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1. Buy an SP500 Index fund and not a NASDAQ or FTSE/Russell Index fund. 2. Buy a low-cost managed fund that invests based on fundamentals, like FELC or SPGP.
Maybe check out “growth at a reasonable price” type ETFs like SPGP
Take a lesson from the stock market in the year 2000 (peak of the internet stock bubble) and what did well from 2000-2003 during the tech crash. Rotation into more value-based stocks in Finance, Energy, Utilities, and Health Care. Check out the holding lists from value-tilted ETFs like MOAT and SPGP to get some ideas. During a rotation to value, you can never go wrong with BRKB-its already on the upswing. If you want less risk than individual stocks then try the sector ETFs of XLF, XLE, XLU, and XLV. Looking at the ratio percent change of XLK(technology sector) vs XLV(health care sector) over a period of time can give you an idea of how much rotation is going on into value. This past week (7/26) the ratio is over 10.
I've owned SPGP for a couple years now, which prior to 2022 Fed tightening, outperformed SP500. However this is no longer true in the high interest environment. This position was intended to be a never sell, however I am considering liquidating my position, as we near ATH again in this uncertain environment. Not quite "timing" the market, but rather a reallocation. What are people's thoughts on SPGP in the short, medium, and long term? Is it worth holding, or should I back away?
Fairly high risk tolerance - VOO and sprinkle in something like VUG, VGT, TOPT, SPGP or one of the mag7 ETFs
Not bad, but I like SCHD, URA, IXC, FIW, SPGP....growth but more diversified away from tech
There are fairly valued etfs right now. For example, I am balanced across a handful of funds... some at a higher pe and some very fair. SPGP (fair value), IVV (largest position from 2022 and of questionable value), SCHD (fair value), XMHQ (undervalued), VO (slightly overvalued now imo), JQUA (Despite higher value, I like quality). I hope that helps. You might consider holding a larger, long treasury position like EDV if you are concerned about recession. And entering back in on more fairly valued etfs. Mid caps look good if economy stays doing well. I have a large position in mid caps, and 20% long-dated treasuries (EDV, VGLT, LTPZ). You're not wrong in feeling caution, which is why you need a plan you can stick to and to focus on the long-term.
Adding one more to shopping list: V BRK.B SPGP DVY AMZN MSFT
Buys for me today: - AMZN - BRK.B - SPGP - DVY
Have you looked at SPGP? It tracks the SP 500 GARP index, "growth at a reasonable price." Primarily focuses on companies with low PEG ratios. Might be more you're style.
Are websites like Insight Portfolio credible? I ran a simulation on their website, and the anticipated return looks good over time despite being a little risky. [https://insightfol.io/en/magic/report2/272d70277a/](https://insightfol.io/en/magic/report2/272d70277a/) [VOOG - 40.05%](https://insightfol.io/en/magic/report2/272d70277a/) * VGT - 30.21% * SPGP - 14.75% * XMMO - 9.75% * VO -4.93% * BLOK - 0.31%
QQQ, VGT, VUG, SPGP are some of my favorite tech / growth etfs. There are a few AI specific etfs as well if that interests you. I’ll let you google for those as I don’t have them handy
I've had the ETF SPGP for a couple years, and I've not been impressed. It usually under-performs SPY.
Continue in VOO or maybe put some in NOBL or SCHD if you want a good ETF that has dividend paying stocks. Also maybe SPGP for growth at a reasonable price. I personally don't consider your portfolio as too risky. You are invested in some high quality growth companies but they are high quality.
