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17 Years Old, Just opened custodial account
Sometimes its good not to miss the WAVE
Will my ER for Schwab etfs go away when they merge with TD Ameritrade?
2k to invest, don’t want to get caught up in the mania (again)
Am I the only one waiting and hoping for the market to drop?
Mentions
The thing about diversification is that people diversify by sector, geographics, market-cap, etc. However, nobody seems to want to diversify by weighting methodology. For instance, you could buy VOO, which is market-cap weighted S&P500, and RSP, which is equal-weighted S&P500. Or weight by GDP of the country. Or minimum variance. Or throwing darts at a board. The interesting thing is, over very long periods, any of these methodologies appears to outperform the S&P by \~1-2% annually. One posited reason for this is because they all break the link between price and weight. They capture a "rebalancing premium", by trimming the outperformers and adding to the laggards. Another posited reason is that it's just the value/risk premium, because these other weighting methodologies naturally tilt towards the smaller and cheaper stocks. Either way, I like to go 50/50 market-cap weighted/other weighting methodology. So for instance I have SCHX (S&P Market-Weighted), FNDX (S&P Fundamentally-Weighted). SCHF (Developed Market-Weighted), FNDF (Developed Fundamentally-Weighted). SCHE (Emerging Market-Weighted), FNDE (Emerging Fundamentally-Weighted).
I’m in the US, but I’ve split my SCHX (basically an S&P 750 ETF) in half, and bought FNDX, which is the same ~750 companies, just weighted differently than market cap. This cut my tech exposure drastically and into more value oriented sectors. Only time will tell if this was the right move, but I sleep better at night. Went heavy into international at the beginning of this year as well. Might be performance chasing, might be momentum. I just think that global equities, as an asset class, are somewhat sticky: if it performed well the previous year, it’s likely to outperform the next. The US outperformed for 15 years straight, I don’t think it’s inconceivable that the same thing happens with international. International SCV has been especially good. Overall, I’m not just stepping away from the US entirely, but I’m stepping away from the growth portion of it.
Honestly, you’re probably overthinking it a bit. SCHB and SCHX are both broad US funds, and over decades the differences won’t matter much. Your split makes sense for avoiding overlap and wash sales, just stick with it and keep consistent.
Grandma did you right! But, rebalance it. Half the portfolio should not be in one security. While I don't adhere to best practices, a single holding should be limited to 5% of a portfolio. If you need time to figure it out but still want the money to be working. Reduce each stock holdings to 5%, and invest the cash in a distribution of SCHD, SCHX, and a bond ETF or find a decent 1-3 year CD. That should give you enough diversity to let it sit while you learn fundamentals of investing. At the end of the day, you're 21 and have plenty of time to see through any market volatility. You're starting in a really good position for the rest of your life. Don't stress too much about it.
Keep it all invested and let it grow. The when you have a wife and kids, and you’re fairly certain where you want to build a family, use the some of funds as a down payment. Now what to hold? Personally, I would just sell off the holdings into SPY/VOO/SCHX (ie some broad based index fund). That may create a taxable event. Do some research
In your back-and-forth with u/nivek_123k it sounds like you're looking for things to Wheel. But your OP strongly implies that you already hold SCHX & SCHG, so is that correct? Because if so, you can do CCs to your heart's intent. Though SCHG is better for that. But even SCHX, if you sold the 37DTE 29-delta 28C you'd net 0.7% over those 36 days (from tomorrow). That apy's to just 7% if you were able to do that month after month. That's hardly worth the bother though, or the risk of losing your shares (or the bother of rolling the Calls). And if you're looking to accumulate shares (whether starting from scratch, or to add to shares you own), CSP'ing right ATM is the perfect use-case for those. The SCHX 20Feb27P is at a Bid/Ask of 0.05/0.20, with a Last price of 0.15. That's optimistic given that spread, but you'd surely get filled at 0.10. And 0.10/27.00 in 6 trading days (Monday is a holiday) is an apy of 15%. Not bad for something you were going to buy anyway. The SCHG Puts are a LOT juicier though: The 20Feb31P would sell for 0.27. And 0.27/31.00 in 6 trading days gives 0.87% ROI, which converts to an approximate apy of 36%. Do that every week or so if you're DCA'ing into SCHG anyway, and you're starting out with a 36% head start. Or if you don't want that much bother, sell the 20Mar31P for an apy of \~22%. Less return because it's less work. And if you're "pretty new" to options (I read that as "*very* new" because I bet you haven't read a book) read some of this book (it's a pdf): [Options for the Beginner and Beyond,](https://www.r-5.org/files/books/trading/schoolbooks/W_Edward_Olmstead-Options_for_the_Beginner_and_Beyond-EN.pdf) by Professor Olmstead of Northwestern University Chapters 1 through 5, plus 14 for Covered Calls should do it. Ignore all the "strategies" in the book for now (or forever, but do read Chapter 6 about LEAPS Calls when you want to think about using them instead of shares). Cheers.
