BKLC
BNY Mellon US Large Cap Core Equity ETF
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Could just choose a Fidelity Zero mutual fund like FNILX. Or BKLC if you need an ETF.
Mutual Funds it is for most busy people. FNILX, FZROX from Fidelity - 0% fee indexed stock funds. If you're absolutely in love with ETFs, BKLC from BNY, also 0% fee.
thanks for the perspective - it gave me a scare, but GPT assures me :D # ❌ What’s Misleading or Overstated 1. **$3B AUM is** ***not*** **small enough to trigger closure**: * BKLC is **well above the danger zone**. ETFs below \~$100M AUM are the ones that face closure risk. * AUM of $3B gives BKLC enough scale for efficient operation. 2. **Market downturn does not directly trigger closure**: * Even in a downturn, **fund closures are rare**, especially for **core equity ETFs** that track broad indices like BKLC. * Closures are usually due to **lack of investor interest**, **low trading volume**, or **redundancy** in a sponsor's ETF lineup—not just market crashes. 3. **ETF closure ≠ investor loss**: * If an ETF is shut down, investors are typically paid out at **NAV** (net asset value). * You don’t "lose" your investment unless the underlying market is down.
BKLC has an AUM of $3B only. That's very low. For long term investment over decades, I'm not gonna put my money in any ETF that has less than $30B in AUM.
If ten years, then VTI/VOO, VT, or take a look at my new fave, BKLC, a 0 ER large cap ETF which is a lot like VOO. Overall, I use the [three fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio).
BKLC. BNY Mellon US Large Cap Core ETF. about 85% similar to VOO. but BKLC is free to hold having no fees
Buy ETF (VOO, BKLC etc) - instead of funds
This has happened to me. Fortunately it was just 2 shares of BKLC and I put in a market order. The going price at the time was around $113-114/share. So some clever scalper put in an ask price of $117 at market open. OP, I suggest you always set a limit for this reason.
You can find interviews with John Bogle on YouTube where he says it doesn’t really matter, because it’s time in the market that matters. That said, I will mention a mistake I recently made. I put in a market order for, fortunately, only 2 shares of BKLC, instead of a limit order. Some clever scalper put in an ask pre market for $117/share, when the previous closing price was around $113 or so. It’s still only up to around $115. You wouldn’t want to make that mistake with a lump sum. Sure, in theory, it will eventually grow beyond the scalp price, but grrrrrrrr, if you know what I mean.
Yes, I agree. I got scalped on a market order for BKLC. Fortunately it was just two shares. Learned my lesson. I wish Schwab would not allow it.
Kind of a weird mix. Getting out of most of my treasuries or anything backed by treasuries until the adults are back in charge of the treasury department. So, a little S&P 500, some equal weighted, some ultra short corporate bonds, some AAA CLOs. PULS, PAAA, maybe some JAAA, SPMO for a little excitement, RSP, a little SCHB for those random small amounts left in cash. I have a little BKLC still limping along. And hopefully my t-notes and savings bonds will still be there, that I can’t redeem yet.
They still aren’t competitive. SPLG and BKLC are lower. It’s good at least they are recognizing they have competition, but their customer service is so god awful now, I’m over Vanguard. I used to love them. Not anymore.
I agree it depends on the bid/ask spread. I burned myself on this with BKLC. You could put in a limit order and if it doesn’t happen by say week 3 each month, then consider changing the limit or just buying at market. The downside is that if you have it sitting in cash account, like on Schwab, you won’t be earning interest on it while waiting.
I’m going to disagree with pretty much everyone here. If you can live on your SSDI, I don’t see why you shouldn’t go ahead and put most of your inheritance in an S&P 500 index fund. You’re only in your 40’s. Because the stock market is a little crazy right now, I would just move some out of the HYSA every month, so you are dollar cost averaging. Buy something with a low expense ratio. BKLC is zero expense ratio, SPLG is (.02) as I recall. VOO is (.03), I think. Remember, you have over 20 years or longer. Even if the market tanks, it always comes back and does even better if we’re talking about the S&P 500. I highly suggest reading John Bogle’s book: The Little Book of Common Sense Investing, 2017. You can find it free online. I don’t think it was a bad move to buy your Nvidia stock right now. But, if you want to be safer, an S&P 500 ETF is the way to go, as it will likely include NVIDIA, but will be less volatile. So, if it was me, I’d start moving maybe $1,000/month into BKLC. I, personally, have been adding SPMO, too. It’s more risky but better returns. FYI, I’m already retired, pushing 70, and living in Thailand on a very low social security benefit. I also received an inheritance and need to grow it to pay for my long term care when I need it. I have most of mine in treasury bills, but moving it into BKLC and SPMO with a little SCHB when I have smaller amounts in cash (it’s cheap per share). Congrats on owning your home. FYI, California has no asset limit anymore, as of last year. So, if you ever need to move somewhere and get loads of benefits, California might be a good move for you. Whatever your politics are, you can find like minded people there. Good luck.
