Reddit Posts
Should I strictly invest in the S&P 500 for retirement
Rate of return from Dec. 2019 to Nov. 2023 is -10%. What can I do from here?
How can I tune my portfolio in the future or now to help keep up good growth?
Can I still buy mutual funds if I broke the PDT rule?
New 2 investing. Schwab Traditional IRA. In 2021 I contributed 6k and will do again this year. It’s down 10%, how should I invest/change my options/investments? Any advice?
Roth IRA (Charles Schwab): Sell All/Buy Another Mutual Fund
My investing strategy during these scary times -- Is it really this easy?
What's the ultimate difference between VFIAX and SWPPX?
How do you decide when to sell a position? Am I a fool for never taking profits?
Is SWPPX Any Good? It's What I'm Completely Invested In At The Moment
Just Started Investing For The First Time, Have Some Questions
Schwab S&P 500 Index Fund (SWPPX) vs SPY?
Why does SWPPX(SP500 tracing) perform less well than SP500 Index?
Mentions
>I am considering changing it to 80% VTI and 20% VXUS A little light on the VXUS side for my taste, but more logical than your SWPPX + SWYJX pair. >Or should I just go 100% into SWYJX? This works. TDFs are designed to be "one and done," the only fund you hold. >Also, does the target retirement date really matter at this point if I am between 2055 and 2060? Only a little. At the top of each of these you can see the glide path they follow, scroll down and open up the "portfolio" dropdown section to see current ratios. * https://www.schwabassetmanagement.com/products/stir?product=swyjx * https://www.schwabassetmanagement.com/products/stir?product=swynx
Didn’t think this post would blow up lmao. Technically, my son’s college account is spread out across multiple Schwab brokerage accounts. So I can’t show the positions in just one, as it wouldn’t show the entire portfolio like this screenshot. If it helps, he owns 200 shares of RKLB at $4.26, 6 shares of AMD at $119, about 150 shares of PL at $6.19, 50 shares of VST at $23.36, and lots of SWPPX. He’s up at about 2,000% in RKLB, 600% in VST, 300% in PL, just to name a few. He has a few more winners but these are the majority.
[https://www.morningstar.com/funds/xnas/swppx/quote](https://www.morningstar.com/funds/xnas/swppx/quote) SWPPX is an S&P 500 index fund offered by Schwab. I would be very surprised if it was not available to you in your Schwab IRA.
I was looking at VOO primarily. I’m very new to learning about investing and everything, I honestly didn’t know there were so many different ways to invest in one thing like the S&P 500. Before I started researching I really only knew about DOWJ, S&P, and individual stocks. When I search for SWPPX on my account there are no results.
What index fund? SWPPX, if you are after an S&P 500 index, is currently priced around $17.85.
If the fund has a bad day, you won't have a bad day you will buy the low If SWPPX a S&P500 mutual fund falls 3% on Friday , and I place a buy on Friday , I do not lose money. It settles after its already fallen at 4pm. At 4 PM you get the NAV price of the fund, you keep saying "You might lose money if the fund has a bad day" No that is not how it works, you will buy in at NAV at the closing price AFTER it had a bad day. Sure tomorrow it could fall more just like an ETF could.
Dengit…. I just sold all my QQQ and bought QQQM and sold all my VOO and bought SWPPX. So I screwed up?
Hi all — I’m looking for guidance on setting up long-term investing for my kids (ages 11 and 9). I already have 529s for college, but I’d like to start a separate “retirement-style” pot for each of them — something that can compound for decades and eventually be handed off to them later in life. I’m in the U.S. My priorities are: * Tax-efficient (not heavily taxed along the way, if possible) * Low fees / low commissions * Simple, long-term growth approach * Ability to contribute monthly for the next \~20 years (until I retire), subject to any annual caps/limits depending on account type * Ideally something I can later transfer to them when they’re older (or that becomes theirs at the right time) My current brokerage relationships are with **TIAA (employee) and Vanguard**. Investment approach: I have a **high risk tolerance** since the time horizon is 20+ years, and I’m leaning toward a low-cost broad U.S. index fund (S&P 500 or total market). What do you think of these options, or would you recommend something else? * Vanguard Total Stock Market Index Fund (**VTSAX / VTI**) * Fidelity 500 Index Fund (**FXAIX**) * Schwab S&P 500 Index Fund (**SWPPX**) Also: for the account structure itself, what’s the best route here — custodial taxable account (UGMA/UTMA), Roth IRA (if/when they have earned income), or something else? Thanks in advance for any suggestions.
SWPPX for me, cause I use Schwab and can’t buy fractionals of VOO, but yeah, same thing pretty much.
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?