1 year update on my last post about my portfolio: my investment has grown from $173,000 to $217,500. I’m now 36 years old Currently, I invest $150 weekly into SCHX. Whenever we experience a significant drawdown of 1-2%, I try to double down. I’ve made some minor changes, but nothing drastic. I got involved in the space industry and have incurred some losses, but I believe the future is promising, and I intend to hold onto those shares. SpaceX has my attention, but it might need to cool off from its recent IPO. Hoping this information can be helpful for anyone new to the stock market. It’s advisable to avoid options and let compounding interest work its magic. If you make a mistake with a stock, you have alternative options. However, if you lose money on options, it’s a risky situation. SCHX seems to be a really nice ETF that holds 750 stocks compared to the 500 SPY. Running the numbers on both they are very close to each other on the 5-10 year. I prefer being able to build shares vs saving for a month to buy 1-2 shares of SPY. Anything I sell from my core typically will go into the QQQ, with new money going into SCHX. I am always looking for other ETF's to check out. SCHD I believe is great but that might be for when you are older and trying to preserve your gains. One day I hope to rotate into this more in my ROTH. Stay focused - RSI above 66 Momentum / (RSI below 33 Tanking EYES ON) (UPDATE $217,000 1 year): 35-year-old, Blue collar landscaper. I’ve been investing what I can since 18. Here's my current portfolio (worth $173,000). I plan on reinvesting for the next 20-25 years. My goal is to reach $1 million or retire by 45. I am open to any advice you may have. Thank you 💎
I’d switch to SCHG for maximum growth or SCHX for a blend with a still decent dividend. SCHD has underperformed for a while now and seems antiquated
Put your money in SPDW and SCHX or VOO and you'll be chilling come the end of 2026 brother
I am completely new to investing and I’ve been trying to read as much as possible and ask questions. Please let me know your thoughts on this game plan and if there is anything you would change, take out or add? This is just me going based off notes. I am 100% open to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones? Step 9: Consider QQQ in a taxable account (but would this be redundant if I already will have SCHX or SCHB?)
Also, is the QQQ necessary if I choose to invest in SCHX or SCHB which are both broader? I am not sure. Here is my game plan: Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?) Step 7: Is SWPPX and/or SWTSX necessary, and if so, which account and why? Step 8: What about international ETFs and/or Bonds, should I add any to my taxable account and if so which ones?
Ok gotcha! To clarify, you want a short duration basically?! Ok this is my plan so far. Please let me know your thoughts and if there is anything you would change, take out or add? This is just me going based off notes from here. I am 100% to suggestions. Step 1: Contribute 4% employer match to 401k on Fidelity. Step 2: Backdoor Roth IRA - contribute $7,500 and invest in SWTSK (any other mutual fund or ETF I should invest in IRA?) Step 3: Invest in SCHB or SCHX in Taxable account Step 4: Invest in SGOV, USFR, and SWVXX in Taxable account - All for liquid funds Step 5: (Consider investing in SCHD in taxable account?) - Dividend focused ETF. Step 6: (Consider a Sweep account at Fidelity which offers a higher % return in a MMA, not sure why?)
Look up the three fund strategy. For most people, it's best to just have one US stock fund, one international one, and one bond one. No one can accurately predict whether VOO or SCHX will outperform the other in a given year. Choose one and spend your time on your family or hobbies or whatever.
I forgot to ask, is there also a reason to invest in SCHB vs SCHX - so you can focus on the top 750 companies? Wouldn’t growth be slower in the SCHB since it’s more broad?
This helps put things into perspective thank you so very much!!! Also would it be redundant to split my eggs into SCHX or SCHB or even SCHK? Or is it smarter to buy more of one like SCHX?