Stick it in 4 week tbills on treasurydirect.gov and wait a few months. You’ll earn 4+%. Then if there’s a lovely crash down in a few months, buy some index funds, like BKLC for zero fees or whatever you like. I’ve done this. I sold most of my equities Thanksgiving weekend at the high, for a real estate purchase that fell through, and decided not to buy back in yet. I decided to give it until April, then decide.
I look for equivalents with lower fees. Vanguard has good competition now for lower fees. For instance, BKLC is as good or better than VOO and zero fees.
Advantage might be lower fees. There’s no real downside. If you want that much money allocated to that type of investment, who cares which fund it’s in, other than the expense ratio and if it’s giving you similar returns. It’s better to put your $70ish into SPLG, for instance, than waiting until you can afford a share of VOO. And even better to buy BKLC at zero fees, if you have around $116.
most of my money is in SCHG. BKLC is another good one, QQQ of course. otherwise SCHB and SCHD along with SPY are all in rotation for me.
For context, I’m American… John Bogle (founder of Vanguard) said the reason he didn’t like international funds, is because of the volatility, but that US companies on the S&P 500 are already investing abroad, and they have successfully turned those investments into USD profits for you. They have dealt with the volatility and currency exchange problems, etc., and were able to make a profit. If they fail at investing overseas, they fall off the S&P 500. So, all you need is an S&P 500 fund, where you actually are also successfully invested internationally. The other thing he said was very important, is fees. They affect your returns. Vanguard is no longer the best deal on fees. Other funds get the same returns for less fees or even zero fees with a fund like BKLC. Not sure if you have options for funds with lower fees in the UK, but it’s worth considering.
I think you’re brilliant. Well done. Adding to what others have said, I would buy lower expense ratio index funds with the new money that does as well as VOO but has lower fees. I like BKLC at zero fees.
I don’t know what you can buy in the UK, but I no longer do any business with vanguard. The customer service has tanked and they are no longer the best price. I buy BKLC, which has zero fees through Schwab, and it regularly outperforms VOO, with a far lower share price, too.
Yep, except for a couple shares of BKLC, which then lost a half percent, lol.
John Bogle (who created Vanguard) said it’s better to just invest in S&P 500, because the successful American companies have already invested overseas and dealt with exchange rates and volatility and turned it into USD profits for you. If they fail, they fall off the S&P 500. And since you basically own a piece of 500 companies, if one fails, it doesn’t kill your returns. Plus, the expense ratios are usually higher. You can buy a good index fund with zero fees now, like BKLC.
Open a treasurydirect.gov account. Buy some treasury bills. I also like buying ibonds and EE bonds, which you can redeem after one year, but will keep compounding for 30 years. You can also partially redeem these. I would not buy other bonds on treasury direct (other than the savings bonds above) if you might want to sell them before maturity. Then, in time, if you want to try the stock market, you can put a small amount in an S&P 500 index fee with zero fees, like BKLC.
BKLC is zero fees and can be purchased from any brokerage.
Oh and try to increase your savings. Every month, buy more BKLC.
I would put it all in BKLC and not touch it until you need it. You will get a better return and zero fees than SGOV or hysa which is not so high anymore and getting lower.
BKLC is a great sleeper many know nothing about. Great job. Live to see the young get involved in investing. Great choice. Just don’t buy into this crazy buy and hold theory. We have mixed past quite some time ago. I would not switch. You have a great ETF.
Buy BKLC instead! Well it is basically identical to FXAIX as far as composition, I would expect the exact same return, but you get a "WTF is that?" every time you name drop it :) I wasted a fuck ton of money chasing better returns until I finally let go of the stupidity and just did S&P500 index funds. For the next 40 years do nothing but that and you will be wealthy. Make sure the broker you use lets you buy fractional shares of mutual funds. Else the share price tag of (currently) $204 could leave you with uninvested cash if you don't have money for a full share. Not necessary but to further your education, learn the difference between mutual funds and ETFs. Index funds can be bought in either flavor.
I have started buying stock slices (fractional shares) on Schwab of Brk/b when I have odd amounts of cash in my cash account for a couple reasons. 1) it has zero fees 2) it does basically as well as SCHB, broad market (.03% fees). 3) when my S&P 500 zero fee index fund, BKLC, is a tad down, BRK/B is a tad up. 4) it’s basically another index fund, so not as volatile as other single stocks I can buy fractional shares of. 5) it does basically as well as S&P 500 index funds, but with zero fees.
BKLC for zero fees. Does as well or better than VOO.
BKLC, as good as or better than VOO or SPLG returns and zero fees.
