SCHB
Schwab U.S. Broad Market ETF
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Would a combination of say, 80/20 SWTSX/SWISX be a good idea for my Roth? Should I also include ab emerging market fund since that isn’t included in SWISX? If so, which one? Is SCHB an emerging market fund?
Why the sudden jump in US broad market ETFs (e.g. VTI, SCHB)?
College Student, Make around 200 dollars a week, Want to mindlessy invest 40 dollars every week into ETFs or stocks
Wanting to invest recent VA backpay - thoughts on how I'm proceeding about doing so
VOO or SCHB: what circumstances determine which investment to choose?
Hey, I’m 69 and looking into asset allocation for my long term buy and hold portfolio.
Looking for a treasury-based fund that doesn't pay dividends frequently
Should I change where my Traditional IRA is/how to do that?
Advice or criticism on this long term (withdrawing half in 30 years, rest will be locked away from 80+ years)
Facebook/Meta "fair value estimate" at Morningstar is 400/share.
First ever options trade (covered call). Can you help me understand what I'm looking at...?
Anyone else have a portion of their portfolio in dividend etfs?
Closing Stock Positions, Throwing all into ETFS: VTI vs. VOO vs. SPY?
What’s a stock in a solid, stable company I can swing trade for $4000.
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80% SCHB, 15% VXUS, 5% degeneracy
That advisor is just looking for a recurring fee to manage a portfolio you can easily handle yourself. Your proposed allocation is redundant because SCHB already contains everything in SCHX; you are essentially buying the same large-cap stocks twice. Consolidating the U.S. equity into a single total market fund cleans this up instantly. An 85% equity split is aggressive for mid-60s, so ensure they truly understand the volatility, but there is no need to pay a middleman to replicate the S&P 500.
10,800 shares of SCHB which is basically VTI. also 2 shares of SPY at $420.69
I'd stick with VTI for broader market exposure, but it depends on your goals. VTI gives you the entire US market (including small/mid caps), while SCHG focuses on large-cap growth stocks that could be more volatile. Since you're with Schwab, SCHB would be the closer equivalent to VTI (and commission-free), though VTI has a slightly lower expense ratio (0.03% vs 0.03%). The question is whether you want the diversification of the total market or if you're specifically betting on large growth companies outperforming. For a long-term retirement account, VTI's diversification typically makes sense.
All the other popular ETFs are open ended funds , VOO, VTI , VUG , SCHD , IVV, ITOT, SCHB, SCHX this really just brings QQQ inline with the other most popular ETFs I really see no reason to vote no on it especially if you hold one of the above funds you already own open ended fund what QQQ wants to convert too. It cuts the expense ratio 10% ; its seems weird to complain they should have cut it more then vote no and pay a higher expense ratio
might go SCHB+SCHF which is basically VTI+VXUS with lower ER but yeah that's probably a better idea than more S&P500 for me
Yes, you need to keep at least 6 months of your spending and some emergency funds that are readily available in either HYSA or buy SGOV ETFs which will save you on state taxes. After that keep investing whatever you can in the entire US market ETFs and may be the entire foreign market ETFs (so SCHB 80% and SCHF 20%), but make sure to understand that if the market doesn't do well, then you could "lose" a lot of money if not all. Always remember, you haven't made or lost any money unless you sell your shares.
SWTSX doesn’t update price until late evening. Reference SCHB for real-time.
SCHX is good large cap blend containing the top 750 US companies by market cap. You could also do SCHB which is a total US stock market ETF. Schwab also offers fundamental ETFs that are weighted based on a company’s fundamental factors such as sales, profits, dividends. It has a higher ER (0.25) but it addresses the top tech heavy, overvaluation in market cap weighted ETFs.
1. Establish or add to an emergency fund as needed 2. Complete your IRA contributions this year 3. Pick a brokerage you like and put the rest in a taxable account Any broad index fund is a good start, such as VT, VTI, ITOT, or SCHB
Yeah im planning on trimming down sometime soon and just putting most of my money into SCHB.
I just started investing this month, I’m only investing $10 a day across VOO, SCHB, & SVGOV(HYSA) but I wanna start investing in the cloud service business and gonna dip my toes in CLOU. Everything I see on TikTok, and YouTube makes me feel good about adding it into my portfolio and budget, just wanna understand how research my own ETF Also just curious I am planning to buy a house in 5 years and I plan on having at least 40 invested by then, would I be able to use these funds as like leverage or something if it’s in the Robinhood app? I use Robinhood cause it’s beginner friendly but plan on moving my money out once I hit $1000
>How bad will the taxes be on dividends? I mean if you are being taxed you are still making profit right? Yes, but if they don't distribute dividends you aren't taxed at all. The important part isn't how much you're paying in taxes necessarily, it's that the money that goes to taxes can't get reinvested. Let's say we've got two stocks that are growing at 10% a year. One of them distributes dividends yearly, and you're paying 10% on those. Year 1: Stock A grows from $100 to $110. Stock B grows from $100 to $110 and distributes a $10 dividend. You pay $1 in taxes and reinvest, ending up at $109. Year 2: Stock A grows $11 from $110 to $121. Stock B only grows $10.90. It distributes that, you pay $1.09 in taxes, reinvest and you're at $118.81. This pattern keeps on compounding so that even with a small tax rate you get further and further behind. That's tax drag. >And what combo of growth and value would you recommend if not schd and schg? As mentioned, SCHB is essentially a combination of all of those. You could also pick VOO, VTI, SCHX, or any number of other large cap blend or total market funds. There's also an argument to be made for avoiding dividend-heavy stocks entirely. If you were investing in a taxable account then maybe (I have some brk/b in taxable for this reason), but in a tax-advantaged account it doesn't matter. Regardless, I'd mostly just not select _for_ high dividends - if some come along fine, but you don't need them and they don't indicate the company is a better investment. >I like the idea that if tech/growth isn’t doing well in a period then value might help balance the account. I realize having value stocks doesn’t mean it won’t go down if tech/growth goes down. This incidentally is why I suggested the target date fund, as it will diversify even further and hide those sorts of losses from you.
