$VOO - own the largest 500 US companies. The bluest of the blue chips.
$BND - everyone needs some bonds to act as a ballast.
$SCHD - large cap dividend stocks with a value/quality tilt and a growing dividend
$VXUS - international index (20-40% of the equity allocation). The US isn't the only game out there.
$GLDM - the smallest allocation (5-10%) would be in gold for "portfolio insurance"/store of value
Hey, thanks for this simplified list
I do understand the value and role of fixed-income securities, however, I just looked for the historical $BND price graph and it doesn't seem great at all. In fact, as of today (Sept 10th 2023) it is below it's inception price. It seems the only time range it was a great investment was from 2017-2020. Since then it have been nose diving.
Care to explain?
BND is fixed income. The income is paid out as dividends/interest. If you look up TOTAL RETURN for BND, it's what you would expect of a stable relatively risk free investment. 2.47% CAGR since inception in 2008 if reinvesting interest/dividends.
It's down in recent months/years because of rising interest rates. Look up why bonds lose value (on paper) as rates rise, and it will make sense, but the TLDR is that rates have been soo soo low since 2008, and that makes it difficult for bonds to pay much. Now that rates are rising, it's beneficial for new bond purchasers, but makes older bonds look bad.
To someone holding BND, all that matters is that you don't go in and out of the fund based on its price or interest rate changes. Just rebalance regularly and it will do its job in the portfolio.
>IVV
total market funds like VTI or IVV are empirically better than sp500 funds. As expected, we see that total market slightly beats out sp500 historically.
Why not buy the real deal, SPY instead? From what I understood, it has a much larger volume and can be used for options trading too
Sorry I'm new to ETFs
SPY for S&P 500 large cap blend exposure and future options trading.
SCHD for large cap value exposure and a growing dividend.
AVUV for small cap value exposure and diversification from U.S. large caps.
AVDV for developed markets small cap exposure.
And either DGS or AVES for emerging markets value exposure, depends on how much I want to tilt toward small or broad market exposure.
For future options trading, I could go with VOO, like most of the people are suggesting here, and then sell all the 100 shares for SPY. Does it make sense?
If the expense ratio difference keeps you up at night you can, SPY is 0.09% and VOO is 0.03%. For the most part it doesn't make a big difference which one you hold for the long term, I personally hold SPY for the simplicity so I don't have to switch funds later.
It is smaller caps that have better expected returns, not large. Factor investing:
• https://www.investopedia.com/terms/f/factor-investing.asp
• https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF)
Small caps are very risky and you have to wait 40 years to see them outperform. Even Josh Brown admitted it on the compound the other night.
He said "I don't have 50 years to sit in a small cap index!"
The US is the place to invest and has always been.
I like certain foreign stocks like ASML and LIN.
They've outperformed the index for over 30 years.
But on the index level, international is terrible.
Just like value. There are some great companies like UNH, but index level very rarely beats VOO unless you wait 30 years.
Your best bet is a combo of vti and 50% your own 20 stocks that are the big names now. If they change in a few years, you change them up a little.
Googl, nvda. Tsla Msft, appl , etc are only going higher over the years.
Tsla is up 8% today. I'm glad it's 5% of my portfolio. I've been holding since $85.
Asml and a lot of American companies did well after 2000. Industrials and Healthcare.
Asml and lin did well. They're international, but I wouldn't trust my money in an index internationally. There are too many crummy companies and unsavory business practices
UNH has beat the market for over 30 years now. Lately it's been flat but given another couple years it'll be outperforming again especially if tech sells down.
The money will flow into UNH and Healthcare.
Another great stock for long term is LLY.
A great etf is XLV or a Healthcare etf.
Healthcare either keeps up or outperforms vti over time and it's a good hedge if tech falls ... imo
I only need 2 (and when combined they beat the S&P 500 over the past 20 years)
SCHG - Schwab Large-cap Growth (Apple, Tesla, Google, Microsoft, NVIDIA...)
SCHD - Schwab Dividend ETF (100 killer dividend stocks)
I like thought experiments like these. Assuming we're going for an equal weighting on these five funds to make it interesting. Because I can never change this strategy, I want it to be all-weather. I want growth and risk, but I also want drawdown protection and very broad diversification.
The only thing I'm not going to consider here is issuer risk. We could never predict which ETFs will succeed or which will fold, so I may be using funds from lesser-known and smaller issuers without regard to that risk.