I’m very sorry for your loss. It’s smart to be cautious for awhile. I am pushing 70 and I am actually putting more money into S&P 500 zero/low fee index funds, after reading John Bogle’s book. He created the first index fund and was the founder of Vanguard. He came from humble beginnings and really cared about small investors. You can find it free online or from your library. It’s pretty short and straightforward and simple: The Little Book of Common Sense Investing by John Bogle, 2017. One of the things he mentions, is that we should consider our social security retirement as a bond asset, a bond that is inflation protected, that pays us monthly payments. So, the cash equivalent of that is pretty high. So, when thinking about asset allocation, your social security, which pays for life, is probably already all you need for your bond allocation. I still have tbills and savings bonds on treasury direct.gov, which I consider my emergency fund, but I had about 50/50 index funds and treasuries. I have since started moving more towards 70% BKLC (zero fees S&P 500 index fund) and similar S&P 500 low fee index funds, which Bogle advised, and will keep about 30% in treasuries. Everyone goes on about VOO, but BKLC does just as well or better for zero fees. At any rate, even if you put it all in treasurydirect.gov in 4 week tbills (I have a 4 week tbill ladder), you will get about 4.6% interest right now and zero fees, zero state tax and can change the settings whenever you feel like it and not have to deal with any market volatility, like SGOV and the like, which have fees and lower returns.
Fees? Returns compared to BKLC?
4 week tbills on treasurydirect.gov. Treasury notes/bonds. If you’re looking for an index fund as good as VOO, you can buy BKLC for zero fees or SPLG for lower fees.
Oh and a good alternative to VOO is BKLC (same returns, lower share price, zero fees) or SPLG (low share price, lower fees, same returns).
BKLC, zero fees. Includes some stocks that pay dividends. Fees matter. Dividend funds have higher fees and the dividends are offset with lower prices, taxes, etc.
So I’m fairly new to investing myself and I’m getting ready to dive into a total market ETF of which I’m exploring tons of options right now. I looked up BKLC and yes, it is trading at a much lower share even though it does have very similar holdings to Voo. If they are both holding similar holdings and their return is generally the same why is one trading at like $113 a share and VOO is like $545 a share? Thanks
Go for lower fees. BKLC is zero fees and doing as well or better than VOO. Or State Street’s SPLG, lower fees and lower share price than VOO, for same returns. Vanguard isn’t the best deal anymore and their customer service has tanked.
BKLC is my favorite. As good as VOO, with zero fees.
SPLG (.02% fee) or BKLC (zero fees). Both do as well as VOO and have lower share prices and lower fees.
John Bogle said fees and “helpers” are the worst things for returns. Just buy S&P 500 index funds and leave them alone. Lower the fees the better. BKLC is zero fees and returns as good or better than VOO.
BKLC for zero fees, same returns.
BKLC is the cheapest with zero fees. I’m abroad and can’t buy mutual funds, just ETFs.
I care more about fees and can do my own target date changes. I don’t own VOO because I can get the same returns with lower/zero fees. I buy BKLC and SPLG. But I think you’re smart to stick with the S&P 500.
I stick with S&P 500 in a few different funds, mainly for lower fees, including SCHB for when I have a random smaller amount in cash, which doesn’t usually do quite as well as the others, but surprise, it’s doing great right now because it includes small cap . Interestingly, my BKLC is doing just as well with zero fees, and doesn’t include small cap. If you wanted to add small cap without much risk, you could add SCHB.
BKLC has zero fees. It’s managed by the bank Schwab uses, so pretty solid. I buy it and SPLG, which has (.02%) fee. They both do the same thing, but I buy both to get overall lower fees and I’m waiting to see how BKLC does longer term, as it’s only 3 years old, which is why they are offering it at zero fees (BNY Melon Bank).
Interesting exercise. I would be okay because I already just live month to month on my Social Security retirement benefits. My investments are growing to pay out of pocket for my care and medical when needed. I am living a lovely, simple life in Thailand. I would put it all into SPLG and BKLC 50/50 (for lower fees) and chill. If there wasn’t any other savings, I’d also buy $5,000 Ibond and $5,000 EE bond for my emergency fund. Also maybe $2,000 in checking until the savings bonds were past the first 12 months and become liquid.
VOO vs BKLC I want to go Fairly heavily in on the S&P 500. After reading about voo vs splg, I decided to ultimately go with voo because I didn't want to wake up one fine morning to discover that splg is no longer tracking the S&P 500. Now bklc is essentially the S&P 500 similar to voo but with an expense ratio of 0.0... arguments against BKLC
> BKLC Not exactly the same but essentially yeah
Buying individual stocks is a strategy for advanced investors. I strongly suggest you open a Schwab/Fidelity/Vanguard account and put your money in an S&P 500 ETF or other broad based, LOW fee etf. IVV, SCHB,VOO, SPY. Look carefully at the fees. You should try to pay .03% or less. BKLC is a broad based etf that has NO fee. Buy it and hold it. Add to it when you can. It's not sexy or exciting, but in 40 years you'll thank me...but I'll be 105 years old then.
Anyone have opinions re: BKLC? It's a no-cost large cap ETF; was wondering if there's a consensus on this product. Also - how is it "no cost?"
