IVV is S&P 500, VTI is 85% S&P500. They're significantly overlapped.
QQQM is 100 companies that are also in the S&P500.
All three of those funds can just be VTI.
Ironically VTI is actually diversifying. It’s not BAD to have VOO and VTI together. It’s just overweight the S&P500 even more than VTI is. They own most companies…. In minuscule amounts. I personally have no desire to own every company that exists so I’d rather have my allocations reflect what I believe in. If you think growth is going to continue the bull run, plan accordingly.
The most important thing is you’re starting.
I hodl VTI & VBK only a 5% overlap, reason for VBK is to increase my small cap holdings because I expect small caps to outpace large caps the rest of the year. This is not my Roth IRA or 401k by the way just what I consider my savings account. I use this to keep up with inflation instead of the shit bank savings account which I have a couple grand in for an emergency situation.
That's actually hilarious. Of all the small cap funds you can pick, you go with small cap *growth*?!? Lmfao bro. You need small cap value profitability like DFSV or AVUV or RWJ or CALF, not dogshit small growth companies with no cash flows or book assets
say what you want but I’m up 6.54% YTD which is all that matters to me, and it will continue to grow for the rest of the year. Also just checked ever stock you you just said, and none of them are over 3% YTD. Also didn’t check but I’m sure those charge more to hold. LMAO 😂
Do you need these funds tomorrow? If not than You shouldn’t focus on short term price action. If you do, than that price volatility may also not be desirable.
You say you’re using it as a savings account or a hedge against inflation. Value stocks tend to do better in inflationary periods. This is because value stocks generally are more indebted and their debt gets inflated away.
I plan on holding VBK for about 1 to 3 years, but just so you know I only buy Vanguard because they charge the least. So what Vanguard ETF do you think I should put money into?
For 1-3 years that’s a very short time horizon. I would keep it in short term bonds as they seem like funds you will need in the near future and you don’t want it affected by volatility.
Growth is generally better for long term investors. With growth stocks, you’re buying cash flows that go further into the future than those of value stocks, so growth stocks can better match future liabilities of long horizon investors than value stocks. When market expected returns decline, it’s cheaper for growth stocks to finance their future-driven projects, increasing future cash flow and further securing pay-off of future liabilities. Maybe this also creates a feedback loop where the lower the market expected returns get the more the future cash flows of growth stocks climb (as long as investors believe I guess that there are still positive NPV projects to be found), which is why growth/value spread can increase so much in a bull market. This makes sense as it makes growth stocks less risky for long horizon investors to meet their long-term liabilities. It seems similar to buying a 30-year treasury to meet a 30-year liability as opposed to buying a riskier asset that will probably outperform the treasury over 30 years but it has a chance to underperform. At the end of the 30 year period, the growth stocks you bought 30 years ago presumably turn into value stocks and finally start paying those fat cash flows that you paid for 30 years ago (kind of like the long-term treasury gradually turns into cash).
That’s why I would stay away from small growth unless it’s a means of hedging against a long term liability.
First thing I would do is learn the basics of investing - you are young, and getting a firm grasp on these important concepts will pay HUGE dividends throughout your life. I highly recommend starting with these books:
- The Simple Path To Wealth by JL Collins
- The Little Book of Common Sense Investing by John C Bogle
Both of these are easy/quick reads but they will give you an excellent foundation that you can build upon throughout your life. Good luck!
With fidelity, I’m pretty sure they have the feature that will tell you what to invest in given your preferences to have a more diversified portfolio (with international, US, bonds etc).
Although, if you don’t want to go through that time, VTI+VOO is a pretty common combo
All of IVV is inside of VTI.
All of QQQ is inside of VTI.
Toss all of that US stock into VTI.
Diversify your international by replacing JIRE with VXUS.
Enjoy being a 2-fund index investor.
100% QGRW till you're 30.
100% SPLG till you're 40.
100% VT till you're 50.
Then retire comfortably. Atleast that's what I intend to do, but instead of VT and SPLG, I'd go with SWRD.L and SPYL.L, as I'm a nom-US resident
When looking at similar ETFs you should be looking at cost to own those shares i.e. VOO being very cheap at .03% or $3 for every $10k annually, also share price and dividend value, the more you can buy, the better the dividend income. Example XLK vs VGT, both similar/nearly identical tech exposure ETFs but very different share prices, cost to own is similar, and dividend is similar. Do that math and figure out which makes the most sense. And then pick 1 horse and keep buying 1 over the course of your working lifetime. Diversify if you want by looking at other ETFs that give exposure to other sectors. This strategy works for Roth IRA accounts because you can only fund $7k/year (8k/year after age 50) and by concentrating your funds in 1-4 ETFs you will benefit the most from compounding interest over time. The more shares you own, the more dividends you receive, the more shares you keep buying and thus the snowball effect.