VOO is an S&P500 index fund basically the top 500 companies SCHX is the dow jones large cap , basically top 750 companies SCHB is total stock market , it will have like 2500 companies that include mid-small cap So you buy SCHB if you want to hold mid/small cap companies The difference between VOO/SCHX is very minimal , its like why buy coke instead of pepsi , they basically both are colas, they both have cola flavoring , caffeine , sugar , carbonation but they have slightly different increments , but in the end they are pretty simular
I have my 401k at Fidelity, but I hear folks choosing between Schwab or Vanguard so I picked Schwuab for now, Not sure why I wanted a separate broker but maybe to diversify? Question - why buy VOO and not SCHB or SCHX? Can I do auto buy on Schwuab? And does it automatically come out of my checking account? And are these purchases post tax? When buying ETFs, is it recommended they go in a taxable account or Roth IRA? How do you determine?
Also, why buy VOO and not SCHB or SCHX?
Thank you so much for this info! Do you know the pros/cons to buying the ETF or Mutual Fund versions? Not sure if I should buy one or the other and say if I stick to just ETFs or just Mutual funds to buy only one ETF (i.e SCHX) or divide between SCHX and SCHB? Or If I should buy 1 ETF and 1 Mutual Fund? And how do I know when to put them in a Roth IRA or in a taxable account? Also, do I buy these ETFs/Index from my income (post tax)? Or could I purchase them pre-tax, like how a 401k would work?
Index Fund just refers to a fund that tracks an index instead of having a fund manager pick stocks. An Index fund can come in either ETF or Mutual Fund form. SWPPX, SWTSX, VFIAX, SCHB, SCHX, VTI, VOO are all index funds. There are no fees for buying/selling ETFs at Schwab. There are no fees for buying/selling a wide range of mutual funds at Schwab. Schwab doesn’t allow buying fractional shares of ETFs or setting up automatic periodic purchases of ETFs. They do allow both these things for mutual funds. ETFs tend to be more portable than mutual funds should you decide to change brokers. ETFs are slightly more tax efficient than mutual funds when held in a taxable account. This is because mutual funds are more likely to have capital gains distributions, though they tend to be minimal for index mutual funds so not a major concern. If you are ok not being able to buy fractional shares and auto invest I’d hold ETFs in a taxable account for the increased portability and tax efficiency. I’d use Schwab Index Mutual Funds in an IRA. Especially if you want to set up a monthly contribution and have it automatically get invested. These are minor differences… either ETFs or Mutualfunds are ok in both.
You can buy VOO and VTI at Schwab for no fees. The only downside is they don’t allow purchasing fractional shares of ETFs. Schwab doesn’t have their own S&P 500 ETF, though SCHX is similar. They do have an S&P 500 mutual fund (SWPPX). SCHB is roughly equivalent to VTI. SWTSX is the mutual fund version.
thanks so much for this reassurance! I think SCHX mirrors the Dow Jones instead of S&P 500. Is there a downside to buying VOO or IVV or SPLG on Schwab rather than buy them on Vanguard? I think VOO is Vanguard only so not sure if it has a higher expense ratio on Schwab
Thank you for this help! What do you mean by you have money left over or money drag? I’m unfamiliar with what that is or why it happens and why it’s bad? Also, why do you have both SCHX and SCHB and not just one? Also, why have SCHB in a Roth and SCHX in a taxable account? Did you have to create a separate Roth account?
An "Index fund" is just any fund that follows an index. Index funds can be an ETF or a Mutual fund. Now schwab does have SWPPX what is an S&P500 index fund setup as a mutual fund Schwab does not have their own S&P500 ETF, however at schwab you can buy VOO or IVV o SPLG no issues. SCHX is a very similar index , the returns are going to be near identical . SCHX holds about 750 largest companies vs the largest 500 but they are going to perform 99% the same, its not worth worrying about the small differences
Take this with a grain of salt as I’m not an expert, just another person on the internet wanting to learn more about investing to secure my future…I’ve been with Schwab for over a decade. I’ve recently moved my private equities into ETFs to simplify things. My main fund is SCHB, which is a broad market fund that includes large, mid, and small cap companies. This would resemble VTI to the best of my understanding. The only issue I have so far is I always have money leftover after buying these ETFs. You can instead choose a mutual fund such as SWPPX (which tracks the S&P 500) or SWTSX (which is a total stock market index). It’s a dollar a share and you can buy whatever you want without having any leftover cash drag. I use the Schwab funds as I earn a low wage and the Vanguard funds are beyond my budget. I keep SCHB in my Roth and SCHX in my taxable (any leftover change after maxing my Roth goes here). I get a 1099 form every year only for my taxable account for any capital gains I had (selling a stock) or qualified dividends.