Maybe the r/stocks and r/ETFs are better places to ask? Regards here will likely tell you to YOLO on options if you have access to that. VOO is nice, slightly lower cost vs SPY. Conversely you can buy SFY that has zero expense, or BKLC that also has zero expense and has outperformed SPY the past year.
The best advise I can give is to find someone who you KNOW FOR CERTAIN is financially successful with stocks and bonds for at least 20 years or more (not some lucky one time successes). Do NOT under any circumstance, trust "advisors" (or anyone here, including myself) who claims to know things. Always verify. People who are good with financial advise will NOT BE WORKING FOR THE PUBLIC because they should already be wealthy by the time they hit 40-50 years. If they arent... then dont listen to them unless you know where their money went (like divorces or medical emergencies and such). Also note the bar to become an "advisor" is stupidly low... If you dont know anyone personally then there is only one question you need to ask: Does he want to stay in the market (let it ride) or does he want the cash to use? If he wants to let it ride, then buy either VOO or BKLC. Thats it. Dont overthink it. There are several funds which are similar but why bother? These two are essentially the same, one gives you options, the other gives you no fees. Dont be surprised if he wants to do this. I personally intend to pass my portfolio on to my kids. Does he want to cash out? This is recommend if he needs the cash, given his age. If so, just buy short term treasuries (I think Fidelity lets you participate in Treasury Auctions) and cash out as needed. Treasuries are paying well right now and are relatively easy to move if you need to sell them. Thats it. You can always do a % of each if you want but really $100k isnt a big deal any more so dont over think it. Keep it simple. Please verify the info and trust no one (including me).
Generally speaking, ETF's tend to be easier to trade than mutual funds since they trade like a regular stock and have less restrictions and weird rules. Some mutual funds, for example, charge you a penalty if you sell them before a certain window of time. Frankly, I dont have time to check all that nonsense so I will never willingly buy a mutual fund. Sometimes you dont have a choice, like with some 401ks, they only give you mutual funds as an option. Otherwise, always take an ETF. In regard to managed or automated, stay away from managed until you a stock expert and know with high confidence, which manager or strategy will likely work. Since most people dont know zip about boo, the general recommendation for all hands off investors is to stick to low fee, index ETFs like VOO (low fees, high volume plus options), or BKLC (no fees, lower volume and no options). If you know what you are doing, then you wouldnt be asking questions here on reddit, therefor, odds are, you should stick to low fee index funds. Look for low fees. Low fees meaning sub 0.1% and note that fee is not as low as it seems. If your profit for a year is just 1%, then 0.1%is actually 10% of your profit. If you lose money, they still collect that fee making you lose even more. So dont be fooled by the way these numbers are framed. Final note, most managed funds under perform a plain low fee index fund over time. Make of that what you will.
>15.3% 2023 return Imagine paying those fees and comish to 50% the BKLC... which has a 0% ER. Rich people are just like you.... complete idiots that get lucky sometimes.
The good news is Vanguard is well know for low cost ETFs. For example, VOO and VTI are both vanguard ETFs with only 0.03% fees. They are famous for these low cost funds and those two are extremely popular with investors each with about $300b in assets. You will hear them mentioned here a lot. If you want NO fees then you need to look at BKLC. Thats the only one I know of with 0% management fees that I trust to any extent. I know there is a SOFI one too but I dont trust them. Their company is not profitable and there is some language in their description that says they can change the fees whenever they want. Well if they stay unprofitable for much longer I would think they will start looking to charge wherever they can. So I would avoid them.
The popular ones are VOO and VTI. Honorable mentions are SCHD and BKLC. Some folks might mention nasdaq ones but I wouldnt bother. They are well represented with the other low cost ETFs and the nasdaq ones typically have a higher fee. These 4 are popular because of low fees, or no fees for BKLC. SCHD is slightly different than the rest due to its focus on dividend payout. No one knows which one will outperform. Just pick whatever you want.
SPY is State Street which runs $2.8t in assets. MOAT is VanEck which sells a bunch of specialty ETFs getting them $38b under management. SPY has to directly compete with funds like VOO, IVV, with expenses ratios of .03% and similar indexes like BKLC with an expense ratio of 0. Now in terms of what is MOAT. MOAT is an equal weighted index of 40 companies. Equal weighted indexes cost more to run than cap weighting incidentally. The companies are chosen based on value criteria plus MOAT criteria. High MOAT scores are based on: * Network effect—Present when the value of a network increases for new and existing users as the network grows. * Cost advantage —Allows a firm to sell at the same price as competition but still enjoy economic profits thanks to lower unit costs of production. * Efficient scale—When a company serves a market limited in size, new competitors may not have an incentive to enter, particularly when the cost of market entry is high. New entrants would cause returns for all players to fall well below the cost of capital. * Intangible assets—Brands, patents, and regulatory licenses that block competition and/or convey meaningful pricing power. * Switching costs—Whether in time or money, the expenses that a customer would incur to change from one producer/ provider to another. So basically cheaper than average stocks likely to be able to maintain margins for a long time. Certainly a reasonable value / GARP investing strategy. Between the two I'd like MOAT better but total return... is a function of value having finally had a good year. Moat investing has been popular for a while but Morningstar specializing in it certainly has broadened the appeal.
