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You have the best opportunity out of most people here: Time in the market. The stock market is a slow game. If I was 16 again, I would: (1) First, set myself up with a core portfolio of 2-3 long-term (25+year) ETF’s, at least a $5-10k base, then I’d DCA $500/fn into them for 20 years. Examples include IOO, VT, etc. (2) Once I had that core $5-10k base of ETF’s and DCA discipline (let’s say a year later), only then would I consider playing around with speculative growth stocks and starting to learn how to do basic stock evaluations. With option 1, by the time you’re 40yo (young), you’ll have at least $1million in your portfolio (based on $5000 initial “IOO” purchase, and $500/fn) - and it will only have cost you approx $323k over the 25 year life term.
Fidelity published a recent study that a 70% U.S. and 30% non-U.S. was the optimal mix from 1950-2022. It returned about the same as 100% U.S. over the long term, but with a lot less portfolio volatility. When international (non-U.S.) funds grew in popularity from the 1970s to the end of the ‘00s, an 80/20 mix was ideal. The U.S. and non-U.S. (“developed” mostly) would trade in profitability. However in 1987, the U.S. was only 37% of market cap .. and now besides the US being 60% of global market cap despite having only 4% of the worlds population, .. the top 100 mega-caps are 80/20 (see geography spread in the “S&P Global 100” index via iShares ETF IOO) So IMHO there’s something to be said of the US business culture striving to maximizing shareholder value (great if an investor, maybe not so great if an American worker).
You can checkout iShares “quality screen” or even “green” indices as I noticed NVIDIA, Microsoft, etc.. get top billing for 0.15% ER give or take. Also their IOO Global 100 ETF has a bit more big actual tech, though also some value and/obviously international (likely “value” as well) for a 0.20% ER. Any large U.S. growth index will have lots of tech, but those % will vary with how well the stocks are doing in the underlying index; namely S&P 500 growth, Russell 1000 growth, subsets of those .. even a proprietary index usually based on the previous indices and then “screens” like an increasing sales factor getting into “smart beta” products.
need some portfolio advice I am 16 nearly 17 in Western Australia and i have $6000 in investments (69% in Vanguard High Growth Index, 6% in NDQ, and 25% in IOO). I can add around $300 every couple of months with the amount i am working at the moment so wondering where i should put it into, are these the right choice?
Going 50/50 into exactly two *single* investments is an incredibly plan. You should *strongly consider* buying at least one broad market fund. Something with at least hundreds of stocks in it, if not thousands, will provide you with a ‘core’ position. It doesn’t have to be 80% or even 50%. I personally wouldn’t consider going lower than 50% but maybe 33% will work. If it’s only one it should be worldly. Think: SPGM, VT, ACWI, AVGE, URTH, etc. even IOO would be better than only two equities.
US and non-US used to trade the lead until 2008. Going into the ‘00s, 80% US and 20% non-U.S was the optimal ratio and is still found today in developed “global mega-caps” (see Global S&P 100 index found in iShares IOO etf ..Aust/US but anyone can look). Adding emerging markets and mid to small caps the proportion changes so you have to choose. Also global dividend stocks are 50/50 fwiw.
The US-based S&P 500 contains most of the big corporations in the world. Their HQs will likely figure a way around any tariffs, .. if need be. There’s actually a Global S&P100 of the world’s 100 largest companies with 80% US and 20% non-US “developed” if you want to look at it and see how the non-US ones organize as global conglomerates (it’s used in the iShares IOO etf, available in Australia and the US). Don’t forget most of the big companies that did well in the late 1970s US stagflation are still around in the S&P500 or Russell 1000 (oil, mining, agribusiness); plus any economic condition still needs high tech and logistics, even if thrown off a quarter or 2 (anything from selling pharma to selling pork bellies).
Considering making the shift my IOO is dying and will hold on to my s & p 500 shares
That skew is due to tech which the US has excelled at vs industrials which its nearest competitors stock markets are focused on. So looking at iShare’s IOO (the top 100 global stocks) it’s still ~ 80/20 getting into more mega-caps .. tech and other. Now getting into pure global or global dividend (the “GCOW” etf) it’s mostly 60/40-ish. Another idea might be a 60/40 global fund, but then add an international (“non-U.S”) developed market and/or EM etc.. slice to make it 50/50. Probably with dividends. That said as the world may get more dangerous, a 50/50 split (say US index/non-US total index) might [theoretically] work as the market may now demand more return to make up for increased risk vs the U.S. will see more internal deregulation. Probably depends on whether DC is bluffing for concessions or not. Also if there’s a big agreement in the west, there’s some talk the EU (probably having to give up a bit) can then deregulate some sectors to retake market share. GOP can’t complain about deregulation..
I may have found another international fund for you. Could be better than ACWI. Check out IOO.
I’m starting to look at IOO, if my analysis is correct I assume if the us market crashes they would just be replaced with other international stocks?