>It looks like you favor the rational reminder pod casts They tend to be informative and heavy on citations to back their point. >You might be familiar with the counter argument of over diversification or "Diworsification." Over complication, diminished returns, higher costs, and no meaningful reduction in risk I am, but don't believe it applies to going global. >I don't want to buy outside my field of competence. Given that I've seen several times before that people invent falsehoods for even the S&P 500, I'd tend to suggest a broad coverage approach (especially including going global) as the bulk of a portfolio. If you believe you have any "expertise" then you can work that into a bets section, but don't assume your knowledge of X gives you knowledge of Y (Iexample: I've seen people say things like "I know tech, I work in tech, I think I have an advantage over others and wish to weight tech more heavily" my counter: "you may know tech, and that may give you a benefit for tech company vs tech company, but it doesn't inform you about tech vs other sectors"). >I will brainstorm a 60/30/5/5 or 40/20/15/15 split between SWPPX/QQQM/SWISX/SWSSX. I wouldn't touch QQQM myself (again, inclusion critera). Why SWISX? It excludes emerging markets. Also common current recommendations tend to be for 30-40% of stock be international.
Thank you for the correction for FTEC. It looks like you favor the rational reminder pod casts and I appreciate the share. I might be a fan. I agree sector bets are not a bet I would like to make as well. They are interesting to read into. The irrational exuberance is a good point. It's the popular explanation behind the dot com bubble, housing crisis/recession, and even internationally with china's building frenzy. It's a story repeated monthly through 2025, 2024, 2023, etc. The biggest mistake I can make right now other than to buy nothing is to buy any individual stocks. You might be familiar with the counter argument of over diversification or "Diworsification." Over complication, diminished returns, higher costs, and no meaningful reduction in risk. I don't want to buy outside my field of competence. I will brainstorm a 60/30/5/5 or 40/20/15/15 split between SWPPX/QQQM/SWISX/SWSSX.
Have you ever asked what's inside an asset class or what fama-french used for their data? Call me old fashioned but I like to know what's in my sausage before I eat it. Assuming the cbs article had data backing it, if the strategy grew on average 9.5% as shown by the large cap growth, that is not a failure. It's on the lower end of the past 25 years for SWPPX so that reinforces the idea the large cap is consistent because its average has held the past 70 years plus 15 of the most recent years. The past 25 years of SWISX and SWSSX have been averaging less than 9.5% (4% and 7% respectively). I will make a compromise with you. I will read more into SWISX and SWSSX and add them to a 5 year watch list and if they show consistency in bringing their average up to 11.8% in that time frame, I will DCA and rebalance a portion into them. There isn't any reason I cannot diversify more into the market over time.
>SWPPX, SWISX, and SWSSX were founded in 1997. Qqq in 1999. They did not exist in 1950-1969. The indexes they follow extend far beyond the fund creation. Data for the broad category extends even further than that. >Different environment in the cold war era. And 2026-2040+ will be different than 2010-2025. One of the important lessons you're missing is that market favor changes from time to time, that you can't rely on a short term back test to predict future returns like you may be trying to. >One is outdated from 2010 It still shows a 70+ year period where your strategy would have failed compared to a better diversified portfolio. >another doesn't mention small caps or international funds Not all links cover all topics. They should be taken and lessons from one added to lessons from another. >I appreciate the shot gun approach with sharing sources but maybe you could recommend some small cap and international funds I can use to compare to SWPPX? Don't focus as much on the funds (doing so needlessly limits the available data), look instead towards the index and the asset class. The funds will have extremely similar performance to those.
Etfrc is unfortunately a problem with AI chat bots. They regularly provide bad info. The weighting between SPY vs QQQM is 50% but you are correct the count is around 85% stocks. Good point. I'm still okay with 515 unique stocks because it still exceeds a 100% pure SWPPX investment. SWPPX, SWISX, and SWSSX were founded in 1997. Qqq in 1999. They did not exist in 1950-1969. Different environment in the cold war era. The articles are not convincing. One is outdated from 2010, another doesn't mention small caps or international funds. I appreciate the shot gun approach with sharing sources but maybe you could recommend some small cap and international funds I can use to compare to SWPPX?