You are on the right track. My situation is somewhat similar but im not as old as your father. The money I have in stocks is totally meaningless. Its just play money but I am no fool and im not going to gamble it away on BS speculative nonsense. I tell people around here that my timeline is "generational." I dont know what else to call it but basically I am investing for future family. An index fund is the best choice. VOO is good. An alternative is BKLC (no fees at all) but its a more concentrated than VOO. If you want to diversify even more, go with VTI. But honestly any of these will likely be fine. My personal recommendation is 50% VOO and 50% SCHD. I like dividends. Its a hedge against corporate stupidity. I do NOT use drip. I always take the cash and deploy it myself at some point in the year. Reason being, its easy to spot bubbles. Last year (2021) was pretty damn obvious and I did avoid almost entirely. Not rocket science, just check the S&P500 PE chart.
Yep. I will say that in my experience, if you are looking for investing advise, then you shouldnt be picking stock. Just invest in low cost index fund like VOO or VTI or BKLC. Really the most useful stuff on here is the analysis. Even bad analysis is good because it brings up discussion which usually corrects bad assumption. I have actually been glad to be corrected a couple of time on here in the past. Someone actually caught some errors I made, namely with currency mix ups.
1. No. They are not good at their job. If they were, they wouldnt be financial advisors to begin with because they would be rich managing their own money. If you want a advisor, find a close family member or friend who is rich and invests then ask them. Dont use a professional. They are terrible on average and you wont be able to tell the difference. Skip them and just watch a few youtube video on basic investing. 1. Dont waste your time with advise. Just buy low fee index funds while you learn the system. By order of diversification, VTI, VOO and BKLC are the best picks. Just select one and plow money into them over time until you know what you are doing. A financial advisor will just convolute to make themselves seem important and wise. Again, if wise, they wouldnt need to do it for money. 2. I dont think they offer fractal but you really dont need them. Dont pick a broker based on that. Pick if based on fees and tools. Etrade tends to be the most newbie friendly for tools and general info. Robinhood is pretty bad with both and tends to post really horrible advise via 3rd party articles which hurts inexperienced investors. 1. Interactive Brokers (IB) has the best international market access if you ever want to buy foreign stuff directly but their tools are sort of iffy and I dont like their site. IB also tends to have the lowest margins of any broker if you ever decide to do that but I dont recommend it for a newbie. 2. Fidelity is generally considered the fastest execution if you subscribe to some of their day trading tools. Again I dont recommend it. Day trading tends to be for gamblers or people who cheat by using and abusing their own followers. Aka, church-like nonsense. 3. Buy index funds like VTI, VOO and BKLC (See commend above). 1. Buying individual stocks if for people willing to put in the time and learn. If that is you, then allocate a small amount of money that wont hurt you if you lose it, and just go wild but read the financials, understand their business (if you dont, avoid) and learn valuation. Note that this takes a lot of time. If you dont have a good 10-20 hours a week to dedicate to learning, stick to the index funds till you do have time. If you have time, then there is a lot of money to be made once you have a big enough amount to invest. 4. Buy low fee index funds... that will resolve this issue for you. Never NEVER NEVER let someone else manage your money. This is the mother all of F\*ups. Dont use betterment or any other nonsense. You can also ignore life insurance. All they do is invest it in stocks and bonds and give you scraps. Just do it yourself and you get better returns especially if you are young. If you are old then maybe you can make a case for it, but if you are young, you are 100x better off just dumping said money into VOO or similar.
Tell him to stop and seek help with gambling addiction. Then go get a normal job. I saw a sign at Panda Express a few days ago. $17 starting, $20 for cook, $70k-$100k for manager. For help signs are everywhere. If you have to gamble, buy a few lotto tickets every week and thats it. Day trading only works consistently if you cheat and by cheat I mean you have a group of followers that amplify your moves who you basically take advantage off via time arbitrage (since they are following, you make money off them). Or if you have billions of dollars and can fully manipulate a stock. Otherwise, you are gambling. Take the rest of the money and just buy VOO or BKLC. Build a long term nest egg.
Unfortunately there is no clean way to do this. VOO is only 1.4% Tesla which might be ok. BKLC is about 1.6% Tesla and sports no fees but less diversified than VOO. VTI is about 1.2% Tesla and crazy diversified.