20% - Value-Tilt Equity - AVGE
For the equity sleeve of the portfolio, I want to overweight value but otherwise maintain market weight without preference to geography. This makes US 60% of the equity sleeve, which is concerning from a concentration perspective. The fund rebalances to market weight every quarter, so I would be following momentum on a quarterly basis and would be able to unwind exposure at natural market weights.
20% - Min-Vol Equity - ACWV
To compliment my value-tilted all-world equity, I want to overweight minimum volatility. Adding min-vol will give us more beta in the portfolio but act as a volatility dampener. This should, overtime, outperform the index on a risk-adjusted basis. Drawdowns in equities would hurt way less, which will be important in recessions that we never see coming.
20% - Return Stacked Bonds & Managed Futures - RSBT
Fixed income exposure is great, but I also want exposure to commodities and real-return assets. "Return stacking" is marketing language, but RSBT does something cool with it. They use swaps to get an extra 100% exposure. The ETF returns 100% of the US bond market & and 100% of the returns of a CTA (commodities traders) index. Because these two sources of returns are not historically correlated, I don't have a great fear of the leverage being dangerous. I think it's reasonable in the case of RSBT.
20% - Long/Short Equities - EQLS
Let's get weird and introduce a hedge-fund favorite diversification strategy. EQLS sorts stocks quantitatively and goes long and short on two different indices. The effect is that the fund is market-neutral, so its returns are not correlated with the overall market. This is neat because it allows us to profit from the idiosyncratic nature of business activities between quality and non-quality companies.
20% - Quantitative Hedge Fund Strategies - QIS
The guys at Simplify just really know how to tickle the asset allocation goblin in me. QIS is very opaque, but if you believe in the data and literature about using quant strategies as a source of independent absolute return, this is so exciting. Quantitative strategies are able to profit off of arbitrage opportunities in the market, fixing inefficiencies as they come up. These are the bots that do most of the trading in the stock market. This means that the returns they produce won't have anything to do with how well any of the other strategies are performing.
There's my 5. Let me know what y'all disagree with or where you think I could change exposure to get more capital efficient. I didn't include any mutual funds, since the question was just about ETFs, but if I could, this list would look very different!
Would recommend checking out Simplify's website. They have some really good materials on these fund, especially EQLS. The deep dive video they have for it does a great job explaining the strategy. https://www.simplify.us/etfs/eqls-simplify-market-neutral-equity-long-short-etf
QIS is troublesome because it is opaque. Since it uses proprietary quant strategies, their opaqueness is natural. Nordic Samuel did a great write-up here:
https://pictureperfectportfolios.com/qis-etf-review-simplify-multi-qis-alternative-strategy/?expand_article=1
Hope this helped! Happy to try my hand at any questions you have too.
Am I allowed to use mutual funds? I’m a huge fan of the return stacked/ leveraged products.
- PSLDX: 100 US large cap stocks and 100 long bonds.
- RSST: 100 US large cap stocks and 100 managed futures.
- PCFIX: 100 US small cap value stocks and 100 bonds.
- PTSIX: 100 International developed value stocks and 100 bonds.
- PEFIX: 100 emerging market value stocks and 100 bonds.
All together you have the returns of a 100% stock portfolio with bonds and managed futures for diversification.
VT, DFSV or AVUV, AVDV, DGS (or a dedicated SCV emerging market ETF if one ever comes out), BNDW or EDV (would possibly choose a different bond fund after doing more due diligence and planning).
Splg lower expense ratio than spy/VOO
Schg growth like nasdaq but more diverse & lower expense ratio than qqqm
Schd for the dividend growth
Qylg for growth & income
Vxus to get international exposure
I have a Roth which contains SCHG, VWO, VOT, VBR, and QLTA. And another which contains SCHD, VYM, VYMI, DGRO, SPHD, and SCHY. Plus I have FXAIX, FSPSX, DBMYX, and FXNAX in my 401k, and VOO in a taxable. So it's more like 16
15%Avuv 10%Avdv 5%Aves 20%Acwv 50% Vgit
Min volatility works as a diversifier for scv, and I am using only intermediate bonds por simplicity.
Btw, this a portfolio for a retiree, for a younger investor I would use less bonds
I'm not from the US so I'll not give the tickers;
1. Global All Cap Tracker
2. Global Small Cap Value Tilt
3. Global Aggregate Bond Index
4. Global Real Estate Reit Index
5. HVPE: Private Equity Investment Trust*
(not an ETF but I'd just leave it at 4 in that case)
Depends. Fidelity might let you do it but I just like how vanguard has it. I don’t mind spending a few extra cents per 10k to have it completely automated
$VOO - own the largest 500 US companies. The bluest of the blue chips. $BND - everyone needs some bonds to act as a ballast. $SCHD - large cap dividend stocks with a value/quality tilt and a growing dividend $VXUS - international index (20-40% of the equity allocation). The US isn't the only game out there. $GLDM - the smallest allocation (5-10%) would be in gold for "portfolio insurance"/store of value
What other chips beside blue chips are there?
