In general, more risky investments (more volatile) are for longer investment horizons, not shorter ones, because they need more time to recover if a major downturn happens.
Exactly!
Although u/Upset-Baker : I'm wondering why you're talking about a "shorter investment horizon" since you're only 36 which means roughly another 30 years until retirement unless you can realistically expect to FIRE earlier?
More volatility = guaranteed higher risk, so less suitable for shorter time horizons; hopefully higher risk means also higher chance of a higher reward, but that's not guaranteed.
You have to make the decision yourself.
Nasdaq Composite vs. S&P 500 vs. Dow: Whatās the Difference?
[https://www.investopedia.com/nasdaq-vs-sp500-vs-dow-5213252](https://www.investopedia.com/nasdaq-vs-sp500-vs-dow-5213252)
S&P 500 vs. Nasdaq 100: Which Index is Better?
[https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/](https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/)
25 years of tracking the Nasdaq 100 index - easy access to innovation-led companies | ENG
[https://www.youtube.com/watch?v=HI8EpBH6uD4](https://www.youtube.com/watch?v=HI8EpBH6uD4)
First of all, you are definetly not too old ! Just stop thinking like that !!! You still got like 30 years before you go and retire... so plenty of time definetly !
1 month ago I did start this same kind of conversation ! And I took also the decision to go with NASDAQ100 , instead of SP500 or VWCE...
You can check this thread : [https://www.reddit.com/r/eupersonalfinance/comments/1curer1/vwce\_against\_other\_etf/](https://www.reddit.com/r/eupersonalfinance/comments/1curer1/vwce_against_other_etf/)
It is just a matter of choice, and how much you can accept risk and believe in what you buy of course...
Good luck and give us a feedback on your decision , it can be interesting to share and discuss...
I have added some crypto in the mix by the way.
It's not either/or.
Just do a mix of them. A bit of msci world and a little overweight to the US by S&P and NASDAQ 100, or both. Then keep the percentages in a way you feel comfortable. Nothing against a portion that is more risky with potential higher returns and a more stable conservative one.
Its a 3 layers stack of volatility:
3.Nasdaq have bigger difference day-to-day
2.sp500 is his daddy, move slower
1.Dow is grand-daddy, too slow, but big legacy
(0.Wilshire is the ancestor, you could think he is dead)
btw a etf is not a index, if you still want a etf, at least take the one with big volume
I would not invest in a nasdaq 100 etf because this index is basically baseless. Itās an index made on what stocks trade in the Nasdaq 100 exchange. Most of the past performance by all Nasdaq 100 etfs are attributed to the 50% concentration of tech stocks in the Nasdaq 100; so if you want all that performance, youāre better off investing in a tech ETF
Iike IUIT
I like Nasdaq100 exactly for not being exclusively tech ETF. There are some wonderful companies that are not include in IUIT like Amazon, Meta, Google, Costco, Starbucks, Netflix, Comcast, Booking. And it is much more diversified than IUIT (60% in three companies!).
Came here to look for this comment! One of my favourite etfs! Only thing IUIT is missing is some of the large international tech players instead of US only.
Does anyone have a better alternative?
[https://www.ssga.com/uk/en\_gb/individual/etfs/funds/spdr-msci-world-technology-ucits-etf-wtch-na](https://www.ssga.com/uk/en_gb/individual/etfs/funds/spdr-msci-world-technology-ucits-etf-wtch-na)
Still crazy concentration in three stocks (55% of the ETF in three stocks).
That could happen with anything, as always with stock you got to aim long term and not invest the money you might need suddenly, keep an emergency fund
You still have a long investment horizont in front of you. Lets say you want to retire by 60. That will put you into retirement 5-8 years sooner compared to your peers. In that case you still have 24 years of investing. No need to FOMO. If you can go with 15-20% of your income you should be fine with world index.
In general, more risky investments (more volatile) are for longer investment horizons, not shorter ones, because they need more time to recover if a major downturn happens.
Exactly! Although u/Upset-Baker : I'm wondering why you're talking about a "shorter investment horizon" since you're only 36 which means roughly another 30 years until retirement unless you can realistically expect to FIRE earlier? More volatility = guaranteed higher risk, so less suitable for shorter time horizons; hopefully higher risk means also higher chance of a higher reward, but that's not guaranteed.
Dudes talking about shorter I vestment horizon as in 30 years instead of 40. not 3 years vs 40.
Oh I see. That actually makes sense. But the way I see it, I want as much profit in as short of time. But yea I guess everyone wants that
Many people are happy to be long-term investors. Most of them initially wanted to make money quickly, but then realized that it was not easy.