There is a reason why these people do this for a living. If they were really good at it, they would be rich because they would manage their own money but they are obviously not which is why they still do it for a "living." Basically you have either young college grads playing with your dough or dunces who cant invest for themselves giving you advice... Avoid professional financial people. They are not good at what they do. They might be better than you right now, but that can easily be remedied in about 1 day of research. Some folks gave good advice already. Ill give the super easy getting started advice. * Only invest money you dont need for the next two to three years. * Buy low sub 0.1% fee passive index funds. * Dont worry about taxation yet. Come back to this later. The most popular ones are VOO, VTI, & BKLC. These are low fee (BKLC is no fee), and very low long term risk if you hold 5+ years. Invest in these until you know what you are doing.
VTI, VOO, BKLC, BKMC, BKCE are all intended for people asking that question you just asked... Is it a good time to invest? If you dont know the answer to this question, then the answer is YES and you should buy passively managed, low fee, index funds. If you actually knew how to invest then you wouldnt need to ask to begin with and you would never need index funds. If you were that good, then you would buy individual stocks instead. So yea, just buy it with excess cash. Dont over extend yourself and you will be fine long term. If you are a retiree, then investing probably wont do much for you any more. You will need to be more careful.
Fundamentally they go up do to inflation. What many people dont understand is steady inflation is a good thing compared to the old systems we had in the past which were far easier to corrupt. Inflation is how you fight corruption. But it does hurt people who cant figure it out. The good news is that you are trying. If you are too nervous to invest directly, just follow the tried and true unmanaged index fund path. Find the ones with very low fees and jump in (VOO, VTI, BKLC, BKMC, BKSE are my recommendations). Then its just a waiting game. Longer you wait, the greater the odds that inflation will make your investment rise.
The two funds just have different holdings/position sizes that in turn impacts the dividend yield. It would be illegal to claim a 0% fee and then take it out from the distribution. BKLC has larger positions in the FAANG stocks which all have a lower than average dividend yield.
I like that BKLC has no expense fees. However, its dividend yield (around 1%) is lower than similar indexes (e.g. schx around 1.2%). The company weights seem to be similar, but I have not calculated. Does anyone know why BKLC yield is lower? My concern is that while they have a 0% fee, there may be a hidden fee in the dividend distribution?
* BKLC - Basically VOO with no fees at all and no mid caps * VTI - More diverse than BKLC (3500 stocks vs about 250) * VXUS - International stuff Other considerations are based on timing but: * BKMC - Mid caps only 0.04% fee * BKSE - Small caps only 0.04% fee
Though it is wise to taking a financial account course, or just reading the chapter on the primary 3 report pages, you can still invest with confidence without knowing stuff by simply buying a low fee index ETF. This is what I tell most folks who start out who dont want to do any research. Just buy one of the following: VOO or VTI or BKLC or SFY The advantage to BKLC and SFY is no fees and cheaper share price so for those folks who only deposit say, $100/mo, they can still buy in easily with those without messing with fractal shares. But I really do believe that there is no better way to learn than jumping in. If you are willing to do your own research and think for yourself, jump in. At such a young age, they wont have much money anyway. Even if they lost it all, the damage is minimal and the lesson far more valuable than anything you can possibly get from a business degree. But that assumes you actually do the research and learn from both success and mistakes. Not everyone learns at the same speed. This guy however... seems to genuinely want to learn. So I say, let him push ahead. Doesnt matter if he fails. $2k is nothing. As long as he learns its well worth the risk.
All I have to say, is look up Cathy's old funds before ARK. Obviously ARK doesnt advertise her old stuff, ever wonder why that is? Get out and buy the stocks you actually want that you can actually live with even if they go down. If you dont want to do the research, then do what 90% of the folks here tell you and buy good low fee index funds such as VOO, VTI, VXUS. My personal preferences is BKLC (large cap) because it has no fees and is slightly more concentrated and focused than VOO. Others I like include BKMC (mid cap) and BKSE (small cap) and BKIE (international) which all have 0.04% fees. If you absolutely must have a huge allocation in tech, go with VGT or FTEC but I wouldnt recommend it... just buy the stocks you actually like from the tech sector.
Slowly when the new highs start showing up, and speeding up the longer the bull market runs. Dont overthink things. The most obvious thing is usually correct. When a market starts to run (in either way) it usually means it will run a while so no need to get crazy early on. But as it moves along, you start to slowly deploy cash to defend yourself. So for me, I shifted about 5% of my portfolio this year, from risky growth to cash/div growth/value instead. Not a huge shift, but the market PE/fPE as well as low interest rates have me a little worried. Luckily, by doing so, I didnt get hurt by the dip in speculative stuff that has transpired since mid year. I am up about 50% on the year so far. That doesnt mean I sold anything I love (i didnt), but I sold anything that I felt was too risky and used that and any divs to diversify into more defensive stuff (or just cash). You can easily achieve this without picking stocks by just taking on some index etfs like BKLC (my personal favorite due to 0 fees), VOO, and some combo of VTI / VXUS. Small steps. Dont leap because like you said, its not easy to predict when the bull market will end.