Good evening. I’m not sure of what you’re asking outside of allocations. Let me begin with telling you a little about myself. Let me first say that I’m by no means a professional. I just play around with this stuff. I’m going on 43. Just started a personal ROTH. I started my own personal taxable account a few years ago. I have a pension and a deferred compensation plan (DCP). I stopped contributing into the DCP and started investing into my own choices when C19 started. I couldn’t be happier. In the past few years I outperformed my DCP with less money, less time, and much better performance. With that being said, just a few months ago I started my personal ROTH. Within that ROTH I hold CLSK, MAIN, TSLA, and recently added FEPI. I may even add SPGP for some growth and their double digit dividend growth. Or just add SCHG (diversification) or VONG (more tech heavy). With those I listed above, according to Stock Events, I should yield 2.05%, 4.13% dividend growth per year, and 200.27% dividend growth 1 year. I’m going to continue to pump into FEPI for the first year or two. Even if it’s the maximum I can for a ROTH. Afterwards, that money will be used to fund half of the other things while buying more shares of FEPI. At least until FEPI starts to fail. My portfolio is considered very aggressive. I hope that helps you (and others) along the way.
I understand your choices but I’d suggest going over to portfolio visualizer and checking / comparing past performance to get a better idea of what the growth might look like over time. Making suggestions is difficult without understanding your risk tolerance and goals. VOO definitely. SCHD and Cowz - I probably would skip it at your age. Pave is great. Consider SPGP (growth at a reasonable price) and maybe something more growth oriented like VGT or vUG since you are young and have a long time horizon.
Keep dollar cost averaging into Bitcoin, and pick VOO or VTI or SPGP and dollar cost average into that as well. You don't have a bad portfolio you're just looking on a down day.
I’ve done it recently. I sold off XLG for more FBTC, CLSK, MAIN, and TSLA. No regrets so far (even with Tesla. lol ). CLSK is expected to hit between $50 and $70 by the end of the year. I’ll sell that off later to buy more MAIN and TSLA. Also, I may start a position in SPGP for the hell of it.
I’d add some international like VXUS. The rest probably VOO. You already have quite a few positions, but if you’re looking for something else, here are some I like. QQQ VGT MOAT SPHQ SPGP. Portfolio Visualizer is a great website to play with different holdings, and get a better understanding of your own portfolio. Keep killing it man
Seriously you should look into ETF’s like VOO, VTI and if you want to diversify with some others like VB, SPGP, XHB, VYM, SCHD etc. go for it but make sure overlap isn’t too much. Or buy blue chip stocks such as Apple, Microsoft, Amazon, META etc. if they pay a dividend then bonus to that. This is not investing advice but just what worked for me that also worked for others that helped give me advice when I started out. The meme stock stuff can work out but it’s rare and for the few. Trying to catch them at the right time is not worth it. If the AMC $$ is an amount you can stand to lose and you want to hold it then go for it but moving forward do your research on blue chip stocks or diversified ETF/index fund investments. There’s tons of info out there for you.
I'm with the folks mentioning VOO/VTI However here's an ETFs I find very interesting: Invesco S&P 500 GARP ETF (SPGP) - Large cap blend and has outperformed SPY over last 5 years by 15%!!
I do something similar for my two boys (3 and 1) — what my dad I came up with is that a normal brokerage account suits me best because it doesnt pigeon-hole me into a certain use. Maybe they get scholarships and dont need it — maybe they become tradesmen. So I like the flexibility. My portfolio started eith BRKB and SPGP as the core and then a handful of single stocks. Coffee can method, I can add to it but no selling, no rebalancing. Remember, one or two good purchases left untouched will outweigh a handful of mistakes. For example, bought 1k NVDA for them years ago and will never touch it for 20 years even though its already 4x
SPGP and COWZ are two interesting ones
There's SPGP if you want SPY without the foam at the top.
For me, there are two tricky times to buying individual stocks. The first time is like what you are decribing, "When to Buy?". The second time and almost more tricky is "When to Sell?" You mention that you have a family and are in your mid-30's. I'm speculating that there is not alot of time to perform market researh on the 4 companies you mention to know when to sell. And you can't just hold these stocks forever. I don't KNOW this, but I can speculate that these 4 companies will not be the top companies when you retire 30 years from now and start wanting the money. A better approach, imho, is to invest in index ETF's. Then the answer of "When to Buy" is easy... it's now. And the answer to "When to Sell?" is also easy, when you need the money. And let the index and ETF rebalancing do the work for you. As a suggestion, invest in SPLG (S&P500), but you could also try SPGP for a bit more growth (but more risk and fluctuations) or SCHD for more value (less risk, but less return as well). If you need to scratch that itch, much like I do, then invest a smaller percentage, like 5%-10%, in the companies you mention so that you can have some interest in the individual markets.
