VFH
Vanguard Financials Index Fund ETF Shares
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U.S. 10 Year Treasury Yield vs Vanguard ETFs - Most Recent 1 Year Period Growth Chart
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A finance industry ETF like Vanguard's VFH is worth a look. It covers the banks and credit card companies.
My portfolio is several million at this point, with most in Vanguard ETFs like VGT, VOO (SP500), VYM, VIG, and VFH. The individual stocks are generally purchased when they pull back for some extra juice. For example both GOOD and AAPL had a big pullback and I bought. I also bought UNH when it was around 275-280 (down almost 55%!!) for a while. Will see how they work out.
I have a small amount of VFH. If this administration does what it says, some of the regulations will be removed and you will see profits rise. That is why I wanted some of it. FCNCA is also an individual stock that has done well and they are constantly growing. Kind of a salty price tag though!
I'm looking at the holdings of VFH now to study this further. They generally have EXTREMELY low p/e ratios
The overall allocation seems ok but you could diversify further with the following as an example. 1) SPY (25%) 2) VFH (15%) —> Banking Sector 3) QQQ (25%) —> Tech sector 4) VTI (15%) 5) SCHD
I suggest you do more research then. I personally listen to a lot of Bloomberg Surveillance and subscribe to Investor's Business Daily. Just a few ideas from me - AAPL is down 20% (could be an entry), sports betting will be a long term trend and many valuations have stalled, data centers for AI will also be a trend for the next 5-7 years at least. Also, when in doubt, just do a MMF or ETF. I personally like VFH and VGT right now. There's always VOO and SPY too. Good luck!
Lots of comments already, but since no one has mentioned it, I'd say I think you're missing a mid cap fund. I like XMHQ. For financials, I prefer VFH over XLF.
Lol. I was in love with the portfolio when I only saw page 1 - I thought your entire portfolio was VOO and VFH and VGT. I was like - wow this is a great investor.
I am heavily invested on the tech sector. As such, my ETF's of choice for this are VGT and QQQ. I also have plans to add VFH in the future, I'm not just as bullish on finance as I am in tech right now.
36 years old, married but no kids yet. Have 90% on equities and the 10% on short term bond contracts. Of that 90% I have 15% on stocks of three companies, 75% on VGT, QQQ, and VOO on equal ratios and 10% on crypto (5% BTC and 5% on ETH). This is in line with my investment horizon of over 30 years and my risk tolerance/capacity. I might pick up VFH though over QQQ though, so that I also have some equity on the financials sector.
Nah, VOLD was showing them leaving by 10:30, meaning everything was on sale. Bought some VFH for holding at 105. If you just sold puts against the 456 QQQ resistance, youd have made money. I used butterflies and condors and we got numerous confirmations throughout the day that buyers were very much in force, so covered the shorts for losses to get more rally upside. https://preview.redd.it/vuhh1e6i6aod1.png?width=1209&format=png&auto=webp&s=d81d35d3960c4349bfdb23a739ae4e5d227ebbb6
I personally have VFH (Financials) and XLP (consumer staples)
> any guesses on worst and best performers for the next week. I don’t speculate on short time scales But how are banks doing? This is most likely a bank by bank question. The broader industry has mostly mirrored the SP500 over the past 5 years (I charted VFH against VOO). But individually there’s been a mixed bag of performance. There was the Silicon Valley Bank crisis. And many of the regional banks are still suffering from the commercial real estate crisis. Plus, I don’t think higher interest rates always translate to bank profits. For example, a consumer may not take out a loan when rates are higher (if they can avoid it).