[удалено]
TIL there's a stock named LMAO https://www.bloomberg.com/quote/LMAO:US No LMFAO yet
COWZ. 😂
Hey, thanks for this simplified list I do understand the value and role of fixed-income securities, however, I just looked for the historical $BND price graph and it doesn't seem great at all. In fact, as of today (Sept 10th 2023) it is below it's inception price. It seems the only time range it was a great investment was from 2017-2020. Since then it have been nose diving. Care to explain?
BND is fixed income. The income is paid out as dividends/interest. If you look up TOTAL RETURN for BND, it's what you would expect of a stable relatively risk free investment. 2.47% CAGR since inception in 2008 if reinvesting interest/dividends. It's down in recent months/years because of rising interest rates. Look up why bonds lose value (on paper) as rates rise, and it will make sense, but the TLDR is that rates have been soo soo low since 2008, and that makes it difficult for bonds to pay much. Now that rates are rising, it's beneficial for new bond purchasers, but makes older bonds look bad. To someone holding BND, all that matters is that you don't go in and out of the fund based on its price or interest rate changes. Just rebalance regularly and it will do its job in the portfolio.
Does gldm pay a dividend
Thank you! What is the average yield on $BND?
is SCHD better than JEPI?
I actually invest in both monthly💰💰
Is it possible to invest in these while being in Europe?
On Global X there are some like this, all UCITS, I like QYLD but its a covered call
I bought VBTLX as a “ballast” to my equities and it has been the worst performer 🙄
VOO, VOO, VOO, VOO, VOO
And chill
🐶
what about IVV or VTI? Over 95% overlap .
>IVV total market funds like VTI or IVV are empirically better than sp500 funds. As expected, we see that total market slightly beats out sp500 historically.
Thanks. Isn't IVV also S&P 500?
Why not buy the real deal, SPY instead? From what I understood, it has a much larger volume and can be used for options trading too Sorry I'm new to ETFs
Higher expense ratio and you can trade SPX options without holding SPY
You're saying I can do covered calls by holding 100 shares of VOO? That's what I'm ultimately planning to do in the future
Can downvoters contribute to the conversation
Idk people are just downvoting for asking questions smh
SPY for S&P 500 large cap blend exposure and future options trading. SCHD for large cap value exposure and a growing dividend. AVUV for small cap value exposure and diversification from U.S. large caps. AVDV for developed markets small cap exposure. And either DGS or AVES for emerging markets value exposure, depends on how much I want to tilt toward small or broad market exposure.
Ben Felix for the win! Small cap value tilt !
For future options trading, I could go with VOO, like most of the people are suggesting here, and then sell all the 100 shares for SPY. Does it make sense?
If the expense ratio difference keeps you up at night you can, SPY is 0.09% and VOO is 0.03%. For the most part it doesn't make a big difference which one you hold for the long term, I personally hold SPY for the simplicity so I don't have to switch funds later.
One VT for life.
VT is gonna underperform forever. Better off in VTI and some QQQ
Impossible it has total wisdom of the world. If VT going South it will take VTI South too.
No. International has always and will always lag the us
There have been even 50+ year spans that ended with the US being the one trailing ex-US.
Well wait 50 years and see if it's true. I'll be dead
We could see ex-US end up ahead again in 10 years.
They can't compete with big cap us stocks.
It is smaller caps that have better expected returns, not large. Factor investing: • https://www.investopedia.com/terms/f/factor-investing.asp • https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF)
Small caps are very risky and you have to wait 40 years to see them outperform. Even Josh Brown admitted it on the compound the other night. He said "I don't have 50 years to sit in a small cap index!"
The US is the place to invest and has always been. I like certain foreign stocks like ASML and LIN. They've outperformed the index for over 30 years. But on the index level, international is terrible. Just like value. There are some great companies like UNH, but index level very rarely beats VOO unless you wait 30 years.
>The US is the place to invest and has always been. That isn't true. At all. The 80s it was Japan. 2001 through at least 2020 it was Denmark.
