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Favorite ETF picks? I've had good results with FENI
I recommend S&P 500, paired with a foreign equity funds like FENI, FIVA, or IDMO; and FNDE for emerging market. Foreign equity has done well this year, and if you select the right fund it’s worth having, I do not subscribe to the notion of an all world or all foreign equity fund like VXUS, it lacks strategy. Foreign equity needs some process, methodology, and thought behind it.
Hey man, I saw you a lot around here and your advice is pretty easy for a beginner like me to understand. Mind if I ask you a question? Right now, I’m in a similar position. I only hold SPYM but want to add more international diversification. If I plan to hold long term, what do you think of IDMO + AVDV. I feel like this cover both ends of developing markets. But I’m also willing to switch out IDMO for AVDE, IDEV or FENI. I also plan to add some forms of EM like AVEM, AVES or FRDM. Personally, what do you think about these funds? I plan to do 20% for DM and 10% for EM.
Lots of suggestions of sticking as much as you can in a Roth IRA over two years and letting it grow until retirement, and if you want this money to grow to the maximum possible, that's the way to go. But, I'm gonna suggest you open a taxable brokerage so you can let this money grow for a bit and then access earlier for a large purchase like a home in 10+ years. You can do this with Fidelity, Vanguard, Robinhood, or Schwabb. Depending on your risk tolerance you could put 70% into a domestic stock fund like VOO/FXAIX for SP500 or VTI for total stock market. 20% foreign stock fund like FENI/VXUS/VYMI. 10% put into a bond fund like SGOV, or pick a municipal bond fund for your state so you don't have to pay federal or state income tax on the dividends. The 90/10 portfolio has worked out pretty well for Warren Buffet. Right now there's no capital gains tax if your taxable income is under 48k (gross income under ~64k) for a single filer. Time will tell if this is still true in 10+ years.
ICOP for Copper Mining. IDMO, FIVA, FENI, FNDE for foreign equity. FBTC for Bitcoin. I’d mention my US holdings too but it’s pretty standard stuff. Never stop buying.
It absolutely makes sense to include non-US equity in a portfolio, you gotta diversify because you should never assume S&P always wins. My bigger gripe with VXUS is it holds every possible foreign stock, versus hand-selecting stocks with potential value and growth. I always recommend IDMO, FENI, or FIVA as they practice a methodology for stock selection and the performance shows it too.
IDMO is the best performing international ETF. I also like FENI and FIVA. All three of them have outperformed the popular VXUS.
I didn’t want to sway your choices, they seem sensible. Since you want my opinion though, I don’t care for all-market funds because I have no desire to own thousands of junk or zombie stocks. I also don’t care for all world funds, because I want to control the allocation of US vs Foreign equity, plus there are some regions I may want more of and others I do not. For my Roth at present I am contributing 60% S&P 500 index, and 40% to FENI which is an actively managed foreign large blend of over 300 stocks. I may adjust that ratio in the future, or swap out a holding for another, whatever I want. For my Rollover IRA which does not get contributions, my foreign equity is divided mostly between three funds: FIVA is actively managed foreign large value with awesome dividends, FLIN for India equity because I’m bullish on their development, and FLCA for Canada equity because I see potential growth there. Bottom line, I like a little more control of allocation, and I’m a little more selective of indexes.
IDMO is a little more volatile, but no risk no reward. It’s been a really impressive international ETF the past 5 years. VXUS may be well diversified but the performance is a snore. Compare VXUS to IDMO, FENI, FIVA, and you’ll see how much better you can potentially do. I use FIVA in my Rollover IRA and I’m very happy with it.
S&P500 is fine for US equities, but no I don’t agree with ONLY doing that. Try to put at minimum 25% allocation to a non-US equity diversified ETF. I don’t know the Canadian equivalents, but I always recommend IDMO, FENI, or FIVA. Might wanna consider a small allocation to a BitCoin ETF as well. I don’t like crypto but if think it’s here to stay.
The Cash would be in a HYSA or Municipal Money Market fund. The ETF would be VOO and FENI more than likely.
Since I can't decide, for different reasons I have FTIHX, FENI, FSPSX, FSGGX and FZILX in different accounts. I also rotate them out for tax loss harvesting reasons sometimes.