SWPPX isn't an ETF. SCHX is the closest Schwab has.
So VOO holds all the stocks inside DIA and QQQ , you would be more diversified if you simply held VOO Adding QQQ really does not add diversity it just concentrates your portfolio into large cap tech DIA is not a major index its just around for historical reasons as the OG index , but it still holds a sub set of stocks that are in VOO Also VOO holds companies that pay dividends, VOO pays dividends. VOO is not a growth index its a broad index that will hold both growth and value companies Diversifying is not about holding different ETFs once could hold a split between VTI (Total stock market) SCHX (dow large cap) VOO (S&P500) QQQ (nasdaq) and this portfolio would be less diversified vs simply holding one ETF VTI as all the other ETFs are just a sub set of VTI so adding those positions makes you less diverse and simply more concentrated in USA large cap stock TLDR just hold VOO or VTI, if you want to add another fund for diversity look at a fund that does not completely over lap with VOO/VTI like a foreign fund , adding bonds will reduce the risk so its fine to add bonds if you want to bring down your risk
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.
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
I was up about 800% each on RKLB, PLTR, and like 200% on NVDA, all long term. It was making me nervous. Trailing stop losses hit the other day. Now I have $180k cash I don’t know what to do with. Probably some combo of SCHX and other boring ETFs. But yeah, maybe I could have cleared 900% instead of 800%. But at least now I don’t have to worry about them dropping.
Schwab ETFs are great for you. They did a split on their ETFs so they are going for about $25 to $30. SCHV, SCHG, SCHD, SCHX. My only point is that just because a stock price looks cheap it could be really expensive for what it is.
Yeah absolutely not. S&P 500 like SCHX or IVV.
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.
>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.
You write about investing like a 19 year old who just discovered the market. You are a grown man, you need to plan like one. With no retirement accounts, you have no business investing in taxable brokerage at all IMO. Open a HYSA. I avoid fintech personally, so I would reccomend either Ally (for the bucket feature) or Discover ([coupon code for a small bonus](https://www.nerdwallet.com/article/banking/discover-savings-bonus)). (I do not make anything off the link, I am just passing along the coupon code. Once you have opened the HYSA, initiate the transfer of the full $54,000 from the HYSA. This avoids any wrong routing number possibility. As soon as you do this, you will start earning a small (*tiny* amount of interest. Next, go to Schwab and open two Roth IRAs (assuming your wife also has no retirement savings). Transfer $7k into each Roth IRA before the end of the year. Invest each in a simple index fund. Since you are interested in QQQ, maybe try that out. You now have $40k in your HYSA. Set an alert in your phone for March 2026. At that point, you add another $7k to each Roth IRA. Invest in another broad ETF like SCHX. Now you are down to $26k in your HYSA (actually closer to $27k since you have earned a bit of interest). You need $24k in your emergency fund. That means you have $2k to start your child's 529 (you should be able to do this at Schwab). Transfer the money in and pick a simple investment. Do not pick precious metals, do something like SCHX.
If you are poor enough to seriously need it, open a brokerage and put it in SGOV/SCHO etc. If you are building on a 10+ years horizon, S&P fund VOO/SCHX etc.. if you're into religious morality, there is funds like CATH or PRAY. Ideally you want at least 3 months salary (clear) in the "bank" (SGOV style) with 1-2 paychecks floating in cash bank. Then you want to put at least 10% in your retirement account. I said "brokerage" and that is where you want your more liquid funds (SCHO/SGOV types). If you have employer 401K with match, then use that, it gives you 100% on your money by default. And even if you are struggling to not be able to 10-15% your retirement, always hit the match max, it is a free 100% return. If you don't have a 401K option, then open an IRA for the retirement long term stuff. How I would break it down if you're low level income broke, and can slice it: 3 months clear money in Brokerage in SGOV style. 1 paycheck extra float in checking/savings. 10% IRA/401K 10% in the brokerage to an alternative SGOV for mental tracking, this is where splitting SGOV/SCHO can come in handy. This 10% is for building up funds for expense savings of car/house innthe future. I say the two 10%s assuming you're broke enough to need that. Ideally if you could do like 25% in the house/car savings and 15% in the retirment, this would be perfection-ish. But might be hard to slice if you're subsistence mostly.