In my personal situation I like having some dividend paying stocks and ETFs. I currently make $20k-$25k a year in dividends paying a 15% long term capital gains rate. I have a good salary, but it's a nice bump. The investments are in XLE (bought in around $55), VFH (Vanguard financials), and also in stocks that I bought somewhat low like KO, BTI, and more recently PFE and SBUX
FDTX just looks like an all world technology, but look at the top ten holdings its still dominated by US large cap tech companies. Probably similar to IXN. FDFF is a disruptive finance but its top holdings are V, MC, BLK, COF and some insurance company, not really that exotic to me. Probably get close to XLF or VFH FSLEX - isn't semi's its alternative energy. It doesn't hold any semis in the top 10. I don't think any of them look overly disruptive or innovative. They seem like sector focused ETF's
Tips and critique welcome- where is the overlap Hello! I’m new to investing and am still playing with my strategy. I’m interested in a set and forget approach and contribute equally to each position held. Initially I had planned on having a position in each sector of market; industrial, commodity, consumer, financial and utilities. I think I might be overthinking my spread a bit and have developed some overlap. I’d appreciate any critique or tips to help tighten my portfolio. CALM 2.51 CWCO 5.11 DXJ 0.11 RIO 2.41 SCHD 2.07 VFH .25 VIS .44 VOO .76 VST 2.05
Not exactly. 1. Any ETF is subject to tracking error (usually just a small % that it deviates from the underlying index); combining multiple ETFs would have an additive effect. 2. Different sector ETFs will have different MERs (management expense ratios), which will decrease your overall returns. The MER for VOO (Vanguard’s SP 500 ETF) is minuscule (0.03%). For VFH (Vanguard’s financial sector ETF), it’s over triple that (0.10%). 3. Taxes and transaction fees may affect you more (depending on your brokerage). Also, depending on the structure of the ETF, you may have additional filing requirements (for example, Invesco’s DBC commodities index will require a K-1.
Yeah you’re right, I currently have some in IYF and VFH and PGR. Most is in QQQ rn but those all went down too lol, PGR pretty good but I definitely see value in the ones you mentioned. I’m not tripping though, I hear time in the market is good and I look forward to buying cheaper stocks
VOO is becoming more dominated by mega-cap tech. Going 100% VOO is an extremely aggressive move, and many investors ignore this risk to their peril. Balancing out a smaller position in VOO with less volatile sectors, like VDC (consumer staples), VCR (consumer discretionary), VDE (energy), and VFH (financials) will result in a safer, more stable portfolio that will not crash if the megacap techs come back to earth.
If you don't know which bank stock, could always do an index like VFH.
My big 4 ETFs (75% of my account) right now are VOO VFH IYJ XLI Then I have F for dividend payments. Last 3 stocks get to be my yolo stocks/gambles.
> I should have said I’m looking for differences in a passive index fund that mirror the S&P 500 vs a passive ETF that does the same. Lower capital gains. There are almost no advantages of an classic open ended mutual fund vs. an ETF when a corresponding mutual fund exists. > I’m trying to understand the difference in say tickers VFIAX vs. VOO just as an example if that helps. VFAIX and VOO track different indexes. Let's make this easier. VFH is the corresponding ETF to VFAIX. The distinction between VFH and VFAIX is as above. Now onto VFH vs. VOO. VFH tracks the [MSCI US IMI Financials 25/50 Index](https://www.msci.com/documents/10199/e15adc0b-2395-4603-8e44-b0eac481e270#:~:text=The%20MSCI%20US%20IMI%20Financials%2025%2F50%20Index%20is,RICs%2C%20under%20the%20current%20US%20Internal%20Revenue%20Code.) Essentially this is a cap weighted index of **financial sector** stocks not all sectors. It is a constrained index that has two limits: * no stock can be more than 25% of the index * no more than 50% of the index can ever be in stocks with weightings above 5%. So it tilts a bit smaller than a pure cap weighted index. VOO tracks the SP500 which represents about 500 of the 600 biggest stocks in the USA drawing from all sectors: [Index methodology](https://www.spglobal.com/spdji/en/documents/methodologies/methodology-sp-us-indices.pdf)
QQQ leans tech and consumer discretionary, which is most of the index, sans energy and financials. Its a perfectly reasonable holding to reduce exposure to those industries that have been [comparatively lackluster for almost 20 years.](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=1985&firstMonth=1&endYear=2023&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&benchmark=VFINX&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=QQQ&allocation1_1=100&symbol2=VFH&allocation2_2=100&symbol3=VDE&allocation3_3=100) Obviously the past doesn’t indicate the future, but I don’t see a compelling bull case for either.