>550 stocks is probably plenty I don't need to add 2700 more stocks. SWPPX adds about 400 unique stocks and QQQM adds about 50 unique stocks. Overall it's about 45% tech weighted and about 50-100 overlapping stocks out of 550. SWPPX should be about 500 stocks. By count, I'm seeing over 85% of QQQM is inside S&P 500 already (using SPY as this tool doesn't allow MFs). That's less than 15 new stocks added. ETF Overlap Tool: https://www.etfrc.com/funds/overlap.php >but most of them average around 4.5-7% over the past 15-25 years You're falling for a common beginner behavioral mistake. Historically, the better the previous 10 years were, it seems the worse the next 10 years generally were: https://www.lazyportfolioetf.com/allocation/us-stocks-rolling-returns/ scroll down to “Previous vs subsequent Returns” (I do wish this had an r^2 measure). What about those extended periods that saw international beat the US (S&P 500)? Did that make S&P 500 a bad decision? Well, no, market favor flipped. * PWL using Morningstar Data for decades back to 1950: https://pbs.twimg.com/media/GGJxJPsWsAAxy9c?format=png * Here’s US vs ex-US going back to 1970: https://www.reddit.com/r/Bogleheads/comments/199zs0s/us_exus_equity_and_bonds_dating_back_to_1970_not/ * Going back to 1950, all excess returns the US enjoys today come only from around 2010 or so until now. That means a roughly 60 year period where international would have been on top (1950-2010). As for small caps: 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/ * https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side * 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/ You'll see that they've tended to beat large in the long run, but it can take a long time for them to cycle back into favor. Both international and smaller caps are capable of exceptional growth, you're incorrectly assuming all time periods will look like the last 15-25 years. >I would prefer a high yields savings account averaging 4-5% to offer consistency. Nowhere near comparable. >I'll consider SWSSX and SWISX but at 30% weighted, they costs the portfolio about 20-25% of its final value. Only if 2000-2025 or 2010-2025 was your investing window, but it isn't. You're incorrectly placing those returns on 2026-2041 or 2026-2051. But we've seen other 20 year periods (and longer) where favor was with international (such as, using my PWL link above, 1950-1969 or 1970-1989 to name 2). We've seen 20+ year periods where small caps (especially the value side) beat large at the end. Why does your back test give certainty about the future when the same methodology would have failed at other points in time?
Thanks for the reply! 550 stocks is probably plenty. SWPPX adds about 400 unique stocks and QQQM adds about 50 unique stocks. Overall it's about 45% tech weighted and about 50-100 overlapping stocks out of 550. I looked at small cap and international funds to maybe replace SPMO which has the most overlap but most of them average around 4.5-7% over the past 15-25 years and I would prefer a high yields savings account averaging 4-5% to offer consistency. I'll consider SWSSX and SWISX but at 30% weighted, they costs the portfolio about 20-25% of its final value.
>SWPPX/SPMO/QQQM. those are basically the same stocks in 3 different packages. I'd prefer 30% each in US small cap + international.
> however they don’t have that index fund SWPPX > /ETF No trade fees on ETFs so you could use any ETF you want. Back in the trade fee days, they offered $0 trades of IVV. > Schwab doesn’t have VTI You can absolutely invest in VTI at Schwab. > neither of these 3 brokerages use the term “index fund” but only have ETF. They all offer ETFs and mutual funds. "Index fund" is just a term for a fund that follows an index rather than trying to pick winners. It could be used for mutual fund or ETFs. > Are there any benefits to using one brokerage than the other? Not significant ones -- mostly comes down to preference.
Say for example 1 share of SCHB is $20. Imagine I have $21 to buy ETFs. I purchase that 1 share for $20 but now have $1 leftover to spend. The dollar is not enough to buy another ETF, stock, etc. so now it is sitting as unappreciated cash in my account. So basically it’s a drag because it’s sitting there not appreciating in value until I have contributed another $19 to buy another share of SCHB. So I either wait until I put more money in to buy more things OR if it bothers me enough I can just put everything in a mutual fund such as SWPPX for the exact amount (so 20 shares of SWPPX = $20 = no leftover cash to sit there doing nothing). I have different Schwab funds in my tax deferred and taxable accounts to avoid wash sales. Basically if I ever sell a stock at a loss and decide to repurchase it within 30 days in another account, I cannot claim this loss on my tax return. Again, I’m dumb and not an expert so this is my lizard brain understanding of the issue…but I have similar yet different Schwab funds in those 2 accounts to avoid this although I intend on holding these for life so I don’t anticipate it ever being a problem. It’s just my OCD brain and scratches the itch of doing something a little different in each account to keep things interesting. I’m sure someone will correct me if I’m wrong.
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.
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.