>If I wanted to start contributing to a taxable account You probably should not: https://www.reddit.com/r/personalfinance/wiki/commontopics/ >does it make sense to buy more of the one currently not doing well since it’s at a lower price? Price of specific stocks is irrelevant. The stock can split and then the price is a lot less but you have more shares, so it's all the same amount of money. All you care about is total value. Hide the number of shares column. Look at the percentage of total portfolio column instead. Buy things to make that fit your 70/30 asset allocation. >I go with the schg and schd combo Btw, there are several problems with this: 1. You are betting on growth outperforming value, and value outperforming growth. Obviously these can't both be true. Save yourself the trouble and buy all of it at once with SCHB. 2. Optimizing for dividends is [irrelevant at best](https://www.investopedia.com/terms/d/dividendirrelevance.asp), but actively worse in a taxable account due to [tax drag](https://www.investopedia.com/terms/t/tax-drag.asp). What you likely should be doing is investing this money in a Roth IRA in [an index target date fund](https://www.schwabassetmanagement.com/products/stir). Then you don't need to worry about any of these asset allocation details and can simply [focus on increasing the amount you put in](https://www.kitces.com/blog/dont-save-10-of-income-spend-just-50-of-every-raise-and-systematically-save-more-tomorrow/).
SCHG isn't more aggressive; it's a bet that "growth" stocks (ones that have lower expectations and thus lower prices) will outperform the average. Historically they sometimes do and sometimes don't, and on average over longer time periods are basically the same to a little worse than the average. SCHA _is_ more aggressive, although [people have noticed small cap growth is particularly underwhelming](https://www.etf.com/sections/index-investor-corner/swedroe-small-cap-growth-anomaly) and so a popular option is to do [small cap value](https://www.optimizedportfolio.com/best-small-cap-value-etfs/) instead. That can take time to bear out though so you need to be convinced of the thesis. SCHB and SCHF is a very reasonable choice if you want to stick with it.
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
I’m trying to out away $500 a month in a Roth IRA and I have a question. Wife and I are mid 30s and I’ve been putting most of the money in SCHB and SCHF but wondering if, since we are still relatively young, if I should switch the SCHB to something more aggressive like SCHG or SCHA. Also have custodial accounts for our kids and same thing. I have all theirs in SCHB also. Thanks for any advice!
Is it worth it to move ETFs from a regular brokerage to a Roth IRA? I also just started and bought SCHB and SCHF but just did it all in a regular account. I recently opened a Roth also and was wondering about switching them. One has a very tiny gain and one has a very tiny loss so far (like less than a couple bucks so far)
I actually just did some research and planning on SCHB for my taxable brokerage account!
VTI/ITOT/SCHB are total US stock market ETFs but the track index from different index suppliers, so there is no wash sale problem. Some of the roboadvisor like Betterment and Wealthfront have white papers describing their tax loss harvesting techniques and they have very useful list of "near equivalent" but not "substantially identical" ETfs they use for tax loss harvesting. Some people will go so far as to swap between different ETFs that follow the same exact index, such as SP500. The IRS has never gone after anybody for doing that, but that is too aggressive for me.
Since you're maxing Roth IRA and have a solid HYSA, I'd recommend expanding your brokerage account with total market index funds or low-cost ETFs. With Charles Schwab, look into SCHB (total market) or VTI. Since you're not planning major purchases, you can be more aggressive. Consider a 70/30 or 80/20 stock/bond split depending on your risk tolerance. The S&P 500 is good, but total market gives broader exposure. Keep contributing consistently and diversify.
Try the Bogglehead sub. Seriously. A full market ETF, can't go wrong. You're not likely to beat the returns & are likely to underperform them. VOO / VTI or SCHB & SCHF. Or whatever your broker's equivalent is. Good luck. It's like anything else: practice and just doing it. Paper trading helps. Pick a ticker & just spend a weekend learning everything you can about the Co. Go to their site check out their financials yourself. The reports on Yahoo or wherever aren't really super useful. You'll get there. Damn near every single investor ever has been exactly where you are.
SCHF looks like a international ex-US developed fund, and doesn't include ex-US emerging markets holdings (Taiwan, China, etc) Two low cost funds would be VTI or ITOT, (total US, SCHB is pretty close) and VXUS or IXUS (total international, including developed, emerging, and frontier markets). Or a single low cost fund with both US and ex-US would be VT or SPGM.