For long term, just throw them into a S&P low fee fund. BKLC, VOO, or VTI would be my recommendations. BKLC is more concentrated than VOO and has 0% fees. VOO is more liquid and slightly more diversified (not by much). VTI is a lot more diversified than either of the other 2. Just set it and forget it if thats what you want.
lol, u tards been screaming about this since $10.50..... checks price.... hahahah 7.68....... UWMC, RKT, PLTR, GME, WISH, CLOV, weird ass gourd futures. You people need index funds, i suggest BKLC, no ER. Best of luck.
* BKLC is a US market wide big cap fund. * SPYG is literally a S&P growth fund. These two are very different and have different uses. Its unwise to compare them directly especially in hindsight. If you go back 2 years then the NASDAQ outperformed SPYG by 15%... should we all buy the NASDAQ now? Probably not though many, obviously, disagree and buy it happily. If you go back to between 2001 and 2008 (omitting the major crashes) you will find the S&P outperformed SPYG by a huge margin and thats without even considering dividends. SPYG divs are about half that of the normal S&P and over time, that will make a big difference. But back to that time frame, SPYG was down about 17% while the S&P was up 8%... again without counting divs so the gap was actually much larger than that. In other words, growth doesnt always beat value. Historically, they flip flop. As stated above, SPYG is a growth fund. They hold almost no value stocks at all. This is why their divs are so low. They also have some mid caps. Obviously the last 8-9 years have been extremely generous towards growth stocks and current valuations are at all time highs. But are you sure that will continue? Are you ok buying them now when they are at all time highs? As stated above, the prior 10 years were not nearly as generous. So in other words, it depends on what you believe is going to happen moving forward. If you are extremely bullish on growth then SPYG is the way to go and maybe a NASDAQ fund is something to consider as well. But if you feel like I do, that you dont trust growth valuations and that value stocks have been criminally ignored, then perhaps a mixed fund is better.
The expense ratio is 0.00%, which is pretty good. However, compare BKLC to SPYG on the max time frame. Over the max time frame, SPYG returned 61%, and BKLC 52%. That is since April of last year. If you bought BKLC in an attempt to save on fees, well, congratulations, you saved on a minuscule amount of fees but just lost 9% of returns. Not great.
Or BKLC expense ratio 0.00% I like it because its more concentrated at the top as well thus has a different strategic application. Pretty handy.
To diversify, you can buy BKLC or other large cap growth ETF
VOO is about 350 companies VTI is around 3500 companies Pretty big difference. Right now I am not sure diversifying is a good deal because most of the speculative overpriced stuff is in VTI. Also recommend BKLC which is 200 companies. Basically more focused on the biggest caps.
ETF's are just easier to deal with plus VOO/VTI have options which is a nice way to eek out a little extra profit when you want to trim. Another zero fee big cap that people arent aware off is BKLC. BKLC is more concentrated. I actually recommend this over VOO at this time. 200 biggest caps vs 350 for VOO and 3500 for VTI. Reason being that I think that the stock bubble is mostly due to speculation on non-blue chip. People trying to find the next 5 to 10 bagger. So I am trying to avoid those highly valuated stocks which are likely outside the top 200. Ill switch back to VTI once things cool off.
Advise: It sounds like you are follower. This wont work. You need to figure out those things BEFORE everyone else. But if you are reading it in a popular headline, then its too late. If you read it in a deep dive post where there are only a few readers have seen it then maybe. But at that time, it will NOT be the popular sentiment. This is not a knock on you. This should be a learning a moment and a period of self realization. Not everyone is able to predict things accurately. Not everyone can spend time researching to find the correct trade. And last even if you do the above, everyone still makes mistakes. I would recommend you switch strategies. A wise person adapts to the situation. If you are not good at projecting future outcomes, dont do it until you get good at it. You get good by studying. Make a fake paper account and trade there while you figure things out. I did this recently to see how good I am at day trading. Been experimenting with it for about 2 months. In the meantime, stop trying to time things. For now, buy low fee ETF's. Yea its boring and wont beat the market but its safe and steady. If you want to be more aggressive then pick more concentrated funds. BKLC - Big Cap 200 Stocks VOO - Big Cap 350 Stocks VTI - Mixed Cap 3500 Stocks Cant go wrong with any of the above while you play with the paper account.