The S&P 500 is an *index* -- just an on-paper listing of 500(ish) of the largest US stocks. They make sure all sectors of the market are represented, and they weight the stocks by market cap. S&P 500 funds just copy what that index says. There are MANY S&P 500 index funds. I don't know how many, but I assume without checking that there are well over 100 of them. For the most part, it doesn't matter which you choose because their holdings will be nearly identical, their performance will be nearly identical. The list (off the top of my head) of why you might care: 1. Expense ratios. These basically get subtracted from your return each year. SPY has 0.09%, VOO has 0.03%, so in theory, VOO should outperform SPY by 0.06% each year. But there's so much random noise because maybe they rebalance on a slightly different schedule, on different days, etc. that it's almost irrelevant for such low expense ratios. It is something to look out for if some financial advisor dude is pushing an S&P 500 index fund with like 0.7% expense ratios though, because that's insane. 2. ETF vs mutual fund. Again basically the same performance, but one might prefer one to another. 3. if mutual fund, are there trade fees? For instance, I have Schwab. I cannot trade Vanguard's S&P 500 mutual fund (VFIAX) for free. I can Schwab's S&P 500 mutual fund (SWPPX) for free though. So if I wanted mutual fund over ETF, SWPPX would be the one for me. If I didn't care about mutual funds, I could buy any ETF for zero trade fees, so IVV, VOO, whatever, all fine. 4. If I want to play options games like selling covered calls on my S&P 500 fund holdings, I'd want SPY, full stop. VTI is also an index fund, but it's a different index. Instead of including 500 of the largest US stocks spread across all market sectors, it has several thousand US stocks spread across all market sectors. But since it is also weighted by market cap, that means those 500 largest that comprise the S&P 500 also make up the majority of this other index VTI uses... three fourths? I'd have to look, but that's a reasonable ballpark. And the several thousand smaller companies tend to follow the same trends as those 500 largest ones, so their returns are... not identical, but nearly identical. In theory, VTI will outperform if small cap companies outperform those mega-giant companies, and VOO would outperform if those giants outperform smaller companies. But in practice, it's mostly just all cancelled out over the long term. TL;DR: VOO or VTI, doesn't matter.
SWPPX isn't an ETF. SCHX is the closest Schwab has.
Of these three S&P 500 index funds/ETFs FXAIX has the lowest expense ratio. Expense Ratios: FXAIX 0.015% (Fidelity) SWPPX 0.02% (Schwab) VOO 0.03% (Vanguard)
Putting it into an index like SWPPX or VTI would be more beneficial in the long run. How much do you have left on student loans? You’d be taking a big hit on taxes and penalty to remove it from your account.
Those two things are not mutually exclusive. There’s mutual funds that are index funds. SWPPX for example.
Isn’t the S&P 500 almost rigged to go up? If a stock nosedives doesn’t it drop out of the S&P 500 and get replaced by something else? I don’t think hard about stocks but my SWPPX heavy portfolio is doing fine.
SLS is my baby. I've been trading them since 2021. I buy as close to $1.20. Sell as close to $2.00. Rinse repeat. I always profit at least $100. Max was $2400 but was a silly gamble and dumped that all into SWPPX. My alerts do all the work for me.
>The SP500 index funds need to buy roughly 16 million shares (approx. $7B) by Dec 19. **They can't buy yet**, so arb desks will be buying Monday to warehousefor them. Does he mean these guys are buying by Dec 19th? * VOO * IVV * SPY * FXAIX * SWPPX * VFIAX But they can't buy it yet? Can someone or u/dowgy demystify this? Thanks
You'll pay tax on any dividends or capital gains. If you haven't sold you shouldn't have capital gains (unless SWPPX had some for this year). This is why ETFs are usually recommended for taxable accounts.
BRk is just a different index not quite volatile as SWPPX but both will hit the floor when bad news comes out.
When I had a Schwab account I used SWPPX for S&P 500. Fractional shares/dollar purchase amounts are easy with mutual funds at Schwab, plus you get one of the lowest expense ratios around.
You can't buy fractional ETF shares with Schwab (they have "stock slices", but not for ETFs). You can with Fidelity (and I don't know about Vanguard since I don't use them). You'll have to either 1. use mutual funds for it (SWPPX), 2. buy SPYM, which has a much lower share price, or 3. use a different brokerage.
Shucks man. I learned my lesson with FSELX being risky. I put it back to VOO and SWPPX. I feel you totally on this one for sure. The stock market can feel like a scam sometimes my man.
It feels so good to see this when I think my long term $200 loss in SWPPX is massive, thank you
Invest in the following: SWPPX or VOO and SCHG. Stop wasting your money on advisors. The best 500 companies in the United States.
VOO and SWPPX are effectively the same thing in different containers: S&P 500. The S&P 500 is included inside of the US total market (which SWTSX is). You could go with just SWTSX as your US stock allocation. What about international coverage though?