You're very young, at your age I wouldn't hold cash. Just invest all of it in equity. I'm not going to go in the debate of home country biais, but if you didn't already, you should read on the benefits of having exposure to international markets. Then make your choice if you really want VOO or something international like VT or IOO. If you are concerned about a dip, then just spread your buy, for instance buy 26k now, 20k in 3 months, 20k in 6 months.
Hello everyone, I am new to investing and my friends recommended based off their own portfolios that I invest in IOO, IOZ, IVV. I’m just looking for long term investment where money can grow in the decades to come, maybe to help serve as an early retirement plan. Do you think these are great choices? I’m based in Australia
https://totalrealreturns.com/s/IOO?end=2013-10-01 Almost 14 years
Apologies, it’s a long one, but the bot (rudely) told me to comment here instead of making my own post: Rookie question but I would genuinely appreciate some insights. Often when people post their portfolios they’ll be told “get rid of ETF X because you already have ETF Y and they’re 90% the same”. But is it that you simply don’t need both, or that splitting your investment over two similar funds is a fundamentally worse strategy? When I first got my investing app I was like an uneducated kid in a candy store and bought a bit of everything that looked cool. I’ve got VOO, VOOG, VXUS, IOO, and a bunch more. I think I own eight different funds that have Nvidia as one of their top three holdings. I’ve started actually learning what I’m doing and I’m no longer scatter-gunning my investments all over the show, but do I need to sell/consolidate what I already have? Is there an actual financial benefit to having a larger sum in one fund rather than a spread, or is it just unnecessary/unwieldy? Will it be more difficult to hit my first $100k (for example) with my money split across five similar funds?
I'm 24 and have just moved to Australia. I'm looking to invest roughly $1,000 a week via CMC for the long term. Currently, I'm thinking of splitting it as follows: VOO 75%, QQQ 10%, IOO 10%, IBIT 5%, and just forgetting about it. Previously, I had invested in just VOO 80% and VYM 20%. Do people have any thoughts on this, or does this new split seem solid?
You may want some small cap mid cap funds. More focused emerging markets (including asia + south america) This is what I'm aiming for: || || |Ticker|Country|3y|10y|Incept.|Weighting|Return| |IVV - S&P 500|USA|18.20%|16.09%|6.73%|20%|3.22%| |IEM|India / China Equities|-2.04%|5.37%|7.71%|15%|1.63%| |IOZ - ASX 200 ETF|AU|9.17%|7.77%|8.01%|15%|1.20%| |IEU|Europe|12.28%|7.01%|3.84%|10%|0.90%| |IJH - Core S&P Mid Cap|USA|12.62%|12.73%|8.80%|10%|0.88%| |IXJ - Global Healthcare ETF|USA|14.42%|12.12%|6.51%|10%|1.21%| |IJR - S&P Small-Cap ETF|USA|8.04%|11.84%|8.90%|0%|0.00%| |IOO - iShares Global 100|USA|16.12%|14.49%|5.19%|20%|2.90%| |||||Return|100%|11.94%|
Simple question but I am looking to invest in ASX EFTs on commsec and wondering if anyone has any specific indices they would recommend in particular as well as if I should DCA into one or two of these indexes or diversify into like five or more etc Current EFTs I am considering are - NDQ, IOZ, IOO, IETHI, SYI, IVV, VAS.
I have my bag in WKHS. it's penny stock, but it has potential. Too scare to jump in RIVN right now, especially ER is right in front. Nevertheless, it's positive! I put in $100 just to get the thrill. Again, you're in the right place mate, keep it up! P/s: IOO is the only choice since i live in AUSTRALIA and dont want to be taxed in US.
Also idk what IOO is but I would look into VGT that fund has treated me very well. It actually outperformed VOO by about 50% in the last 5 years.
M7 and S&P500 all the way. By the way, can you gimme some advice on VTS Eft. I buy VTS shares weekly (30%) and IOO eft (30%) (high expense 0.4 but i live in Australia, so i do not have much choice). The rest i spend on short-term bond (20%) and save up for the giant crash, like TSLA recently.
I have started investing recently, and i did a little research. I have decided to include VTI + IOO (~50%) and VXUS (30%) in my stock portfolio. The rest 20% i will invest in shorterm government bond. I am deeply appreciated if some experts in the community could give me some insight for optimizing this portfolio of mine. Any advice and suggestions are welcome! P/s: i include VTI and IOO to gain more exposure to large, mid, and small caps. I have yet known if it is recommended or not. With my budget, each month for stock portfolio is ~$1,500 AUD.
This is based on revenue, not market cap. Also this isn’t based on publicly traded companies. If you want a market-cap weighted listing of the biggest global companies look at the holdings of the Global 100 (iShares: IOO). The largest publicly traded companies in the world are US companies. If you count the Chinese electrical grid or the Saudi Royal family’s oil holdings as a company then they take the cake but when it comes to investing public companies matter.