Yeah I did, but KBWB went up but VFH seems to be stagnant. And I don't know why I got into energy stocks
Keep in mind that if you follow best practices, you already have some exposure to banks (it's included in ETFs like VT and VTI, even SPY has a bunch of them), so you likely are already diversified in them. I did take advantage of the "discount" and put something like 0.5% in VFH. It's not something I'd take a large share in. So what? Best case I'll make something like 0.2% on it? It's fine, it might offset the losses I had on banks due to the broad market ETFs I have. It's definitely not a sector I'd want a huge exposure to. There's just not much chance of it appreciating by a lot in the near future, not even if it were to fully recover.
With all the bank stocks going down and their stocks loosing value. It seems that things are becoming a bit more stable. What are your thoughts about buying some stocks like BAC, VFH?
>A total US market index fund is a good baseline to compare with, and a good investment in itself. VTI is Vanguard's ETF version Just for clarity for Pegeez, VTI is a total stock market ETF with bigger focus on technology stocks than others. VTI detail: [https://advisors.vanguard.com/iippdf/pdfs/FS970R.pdf](https://advisors.vanguard.com/iippdf/pdfs/FS970R.pdf) Pegeez was considering BoA stock which a bank. I suggested alternative option such as finance ETF such as Vanguard VFH ([https://advisors.vanguard.com/iippdf/pdfs/FS957R.pdf](https://advisors.vanguard.com/iippdf/pdfs/FS957R.pdf) ) just as example. BoA is #3 holding on the list for VFH. I put in BAC in Yahoo Finance chart and then put in VFH as comparsion. I see that VFH outperformed BAC most of the time in past 2 years. Both provided dividends but VFH pays more than BAC. Something for the Pegeez to chew on if they want to invest in financials.
Came here to find this... got in today 75@ $4 Also bought calls on VFH for 30 days out... 🚀
Would a financials ETF such as VFH be a good investment for people who cannot tell a good bank from a bad one?
TLDR Banks always win IAT (iShares Regional Bank ETF) or VFH (Vanguard Financials ETF)
You're gonna be okay, don't worry. These are just posts on a stocks subreddit -- no need to get so worked up. Regardless, anyone looking to build a position in banks, stick w VFH or if buying individuals buy in stages in case of continued pullbacks.
VFH - seems like a great way to play it 👍🏼
i doubled down on $VFH…don’t know enough about banks to invest in one in particular but i do know enough to be greedy when others are fearful…we’ll see.
Been sniffing around VFH myself a bit…
https://www.etf.com/channels/financials-etfs. John Hancock used to have Dimensional as a submanager for their sector ETFs. That would have been my recommend. If I had to pick now FXO. XLF or VFH would be the generic, cap weighted, lots of assets, low ER.... options.
Would VFH (Vanguard Financials) be a wise investment right now? High interest rates generally benefit banks, and US credit card debt is at an all-time high (although defaults are relatively low currently). What about V and MA? I noticed that these are not in VFH holdings.
JP Morgan if you aren't going with a financial ETF. More stable long-term. BoA is good for dividends, but has insane levels of volitility (41% vs the norm of 15%). Financial ETFs to consider are: XLF or VFH. Greater stability, but less extreme upside.
I don't think there's anything wrong with piling in to ETFs, but I would suggest no fewer than 3 different ones so you can capture different aspects of the market. My personal suggestions are VOO (S&P 500), VFH (financials), and VNQ (real estate). MGC (mega cap), MGK (mega cap growth), and/or VYM (high dividend yield) are my alternatives if you're not interested by some in the first group.