Do you have income? If so, get a ROTH IRA! I started my son a custodial Roth at 14 and the he got a brokerage account a few years ago. He is only 22 and has himself very well positioned. VOO, SPY, SWPPX have done very well by him. He has also been in Apple and Amazon stock for 8 years. I commend you for starting early! I didn't have anyone to guide me growing up so I made sure my kids were educated.
MF trade once a day and are updated once a day. ETFs trade through out the day and are updated every second SWPPX has not updated for the day, you are looking at Friday numbers on SWPPX not todays It will update in a few hours
The proposed action of selling all other mutual funds ($FNCMX$, $FAWTX$, $VTTSX$, $SWYNX$) and consolidating into $SWPPX$ (Schwab S&P 500 Index Fund) within your Roth IRA is overwhelmingly a positive move, as the primary pros are simplicity and cost savings, and the main con taxable capital gains is completely eliminated since all selling and repurchasing occurs inside a tax-advantaged retirement account. You are correct that there is significant overlap, particularly with the Nasdaq-focused $FNCMX$, and consolidating removes the drag of higher expense ratios (like $FNCMX$'s $0.29\\%$ and the Target Date funds' $0.08\\%$ vs. $SWPPX$'s very low $0.02\\%$), leaving you with a clean, low-cost, US-stock-only portfolio that aligns with your current focus. While you will lose the automatic bond and international stock exposure provided by the target date funds ($VTTSX$/$SWYNX$), which could increase overall volatility, this is a conscious strategic trade-off for simplicity and lower operating expenses that many investors are comfortable with, and it fully capitalizes on the Roth IRA's ability to transact tax-free.
SWPPX is the S&P500, so a good core holding but probably shouldn’t be 100% of your portfolio. It’s generally smart to have mid caps, small caps, and international too.
I Invest all of my children's Roth IRAs in $SWPPX. Max it out every year, set it and forget it.
Nitpicking here, but you can DCA into SWPPX any dollar amount. SWPXX has a 1 basis point lower expense ratio than VOO, but of course you lose the intro-day trading feature that VOO has.
I’m up roughly 100% on a combo of swtsx and vti for about $25000 (long term) in my Roth IRA. I’ve since turned on auto-contribute $7k/yr into swppx. Thoughts on selling SWTSX and VTI and buy MSFT (more aggressive) this one time to sit for 20yrs. So basically my Roth IRA will be a combo of the MSFT and SWPPX.
I use SWPPX from Schwab for my fund.
It is certainly not artificial, and declining NAV is absolutely against my religion. I don't do covered calls or any other derivatives, and dividend coverage needs to be sustainable. I hold a diverse portfolio of growth funds (SWPPX, VT), bonds (high-yield, municipal, other), real estate, BDCs, utilities and Infrastructure, energy MLPs, health sciences, telecommunications, and various other diversified holdings. It's a mix of ETFs, mutual funds, CEFs, BDCs, MLPs, and individual equities. My yield changes of course and that 7.39% was yesterday. You know how it works. Valuation goes up, yield goes down, and vice versa. But what does not fluctuate much is my income. Yes, companies raise or cut dividends, but they are almost all managed dividends so they don't fluctuate much. Decades ago I rejected the so-called "4% rule". I sell something only when I need to rebalance or as conditions dictate. It's worth hanging out in r/dividends for a bit. There's a lot of nonsense being promoted in that subreddit too (it's Reddit, after all) but it's a different mindset and a different type of investing. The danger is what you seem to already know - excessively high yields and declining NAV. It's important to stay away from obvious yield traps and choose wisely. And a 7.39% yield is not that high for a well-managed dividend portfolio.
I'm a few years older than you. Started saving for retirement around 42. I'll start by saying anything you put away is better than nothing, and it doesn't have to be complicated. I would suggest reading, ***"The Psychology of Money"***, by Morgan Housel. Not an investing book perse, but a good primer on how to be a rational investor. I believe you should absolutely start with an IRA. Whether you go Traditional or Roth would depend entirely on your marginal tax rate. You can open an IRA account with Schwab, Fidelity, etc fairly quickly. As of 2025, you can contribute up to $7,000 per year. **Important** - self managing an IRA is pretty simple, but you have to transfer the money into the account and *invest the money*. You may wish to explore a a Self-Employed 401K plan too. However, the IRA is the simplest starting point, in my opinion. Low-cost, broad index funds/ETFs have been demonstrated over time to be the easiest way to invest. This involves buying funds that track things like the S&P 500, the total US market, international markets, etc. Examples of tickers for the S&P 500 are VOO, IVV, or SWPPX. I would suggest reading, ***"The Little Book of Common Sense Investing"***, by John Bogle. Whole Life Insurance is not a way I would personally go. High cost/fees. Traditionally, lower returns on investment. Really more suitable for very high income earners, in my opinion. Cryptocurrency is not a way I would go personally with retirement savings. Extremely speculative. Highly volatile. Difficult to understand. Basically, how many people do you know who gamble at casinos and get rich? That is investing in crypto for novice investors. You do need to get some idea of how much money you *need* in retirement, then how much money you *want* in retirement. You can set up a log in with the SSA to find out what your estimated Social Security benefits would be at retirement. There are calculators online that will help you estimate your needs. I personally like this one: [Financial Mentor - Retirement Calc](https://www.financialmentor.com/calculator/best-retirement-calculator). Fair warning, it can be a little titchy on a smart phone browser.