VTI VOO SPGP VGT depends on your risk tolerance really
Don’t invest in QQQ then. Maybe you want SPGP or OEM?
Look at SPGP I’d sub some of spy/s&p500 out for it since those are the same SPGP historically has about the same downside risk as the s&p 500 but better upside
Go to the Portfolio Visualizer website and enter a few ETFs you are considering to see how they have performed from 2010 to now. Remember that he'll also need to afford insurance so it's kinda pointless for a 18 yo to buy a new car and pay $4-5,000 a year in insurance. I'd put the money toward college or learning a trade or a downpayment on a condo or house and you'll set him up for success but you do you. Here's an example. Starting with $1k and contributing another $1k per year. QQQ: $39,366 SPGP: $32,154 VOO: $27,258 NOBL: $16,454
I am long VGT QQQ SPGP IWY and SPY in my long term buy and hold ETFs portfolio
SPGP. Over 15% CAGR over 10 years
Can’t comment on whether or not to sell but will make some suggestions on what to do with the proceeds. I’m not a fan of mutual funds due to the fees and investment strategies that often don’t work out. I’d suggest ETFs instead. VTI is a well diversified option from vanguard that owns shares in all of the stocks. ALL VOO owns shares of the companies in the S&P 500. Lots of good companies there. Less diversified than VTI but better performance. NOBL owns shares in good companies that pay dividends. Lots of good companies here. More diversified than VOO but not as much growth comparatively. SPGP growth companies at a reasonable price Go research these and figure out which ones are in line with your investment goals and risk tolerance
Makes sense, I don’t recommend buying QQQ, I think the S&P 500, total market etfs, and other etfs that can historically outperform that are slightly less correlated such as SPGP, SCHD, etc. along with alternatives maybe like REITs to hold
I recommend staying with a total market and S&P etf for a good chunk of your portfolio and then try to find ETFs that you think will diversify your portfolio while maintaining strong returns. Two examples are pacer’s cash cow series of ETFs, and another one is SPGP, a GARP etf that has outperformed the market with low fees
MOAT, SPGP, OMFL, COWZ, SPHB, SYLD and others have beaten VOO the past five years and obviously could beat it again.
Yeah I mean you are right in that even though the S&P 500 is 500 companies, it offers the same diversification as 50-60 equally weighted companies, along with double bad of being weighted largely towards certain sectors. There are a good amount of funds like SPGP which is a GARP fund that has performed very well and offers better diversification than the S&P 500. In my opinion, assuming you have a sizable amount of money and are far off from retiring, you can diversify by capitalization, asset type, etc. Like there are a variety of consistently outperforming small cap fund managers that it may be wise to contributed 2k-3k to each and if u got a 300k portfolio, this diversification may be good considering these managers invest across different verticals.
Overall ETFs provide a flexible way to invest in a specific industry or track a broad index such as the S&P 500. Expense ratios are important to consider as a high expense ratio will lower the overall return. For instance if you were to select a S&P 500 etf, VOO would be a great option due to its low 0.03% expense ratio. If you strongly believe in the higher return potential and the fund has a higher expense ratio you could make that a argument of why to invest in a fund like QQQM with a 0.15% fee. I personally own VTI, SCHD, IJH, IJR, VYM, VIG, and SPGP. Yeah it’s a lot of ETFs with some overlap but I aligned the allocations to meet my target goals.
>I have thought about this and honestly, just stuffing your money into a ETF until you need it for and actual investment is winning in a sense. You should pick stocks when you are sure of the thing/ stock. This is exactly what I do. I try to keep 80% of my money on ETFs. Most of mine is in VTI, SPGP, and VUG. 20% I do stock picking, and probably 15% of that is in stocks I expect to hold several years (apple, Google, Microsoft, Visa, and some midcap like RSG, Factset). I'll do a couple riskier picks I buy and sell out of and try to time, but not too much.