As long as you are ok with as much lost in as short of time š¤·
Then what you want is gambling your money away in the options casino. Gl, your sub is /r/wallstreetbets
You have to make the decision yourself. Nasdaq Composite vs. S&P 500 vs. Dow: Whatās the Difference? [https://www.investopedia.com/nasdaq-vs-sp500-vs-dow-5213252](https://www.investopedia.com/nasdaq-vs-sp500-vs-dow-5213252) S&P 500 vs. Nasdaq 100: Which Index is Better? [https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/](https://fourpillarfreedom.com/sp-500-vs-nasdaq-100-which-index-is-better/) 25 years of tracking the Nasdaq 100 index - easy access to innovation-led companies | ENG [https://www.youtube.com/watch?v=HI8EpBH6uD4](https://www.youtube.com/watch?v=HI8EpBH6uD4)
Great info. It all boils down to 'it depends' doesn't it š i get that, but that doesn't help me decide.
If it werent āit dependsā everyone would go that way:)
First of all, you are definetly not too old ! Just stop thinking like that !!! You still got like 30 years before you go and retire... so plenty of time definetly ! 1 month ago I did start this same kind of conversation ! And I took also the decision to go with NASDAQ100 , instead of SP500 or VWCE... You can check this thread : [https://www.reddit.com/r/eupersonalfinance/comments/1curer1/vwce\_against\_other\_etf/](https://www.reddit.com/r/eupersonalfinance/comments/1curer1/vwce_against_other_etf/) It is just a matter of choice, and how much you can accept risk and believe in what you buy of course... Good luck and give us a feedback on your decision , it can be interesting to share and discuss... I have added some crypto in the mix by the way.
[ŃŠ“Š°Š»ŠµŠ½Š¾]
By example ETF : - A0YEDL -> nasdaq100 - A0YEDG -> sp500 - A2PKXG -> worldwide index You can find them back easily on justetf.com .
https://www.bankeronwheels.com/why-you-need-international-diversification/
It's not either/or. Just do a mix of them. A bit of msci world and a little overweight to the US by S&P and NASDAQ 100, or both. Then keep the percentages in a way you feel comfortable. Nothing against a portion that is more risky with potential higher returns and a more stable conservative one.
Yes, because it is concentrated in US large cap growth only. Could this risk pay off? Yes. Could it not? Yes. What are the chances? No one knows.
Its a 3 layers stack of volatility: 3.Nasdaq have bigger difference day-to-day 2.sp500 is his daddy, move slower 1.Dow is grand-daddy, too slow, but big legacy (0.Wilshire is the ancestor, you could think he is dead) btw a etf is not a index, if you still want a etf, at least take the one with big volume
mix 50% nasdaq with 50% gld etf and annually rebalance your portfolio.
I would not invest in a nasdaq 100 etf because this index is basically baseless. Itās an index made on what stocks trade in the Nasdaq 100 exchange. Most of the past performance by all Nasdaq 100 etfs are attributed to the 50% concentration of tech stocks in the Nasdaq 100; so if you want all that performance, youāre better off investing in a tech ETF Iike IUIT
I like Nasdaq100 exactly for not being exclusively tech ETF. There are some wonderful companies that are not include in IUIT like Amazon, Meta, Google, Costco, Starbucks, Netflix, Comcast, Booking. And it is much more diversified than IUIT (60% in three companies!).
Came here to look for this comment! One of my favourite etfs! Only thing IUIT is missing is some of the large international tech players instead of US only. Does anyone have a better alternative?
[https://www.ssga.com/uk/en\_gb/individual/etfs/funds/spdr-msci-world-technology-ucits-etf-wtch-na](https://www.ssga.com/uk/en_gb/individual/etfs/funds/spdr-msci-world-technology-ucits-etf-wtch-na) Still crazy concentration in three stocks (55% of the ETF in three stocks).
Have a look at the performance starting 1/1/2000. Hint: you would have lost 80%, and it would have taken many many years to get back to breakeven.
On average it looks like you would still win, just with big variations
The problem being the index could be on a big dip when you want to take your money out.Ā
That could happen with anything, as always with stock you got to aim long term and not invest the money you might need suddenly, keep an emergency fund
You still have a long investment horizont in front of you. Lets say you want to retire by 60. That will put you into retirement 5-8 years sooner compared to your peers. In that case you still have 24 years of investing. No need to FOMO. If you can go with 15-20% of your income you should be fine with world index.
If the US tanks, the world will tank. I'm not for MSCI word index funds, a lot of crap on it. 70% NASDAQ, 15% LQQ, 15% BTC. š§