appropriate, or if my plan to introduce factors over time makes sense. I would appreciate any advice.