As far as quality screens go? That'll be a little tricky as growth screeners usually look at EPS and its growth, as well as forecasted earnings and such. If that's alright, just grab SCHG and sleep easy. You could look at something like Wisdomtree's new fund, QGRW. Looks at RoA and RoE, trying to find "quality growth". Very new, but matches QQQ over short lifespan. QQQ meets quality screens instead of market cap weighting. IUS has a few more screens, also looking for quality picks. Sp500 meets quality screens instead of market cap weighting. COWZ looks at free cash flow and so probably will have higher dividends than you're looking for. SPGP weighs EPS growth, maybe sales growth too, it's been a bit since I read its prospectus. Then also screens for a discount. All of these look like good funds to the right investor. Maybe they're for you, maybe they aren't. How to know if they're for you? Actually read the prospectus for anything before buying, please. Understand the products you're buying! That last part is to everyone. It's amazing the ridiculous things you read on these subs that a quick prospectus check debunks. Good luck and happy investing!
Yes IUS, QUAL, QLV, SPGP, look for multifactor and such.
First, I'd like to suggest separating performance from your options. I try not to hold too many individual stocks - I feel like I have to end up spending too much time watching them than... just living my life. My general rule of thumb is to put at least 50% of my money into ETFs and others I can pick some stock with, but I try to keep it under \~10 total stocks. This way I can have some fun with investing, but it doesn't feel like it will become my life. I'd suggest picking your 10 favorite stocks and moving on from the rest. Maybe keep 1-2 small caps in there if you really did your homework, but would focus on medium and large caps mostly. However, if you really feel like you'd like to just not think about stocks more than a couple times a month, go ahead and sell and put it all into an ETF and enjoy your life. Outside of that with the other 15k, just DCA half of it it into ETFS. You could pick about $350 a month into VOO, SCHD, SPGP, etc. The other half you could save for some stock picks if the market drops more, etc.
SPY, SPYD or maybe even SPGP, those seem to be three relatively safe ETFs. Now today there are some newer ETFs that aren't exactly rigged very safe, but stick with one that is approximately SPY and the idea is that over the long term, if you just hold, it will be very hard to lose. Start buying this stock and that stock, and despite your dreams of owning the next Apple or Amazon of the future, chances are that you will discover that it's much easier to lose, again and again, gambling on individual stocks. With a good ETF you aren't gambling on any single egg, but rather you are gambling on a particular market or near the entire market, with hundreds of eggs in each basket. In the long run the entire stock market has always gone up on over time. So your dad's advice is the safe advice, how to invest and have your money grow while very much minimizing the chances that you will lose, plus not have to spend countless hours babysitting all your individual stock picks, having to engage in due diligence and keep track of all the news of how each of all the companies you own are currently doing. All of this is not financial advice, but me thinks your dad is giving you very good advice. I on the other hand pick individual stocks, but right now I'm running behind the EFTs and the market in general. What can I say, except maybe I was born a gambling man.
At this point, half the market can be eyed up since a lot is dropping. Specifically, I'd like some Amazon and SPGP ETF.
SPGP is an ETF with a GARP/"Growth at a Reasonable Price" philosophy. Here are the stocks it holds: https://www.invesco.com/us/financial-products/etfs/holdings?audienceType=Investor&ticker=SPGP
No problem! Yea just as a side note some says SPGP is more value than growth even though it has growth in it’s name! Crazy I know but it’s more of a “blend fund” than growth.
SPGP. 5 stars and made more than SPY according to MS. Great idea. Thank you Heytree! Will look into the others next and get back to you.
XSD, XLK, QQQ, SPGP. Maybe MOAT, COWZ, OMFL. No need to limit yourself to just one other besides VTI. If we assume there are still times ahead that are not all rainbows and pixies, having different types of ETFs that have different approaches is a good idea (as long as they all outperform the baseline of VTI).