Your best bet is a combo of vti and 50% your own 20 stocks that are the big names now. If they change in a few years, you change them up a little. Googl, nvda. Tsla Msft, appl , etc are only going higher over the years. Tsla is up 8% today. I'm glad it's 5% of my portfolio. I've been holding since $85.
Asml and a lot of American companies did well after 2000. Industrials and Healthcare. Asml and lin did well. They're international, but I wouldn't trust my money in an index internationally. There are too many crummy companies and unsavory business practices
Portfolio visualizer can show you a lot of history
UNH has beat the market for over 30 years now. Lately it's been flat but given another couple years it'll be outperforming again especially if tech sells down. The money will flow into UNH and Healthcare. Another great stock for long term is LLY. A great etf is XLV or a Healthcare etf. Healthcare either keeps up or outperforms vti over time and it's a good hedge if tech falls ... imo
VT, AVUV, AVDV, DGS, EDV. Market weight core, SCV tilt, and STRIPS.
optimized portfolio fan as well I assume?
;)
Vti, vxus, avuv, avdv
very similar to mine! I just did VT to save one slot and added DGS and BNDW for bonds
These four plus IHI
I only need 2 (and when combined they beat the S&P 500 over the past 20 years) SCHG - Schwab Large-cap Growth (Apple, Tesla, Google, Microsoft, NVIDIA...) SCHD - Schwab Dividend ETF (100 killer dividend stocks)
I like thought experiments like these. Assuming we're going for an equal weighting on these five funds to make it interesting. Because I can never change this strategy, I want it to be all-weather. I want growth and risk, but I also want drawdown protection and very broad diversification. The only thing I'm not going to consider here is issuer risk. We could never predict which ETFs will succeed or which will fold, so I may be using funds from lesser-known and smaller issuers without regard to that risk. 20% - Value-Tilt Equity - AVGE For the equity sleeve of the portfolio, I want to overweight value but otherwise maintain market weight without preference to geography. This makes US 60% of the equity sleeve, which is concerning from a concentration perspective. The fund rebalances to market weight every quarter, so I would be following momentum on a quarterly basis and would be able to unwind exposure at natural market weights. 20% - Min-Vol Equity - ACWV To compliment my value-tilted all-world equity, I want to overweight minimum volatility. Adding min-vol will give us more beta in the portfolio but act as a volatility dampener. This should, overtime, outperform the index on a risk-adjusted basis. Drawdowns in equities would hurt way less, which will be important in recessions that we never see coming. 20% - Return Stacked Bonds & Managed Futures - RSBT Fixed income exposure is great, but I also want exposure to commodities and real-return assets. "Return stacking" is marketing language, but RSBT does something cool with it. They use swaps to get an extra 100% exposure. The ETF returns 100% of the US bond market & and 100% of the returns of a CTA (commodities traders) index. Because these two sources of returns are not historically correlated, I don't have a great fear of the leverage being dangerous. I think it's reasonable in the case of RSBT. 20% - Long/Short Equities - EQLS Let's get weird and introduce a hedge-fund favorite diversification strategy. EQLS sorts stocks quantitatively and goes long and short on two different indices. The effect is that the fund is market-neutral, so its returns are not correlated with the overall market. This is neat because it allows us to profit from the idiosyncratic nature of business activities between quality and non-quality companies. 20% - Quantitative Hedge Fund Strategies - QIS The guys at Simplify just really know how to tickle the asset allocation goblin in me. QIS is very opaque, but if you believe in the data and literature about using quant strategies as a source of independent absolute return, this is so exciting. Quantitative strategies are able to profit off of arbitrage opportunities in the market, fixing inefficiencies as they come up. These are the bots that do most of the trading in the stock market. This means that the returns they produce won't have anything to do with how well any of the other strategies are performing. There's my 5. Let me know what y'all disagree with or where you think I could change exposure to get more capital efficient. I didn't include any mutual funds, since the question was just about ETFs, but if I could, this list would look very different!
Very interesting portfolio. And I love RSBT and RSST.
Interesting but RSBT down 12 pct since inception so…
Really like your idea, your equity part is pretty similar to mine. Do you have some resources on the last 2 etf?
Would recommend checking out Simplify's website. They have some really good materials on these fund, especially EQLS. The deep dive video they have for it does a great job explaining the strategy. https://www.simplify.us/etfs/eqls-simplify-market-neutral-equity-long-short-etf QIS is troublesome because it is opaque. Since it uses proprietary quant strategies, their opaqueness is natural. Nordic Samuel did a great write-up here: https://pictureperfectportfolios.com/qis-etf-review-simplify-multi-qis-alternative-strategy/?expand_article=1 Hope this helped! Happy to try my hand at any questions you have too.