Use a random number generator and somehow tie that to a random stock in the SP500. Invest $100 into that stock at open, and close at the end of the day. Whatever money is left at the end of the day, put that into SWPPX or another cheap SPY derivative.
Schwab is very highly recommended around here. SWPPX is perfectly fine. The important thing is to be consistently investing in low cost index funds. The differences between those funds is negligible.
Can I ask why I never see SWPPX on these set it and forget it lists? W some obvious differences isn't it pretty similar to some other funds that track the S&P500? I ask bc I have a Schwab acct where I DCA money into SWPPX every week, but that weekly amount is about to go up (a lot, like x10 or more). Should I stay the course w SWPPX or get a vanguard acct? I see EVERYONE suggesting VTI and VOO and NO ONE suggesting SWPPX and I don't understand why that is.
Fidelity and Schwab have comparable mutual funds with lower expenses vs vanguard ETF. SWPPX Schwab S&P500 has an expense ratio of 0.02% FXAIX fidelity s&p500 has an expense ratio of 0.015%. I think you are confusing active vs passive what has nothing to do with ETF vs mutual funds.
You are confusing active vs passive. SWPPX Schwab S&P500 has an expense ratio of 0.02% FXAIX fidelity s&p500 has an expense ratio of 0.015%. The Lowest expense index funds are mutual funds. Fidelity also has 0% expense funds. Not that this really matters as savings a couple basis point is not going to change the outcome
If I'm understanding what your OP is saying, I think a point may need to be made. You're saying 3.75% APY. But that's the cash back rate, yes? So that would only apply for the year that the money goes into the account. What are you going to do with the cash after that? Leave it as cash? What does Robinhood do with uninvested cash? I assume a cash sweeps or something. So what's the APY for their cash sweeps? VOO/SPY/FXAIX/SWPPX are all fine S&P 500 index funds.
To me, this is more psychological and emotional than anything else. This has all been happening for decades and decades now. What Powell indicated isn't new. Overvalued is just the number. The SP500 index at 6600 is high... are we really waiting for it to drop to 2200 before diving in? Schwab just split their SWPPX mutual index fund from $100 to around $16 - that made more people "feel" like it's affordable and people jump in - that's a good thing. SPY/VOO - follow suit, folks! The psychology behind this is fascinating and social media has exasperated things - what is happening in the market is what always happens. Just Dollar Cost Average and things will be OK unless America itself collapses (and if THAT is what holds you back from investing, this isn't the sub for you). Jack Bogle was right. DCA the Index... and chill.
Probably easier to just buy a mutual fund equivalent instead, like SWPPX or FXAIX or whatever the native fund is at your brokerage.
Continuing to buy SWPPX for my long term plans, but my current gambling stock is ROOT.
You don't have to direct index to tax loss harvest. If you were invested in say VOO, you could sell VOO and turn around and buy SWPPX or FXAIX. They all track the same index, but they are ran by different companies, and to date no one has stated an instance where the IRS has considered this kind of trading as "substantially identical". Also when you directly own stocks, you receive all of the associated investor literature and notifications of meetings and all that. Imagine having to deal with all of that for lots of companies. Maybe most of that can be sent to you digitally, but I know for the few that I currently get I personally find them annoying. I'm not interested in voting or any of that. I just want the companies to keep making money and being profitable.
Ok I'm thinking about these changes based on everyone's feedback: Bucket 1: 5% in swvxx/vmfxx/spaxx (wherever my accounts land after consolidation) and 5% VTIP Bucket 2: 40% VOO/FXAIX/SWPPX 20% FFTWX/SCHD/VTV 5% SCHF Bucket 3: 30% SWLGX As retirement nears I'll shift percentages from Bucket 2 to Bucket 1 and reduce percentages in Bucket 3 as well.
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.