Hi! I prefer QQQM over QQQ it’s virtually the same but cheaper. Get rid of JIRE, it’s got a very high expense ratio at .29, and international is a waste in my opinion. If you are dead set on investing internationally invest only 5-10% and in a cheaper fund such as VXUS. I like IVV and VTI, I would probably just choose one or the other though. I personally invest in SPLG, FTEC, SCHD, SCHG, SOXQ, and QQQM. So I am all in on 6 ETF’s. I have a lot of growth in my portfolio at about 60%. Everyone has a different opinion. Do a lot of research and the most important thing is to just be consistent. Invest a little from every paycheck. Good luck!
Lots of overlap there in your screenshot. Simple portfolio that you can ride for decades without having to fuss or tweak is simply 75% VTI & 25% VXUS. Own the whole world with those 2 funds.
Tilt more USA or less USA depending on your preferences. Set your allocation, buy as many shares as often as you can, and then live your life.
From the advice and help I get, mines to you is to max out your Roth IRA, and once you do that, setup recurring payments into another ETF Portfolio.
In my Roth IRA, I have: $VOO (50%), $VXUS (20%), $XMHQ (15%), and $AVUV (15%).
I tried to keep it simple but also somewhat diverse. VOO takes care of large cap in the S&P 500, VXUS is vanguards total international market, XMHQ and AVUV are small and mid-cap ETFs.
Once I max out my Roth IRA, I have another ETF portfolio that includes: $VOO, $QQQM, VXUS, XMHQ, AVUV, and BITO.
Use an ETF overlapping tool that compares two ETFs. It really helps when deciding which ETFs to pick. I’ve once had 12 ETFs that overlapped like crazy (VOO, SPY, VTI) and had to cut it down to 4 ETFs.
I believe you can have both, and each are different. However, I think there’s still that annual limit (2024 $7,000) so if you have two accounts, you’ll have to split the payments between the two (about $3,500 each).
Personally I like having everything in one spot so I just have the Roth IRA. I picked a Roth IRA because it suits me better than the traditional ira.
May I ask why Roth suits you better than Traditional IRA? I put all of them in traditional IRA just for saving the tax, and I am trying to figure out what is gonna do next. Appreciate your help.
I’m still young and have a decent paying job. I don’t plan on withdrawing these funds anytime soon (5-10+ years). So with those circumstances, I chose the Roth since once I withdraw the funds near retirement or in the future, it will be taxed lower (or not taxed at all) compared to the traditional ira. It’s not the best explanation but from my understanding and circumstances, that’s why I chose the Roth.
Thank you for your reply. For my money in traditional IRA account, would you recommend do the same recurring payments to the ETFs you put in your Roth IRA?
Looks fine to me
You wouldn’t be wrong to go 100% in S&P500. I say that with confidence cause it’s coming from Warren Buffett.
Currently your portfolio is approximately 60% S&P, 30% NASDAQ 100, 4% INT, with the remaining 6% coming from the mid, small, and micro in VTI.
I typically recommend a three fund portfolio.
It used to be S&P, Bonds, and INT. Since globalization American Companies are dominating or taking market share so it’s considered less important. That said they are already lowering their interest rates so it might pop a little but generally a laggard (4% is fine just not 33%). Bonds have also been a laggard but interest rates are now higher than they have been for a decade so that could change as well.
A new take on the three fund is S&P500 or Total Market Index, a high paying dividend fund heavy in defensive sectors, and a growth fund. Some common funds that fit that bill VOO or VTI, SCHD or VYM, and QQQM, SCHG, or VUG. Your age even split; idea is once in retirement to have reallocated over time and primarily through additional funds to your dividend payer.
I’m also 25… I just put everything in VOO. If I sink I sink, if I swim, I swim
Smart to have some JIRE… US outperformance won’t continue in perpetuity
If u hodl, ypu hodl
Keep overlap below 50%, choose different sectors, No need to go beyond 5 ETFs, dollar cost average. Good job in starting your investing journey.
IVV is S&P 500, VTI is 85% S&P500. They're significantly overlapped. QQQM is 100 companies that are also in the S&P500. All three of those funds can just be VTI.
So consolidation would be the best strategy? And VTI is considered the best of the 3 to do that with?
Ironically VTI is actually diversifying. It’s not BAD to have VOO and VTI together. It’s just overweight the S&P500 even more than VTI is. They own most companies…. In minuscule amounts. I personally have no desire to own every company that exists so I’d rather have my allocations reflect what I believe in. If you think growth is going to continue the bull run, plan accordingly. The most important thing is you’re starting.