Their operations are fairly safe. Thats the reason they are liked. So if you are a retiree and just want some safe monthly cash payment, this does the trick. Not fully safe from stock market shakes, but safe in terms of business operation and income. But it is definitely a poor performer if you are building wealth. Dividend growth has been extremely sluggish for more than 5 years, rising only about 17.5% in that time frame. Share price has also barely moved $4 up in 5 years for a flaccid 1% gain per year. Add in the div, and you are basically looking at 5% gain per year (averaged). Not the end of the world, but obviously, way below a standard S&P index ETF. That said, if you zoom out 10 years then it looks great so it really is a matter of timing. Do not make the mistake of thinking that rising property prices help REITs however. Thats a mistake. Though equity gains are always good for many reasons such as allowing said REIT to leverage more, you cant just sell their properties to realize a gain. In general, REITs are valued based on operating sector and cap rates. So what you want is rents to go up. Though it might make sense for rent to go up when property value goes up, this isnt always the case. Rent is actually tied to household income growth for residential and business growth for everything else. If you go to other countries, for example, where land is scarcer but incomes are lower, you will find property values are sky high but cap rates are super low and thats just normal in most of the world. Not advising to buy or sell. Just saying it how it is. You will need to decide. Id say for a retiree then O is a good choice for safe income. For everyone else, stick to VOO or BKLC.
My recommendation is to not select stocks yet. Temper the greed and arrogance and do the exact opposite. The notion that young folks should take bigger risk was brought to us by extremely stupid people. Its literally the opposite of what you should do because you are least wise when you are young. As you get older you will watch the markets and learn and you will get wiser and thus much more likely to pick correctly when you are older. This is a general truth that I tell everyone who hasnt figured it out yet. It doesnt apply to everyone. But unless you are incredibly smart, as in STEM degree plus deep passion for learning valuation and actually have been doing it for a few years, dont just assume you are smart. Again, temper the ego. Go with BKLC. Its what I recommend for all young investors. Why? Its a more concentrated VOO which is a index based fund of the biggest companies. VOO tracks 350 or so companies. BKLC focuses on 200. Thus you get better concentration of the best companies many of which are currently tech. So in other words, when you go BKLC instead of VOO, for every dollar you put in, you get about twice as much Amazon, MSFT, NVDA, GOOG, and so on. The downside is you are less diversified but for someone young, this is perfectly fine. You should see superior gains over the long run but more volatility. And to top it off with a cherry, BKLC has no fees... So in other words, its the same as buying all 200 stocks yourself without anyone taking a cut. When you are older and wiser, and only you will know when that is, you can always liquidate this money stash and start taking more risky positions. My 2 cents... good luck whatever you choose.
VOO is the good answer. I prefer BKLC myself because its more concentrated. Top 200 stocks rather than 350. Also zero fees though VOO is low fee anyway. Do not stick your head int he sand. Avoiding forums and sites because some people give bad advice is not smart. Do read it all but just remind yourself not to believe it all. Treat analysts and fund managers the same you treat Reddit posters, they are just as idiotic. Dont take their credential seriously nor should you believe their performance if they boast.
BKLC ILMN GIS AMZN SPCE SHO Not really... but honestly that isnt very bad at all. Lots of potential blue chip upside (AMZN, ILMN), some big risk upside (SPCE) offset by very low risk (GIS), recovery play (SHO) and concentrated 0% fee ETF for all the other favorites...
As many have stated, stick to VTI and maybe 1 other more concentrated ETF. A lot of folks like VOO, I prefer BKLC because it is more focused. VTI - Portfolio of over 3000 companies of various sizes, low fees VOO - Portfolio of about 350 biggest companies, low fees BKLC - Portfolio of about 200 biggest companies, no fees I also think that VTI is a big bloated right now due to over speculation on small and medium size companies. So when a friend of family member asks me, I usually say $2 BKLC for every $1 VTI.
When you are young, you should be seeking safe stocks/ETF's because your experience is poor. Doesnt matter if they give a dividend though I would recommend it. When you are young, your goal is to learn, not to become an overnight slumdog. Dividends are nice because they give you a shot of cash to play with which encourages you to do more research (learn) and buy more stuff. Never use DRIPs when young (or ever if you plan to be active). Learn to do things yourself. Again, the goal between 18-30ish is to learn. For every slumdog there are 9 others who have to start over at 30. Stick to BKLC and VTI. As you get older and wiser, thats when you should start taking more sophisticated positions. 30s is probably the right time (giver or take) because, odds are, you have faced at least one bear market and one inflated sector pump and dump by then and learned from it. If you havent, then stick to safety and be cautious. Time is on your side. You dont need to switch to income till retirement but if you did everything right, you wont need to.
Sounds like youre still learning valuation and perhaps you dont have a lot of time for research. If that is the case, definitely move to ETFs. If you find the time to do your own research and learn, then go back to stock. The most common recommendation for ETFs are VOO and VTI. I personally prefer BKLC to VOO because its zero fees and more concentrated (200 stocks vs about 350 for VOO) thus bigger chunk of the top 200 stocks. For diversification I would stick to VTI (3500 stocks) but note that this is currently riding a high. So for me, I would do something like $2 BKLC to $1 VTI. Once VTI flattens a bit I might change that allocation. Again, its all about knowledge. The mistake young people make (myself included 20 years ago) is they do things in reverse. When your knowledge is low, you should start with low risk then move to more risk as you get smarter. Not the other way around. The idea that young people should gamble and take more risk is terrible advise and only helps fraudsters and thieves more than anyone else.