Update I now have William Bernstein's "Coward's" portfolio with the addition of SCHB/SCHF is this ok, If I had to pick one monthly paying ETF which one would you go for?
SCHB/SCHF and chill for no stress
I read a study, can’t find it, might have been on Schwab. Better to invest now, especially if your horizon is 10+ years. They showed what it meant to invest all at once, DCA, or trying to time the market. Investing all at once beat out the DCA over let’s say next 12-months. The problem is that when people wait for a pull back, they watch it fall and then are scared to get in, they wait and miss almost all of the recovery. Go look at a stock chart for the past 30-years. You will see what I am talking about. Time in the market beats timing the market over long time horizons. Just don’t sell during a pullback since you are doing VOO or SPY, tune it out. You can diversify into the whole market with VTI or SCHB.
This. There's a reason every brokerage firm has their own fund that tracks the whole market - if someone asks me for a stock I point straight to VTI, SCHB, FSKAX.
Open a Schwab account and read up on all their articles and advice. It's free to open a Schwab account. Once you start researching, I recommend looking into SCHX or SCHB. They basically track the S&P 500 and are great core starters. Beyond that, do your own research and determine what's best for you. I recommend a month of casual research before investing any money.
Huh? ETFs do not defer taxes to a later date, they simply don't incur them on an annual basis due to the nature of their structure (see: heartbeat trades). The mutual fund structure is such that gains are distributed annually. See the distributions tab for SWTSX versus SCHB on the Schwab website. SWTSX hasn't distributed gains since 2021, but many mutual funds do. SCHB conversely has never distributed gains. Capital growth of the investment and realizing those gains (or losses) are no different with an ETF or a mutual fund, it sounds like you're conflating the two?
Yea its fine. Also remember ETFs will just deffer these what is a benefit but like I said its small and inconsequential Like if you DCA into SWTSX over ten years, you paid some very small portion of the capital gains every year what means when you sell you would be taxed a bit less because you already paid some of the capital gains over the past years With SCHB when you sell you would have a bigger cap gains tax when you sell , because it can defer these taxes , it doe not entirely doge them So yes is deferring $10 of capital gains for 10 years a benefit , I guess but people really make a big deal about $10 over 10 years when big picture its not going to matter
If you open a brokerage account (I use schwab so I know that one). You could say start your absolute long terms in SCHB. And put your shorter term into something like SCHO. Or you can also to the more common VOO/SGOV. And it doesn't charge fees. Assuming 20K is your total net worth, going forward I'd say something like: 10K in SCHB/VOO 10K in SCHO/SGOV Then when you get a job with a 401K, put 10% to it. And put 10% in your SCHO/SGOV variant. (This is your more liquid savings, for like a house etc and 10% is a minimum, you can put more if you can, more is ideal). Eventually, when you are fully living the adult life, you want to float on avg about 10% of your home value in the safer liquid situation, and the rest in the growth funds.
Let me preface that I love EPD - low vol, high dividend, solid business model. It's indeed a good stock for the mantra "I do not mind owning the stock". I simply own it and do not even sell options on it. Now the problematic part your strategy is essentially selling convexity to fund carry which can become quickly an explosive cocktail. It looks attractive because the income snowballs: sell puts, buy yield, sell more puts, rinse and repeat. But in reality, you are just stacking correlated risks. \- Put premium is not free cashflow. It is compensation for taking downside risk. Plowing into EDP or SCHD is doubling down on the same risk factor (equities). In a drawdown, your puts lose, your dividends lose, and your margin cushion shrinks at the exact same time. \- “I do not plan to get assigned” is wishful thinking. Assignment is not a choice unfortunately. Otherwise I don't know a single wheeler that would despite the "I don't mind owing the stock" mantra. You can wake up tomorrow with the market down 8% and trust me you will get assigned. It doesn't happen often, but enough for you to be very careful with that thinking process. Now this is the part I don't really follow - picking EDP is clearly a good idea same for SCHB, why wouldn't you want to get assigned? In any case using premium to increase margin availability works great in a grind-up market. In a shock, it accelerates the margin call and smaller accounts feel that pain fastest. That really where your risk is and you can't just simply schrugg it off.
I mean people also seem to make a huge deal out of what $20 of uninvested cash? SCHB is $24 SCHX is $25 Trust me having $20 odd dollars left uninvested is not going to make or break anyone and people make huge deals out of mole hills
Thanks! For the Roth IRA would you recommend investing in various funds or just stick to either FXAIX or SCHB?
Personally I think SCHD is too risky to store money in for short term FXAIX and SCHB are very simular funds personally would just go with SCHB or any other total market fund
Hello, I’m new to investing (22yo) and am looking to get some advice on my current weekly investments. With $400/week available to invest/save, I am currently putting it into: SPAXX (For savings): $115 SCHR: $55 SCHD: $55 FXAIX (Roth IRA): $65 SCHB (Roth IRA): $65 SPAXX, SCHR, & SCHD are investments/savings for money to use to buy a home within the next 4-5 years, and FXAIX & SCHB are my investments in my Roth IRA. What changes would you recommend I make if any?