You just do it. Go to any financial website that offers charting and look up SPY/VOO/FXAIX/SWPPX (doesn't matter which) and zoom out as much as possible and look at the trend. Also, it **is not** impossible for investors to beat the market growth rate. It is difficult for most investors to on average beat the market growth rate **consistently long term**. No one should be under the impression that they cannot beat the market occasionally, but the point is how often you are likely to do it along with how much time and effort is involved, and long term how much, if any, you come out ahead. Your time is valuable. If you end up spending a large amount of time doing your own investing and you either do not long term beat the market returns, or you get close to them, then you have to ask if your time was spent wisely.
If you find Warren Buffet's idea seems compelling to you then buy SWPPX, or an ETF like VOO. He does not advocate a global index fund. If you want to do that, then fine, but it is a totally different thing. FYI, PRSCX has outperformed SWPPX +441% to +286% the past ten years.
I do use SWPPX and for fractional shares, I use BRK.B as an etf substitute.
Geez, I keep hearing peeps complaining about not being able to buy fractional shares on Schwab. so why not just use another brokerage? It's so easy to setup and you can request of your assets "In Kind' to be transferred to the new account. SWPPX is fine, FXAIX. You want something more aggressive, you'll need to look at a large cap growth fund. There's actually more ETF options than mutual funds I think. SPLG, IVV, VOO, SPY, SPYG, SCHG, TCHP to name a few large cap growth. VOT for mid cap growth, etc.
As a 23 yo, you want growth first and for most for the next 30+ yars. SWPPX is the S&P 500 index fund no? I would just go full head on in the Roth IRA and the brokerage account with either SPYG or SCHG which both are similar. Then in your early 50's start transitioning your Roth growth investments into dividend funds and/or stocks.
True, but I was thinking initially that it would be better for SWPPX to be in my Roth IRA and to have a separate brokerage account for just ETFs Cause I was also thinking to have something a bit more liquid for personal use Do you think it be better to then transition from SWPPX to a full SPYG in my ROTH IRA and to do say, a SCHG in a brokerage for something more liquid?
Why not just go with SPYG or SCHG in your Roth IRA and skip the SWPPX mutual fund. At 23 dividends from mainstream ETFs won't move the needle. Just buy some individual stocks for dividends. Altria (MO) 6.5%; TRIN 12.5%; GOF 14.5% yields. Good luck investing and make sure to use a Fintech app such as Webull that gives you 4.0% plus 4.1% match from a promo.
You can open a custodial account for your son at Fidelity. At 13 he can have his own student account at Fidelity. My kids all have brokerage accounts at Fidelity (two custodial, one student) and custodial Roth IRAs at Schwab. They are 12, 13, and 16. For their brokerage accounts, they choose what to invest in. We subscribe to Morningstar's Stock Investor and ETF Investor newsletters, and we will look at different stocks and ETFs with them from there. Sometimes they also just choose a company they like (my oldest chose Pepsi because she drinks Pepsi). They continuously have money going into the account because they are required to save 15% of any money we pay them (chores, etc). For their Roth IRAs, I put everything into SWPPX. Self employment is considered earned income, so every time they pet sit for someone who pays them, mow their grandpa's lawn, ref a soccer game at a local field, etc, I track that in a spreadsheet for their income. If they make a contribution to their IRA I will match it, but I also add a little here and there as I'm able equally for each kid. My goal is to have $5k in each account by the time each kid is 20.
You can Google the question “what happened to Schwab mutual fund SWPPX today and AI will give you the answer in simple terms. There was a 6 to 1 stock split today. The value of each share goes down, but your number of shares goes up proportionately so the value of your holdings is not affected. Breathe easy.
I nearly had a heart attack when I saw SWPPX dropped that much.
I'm happy to help but you will need to be a bit more specific about what you are seeing. How many shares of SWPPX did you own prior to 8/15? What is your cost-basis prior to 8/15? And who is your broker? What does it say today?
No - A split does not change the value of the holdings. It's effectively an accounting change. For example - assume you own 100 shares of an asset that is worth $6 per share. That means you have $600 worth of the stock. Let's say that the company did a corporate action to forward-split the shares 6:1 similar to what occured with SWPPX. That means that for every share owned - you get 6 shares. But the value of the shares will adjust downwards by 6 times. So now - instead of 100 shares, you own 600 shares, but each share is now worth $1. You still own $600 worth of the stock. Make sense?
JP Morgan is fine for what you're doing. I'm with Schwab but sometimes I wish I was with Chase because I already have a checking account with them. Having everything in one place must be kinda nice. How did you go about picking those funds? Assuming you're young, I'd just invest in VOO from now on. I think like half of those are Bond funds, which you don't really need at your age. SWPPX and VOO are the same thing.
That explains the problem you're having. In the case of SWPPX, the stock split means they issued 6 times as many shares of the stock as they had before, and the price reduced to 1/6th of what it was. For every 1 share you had, you WILL receive 5 additional shares, and each are worth less, so it will work out to the same total value as you had before. Schwab will send those shares to Chase, and Chase will add them to your account, but it may take a few days before they show up.