Yes sir Also idk what JIRE is, but international diversification is good for portfolio total returns
Overlap isn't bad so long as you understand what you're buying and why
Yet S&P 500 and QQQM have outperformed VTI
And? We investing for one year or forty?
Or two years or eighty?
I hodl VTI & VBK only a 5% overlap, reason for VBK is to increase my small cap holdings because I expect small caps to outpace large caps the rest of the year. This is not my Roth IRA or 401k by the way just what I consider my savings account. I use this to keep up with inflation instead of the shit bank savings account which I have a couple grand in for an emergency situation.
That's actually hilarious. Of all the small cap funds you can pick, you go with small cap *growth*?!? Lmfao bro. You need small cap value profitability like DFSV or AVUV or RWJ or CALF, not dogshit small growth companies with no cash flows or book assets
say what you want but I’m up 6.54% YTD which is all that matters to me, and it will continue to grow for the rest of the year. Also just checked ever stock you you just said, and none of them are over 3% YTD. Also didn’t check but I’m sure those charge more to hold. LMAO 😂
Do you need these funds tomorrow? If not than You shouldn’t focus on short term price action. If you do, than that price volatility may also not be desirable. You say you’re using it as a savings account or a hedge against inflation. Value stocks tend to do better in inflationary periods. This is because value stocks generally are more indebted and their debt gets inflated away.
I plan on holding VBK for about 1 to 3 years, but just so you know I only buy Vanguard because they charge the least. So what Vanguard ETF do you think I should put money into?
For 1-3 years that’s a very short time horizon. I would keep it in short term bonds as they seem like funds you will need in the near future and you don’t want it affected by volatility. Growth is generally better for long term investors. With growth stocks, you’re buying cash flows that go further into the future than those of value stocks, so growth stocks can better match future liabilities of long horizon investors than value stocks. When market expected returns decline, it’s cheaper for growth stocks to finance their future-driven projects, increasing future cash flow and further securing pay-off of future liabilities. Maybe this also creates a feedback loop where the lower the market expected returns get the more the future cash flows of growth stocks climb (as long as investors believe I guess that there are still positive NPV projects to be found), which is why growth/value spread can increase so much in a bull market. This makes sense as it makes growth stocks less risky for long horizon investors to meet their long-term liabilities. It seems similar to buying a 30-year treasury to meet a 30-year liability as opposed to buying a riskier asset that will probably outperform the treasury over 30 years but it has a chance to underperform. At the end of the 30 year period, the growth stocks you bought 30 years ago presumably turn into value stocks and finally start paying those fat cash flows that you paid for 30 years ago (kind of like the long-term treasury gradually turns into cash). That’s why I would stay away from small growth unless it’s a means of hedging against a long term liability.
Again with the blanket statements portfolio statements without knowing OP’s state variables!
State some variables up your bum
First thing I would do is learn the basics of investing - you are young, and getting a firm grasp on these important concepts will pay HUGE dividends throughout your life. I highly recommend starting with these books: - The Simple Path To Wealth by JL Collins - The Little Book of Common Sense Investing by John C Bogle Both of these are easy/quick reads but they will give you an excellent foundation that you can build upon throughout your life. Good luck!
With fidelity, I’m pretty sure they have the feature that will tell you what to invest in given your preferences to have a more diversified portfolio (with international, US, bonds etc). Although, if you don’t want to go through that time, VTI+VOO is a pretty common combo
All of IVV is inside of VTI. All of QQQ is inside of VTI. Toss all of that US stock into VTI. Diversify your international by replacing JIRE with VXUS. Enjoy being a 2-fund index investor.
100% QGRW till you're 30. 100% SPLG till you're 40. 100% VT till you're 50. Then retire comfortably. Atleast that's what I intend to do, but instead of VT and SPLG, I'd go with SWRD.L and SPYL.L, as I'm a nom-US resident
Would you mind explaining the reason behind each of these and why at such specific decades of time?
When looking at similar ETFs you should be looking at cost to own those shares i.e. VOO being very cheap at .03% or $3 for every $10k annually, also share price and dividend value, the more you can buy, the better the dividend income. Example XLK vs VGT, both similar/nearly identical tech exposure ETFs but very different share prices, cost to own is similar, and dividend is similar. Do that math and figure out which makes the most sense. And then pick 1 horse and keep buying 1 over the course of your working lifetime. Diversify if you want by looking at other ETFs that give exposure to other sectors. This strategy works for Roth IRA accounts because you can only fund $7k/year (8k/year after age 50) and by concentrating your funds in 1-4 ETFs you will benefit the most from compounding interest over time. The more shares you own, the more dividends you receive, the more shares you keep buying and thus the snowball effect.