I wanted to complement you on a clearly written, coherent and great question. I wish I had that ability when I was 26. I actually had the same question. I recently started buying more SCHB, which is performing well. I also own SCHD and while their dividends are solid, their growth this year is lagging. I was wondering whether moving funds from SCHD -> SCHB and I noticed your post.
If you feel overweight in tech just drop QTUM. Your portfolio really does not make sense You have VOO/SCHB great Then you add QTUM (TECH AI) Then to balance out your over exposure to tech you add SCHD? Just drop QTUM ? As you said VOO/SCHB is already allocated a healthy amount to tech , so why add more tech only to then counter it with SCHD? Just do SCHB, if you feel SCHB is too tech heavy probably add some foreign funds like SCHF or SCHE
>It just seemed like total market with a focus in SP500 to be a bit overweight in tech Both total market and S&P 500 are already heavy in tech: something like 30% last I checked, far more than the next largest sector. >Are you suggesting maybe a mix of SP500 and International? I favor total market over S&P 500. Either one with international would work though. >SCHB > SCHG? Yes. Despite the name and recent returns, long term has tended to favor blend and especially value over growth. SCHB holds all. Factor investing starting points: * 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) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >It just seemed like total market with a focus in SP500 to be a bit overweight in tech >that mix is for similar reasons as above but I also wanted to bet a bit heavier on quantum stocks. An uncompensated risk is one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, **sector,** or country. And Tech revolutions: * https://www.pwlcapital.com/investing-technological-revolutions/ * https://rationalreminder.ca/podcast/123 * https://rationalreminder.ca/podcast/156 (climate change, clean energy related especially) * https://rationalreminder.ca/podcast/183 * https://rationalreminder.ca/podcast/185 (Thematic ETFs)
- I did not really have any reasoning behind the two for my Roth. It just seemed like total market with a focus in SP500 to be a bit overweight in tech. My 401k right now is only in SP500. Are you suggesting maybe a mix of SP500 and International? - that mix is for similar reasons as above but I also wanted to bet a bit heavier on quantum stocks. - SCHB > SCHG?
Comparing SCHD vs SPLG vs SCHB allocations for a taxable account >I am 26 and currently invest through both a Roth IRA and a taxable brokerage account at Schwab. My Roth is all S&P 500 and total stock market ETFs, and I will be maxing it out this year. Why both S&P 500 and total market? Also, going global can be beneficial to both returns and volatility. >In my taxable account, I started with a mix of individual stocks and ETFs, including SCHD (about $7k), SPLG, SCHB, and QTUM. Why this mix? >I am interested in the pros and cons of holding SCHD alongside broad market ETFs like SPLG and SCHB. Dividends are simply part of the total return, they come at the expense of share price appreciation. The act of a dividend is a taxable event, which may come at times where you don't need it. >How does SCHD’s long term performance and risk profile compare to SPLG and SCHB in a taxable account? This is before taxes are considered: https://testfol.io/?s=bg2wcYQbFlh >Is there a meaningful benefit to splitting between SPLG and SCHB compared to just holding one? No, as SCHB just about fully contains SPLG: https://www.etfrc.com/funds/overlap.php >Looking to hear others’ thoughts on how they approach balancing dividend focused ETFs with broad market funds in taxable accounts, especially for investors in their 20s with a long time horizon. With fractional share trading and no commissions being pretty common these days, I don't see the need for a dividend focus at any point in time. The best case I could make for them would be indirect factor exposure, but would recommend going for true factor focused funds instead of indirect exposure for that.
I really see no point to SCHD [https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1sT7Ev5URfwvaQHtTMTHMd](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&sl=1sT7Ev5URfwvaQHtTMTHMd) Is it a bit safer sure, but not by much Max draw down SCHD 21% vs SCHB 24% so yea its a bit safer , but not for the amount it underperforms over the long run SCHD is also less diversified only holding 100 stocks compared to SCHB 2500 appox.; I see no reason at any age to focus on "dividend investing " its all mental gymnastics . Focus on returns , if you want added stability just allocate into bonds
I am having a hard time deciding where to put my funds. Right now I have a Roth and an individual brokerage both through Schwab. My Roth is only SP500 and Total stock market and will be maxed out for the year. My normal brokerage account however is a mix of individual stocks and ETFs. When I first started, I put money into SCHD. It sits around 7k at the moment. The other ETFs are SPLG, SCHB, and QTUM. Should I convert the money from SCHD into SPLG AND SCHB? Should I scrap SCHB and do SPLG and SCHD? Or should I just put anything new into them and hold SCHD? I have about 35k in a HYSA (future car down payment and emergency fund). My concern is the amount of money in a HYSA along with SCHD is a bit too conservative for me at 26.
You on the right track. Max out the tax advantaged accounts then open a brokerage. You don’t have to know that much, just buy a broad based etf like VOO, VTI, SCHB, SPY or IVV. Dollar cost average what you can every month.
If you're looking to rebalance your portfolio and not do a ton of research, then I would put it all in index funds. Below are some that I like. VOO - probably the most commonly recommended one, its an S&P 500 fund SCHB - a broad market index fund covering (I think) 2500 companies SCHG - large cap growth fund VPU - a utilities index fund (I'm guessing the AI demand will keep energy demand high) To be honest, there are so many variations of the above and everyone has their own personal preference/mix. Look at expense ratios of the etfs and what the fund covers and invest where you feel comfortable. Trying to pick individual winners is hard enough for the pros, keep it simple and build your nest egg. Individual picks should be a relatively small percentage of your portfolio unless you really know what you are doing.