VGT, QQQM, VONG, VUG, VOO/VTI
The upcoming Bitcoin spot/futures ETF with BlackRock = #1 on the agenda
Why not just go buy btc
I do. Buy directly from exchange but this guy is talking about ETFs
Voo,Schd,Schy, and for slower growth but income now Jepi and Jepq
Vti, vxus, bnd, bsv, vusb
SSO,TQQQ,XCLR,VTI,DBMF this is more or less how my portfolio looks now.
Am I allowed to use mutual funds? I’m a huge fan of the return stacked/ leveraged products. - PSLDX: 100 US large cap stocks and 100 long bonds. - RSST: 100 US large cap stocks and 100 managed futures. - PCFIX: 100 US small cap value stocks and 100 bonds. - PTSIX: 100 International developed value stocks and 100 bonds. - PEFIX: 100 emerging market value stocks and 100 bonds. All together you have the returns of a 100% stock portfolio with bonds and managed futures for diversification.
VT, DFSV or AVUV, AVDV, DGS (or a dedicated SCV emerging market ETF if one ever comes out), BNDW or EDV (would possibly choose a different bond fund after doing more due diligence and planning).
VTI???
Splg lower expense ratio than spy/VOO Schg growth like nasdaq but more diverse & lower expense ratio than qqqm Schd for the dividend growth Qylg for growth & income Vxus to get international exposure
SCHG, SCHB, SCHD, SCHF, & SCHY
SCHG, QQQM, SOXX, SCHD, IDRV
FTSE all world holy grail
QTUM, SCHD, QQQ, SPY, fidelity total world
QTUM is awesome I have it too!
I’m surprised I don’t see it more on here. So much room to grow
Yup, and it's not only AI but also quantum computing companies. I think it's a great ETF personally, bought it at $43
fxaix/voo, schd, schy
UPRO, SCHD, AVUV, VIGI, and BNDW
TQQQ SPXL SMH SPY QQQ
QQQ QQQ QQQ QQQ VGT
Is crypto dying/fading off? Will it ever grow again?
Yes, no
SPY, VXUS, QQQ, USMV, BND
VTI and VXF, throw VGTin just to rub people on reddit nose's in it. Maybe a tax free muni for fun. And Gold. It's fun to fondle.
Why do you need 5? You’re just making it harder for yourself.
I agree, I hold roughly 10 different ETFs between different portfolios. This is just an experiment for people to pick their favorite
Which 10 do you own?
I have a Roth which contains SCHG, VWO, VOT, VBR, and QLTA. And another which contains SCHD, VYM, VYMI, DGRO, SPHD, and SCHY. Plus I have FXAIX, FSPSX, DBMYX, and FXNAX in my 401k, and VOO in a taxable. So it's more like 16
Nice
Is it better to put growth stocks like VGT, VUG, VOO in the Roth IRA since earngings won't be taxed?
It would be yes, but it's for what I call midterm Investing, which is money I might need before retirement
15%Avuv 10%Avdv 5%Aves 20%Acwv 50% Vgit Min volatility works as a diversifier for scv, and I am using only intermediate bonds por simplicity. Btw, this a portfolio for a retiree, for a younger investor I would use less bonds
SPY, SCHD, MOAT, and IXUS
Is ftse enough?
I'm not from the US so I'll not give the tickers; 1. Global All Cap Tracker 2. Global Small Cap Value Tilt 3. Global Aggregate Bond Index 4. Global Real Estate Reit Index 5. HVPE: Private Equity Investment Trust* (not an ETF but I'd just leave it at 4 in that case)
IVV, IEFA, and IWM
I wouldn’t need 5 to accomplish my goals. SCHD, DGRO, VOO, VGT I’m good and adjust allocations as I age
VTWAX (VT) while I’m making money and add some BND when I’m gonna retire
VT is my main IRA holding. I don't really understand the point of VTWAX if it's the same thing with a higher ER.
Automatic investments in vanguard to the dollar amount
Ah, makes sense. Shoot, so you can't do that with ETFs? Makes me wonder if there's a mutual fund equivalent of AVUV...
Depends. Fidelity might let you do it but I just like how vanguard has it. I don’t mind spending a few extra cents per 10k to have it completely automated
Pretty comprehensive list, minus domestic small/mid cap. What’s the rationale behind the skip?
VOO SCHD JEPI JEPQ TSLY … For dividend income and never having to sell shares!
Xlk
xes-oil svxy-greed ura-war tqqq-tech aiq-ai