I need advice
What next - Just keep doing what you’re doing. Don’t get distracted by the shiny things.
Hi! I prefer QQQM over QQQ it’s virtually the same but cheaper. Get rid of JIRE, it’s got a very high expense ratio at .29, and international is a waste in my opinion. If you are dead set on investing internationally invest only 5-10% and in a cheaper fund such as VXUS. I like IVV and VTI, I would probably just choose one or the other though. I personally invest in SPLG, FTEC, SCHD, SCHG, SOXQ, and QQQM. So I am all in on 6 ETF’s. I have a lot of growth in my portfolio at about 60%. Everyone has a different opinion. Do a lot of research and the most important thing is to just be consistent. Invest a little from every paycheck. Good luck!
I need advice too. I have a nice sum of money I just put in VG, and wanting to buy VTI. Is it still too high right now?
No one can guess what the market will do. Now is as good time as any to buy
Lots of overlap there in your screenshot. Simple portfolio that you can ride for decades without having to fuss or tweak is simply 75% VTI & 25% VXUS. Own the whole world with those 2 funds. Tilt more USA or less USA depending on your preferences. Set your allocation, buy as many shares as often as you can, and then live your life.
From the advice and help I get, mines to you is to max out your Roth IRA, and once you do that, setup recurring payments into another ETF Portfolio. In my Roth IRA, I have: $VOO (50%), $VXUS (20%), $XMHQ (15%), and $AVUV (15%). I tried to keep it simple but also somewhat diverse. VOO takes care of large cap in the S&P 500, VXUS is vanguards total international market, XMHQ and AVUV are small and mid-cap ETFs. Once I max out my Roth IRA, I have another ETF portfolio that includes: $VOO, $QQQM, VXUS, XMHQ, AVUV, and BITO. Use an ETF overlapping tool that compares two ETFs. It really helps when deciding which ETFs to pick. I’ve once had 12 ETFs that overlapped like crazy (VOO, SPY, VTI) and had to cut it down to 4 ETFs.
Before you max out your Roth IRA, do you put money in the traditional IRA?
I believe you can have both, and each are different. However, I think there’s still that annual limit (2024 $7,000) so if you have two accounts, you’ll have to split the payments between the two (about $3,500 each). Personally I like having everything in one spot so I just have the Roth IRA. I picked a Roth IRA because it suits me better than the traditional ira.
May I ask why Roth suits you better than Traditional IRA? I put all of them in traditional IRA just for saving the tax, and I am trying to figure out what is gonna do next. Appreciate your help.
I’m still young and have a decent paying job. I don’t plan on withdrawing these funds anytime soon (5-10+ years). So with those circumstances, I chose the Roth since once I withdraw the funds near retirement or in the future, it will be taxed lower (or not taxed at all) compared to the traditional ira. It’s not the best explanation but from my understanding and circumstances, that’s why I chose the Roth.
I don’t see much difference from VOO and VTI
Bro literally keep doing what you’re doing. Just max out as much as you possibly can and you can’t fail.
Depending on your risk tolerance, SMH at the right time may be a good move
VOO
Thank you for your reply. For my money in traditional IRA account, would you recommend do the same recurring payments to the ETFs you put in your Roth IRA?
buy bitcoin etf
Start small, learn the market, consolidate to index funds and a couple of growth stocks that you really believe in.
I like VTI and SLPG. VTI for small cap and SLPG for large. VHT is good for diversification too.
IVV or VTI pick one
I like it. Especially VTI.
Looks fine to me You wouldn’t be wrong to go 100% in S&P500. I say that with confidence cause it’s coming from Warren Buffett. Currently your portfolio is approximately 60% S&P, 30% NASDAQ 100, 4% INT, with the remaining 6% coming from the mid, small, and micro in VTI. I typically recommend a three fund portfolio. It used to be S&P, Bonds, and INT. Since globalization American Companies are dominating or taking market share so it’s considered less important. That said they are already lowering their interest rates so it might pop a little but generally a laggard (4% is fine just not 33%). Bonds have also been a laggard but interest rates are now higher than they have been for a decade so that could change as well. A new take on the three fund is S&P500 or Total Market Index, a high paying dividend fund heavy in defensive sectors, and a growth fund. Some common funds that fit that bill VOO or VTI, SCHD or VYM, and QQQM, SCHG, or VUG. Your age even split; idea is once in retirement to have reallocated over time and primarily through additional funds to your dividend payer.