First is avoid debt. If you have high interest debt then investing is a fools errand. Second, the best investment for building wealth when “broke” is to acquire/obtain skills that will qualify you for higher paying employment. Trade school, certifications, college, etc. Third, with small starting investments you’ll only get the ball rolling after several years of continuous contributions. A $100 one time investment won’t amount to much. $100 per month will build up over a few years and start gaining steam. Fourth, invest in broad market ETFs (VOO or VT are decent starting points (or SPY, or SCHB, or ITOT, or …)) using an account with Fidelity, Schwab, or Vanguard. I believe these types of funds offer a simple means of achieving a good balance of risk and reward. Personal experience anecdote: I spent 20 months in 2023 & 2024 investing $150 per month, so $3,000 total, and at the end of those 20 months my investment was worth ~$3,225 (after first 10 months ($1,500) I was at ~$1,575). 7 months later that first $3,000 of investments is worth ~$3,350. In another 7 to 10 years, with no further additional investment, I can expect that it will be worth ~$6,700 (typical doubling rate of broad market ETFs). I’ve been fortunate that I can now afford to increase my contribution rate so I’m currently at $7,350 invested worth ~$7,850 (up ~$500, ~$350 of that is from the first $3,000 of investments).
> $1,500 for $75 daily market buy of $35 VOO, the other $40 is split between SPMO, SCHB, SCHD, SCHF, and SPYD Why are you buying both VOO and SCHB, which are almost identical? Why also a momentum version of US large caps? Why are you buying both SCHD and SPYD? They have little overlap but similar ideas. Why a focus on dividends given [dividend irrelevance] (https://www.investopedia.com/terms/d/dividendirrelevance.asp)? Why no emerging markets?
I've got a good amount in SCHB from tax loss harvesting and then another chunk in a private company that I worked at that has non-regular liquidity events. Can we go back to how your 40k portfolio was at an "ATH"?
Schwab doesn't support fractional shares, which is your problem. They keep their own etfs with low prices however, so you could buy something like SCHB. What I would recommend however is buying one of their target date funds: https://www.schwabassetmanagement.com/products/stir In addition to being a single fund that gives you everything you need, there's a $1 minimum buy and you can invest any arbitrary number of dollars above that limit.
The tech stocks already have higher returns growth futures baked into their current pricing. Unless you think you are smarter than the overall wisdom of the market I suggest just getting the overall market average return by buying low costs broad market ETFs such as VTI/ITOT/SCHB total US stock market ETFs and VXUS/IXUS international stock market ETFs. Yes, boring. But in investing boring is sometimes the best.
HYSA is good for short-term peace of mind, but your real wealth is built through time in the market. Since you said you’re okay with some risk and this isn’t money you *need*, I’d go 70–80% total market index (VTI, SCHB), 20–30% in T-Bills or a money market fund for liquidity. Stay boring, stay winning.
That’s the good thing about using a broad market index fund (like SCHB); you won’t lose it all in a down market. That’s why it is so often suggested over buying individual company stocks. For SCHB to lose all value the US market would have to cease existing…and that has much more dire implications (your money wouldn’t mean anything anymore anyway).
If you’re starting, use index funds or ETFs that follow the stock market. VTI, SCHB, ITOT, or VTSAX. There are many quality low cost funds that give you broad exposure. The most important factor is time in the market. Just start making regular contributions.
Just some terminology what may be a moot point Most of Vanguard funds have 2 share classes , they have an ETF version VOO and a Mutual fund version VFIAX . Note they are the "same" fund just one share class is organized as an ETF VOO and one is a mutual Fund VFIAX For long term investing it really does not matter what one you buy, however VFIAX may not be offered at all brokerages . Or you may get charged a fee if you try to buy VFIAX at schwab or fidelity . However at schwab or fidelity you can buy VOO , and holding VOO at schwab or fidelity or RH is the same as holding VOO directly at vangaurd So really for longer term investing it really makes no difference if you open a vangaurd account and buy their MF VFIAX through the vangaurd brokerage , or simply buy VOO through RH (or any other brokerage) Also vangaurd funds are well known and lots of people know their popular funds or tickers, so sometimes when people say "Buy VTI/VOO" they really mean just buy some total market fund or S&P500 fund Fidelity and schwab will offer very similar funds like SCHB or SWPPX that are essentially equivalents to VTI or VOO and the returns will be near identical Now some people hate the vangaurd brokerage website or app , its designed to be simple and boring . Its great for people who just want to contribute $XXX a month/quarter/year and buy index funds. Its not really designed for "trading" or doing research into companies (although they do have some tools) and they will restrict some funds that do not fit the vangaurd style of investing (think some 3x leveraged long or short fund) However some people miss the point, being simple and boring is the entire point. Brokerages like RH want you to trade , buy/sell as often as possible. It will give you all sorts of alerts and breaking news , you can sign up for their news letters the snack that will give daily market updates, my cynical view is all this is to encourage you to trade more, and its been shown on average the less you trade , the better you do. So in the end there is really little difference if you buy VOO on Robinhood or setup a brokerage with vangaurd and buy VOO, or if you buy a different S&P500 fund like IVV or SWPPX, however the vangaurd site does have an advantage of being very simple and extremely boring what may or may not fit your style
[https://www.bogleheads.org/wiki/Lazy\_portfolios#Three-fund\_lazy\_portfolios](https://www.bogleheads.org/wiki/Lazy_portfolios#Three-fund_lazy_portfolios) [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) some more schwab funds like SWTSX the other posts have mentioned as well (SWISX), or Schwab etfs like SCHB and SCHF
Manually buy a set number of whole shares on my pre-planned schedule; re-evaluate every few years how the portfolio balance is doing and then adjust future buys accordingly (for ETFs like SCHB, SCHD, SCHF, SCHH, et cetera). Or just set up auto buy of a mutual fund (like SWPPX).