If you have a good job, your current portfolio is pretty awful. SCHD has a good recent five years but has been pitiful year to date. It's quite bad for someone your age to have funds that barely breakeven on total return but give you taxable dividends. If you want to pursue the oxymoron of "safe growth", look at ETFs like SPGP ("growth ate a reasonably price"), COWZ ("cash cows"), MOAT, and SYLD. Or just be simple and let the market do the work 50% VOO/ 50% QQQ.
Here’s what I have currently. Chose to anchor my portfolio with a couple of solid ETFs that I believe can beat the SP500, along with some stick picks of companies I really like: OMFL SPGP BRK.B RTX UNH RLI HSY HEI CPRT
I’ll suggest OMFL and SPGP. They’re my top holdings, while individual stocks make up the rest of my portfolio. They’ve both done quite well.
I kinda Like SPGP, COWZ, GLVU, GSPY
I was on the same boat as you but luckily I have a distant cousin who is a financial advisor that manages over $600 million of clientele money and recommended a few ETFs to look into for my kids. I choose SPGP for both the kids. 10 grand at birth each in an UTMA account for tax purposes. At the age of 25 I can transfer the accounts over to the kids and that should help set them up in life. 25 years of growth should be good. Wish my old man did this for me 😂🥲
My best advice is to just ignore dividends and look at the total return of a stock. If a stock goes up 25% and pays a 2% dividend, who cares about paying the tax? You made a bunch of money. Again, just don't seek them out. The process to set up a portfolio should start with you taking as much time as you need to get comfortable. Don't be in a hurry. A basic starting point is VOO, the ETF of the S&P500. Pay attention to its historic return and current performance. If something doesn't do better than VOO, the only reason to have that other thing is because you see some longterm value in having it (either possible growth or the reverse, something safe to hold onto). Besides that, look into sector ETFs (solar, semiconductors, infrastructure, dirty energy, info tech, etc) and factor ETFs... things designed to outperform both in the longterm in any more difficult environments like now. Examples of these are MOAT (companies with a clear competitive advantage), SPGP ("growth at a reasonable price"), COWZ (cash strong companies), and SCHD (above average price performance combined with above average dividends). Go ahead and follow different ETFs, see how they compare to VOO and each other; make paper portfolios with different combos of ETFs. You got plenty of time to fine tune what you want to do, just get yourself to do it.
To me it looks like: Bonds are super conservative, anticipating bad times. Amazon is still doing worse for a year than the other big five stocks, but is up over 20% for the month... seems like looking for a big score. Anyway, just seemed opposite. Amazon in the long run is a sure thing, but may not be so great short run if things go bad (on the other hand it should be great if things boom). I have SPGP and XSD is the top ETF for the past ten years, so those sound good to me, although SPGP is a defensive stock in my book. :) Also check out COWZ, OMFL and MOAT as ETFs whose factor concept is basically defensive but will perform above average in good markets too. Basically all four of them have performance in the ballpark of QQQ over the past five years, but didn't go in the toilet the past year.
It is more short term. I was thinking of reevaluating when the economic conditions improve. The bonds are meant to gain some value, more than being in a savings account and more than treasuries like STIP etf, in the short term when the economy goes down. I will liquidate my position in VCLT when the economic data looks like it is bottoming and buy more growth orientated etfs like SPGP and XSD semiconductor etf when they are cheaper. I wanted some etf's which would gain a lot in value if there ended up not being a recession and the bonds underperformed.
Is this a short term defensive portfilio with the Amazon longterm wild card, or is this your idea of a longterm portfolio? I don't like it at all longterm. Short term seems okay, but I can't see a consistent logic here. PPA with SPGP, okay I can see those working together, but the bonds and Amazon seem like a bad date. Getting rid of the JEPI was good, but what is your overall goal here? How long do you envision holding this specific mix?
Dividends are not free money. {Repeat} Your thesis here fails simply by mentioning dividends. Assuming you want to make money, the only thing that matters is the total return on what you buy. Some low PE stocks are good, some like Verizon are complete shit. Withe the mindset you have, what you should be looking for are low PE stocks with high performance. Three ETFs, SCHD/COWZ/SPGP, use different formulas to some up with stocks of the type you are looking for. Other ETFs do too, but SCHD, COWZ and SPGP have better records over the past five years... better than SPY but worse than QQQ. If you have the mindset you mention though, those three are the place for you to start.