SCHX, which is just Schwab's equivalent of S&P500 basically. Also Un-ironically some GME to get the dividend
At schwab investment plan long term. 75% SCHX (large caps, S&P 500 core) 10% SCHF (international diversification) 10% SCHM (mid-caps for growth tilt) 5% SCHV (value tilt for defense) Split across 7k a year into Roth will get you started holding the 13k in taxable portfolio both split using the above ETFs.
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.
those are very good points, I appreciate it! SCHX sounds like a good plan
Just in investment $25 weekly or $50 biweekly. Investing $5 a day accomplishes nothing, you are just making things overly complicated for zero reason. SCHX is basically equivalent to VOO and it's $25 a share, or just use Schwab S&P500 index funds SWPPX. And probably just invest in the SCHX or swppx. They hold all the stocks that are in SCHD and QQQ. It holds both dividends and growth stocks . So then adding a dividend fund , and a growth fund really doesn't do much because all those stocks are inside SCHX or swppx anyway.
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
Invest in ETFs that follow an index like the S&P or DJI. Some examples are VOO, SCHX, SPDR, QQQ, or a few other solid picks. Research and select what fits your strategy. Go 100% in on the market. Don't bother hedging with bonds until you're 10-15 years from retirement. You can use ultra-short bond ETFs like SGOV to park some cash for investment opportunities while getting \~4% growth (currently). Open a ROTH IRA account and max contribute. Being tax advantaged, you can buy funds that normally are too tax inefficient for a standard brokerage account. Opens up new opportunities and strategies.
An ETF (Exchange Traded Fund) can be thought of as a "basket" containing small pieces of many companies. A single share of stock can be expensive; You might only be able to buy a few shares of one company. With an ETF, you get exposure to many big companies with a smaller investment amount. SCHX is an example of a "Large Capitalization" ETF (Large U.S. Companies) which follows closely to the DJI (Dow Jones Index). In short, an ETF can be a moderately safe way to invest your money with good returns, but with less chance of losing money if you tried putting all your money in just one company.
My fund is custom to my age,risk tolerance,strategy and what keeps me motivated to contribute as much as possible. My funds are 30% SCHX - 30% SCHD - 12.5% SCHG - 12.5 % DGRO and 15% VXUS. I think I have all my basis covered and I’ll meet my goals with these funds and allocations.
SCHX is top 750 companies. It's essentially VOO.
I buy SCHX monthly in full shares since the share price is much lower and nearly identical to VOO.
SCHD, SCHX, SCHG, VXUS - SWVXX as well for cash savings.
I am stuck with full shares because of Schwab, but thankfully due to that limitation Schwab also offers an excellent set of indexed ETFs with low ERs, and they regularly split them to keep the share price low. So in case that's your thing, they've got you covered. SCHX is the VOO equivalent.
If you can buy fractional shares it makes no difference. If you can <cough> Schwab <cough> there are several practically identically-performing funds that have a lower per share price like SCHX. https://stockanalysis.com/etf/compare/schx-vs-vti-vs-schb-vs-splg-vs-voo/
No you are right There is nothing really "wrong" with holding say VOO and SCHX , even though they are nearly identical funds Its just sort of pointless to do so and lots of novice investors may think they are diversifying by doing so , but since both funds have nearly identical holdings its not really adding diversity, but its not really "hurting" anything either just sort of pointless Often times you will see novice investors being like here is my portfolio VTI/VOO/QQQ/VUG If your goal is diversity , holding all those funds are not adding diversity In fact simply holding VTI would make your more diverse , adding VOO/QQQ/VUG is actually just concentrating your holdings into Large Cap and Large cap tech/growth making you less diverse
Btw, Schwab has an excellent set of etfs and they keep them split so fractional shares aren't so much of a problem. So you could more simply fix your problem by swapping out VOO for SCHX.
Sometimes the brokerage you transfer to (Fidelity) in this case will cover the fee. However if they do not, I wouldn't think $50 is worth paying for fractional ETF shares. You could simply buy SPLG or SCHX what are very simular to VOO that have a lower share price what somewhat solves the left over money However you could also just use SWPPX what is a mutual funds that tracks the S&P500 index just like VOO; and MF have always supported fractional share
You should just DCA into VOO or SCHX. You would be up right now if you would have done the boring path. Once you have a good amount saved up then make a degen pile of cash for gambling like you have been in the past .