Yup. My Roth IRA has been a mix of SCHB SCHE and SCHF for like 6 years since I started it.
SCHB is total US which includes the S&P and everything else you listed. Buying SCHB is a great idea. Buying everything else you want is redundant and redundancies are never good in a taxable account. As another poster pointed out, dividends are not smart. Ever. Add an international to SCHB and you’ve got a diversified portfolio.
SCHG is a growth fund, now a growth fund is not guaranteed to "grow" more or return more. Its very tech heavy and although tech has outperformed in the last 20 years or so , it may or maynot outperform the next 20 . Personally I would just invest it in broad market fund like SCHB or VTI, it will have all the holdings of SCHG but it will have value companies as well. Historically value has out performed growth so the last 20 years have been somewhat of an anomaly
Wow thanks. I’m still kinda new to all this but wanted to do the same thing actually. Put some cash into the Wealthsimple TFSA. And as for ETFs, how do I know which ones to pick that cover those sectors ? Like tech, healthcare, retail etc. just as you said read the descriptions ? What about VOO, VTI, SCHB, QQQ? I’m already basically in a similar thing with my main bank right now? (CAD and US ETF Funds)
VOO and QQQ have lots of overlap but that is not a problem. The OP should analyze his total portfolio to see if the sector and market cap size weightings are what they want. Overlaps are NOT a problem. Lots of ETFs or mutual funds make for a messy looking portfolio but there is no inherent problem of having overlap. I have VTI, ITOT, and SCHB as my main ETFs. There is virtually 100% overlap between them because they are in total US stock market ETFs (although they follow indexes by different index providers). 109% overlap. Zero problem. I use the 3 ETFs when tax loss harvesting.
On a taxable account I use not only VTI but also the near equivalents ITOT and SCHB for the total US market ETF, and VXUS and IXUS for the total ex-US market. I tax loss harvest by selling lots that are at a loss, immediately replacing the with the same dollar amount of the near equivalent ETF. Those ETFs are similar, but since they use indexes from different index suppliers they are not subject to wash sale rules as they are not "substantially identical".
Diversification is not just about owning a bunch of tickers The problem with your portfolio is you are actually concentrating your holdings in large cap and large cap tech VTI/SCHB are near identical total market funds, there are slight differences but both are total market funds and will hold basically the same stuff. No reason to keep both VOO is a subset of VTI/SCHB so by adding VOO you are not adding diversify you are concentrating your portfolio into large cap stocks Then QQQ/SCHG is basically a sub set of VOO, what means you are concentrating further into large cap mostly tech/growth stocks Meaning your current portfolio is less diverse then just holding 100% VTI or SCHB. All those tickers are sub sets of VTI/SCHB and concentrating your holdings making you less diverse A classic 3 fund portfolio is simple Total USA market Total ex USA market Total Bonds (some people will skip bonds until older) Some people simplify it further and just do Total World market Bonds So something like VTI (total USA) , VXUS (total ex-USA) , BND (total bonds) or VT (total world market )
5 years is an insignificant period of time when analyzing performance. QQQ(M) is just 100 stocks that trade just on the NASDAQ and it doesn’t include financials. It also includes Pepsi but not coke because that’s what trades on the NASDAQ. I’m not sure why anyone would want that. These kinds of risks are called “uncompensated risks.” Anyway, if these 100 companies do well then they do really well, but if they stop doing well then it crashes hard. Generally speaking you don’t want this kind of volatility. If you truly want to invest this money, and you should, then you want VTI (a vanguard product) or FSKAX (a fidelity product) or SCHB (a Schwab product). Which brokerage are you using?
My international funds have been solidly worse over 15 years compared to the US. What did you do differently? SCHB to SCHF. Did I mess something up? Thankfully I'm like 75/25.