You should only start buying stocks after you have a serious chunk of change in a total market fund like ITOT. Don't buy cheap stocks. For example, something like NOK, unless you can stomach the inaction and/or artificial movement. Don't chase returns, like Bitcoin or Tesla. If you're only noticing it now after 4000% gains, it's quite possible (maybe even highly likely) you will not make those kinds of gains, too. Don't chase dividends. (You can make serious dividends with VT, ITOT, even VFH, if you wanna do some "real estate speculation.")
Unless there are massive defaults, the trend should continue with higher interest rates. I'm very long Vanguard Financials Index Fund ETF - VFH. A rising tide lifts all boats type trade.
SPY is a good place to start, but I would focus more on financials like VFH and companies with a lot of US treasury exposure. Also as you pointed out, companies sensitive to a weak dollar.
Yes, good point. I do own VFH in a larger position, but I really dug deep with these names during the last two big dips. I think BAC, WFC, JPM and C have a lot of upside. I am definitely looking forward to earnings tomorrow.
I really like VFH as an investment right now. Banks are the biggest beneficiary of a high interest rate environment. I feel like banks remain undervalued due to fears stemming from the 2008 financial crisis. I think 2008 and 2020 proved that the government will bail out the banks (or any big company) if there is a chance of systematic failure. VFH as an investment to me, is better than owning individual banks because each bank has individual risks that could lead to insolvency, but I believe the sum of the parts (the banking industry) will grow with a move back to normal interest rates.
is there any etf database which convenient lists all of the ETFs which "exactly" track a given index/sector? plenty of them will list everything that has anything to do with an index, which bloats the list which a bunch of stuff that isn't relevant. for instance, for S&P500, i'm aware of SPY, VOO, SPLG and IVV. financials has XLF, VFH and FNCL. anything comprehensive-ish floating around? thanks
CIBR is like the dark horse of tech stocks. I really like it long term. ​ Hard to pick one. ​ Strong cases for google and apple and other big dogs. ​ EV stuff could be on the riskier side but talking about the next 10 years.. Certainly has a lot of investors interest. I mean look what happened with some of the start ups this year holy shit people love EV stocks. ​ ​ Bank stuff like IYF VFH (DPST if you degen like me) should see nice growth. ​ SCHA has my interest for small cap growth. Everything is on sale, but just don't pick a stock that is a pile of steaming dog shit. manage your risk. not financial advice. Just enjoy some investing!
17.5% VTI 15% VUG 15% VTV 12.5% VFH ( I think Financials are pretty undervalued rn, normally would put maybe 10% in? ) 10% SCHD 10% SCHY 5% TSM 5% META 5% CRM 5% MSFT Thoughts? I’m 22 and plan on holding for 10+ years.
Exposure to all of them in VFH or similar ETF
I am fairly wealthy. I would call my investing style “Warren Buffett-lite” I avoid individual stocks and trade sectors. As an example, I bought VDE (vanguard energy) when is was at a 52 week low. Sold it I bought some VCR and VFH (consumer discretionary and financials) I also have some real estate and REITS and lots of cash that sits outside of my investment allocation. Started with zero
I don’t even know what that is. I don’t buy puts. I’m rich because I don’t use the stock market or crypto as a slot machine. I buy and hold. I make lots of mistakes but none are fatal because I live frugally and have a solid core investment philosophy based on long term growth and value. What do I own, you ask? Lots of Berkshire Hathaway Lots of Vanguard S&P I don’t own a lot of individual shares but concentrate into sectors: Vanguard VCR - top holdings are Tesla, Amazon and other consumer discretionary VFH- financials I own a bunch of REITS. Amazing dividends And, Lots of cash (now) it’s waiting for the bottom which I predict will be around October 2022 with some serious whipsaw between now and then. My Speculative: Some Bitcoin, Ethereum and my favorite, Jasmy Mistakes: I bought Worldcom, Facebook at $230, Fannie Mae and Freddie Mac, I borrowed from my 401k years ago to buy a car. I estimate that car cost me around $300,000 in lost gains.