I like VYM and IDV for dividend etf’s. Also, SCHX could be an alternative to SCHB
SCHX is the top 750 companies. As it's market weighted it's very close to the S&P500 and I would consider it effectively interchangeable but it's not quite the same thing. Schwab doesn't have a S&P500 ETF. But if he's with Vanguard anyway he could just do VOO (or better, VTI which is the whole market, or better yet, VT which is world equities).
No. Go look at the prospectus. SCHX I believe is the S&P 500 fund. SCHD invests in companies believed to be likely to pay large dividends in the near future. https://www.investopedia.com/terms/d/dividendirrelevance.asp is the start of reading on why this isn't a sound strategy.
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.
If you don't have fractional share support at your broker, it makes more sense to buy something like SCHX that's only $20 a share and still the same .03% expense ratio. That's a lot easier than saving up in a money market and occasionally liquidating and buying in.
Growth stocks bro, focus your money on capital growth check out VOO, SCHG, VOOG, SCHX
So I'm looking to change my 401k portfolio to go all in on VFIAX (index fund) or do 50% VFIAX and 50% VTWAX. For some context, I'm not looking to look at my 401k account. I'm just a set and forget type of guy. Right now, I currently have an IRA that has the following allocation 33.3% - SCHX, 33.3% - SCHD, and 33.3% - SCHG. I'm also planning on setting my HSA to do the same strategy as the above (VFIAX 100% or (VFIAX 50% and VTWAX 50%)). Currently in my early 30's, live in the US, and my goal at the moment is to get rid of student loan debt and then purchase a house. Happy to answer any questions you might have.
I know literally one person who knows anything about the stock market and they are just an acquaintance. They said we should put as much money as possible in the following stocks because they are at a record low: SCHF, SCHA, SCHR, SCHX I would love to hear opinions from anyone who knows what they are talking about. I’m ready to pull the trigger and put 1-4k in each of those.
Eh, I bought 3 shares of SCHX, sounded like a steal. Any other good ones? Just may sell and Invest In VT. What's your portfolio look like? Any bear market contenders?
VOO is just the top 500 US companies. VTI is all the US companies. So it’s basically VOO and more. SCHX is just VOO I think but under a different brokerage. So you don’t need them both. Personally I’d just go all VOO but it’s up to you - no huge difference. Keep your individual passion stocks if you want - although they are covered under the others too.
Your portfolio doesn’t make much sense tbh. VOO, SCHX and VTI are generally interchangeable in terms of performance, exposure and risk, though not exactly the same, so they are great for tax loss harvesting from one to another. No point having all 3 in your portfolio at the same time.
They’re all sub $50/share since they did a 1:3 split SCHX for example was established in 2009, while VOO was established in 2010.
You're brand new to this, and you're going to find it all confusing and overwhelming. At this stage you really belong over in r/Investing. But let me save you the trouble of asking your question over there: VOO and chill. That will be their answer. And there's some merit to it. VOO is simply an ETF (Exchange Traded Fund) that tracks/matches the S&P500. When you hear the news and they say "the Dow" is down so much, or the "S&P 500" is up this is what they mean: the 500 stocks in the Standard & Poor's 500 Index. It's a measure of the broad **US** market. Another S&P500 ETF people cite/follow/invest in is the SPY. What people mean when they say to "VOO & chill" is to buy the ETF VOO and then hold it until you die. You don't need a 'broker' or 'adviser' to do that for you: just open an account with Fidelity or Schwab or Vanguard or TastyTrade or Robinhood and do it yourself (and usually for free). But before you march off like a lemming to put your money in VOO or SPY or QQQ or IWM or SCHD or SCHX or any of a hundred other index-type ETFs, let me suggest that it's reasonable to look at charts and decide for yourself if you'd want to buy those things right now. Here's the [5-year chart for SPY](https://imgur.com/a/spy-5y-downturn-like-2022-kku3inT) (which is essentially the same as VOO). Looking at the chart, do you feel like buying into that 'thing' at this moment in time? Look back at the start of 2022: does the current price action remind you of that? If so, maybe you feel like you'd want to wait and watch for a bit? You could stash your money in the ETF SGOV for the time being and get 5% 'interest'. Find Yahoo Finance and start poking around. Learn how to look at the charts of VOO and SPY yourself; the 5-year, 1-year, 6-month, and 3-month charts. Look at the numbers below the charts, the Volume, the Net Assets, the Yield. Go to Barchart and click on ETFs across the top, then on the left under Market Pulse, maybe look at Popular ETFs. SPY is there (the S&P500), QQQ (the NASDAQ index), DIA (the DOW 30 Industrials), IWM (the Russell 2000 index). Maybe slide down the left column to Trading Signals, then "Top ETFs to Own." I don't know how they decided that, but it sounds interesting: ETFs covering Germany, Europe, Gold, Austria, China etc. Click into those, look at their charts. Notice what you *don't* see in a list like that: the US. If you've paid attention to stock market reports at