I try to avoid complexity unless there is a significant benefit. I have seen many portfolios managed by financial advisors that are complex combinations of both growth and value funds, in addition to blended funds. When I do a backtest on them they end up being essentially the same return as a basic low expense ratio total market fund. [Portfolio Visializer](https://www.portfoliovisualizer.com/backtest-portfolio) is good for backtesting, although free accounts are now limited to 10 year maximum backtests. For the portion of my portfolio that are ETFs I just default to the old reliables of VTI/ITOT/SCHB (total US stock market) and IXUS/VXUS (total ex-US stocks). I use the multiple ETFs for total US and total ex-US for tax loss harvesting. In your Roth that is irrelevant, so the simplest and easiest and most effective thing to do is to simply figure out our US/ex-US allocation and buy VTI and VXUS, at both brokers. VXUS tracks FTSE Global All Cap ex US Index, with 0.05% expense ratio with a fairly large tracking error of 1.78%. It is also available as the mutual fund VTIAX at the slightly 0.09% expense ratio. IXUS has 0.07% ratio and tracks MSCI ACWI ex USA IMI with 1.59% tracking error. The overall returns of the two ETFs are essentially identical. Your 20% allocation to international is very reasonable. Although market cap weighting of international is higher, due to the extra volatility from exchange rate variations, the minimum volatility (in USD) is in the low 30% range of ex-US. I choose to apply a mild home bias and chose overall 80/20 US/ex-US. Because the individual stock portion of my portfolio (old, low cost basis shares in taxable accounts) are predominantly US, my ETFs are about 60/40 US/international.
As you have discovered, leverage is great, …. until it isn't. Take your losses. Pay attention to what you have learned. You may be lucky and outguess the market and make great stock picks, and have great timing getting into and out of the market. The more likely path is what you have experienced. At some point hopefully you will realize that just because you were "not satisfied with 8-10% returns" does not matter. Unless I think I am smarter than the rest if the world or know something that the rest of the world does not know or realize, I just buy the whole market via broad based ETFs like VTI/SCHB/ITOT and VXUS/IXUS. At some point you may find the wisdom and maturity to "accept what the market gives". Spend some effort on determining your optimal asset allocation and the rules for rebalancing. Then follow them. Do not change course in the heat of the moment, Stay the course with the plan you put together during a period of calm reflection,
I didn’t like the SIP either, but don’t have any issues with Schwab. Have them convert to a normal brokerage account (they will close the SIP account and transfer to a new one) and just put it into SCHB+SCHF or SWTSX+SWISX.
And the best thing is, *you* can beat the average investor as simply as possible. What "one size fits all" basically always means "one size fits none", by definition the average portfolio is the market cap weight portfolio. Simply holding this portfolio beats most active management options, *especially* after the fees they charge. You can buy a proportional share of all public US companies for ridiculously low price of 0.03% per year, its astonishing how cheap index investing has become. If you buy *and hold* (dont try to time the market), you will beat more than half of all investors easily. In financial academia, we call this the "investor return vs invest*ment* return". The investment (just buying in holding), statistically outperforms the average retail investor, even if theyre buying and selling the exact same fund, because theyre emotional, switching between fear and greed, selling when the market drops and missing the rebounds, sometimes ignoring paying off high interest debts to shovel money in near market highs and needing to sell to cover payments during a crash. Just buy a total market fund like VT for the whole world or VTI or SCHB or FSKAX for the entire USA market alone. Theyre cheap expense ratio (share price does not matter, they move the same % each day, the ETF price is just an arbitrary proxy for the underlying index constituents), theyre tax efficient, theyre hands off.
Schwab has an excellent set of etfs, and because they don't support fractional shares they do occasional splits to keep the share price low. If your broker also doesn't support fractional shares you might end up using a lot of their funds. SCHB is the VTI equivalent btw, if you want to cover mid and small caps too.
SCHA is redundant because you already have US small cap in SWTSX. SCHE is not redundant because you don't have exposure to emerging markets. A core global stock position using Schwab funds would be SCHB (or SWTSX), SCHF, and SCHE. F and E are only large cap, so if you wanted to fill in there you'd need to add additional funds.
Leave your investment in the company you mentioned, if all your other boxes are filled, get some broad market investments. ETFs allow you to invest and be broad and keep your money invested but not have to worry if APPLE is doing the right thing all the time. I like SCHA, SCHB, SCHB but there are tons of options. I like them because the price is lower than VOO or SPY. But I am a simple person. Set a target, when company A get stolen $100 a share you sell and move it into broader fund to play it safe. You know you made some money but didnt risk it for ever.
>Am I just better off doing 80% SCHB/ 20% SCHF and forget about it? Yes. Or even better, the Schwab index target fund, so there's only one thing you're putting money into and you aren't tempted to mess with the balance. >What about the timing though? There’s all this scarce of a recession. Shall I wait? Market timing is extremely hard to do correctly. Just put the money in, automate it, and forget about it.
Bought SCHB at 19.99 and irs back to 23. just 1000$ but brick by brick
I was just trying to deliversify as much as possible 🙈 Am I just better off doing 80% SCHB/ 20% SCHF and forget about it? What about the timing though? There’s all this scarce of a recession. Shall I wait?
I like VYM and IDV for dividend etf’s. Also, SCHX could be an alternative to SCHB
When you say “schwb” and “vanguard” ETF, which tickers are you referencing? SCHB is a decent choice if that is what you meant, it is what I am using for my children’s accounts.