I was exploring RWJ that seems to be another good small cap fund to complement SPGP and PDGC.
That's true, but you should thinking about making the most money in the long run, not holding the exact same stock the longest. If holding SCHD for one year allows you to buy and own 5% more shares of QQQ a year from now, wouldn't that please you? Dividend funds are generally bad for someone your age anyway, but you could also check out COWZ or SPGP. At minimum, XLK has outperformed QQQ in every timeframe (3m,6m,1y,3y,5y,10y), so consider that.
29 - all of my life savings have just been sitting in a functionally zero-interest savings account until about a month and a half ago lol. Looking at ETFs over individual stocks so I don't need to monitor my portfolio as much until retirement in \~35 years. This is my first pass at a composition that balances some growth sectors with broader market picks: 5% ICLN 5% SMH 10% FHLC 5% SPGP 30% FXAIX 15% VTI 15% SCHD 15% JEPI
Personally, I take my gains and put them in JEPI and reinvest some in new bets. I have JEPI on DRIP and just keep adding it it through gains elsewhere. I view this strategy as helping me get an early start on my income portfolio. I have some long term holds (SCHD, SPGP) and also some risky bets that have some nice gains (EDU). I plan to hold onto EDU for a while more, but I plan to put almost all those gains into JEPI. I’m out some into another bet.
Be careful. SPGP looks attractive because past performance was really good and this year isn't bad either. But that's because it has followed three different indexes over its existence. At first it was basically the same as VOO, then it switch to be roughly the same as VOOG, then switched to the GARP index it uses now. It happens to have timed the market exceptionally well, but that's only a coincidence and the GARP index portion has very little history to judge it by.
I’ve been DCA’ing into SPGP, growth at reasonable prices sp500 fund. Check it out if that sounds interesting
Not what you are looking for because it deals with large caps, but check out the approach of SPGP
The best stocks in the past tend to be the worst going forward. So I would maybe sell some and go into etfs like SPGP.
SPGP has always struck me as an interesting ETF. I’ve always seen it as a weird in-between of the ETFs RPV and RPG. That being said, I think you should look at the white paper for the index on S&P Global’s website. It’s transparent and tells you exactly how the index is constructed. I’m personally not convinced that such simplistic quantitative methods gives you adequate GARP measures, but you can make your own judgement. Either way, I don’t think it’s a bad ETF, only decent. And I would use it only as a tilt. Have the majority of your portfolio still in market-cap weighted indexes. This should be a supplement if you choose to implement it. The obvious main benefit to SPGP is as you said and that you get a lot of growth companies that aren’t in tech. Look at its current sector weights and it’s overweight financials. What other ETF has that wildcard quality? Up to you if you want that in your portfolio.
I saw that one a few weeks ago, and it looks interesting. the fee is not obscene IMO. also IMO anything that gets you away from 100% market-cap weighting is good, at least for part of the portfolio. when you buy SPY or QQQ or VTI, you're buying based mainly on market sentiment or momentum, and without much regard for valuation or fundamentals. >I like it because it is not heavily invested in a single company and rather it's spread out among many different great companies. I agree 100%. you can get super-concentrated in a handful of stocks with passive indexing. something like SPGP has very different top-10 holdings so it might tend to move differently from VOO/VTI. the P/E ratio is only 9, so likely better to have superior long-term results than VOO which is presently at 18. it's dropped a bit less than VOO this year. my job's 401k has DODGX, an old battle-tested value-leaning large cap fund, and I invest in it for similar reasons you're looking at SPGP. reasonable fee, not concentrated in the usual Apple/Microsoft/Google/Amazon/Nvidia stocks. and it's performing better than the S&P 500 this year.