I should have included this but here is what my portfolio looks like: VOO TCIEX VBTLX AGG SWPPX - someone mentioned something about Charles Schwab and a stock split. I’m new to this not sure what that means FPADX CBFVX
New here. If I go to Charles Schwab I’m assuming they’ll offer a similar service? I want to leave them to manage it. Appreciate the tip I should have included this but here is what my portfolio looks like: VOO TCIEX VBTLX AGG SWPPX - someone mentioned something about Charles Schwab and a stock split. I’m new to this not sure what that means FPADX CBFVX
I should have included this but here is what my portfolio looks like: VOO TCIEX VBTLX AGG SWPPX - someone mentioned something about Charles Schwab and a stock split. I’m new to this not sure what that means FPADX CBFVX
I should have included this but here is what my portfolio looks like: VOO TCIEX VBTLX AGG SWPPX - someone mentioned something about Charles Schwab and a stock split. I’m new to this not sure what that means FPADX CBFVX
I should have included this but here is what my portfolio looks like: VOO TCIEX VBTLX AGG SWPPX - someone mentioned something about Charles Schwab and a stock split. I’m new to this not sure what that means FPADX CBFVX
I should have included this but here is what my portfolio looks like: VOO TCIEX VBTLX AGG SWPPX - someone mentioned something about Charles Schwab and a stock split. I’m new to this not sure what that means FPADX CBFVX
Mine was showing the same, showing a $400k gain between SWPPX and SWMCX. It self corrected on Schwab pretty quickly. Was originally showing the new shares but not the adjusted NAV. Closing bell on Friday and it finally updated the NAV correctly. Threw me, cause I wasn't aware the splits were happening, so had to do some research and figure out what the hell just happened.
What do you have in your portfolio? SWPPX had a 6:1 stock split that will make it look like you lost money until they get the shares to you
Long puts can make sense as u/Doodl3s described. But a collar would be a lot more complicated if you are trying to hedge VFIAX/SWPPX positions. A collar in your situation is a synthetic short futures construction. You can use a short combo instead - ie write an otm call and buy an otm put. But the same problem remains - you have to understand how to manage the short call leg. And if you have never traded options before - many brokers are not going to let you write any spreads with naked call legs. If you use long puts - the usual challenge is choice of strike and expiration - that really will depend on your market thesis and/or hedging drag that you are willing to deal with - and that is a personal choice.
Where I'll agree is that I think Schwab could have done a better job with communication regarding the split. That said, I am going to hold on to the shares of SWPPX that I own.
As stated the SWPPX S&P500 Index Fund split 6 for 1, and the SNXFX S&P1000 Index Fund split 10 for 1.
SWPPX is an index fund. You 100% can buy fractional shares of SWPPX
I am going to brazenly rip off Warren Buffet by saying that if you liked SWPPX at $100 NAV you should love it at $16 and change NAV (I believe the NAV post split on Friday was $16.63)
I’m sitting here trying to figure out what’s going on. I only own SWPPX in one account that also has Palantir. I thought PLTR dropped like a stone at first. Not certain why it shows a loss without the corresponding split. Doesn’t seem like a “trivial” tech issue. I don’t mean that we lost the money. Just that they should have the process down a lot tighter!!!!
I received no notices in either of my accounts that hold SWPPX and SWTSX. I did not receive any emails regarding splits, either. So frustrating and disappointing.
You didn't lose any money. Simply put, like for a stock split, the number of shares you now own has gone up by the factor of the split and the NAV has gone down by the factor of the split (6:1 in the case of SWPPX, 7:1 in the case of SWTSX, and 10:1 in the case of SNFNX). The market value remains the same, thus you did not lose any money. Make sense?
Thanks for the info, I had been wondering what the hell happened when I saw that my SWPPX position dropped \~83% today and now I know. For the curious, it appears a split for a mutual fund works a lot like a stock split in terms of the number of shares you end up with is increased by the factor of the split and the NAV is reduced by the factor of the split (6:1 in the case of SWPPX, 7:1 in the case of SWTSX, and 10:1 in the case of SNXFX) while the market value remains the same.
The reason the Schwab S&P 500 Index Fund (SWPPX) appeared to "plunge" today, on August 15, is because it underwent a 6-for-1 share split.
Holding just SWPPX or both would give you greater weighting in large cap USA stocks. It's a you question as to if that is desired, and in what ratios.
So then do you think i should sell all of my SWPPX for SWTSX? Is there no benefit for holding SWPPX specifically?