all, or heard people at work talk, what have you heard about the US stock market? Put that together with what you saw from Barchart's "Top ETFs to Own." Look in other places if you want: Barron's, The Wall Street Journal, Investor's Business Daily (a favorite of mine). Poke around their platforms, see what they're recommending. Start synthesizing that into your personal view of the markets, decide where *you* think your money would be best invested. I showed you SPY/VOO earlier and asked you to decide if you thought it was 'good'. How about this one: [A 5-year chart.](https://imgur.com/a/IPpVEKY) Compare it to the one above. It went down in 2022 also, but is it going down? Which would you rather have your money in? It's okay to say the other one, because this one has gone up "too much," and that one is "bound to turn around." But that would be your primitive monkey brain talking. Look at both charts rationally. And then let me tell you that this new one is gold. Do you know anything at all about what the price of gold does during times of uncertainty? If not, it generally goes up. Are these "times of uncertainty" for the US markets? If you say yes to that, then you might consider investing in gold. And that chart is actually the chart of GLD, which is an ETF like any of the others. Once you have a trading account set up somewhere you click the appropriate things to invest $x in it. And that probably won't cost you anything. And then what do you do? You watch it. You watch the rest of "the market." Ask yourself if trends are changing, are other things doing well rather than Germany and Europe or gold. Maybe the US stock market is back and it's time to invest in VOO or SPY. Not on a daily or weekly basis, but maybe monthly, quarterly. But don't 'chill'! Don't "set it and forget it," don't "Buy and Hold." Keep watching *your money*. You work hard for it, so work at least as hard to make it earn more money for you. You can do this. Millions before you have. I'd advise you to stick to ETFs, they're safer. Keep searching for the ones that are doing well, compare them to the ones you're holding, decide if a switch is in order. And before long you may be thinking, "Hmmm, maybe I can retire at 50." Good luck.
Yeah I did something similar in 2020 although I think I switched from SCHX to SCHB or from VOO to VT so it was a bigger difference than what you’re describing. To my knowledge as long as the funds are different then you avoid the wash sale rule but not sure about VOO to SPY.
Exactly what I did but closer to 1/2 of my positions. Sold SCHG and SCHX due to their TSLA holding after the salute. It’s time for these mf to learn that the PEOPLE control this country, not the few at the top.
SCHD does not contain TSLA. This is my main issue, so I’m leaving the little that I had in SCHD where it is. If TSLA is added to that, I’m gone. I have some Amazon, and some EXPI now. Small amount of crypto. I was mainly deep in SCHG and SCHX, but I have to make the call. This all has to stop, and it has to start somewhere. The market will prooobably be here in 10 years. But I’m not riding a sinking ship down, and while it’s above water I’m hypothesizing we tell the captain like it is.
When red, buy SCHX, fbtc, avuv and vxus. When green, more govz and sgov
If you keep the target fund, I think you need a longer dated one. What year are you planning to retire? Because the one I had was 2055 and I'm in my 30s. Personally I'm not a fan of the target funds. I was actually just looking at Schwab's 2010 target SWYAX, which is one of the oldest target funds I've so far been able to find a chart for, and it's performance since 2016 doesn't seem... that great to me. I was your age when I started investing for retirement, and it was my understanding that target funds were supposed to be better and more resilient to long term market fluctuations, but so far, they don't seem to be that much better return or that much safer than just investing in broad market ETFs or holding S&P funds. I mean look at SWYAX's holdings as of 1/31/25, a target 2010 fund is holding 23.30% SCHX, a Schwab ETF that gives the fund exposure to lots of stocks, particularly tech stocks. Idk if when I get to 60s 70s year old, am I going to be comfortable with 25% of my holdings in stocks? With SWYAX I couldn't change my holdings. Most people who are invested in this probably don't even know how much market exposure they have and almost certainly haven't read the prospectus. ----->Read the prospectus for any ETF you invest in.<------ Anyways, I don't like the expense ratios either. I just rolled over an old Voya 401a with Voya's Index Solution 2055, VSZHX, that had a 0.16% expense ratio! For now, I don't think I'm picking up another target date fund. My IRA now is about: 10% BND/BNDX 25% SCHD 30% VXUS 30% VTI 5% SGOV, cash, and other individual stocks
I mean this is only an issue if you just insist on buying voo SPLG / SCHX are almost identical funds that may be cheaper , or you can just buy the MF version SWPPX
Historical returns are a few percentage points higher on VOO than VTI. If you are not concerned with the diversification factor of having both, then I agree with other posts about just DCA into VOO. Alternatively, there are some cheaper options than VOO that track the same index, or work to at least… SCHB, SCHX, SPLG are a few. SPLG is my go to, it has the cheapest fees at 0.02%
100% on no 3... SCHX is also a great alternative to VOO.