SPGP, IWY, MGK, IWF, SPYG, RPG, QQQ …… those are all growth. I typically go 80% growth and 20% value
How much risk are you willing to take? Do you want to go super safe like Government Tbills, more aggressive growth ETFs, or something in between? I feel like the in between is just investing in the S&P500, but you can lean a little safer or a little more aggressive. If you want to lean safer, I'd suggest maybe SCHD or JEPI. If you want to be a little more aggressive you can go into VUG or another similar style ETF. One of my favorite ETFs, SPGP, tries to blend a little of both. I'd personally recommend something in between, going too safe won't be great for you in the next 10-30 years. Going too aggressive sometimes just backfires.
I like the idea of a globally diversified portfolio but I feel most global ETFs have too much weight on the US market, so I made the following portfolio (UK based): Equities: (78%) * MEUD - Stoxx Europe 600 20% * SPXP - S&P 500 10% * CNX1 - Nasdaq 100 10% * CUKX - FTSE100 5% * VMIG - FTSE250 5% (instead of FTSE all share because of lower fees) * DRDR - Healthcare 5% * RENG - Clean energy 4% * GCLX - Clean energy 3% * RTWP - Russell 2000 (US small cap) 4% * VDPG - Developed Asia Pacific Ex-Japan 4% * HSEF - Emerging markets 3% * VJPB - FTSE Japan 3% * XDJP - Nikkei 225 2% Bonds (10%): * TP05 - US inflation linked 2% * JPBM - Emerging markets 2% * V3GS - Global corporate bond 2% * VETA - Eurozone bonds 2% * XGIU - Global inflation linked 2% Commodities (9%): * BCOG - All commodities 7% * SPGP - Gold producers 2% (technically equities but I am holding it as commodities in my mind) Other (3%): * IUKP - UK property 3% Any thoughts? I am planning to keep this long-term (reducing commodities once inflation comes down) and adding a bit every month. I also hold some stocks in individual companies (e.g. ONT, TXG, AMD, NVIDA, BMW) but, those are mostly for fun/learning and I am keeping most of my investment in ETFs.
HEDGEFUNDIE experiment. Google it. Also r/letfs It's essentially what you suggest, but on steroids. Risk management is a must. Especially as both UPRO and TMF have been nosediving this year 2x leveraged SPY may fare better without having to put as much into TMF There are also quite a few ETFs that have outdone SPY this decade without massive exposure to big tech. I'd bet on them going forward Here's some: SPGP RYH
As others have said, it's more about reducing risk. Sure, Microsoft is strong now, but for a long time, it wasn't. Amazon is strong now, but it traded flat for years. It's easy to pick winners after they run; there are many companies that were considered no brainers 10 years ago that now are underperming. Especially in a nontax advantaged account, even if you do beat the market, the taxes from selling/rebalancing every few years could easily eat away at any extra gains. S&P 500 is a good combination of growth and stability. Yes it won't grow as fast as perfectly picked companies, but it also won't drop as hard as they do either (example Tesla). Plus it has a pretty nice dividend while maintaining the growth so it's a very attractive set and forget. If you're set on maximizing growth there are a billion etfs for that too. I personally like SPGP which has way outperformed the market but without relying on just tech companies. Healthcare is actually it's top holdings. The last 5 years were golden years for tech, with the virus massively increasing tech's growth. Many companies are still trading above their historical P/E ratios. But I'm not sure anyone can say for sure that trend will continue. If you believe it will then buy it, but just know you're also accepting additional risk and just like everything else it will eventually end up underperforming the market. The question is when.
The rotation started back in February 21 after the huge pump. Accelerated near end of 21. The drop now is odd but a lot of these value companies have rocketed due to a panic driven rotation. The Fed hasn’t even raised rates yet! Feels totally overblown. I’m holding 15% cash rn and impatiently waiting to apply the $. I did buy some NOBL and SPGP last week. Too early for spgp…
Might be worth looking into SPGP. It looks for 75 quality companies with strong high growth potential. Has outperformed the market generally. For example last year it grew 36%.