Take a look at QQQ, VT, or IOO and set up automatic monthly contributions
Some initial thoughts/questions. How is it taxed? I see the ER is 0.40% IOO vs 0.07% VT, is that balanced out by returns? It looks better at surface value without digging deeper, but I don't know how I feel about it yet. Thanks for pointing it out, I'll be digging deeper once I have some more free time. 👍
Hey guys! I'm hoping I am able to get some help with consolidating some ETF's I own, as I own quite a few and definitely thing I need to only focus on a couple. For context I started investing into ETF's when I was 18, didn't really know what I was doing so put money into quite a few at a time. I currently invest in the ASX. Total currently around 40k. The ETF's I currently own are \- ASIA (1.08%) \- VAS (5.01%) \- VGS (2.47%) \- ETHI (1.61%) \- IOO (15.89%) \- IOZ (14.14%) \- IXJ (5.89%) \- NDQ (30.90%) \- SYI (23.02%) I have put the % of how much each ETF holds. Which ones should I mostly be focussing on? Should I sell the lower % ones and put that money into the others? Any help is truly appreciated! Thanks everyone.
Your correct in the fact that a backrest from 10-15 years will not guarantee anything, however what it does show is that if this was my portfolio 15 years ago I would be significantly outperforming. The reason I hold the NASDAQ 100 with SCHD & DGRO is because I believe this diversifies my investment approach. Dividends are one of the ways to tell the financial well being of a company, and one of my goals is to be living off of my dividend income in 20+ years so I want to get the snowball rolling now. The NASDAQ hold most of what DGRO/SCHD doesn’t, so it’s a great way to diversify and tilt my portfolio to more growth (because I am young) I am 90% U.S. stock because there is currently no evidence that international funds will outperform the U.S. (yet). Also IOO hold the world largest companies so if international does start to outperform, IOO will potentially capture it if they are set to outperform in the future. I’ve heard many many arguments whether international was a must have to a portfolio, and many of the greatest investors say you don’t need it, however I believe it is better to diversity globally so I chose IOO and QQQM to potentially capture some international growth.
Because you are literally saying well the recent past performance has been amazing, so I'm going to pile in, and assume it will continue. > We all know this. Your actions seem to imply you don't. > Essentially you should also say the same if anyone says to invest in stocks, as we have no idea if any of the etfs will do well. We have centuries of data and strong academic literature that says equities do pretty well, that their expected return is positive, somewhere around 4-6%/yr real in the aggregate(i.e. something like VT/VTI/VXUS). We don't have centuries of data, or any academic literature anywhere(that I'm aware of), that says IOO should be expected to outperform.
You mean they can copy pasta from SPY and do what those guys at state street does? The fact the fund has a lot of interests and more liquid and better returns isn’t the reason for you to consider over these peanuts like VT or IOO? Say it ain’t so.
You might not want to. VTI has over $1110 billions in net assets, VOO over $700 billions. Both VT and IOO are like peanuts in comparison and also in terms of cumulative returns as well.
IOO has crushed VT in past performance. Don’t know if that will continue but I’m going to buy some IOO. I have VT but this seems more interesting.
Thank you -- I didnt check IOO's fees. above .10% would indeed be unacceptable Gonna have to look at VT vs VTI.
You might look into VT, it's like 6k companies, but it's way cheaper to own than IOO, so it costs you less to own them all, and they are weighted by market cap, just like you want, so 99% of your money will be in the top 500 anyway.
The question about China aside, why on earth are you using IOO as your "international"? Its a global fund so US stocks are included in it. [https://www.morningstar.com/etfs/arcx/ioo/portfolio](https://www.morningstar.com/etfs/arcx/ioo/portfolio) and scroll down to the third section where it says holdings. To give a crude metaphor, this is like going into a fast food place and ordering a cheeseburger, but then thinking you need to diversify buy ordering some fries and a coke also. So you order a combo-bag meal. Ok, yes, sure. You did order fries and a coke when you ordered the combo-bag meal. But that combo-bag meal ALSO has a cheeseburger in it. You already have a cheeseburger, so that extra cheeseburger that comes as part of the combo-bag meal is not helping you to diversify.
Long Term Portfolio for 10-20 years: Currently at 56% US / 24% INTL (IOO) / 17% CHN / 3% Cash Investing a good amount of capital now and I saw my Chinese ETF’s have been performing terribly. I want to change it to 75% US / 20% INTL / 5% CHN I am just worried that by centering everything on the US market, I am not diversified enough. And I don’t want to miss out on the sleeping giant of China… but the losses are pretty consequential. Any thoughts? Rest is cash. Chinese ETFs have had a big loss for me and
I know you're right, I just can't understand. How hard is it to just hit the buy button on DIA, MGC, IOO, or OEF (all basically the same thing as this overpriced fund, there are others as well) every payday and save yourself a litteral ton of money over the long term?
Jim Cramer the type of guy to tell people to buy COON at $410 at DIDI at IOO