When we all sell off $SCHX and I guess even $VOO?
Similar to what you’re saying, I switched to 75% ETFs and roughly 25% individual stocks. I realized the hard way that unless you’re 100% focused on the market, picking 100% of your portfolio as individual stocks is absurdly risky. Most of my money now is in an ETF (SCHX) and occasionally I’ll pick an individual stock to buy. For example, back in October I bought Reddit for about $110 a share. I personally and professionally use Reddit every day. Having seen how targeted their advertising platform can get in the potential of grow through AI, it was a no brainer.
I like Schwab ETFs for low expense ratios and entry prices after recent splits. SCHG + SCHV = SCHX. Safety = SCHB. Dividends = SCHD.
I do FXAIX in 401K, SCHX in roth IRA and SCHG/SCHD in taxable brokerage. I keep the retirement accounts as invest and forget. I chose SCHG and SCHD because they have different investments and i can buy the dips at different times. This is my thought proccess at least, i just started
You already have a ton of exposure to the Mag 7 with VOO and QQQM. I guess if you really believe in them over everything else but it seems a little excessive to me. You could just directly buy them instead. I do S&P500 (SCHX) and VGT similar-ish to QQQ but way less overlap with the S&P500 Also have SPMO, SMH, and bitcoin XLF as well but not a forever hold
Currently you could just use another index fund like IVV or SPLG and it won't be a wash. To be safe just incase the IRS ever clarifies if two index funds that follow the same index is a wash people will use slightly different indexes For example SCHX follows the dow large cap index, however its returns will be almost identical to the S&P500
> the differences between the two funds are very small rounding errors for the most part. Years ago when I took my tax classes, my professor said that when rules are ambiguous a taxpayer’s position just has to pass the straight-face test. That’s a lot easier if the taxpayer hasn’t behaved as if they were consciously trying to defer taxes. That’s exactly what it looks like to swap VOO to SPY and right back after 31 days. It would be more convincing if you’re taking a loss on VOO to buy SCHX, XVV, VONE, or whatever else and *hold* that for a while.
Currently no , if you get audited could the IRS argue it's is a wash sale , maybe but so far I have seen zero evidence this has ever happened. To be safe people will usually buy a slightly different index funds , like SCHX what follows a different large cap index but will have near identical returns
Or something like SCHX (750ish companies)
People will suggest you some common ETF like SPY, VOO, QQQ, IVV to track SP500 but their prices are between 500-600 so you probably feel a little disappointed with how many share can you invest with your few hundred dollars so instead of high price stable ETF. You could look into SCHX or SCHK. They are tracking the same SP500 but 10 times cheaper. The return profit is not too far off from those above. You can use SCHX/SCHK as test drive and its ETF issuer is Charles Schwab can be your broker. They don't really charge you any fee unless you use 1on1 consult. Its thinkorswim app is very good to use. After 10 or 20 years, you will have a small fortune.
[https://portfolioslab.com/tools/stock-comparison/SCHX/VOO](https://portfolioslab.com/tools/stock-comparison/SCHX/VOO) "The correlation between SCHX and VOO is **0.99**, which is considered to be high. That indicates a strong positive relationship between their price movements."
I have a Schwab account. Use SWPPX. It's their S&P index fund, and you can start with $1. Their SCHX ETF has been doing really well, too, and it's currently less than $25/ share. They also have themes where they've bundled stocks like AI or healthcare together that you can look at if you want to try investing in a certain area of the economy.
Put the 3 grand in SCHX, set to reinvest and add periodically to the position. Sell calls against the position (since this is an option subreddit).
I own SPY, VOO, and SCHX, in case one of them gets corrupted.