Congrats on graduating! That’s an amazing gift from your grandma—and a smart one too. If you’re thinking long-term (20+ years), putting that $5,000 into a low-cost broad-market index fund is one of the best moves you can make. A few great options people often recommend: • Vanguard Total Stock Market Index Fund (VTSAX or VTI) – gives you exposure to the entire U.S. market • Vanguard S&P 500 ETF (VOO) – tracks the top 500 U.S. companies • Fidelity ZERO Total Market Index Fund (FZROX) – no fees, great for beginners • Schwab U.S. Broad Market ETF (SCHB) – another low-fee broad-market choice If you want a bit of diversification, you could consider: • 70% in a U.S. index fund (like VTI or VOO) • 20% in an international index fund (like VXUS or VEU) • 10% in a bond ETF (like BND) or high-yield savings/CD if you want a bit of stability Set it and forget it—with automatic reinvestment—and you’ll be thanking Grandma big time in 20 years. Also: if you’re using a Roth IRA for this (assuming you’re eligible), the long-term tax benefits could be huge. Whatever you choose, the key is starting early and sticking with it—and you’re already doing both. You’re way ahead of the game.
Why active? There are many fantastic passive funds. If you have no other core buy VOO or VTI or IVV or SCHB. Great, cheap, solid, tried-and-true funds.
Buy shares in a broad market, low-cost index funds like VTI, SCHB, or VT. Easy, safe, tried and true.
lol when in doubt, VOO or VTI. FWIW I actually use SCHB which tracks near VTI. The. I use SCHF for international exposure.
Nah, whole market ETF with a low cost. Many people recommend VOO (top 500 companies) or its whole market equivalent VTI. Both are owned by Vanguard. You could also buy their competitor equivalents like ITOT, SCHB, SPY or IVV.
Trimming when and where I can. I finally set up a good DCA automatic investment plan...I've been back and forth on it for over a year, but finally convinced myself to quit trying to swing for the fences all the time. Plus, I never swung with large amounts...so the wins were nice, but left me with as much regret as the losses. SCHB, SCHG, 70% split. DGRO 15% SCHD 20% VIGI 5%. Once the dust settles, I plan to readjust a bit. For my stocks portfolio, I'm building into HON, DD, FTV, and CMCSA. All have spinoff plans. Also, BRK.B...because why not. They have a solid succession plan in place now.
Well, I can tell you what I use. But I don't think you actually _do_ care about that - you want to know what _you_ should use. And since we are different people with different situations, it would be intellectually lazy of me to just jump to the end, and not helpful (and being helpful is why I'm here). If you insist though: portfolio: - 85: # equity - 60: # US - 85: SCHB # broad - 15: AVUV # small cap value tilt - 40: # international - 75: # developed ex-US - 85: SCHF # broad - 15: AVDV # small cap value tilt - 25: # emerging - 85: SCHE # broad - 15: AVES # value tilt - 15: # bonds - 100: SCHQ # long-term treasuries
If I lose my one share of SCHB dividends will definitely cover. It’s a no lose scenario
It doesn’t matter. The SP500 is about 85% of what is in the total stock index. Plot SPY vs VTI and you will see they track very closely. Philosophically I prefer the total stock market index ETFs (VTI, ITOT, and SCHB), but it definitely is not worth realizing gains in your taxable account to switch from SP500 to total US. It is barely worth incurring the bid/ask spread costs and the tiny SEC fee you would pay to switch in your Roth account.
SCHY. Largely because I’d already have FNDB or SCHB (strongly favoring the former). I like the fundamentals on all three. As an aside, I don’t like SCHD’s new emphasis on utilities for some reason but that’s just on personal preference that could change
Rather than targeting individual sections, I just use broad/total market funds (SCHB, VTI, ITOT, SPTM). If you want to cover everything, this is easier and when a company grows it doesn't have to be sold by one fund and bought by another. If your 401k plan doesn't include a broad fund, https://www.bogleheads.org/wiki/Approximating_Vanguard_target_date_funds provides tips on how to build that with the constituents. There's some investing theory that suggests barbelling with large cap and small cap value. Or various other slice and dices. But I don't think you're trying to get into that level.
Buy SPLG instead if you’re religious about the S&P 500. Buy SCHX or SCHB if you don’t mind something that doesn’t exactly track the S&P 500 but is highly correlated with it.
I did it, and they gave me 3% match on 150K. The best part is that the transfer went through just as orange man nuked the market, so my money barely dipped at all. So far, I've only put 1/3 back into SCHB and SCHD, which are broad market tracking ETFs. People are so afraid of RH, get a grip it's just a brokerage like any other.
Well without the allocation % I cant be specific, you have vxus for diversification,have you thought of BND, SCHB or JEPI/Q for income earning holds? I.e. a pseudo cash position. GLD is the same and performing unsustainablely great, imo. Their are currency etfs as well. Possibly diversify out of VTI (tech). I'd focus on hedging and diversification considering your overall position.
Ok. So if that’s the case, maybe I should TOH between ITOT/SCHB?
When it comes to funds, a large amount of it is in retirement account finds. VTI, SPY, ITOT, SCHB, VOO etc. All of the total market and 500 funds are held by a large number of pensioners by default without them even knowing. That includes international holdings.
if you're not 70+ years old imo its best to embrace volatility. Great time to buy the stocks beaten down (NVDA,AMD,GOOG,AMZN etc). I definitely wouldn't have sold quality stocks. If you are truly trying to avoid volatility you would do well with SCHB ETF. but it needs to be considered where you're at.. are you really in preservation or accumulation phase?
Look into SCHB, IVW and PNQI.