SPGP "GARP": Growth at a reasonable price ETF https://www.invesco.com/us/financial-products/etfs/product-detail?audienceType=Advisor&ticker=SPGP
Positions are: RPG $220 call 04/14/22 SPGP $95 call 6/17/22
SPGP and VT are my bedrock. Keep a couple small cap picks for growth potential. Undervalued bio seems to be a natural choice given the change in the winds.
I've been working on a similar approach. I'm looking at QQQM (growth), SPGP (GARP), RDVY (value/dividend), VXUS (international) and then maybe an emerging market fund. Maybe throw in a small cap fund too? That should pretty much cover all the bases. Or simplify it further and go VTI and VXUS combo. Low fees, covers the whole world market domestic and international.
please note, the ticker symbol is SPGP, not GARP. I'll edit the OP to make that more clear.
Ah. S&P 500 index funds are good because they have low expenses and are well diversified with exposure to 80% of the US market. SPGP is drawn from the S&P 500 stocks but it only holds around 75 stocks. It seems designed to follow the style of Peter Lynch. The fees aren't so high at 0.34% annually, but not as low as S&P 500 funds like VOO with 0.03% fees. SPGP performed very close to the same as S&P 500 from 2011 to 2017 but has done better recently. I have no opinion on whether it is a good way to invest. Like the rest of the funds in that post, it would be considered a smart-beta fund. These rules-based methodologies to identify certain types of stocks that have historically done better than others. The expenses are higher than regular market cap weighted index funds but lower than actively managed funds.
I get your point, but SPGP's inception year was 2011 so it's not some new thing they're just trying to see if it sticks or not. Also, your comment aligns with why I think it's VERY important to look at methodology and "what's inside" any given ETF -- hence why I discussed its index metrics and linked its index page / methodology in another comment. Absolutely proper to do DD on an ETF's methods and not just look at performance, as you point out!
Both of your points sort of support the proposition that they are engineering survivorship bias. The idea is to create many, many ETFs (as you point out they have done) then quickly kill the poor performers. 42 out of 225 in one year is quite a bit! Furthermore, braindead tracking ETFs like QQQ provide cover for this kind of activity. I'm not saying SPGP is likely to close. I'm saying that it's the survivor in the survivorship bias.
Invesco is a huge fund manager, with over 225 ETFs. You might have heard of QQQ, their most popular ETF. They have a little turnover, especially as a result of a recent merger with Guggenheim. Not a big deal, really, and unlikely to happen to SPGP in my opinion.
everything you'd like to know about the index SPGP tracks is available at S&P's site: [https://www.spglobal.com/spdji/en/indices/equity/sp-500-garp-index/#overview](https://www.spglobal.com/spdji/en/indices/equity/sp-500-garp-index/#overview) browsing methodology docs can be quite educational
The GARP etf (SPGP) has done well. "The Invesco S&P 500 GARP ETF (Fund) is based on the S&P 500 Growth at a Reasonable Price Index (Index). The Fund will invest at least 90% of its total assets in the component securities that comprise the Index. The Index is composed of approximately 75 securities in the S&P 500® Index that have been identified as having the highest “growth scores” and “quality and value composite scores,” calculated pursuant to the index methodology. The Index constituents are weighted based on their growth scores. The Fund and the Index are rebalanced and reconstituted semi-annually."
Maybe put your money In an ETF like IJJ or SPGP instead.
VTI of you are looking for broad diversity over small, mid and large caps. I personally like SPGP which is called pure growth, but it follows a large cap GARP index.
With home prices typically gaining \~5% annually, ETFs are a good idea to try to keep up. Somewhat depends on the area and if you're concerned about possibly getting priced out of the market. I'd look at a mix of value funds, growth at a reasonable price, some investment-grade bonds, real estate ETF, preferred shares, some cash-equivalents. Some ideas - maybe something like PFF for a Preferred shares ETF. SPHD and/or VTV for value funds. SPGP is about as risky as I'd go with growth (its a GARP fund). Investment grade bonds, like BND (not great but it should beat a savings account over 5-10 years). Some cash in CDs or savings. A real estate ETF like VNQ. Or you could keep it simple and do something like 50% VTI / 50% BND.