What’s up guys, been investing for a while but want to reorganize portfolio during this downturn. The portfolio I am strongly considering for my IRA is: VUG- 17% VTV - 15% VO - 12% VBR - 12% VFH - 5% VPU - 5% VHT - 5 MSFT - 8% GOOGL - 8% UNP - 3% BRK.B - 5% LOVE - 5% Trying to set up a fund portfolio that I can hold for retirement and then some individual plays that I find interesting. Rate out of 10 if you can and I’m totally open to any suggestions. Thanks
Very good. Can’t go wrong with Vanguard. I like VOO, VGT, VOX, VIS and VFH. Have done well and buy each of these regularly
Just turned 1/2 of last year's VTI into VFH, KRE, and DBC last month. Let's gooo!
You could also look into XLF or VFH if you wanted exposure to the finance sector without putting your money in just one stock. These ETFs include some of the big finance stocks out there. They also pay dividends like BAC. Totally up to you.
Do what you feel is right. I like MGK for tech stuff since it’s all mega caps, not just tech, but very heavy in AAPL, MSFT, Google, and AMZN. SCHD for dividends. VFH for financials. BCI for commodities, XLE for energy.
Eh. Even industrials came roaring out of the hole. The magnitude was smaller, but the direction was the same. Look at VIS and VFH and VTV. Even the "Boomer" and value stocks got pumped. Looking for value to buy last year was painful, because everything except the stankest garbage was like 2 StDev above normal growth.
Honestly, buy a couple of Rolex’s, they are actually great investments if kept pristine. Cause I’m bearish on the market rn. I love index/industrial etfs, cause if their high growth-lower risk compared to a singular security. They pay dividends too Current ETF Holdings VFH : 50 shares @88.21 XLF: 122 shares @33.32 XLK : 25 shares @138.28
I recently sold my car due to not needing it for at least 14 months. I have the money from it but I am conflicted on what to do until i need to replace it. Which option do you think is the best call? 1) invest it in to market (probably index funds) and hope that it doesn’t drop before I’ll need a car again 2) keep it as cash. This option seems dumb due to recent inflation but might be better than putting it in the market right before a crash/correction. 3) none of the above Background info: -23 years old, USA -employed, $90k / year (180 incl partner) -Objective is to buy a car with this money not sooner than 14 months from now. -I’m going to say risk tolerance with this money is low -currently have ~70k that I have invested in VTI,VTV,VIG,VFH -no big debts
Everything that got gassed up on easy money will deflate. Values/cyclicals are no exception. Look at the growth curves for VIS (Vanguard Industrials ETF) or VFH (Vanguard Financials) or more broadly VTV (Vanguard Value ETF). Completely preposterous unsustainable rises. Even VXUS is bloated. They're down now, but the mean regression is barely underway. Just wait until AAPL rolls over. That's when you'll find the good deals--when the weak hands have even panic-sold the safe havens.
Much respect for you backing up your post with how you are diversifying. High dividend funds look good. I was looking at SCHD and SPYD, but your VYM pick looks like a nice mix. VFH looks a whole lot better than picking individual financial stocks as well. Thanks bro!
Exactly. Why I’m getting a little heavier weighted financials in my portolfio with VFH. Interest rate increases should benefit banks.
I made about 29% last year. I would be happy to tell you my positions if you really want. I DCA’d for the season, up until the feds started tapering. Now I’m DCA’ing differently for the upcoming financial climate. My personal DCA schedule persist of VFH - for financials to be weighted heavier in my portfolio, for interest rate hikes. The is a bear case to this but this is my more aggressive portfolio. VYM- mainly for dividend and it’s too 10 are classics that should hold. MCD- not a fan of fast food but they just do well decade after decade and handled 08 well, and have a good dividend. Just a different play. I’ll be stopping (but not selling) the purchase of some stocks from last 1.5 years I got during the rise. SMH, Costco, VGT. Then my “aggressive” play is FB as I think they will find stability and have great revenue this year. There are more I could mention I own but that’s the overview. VFH, and VYM, will be too 6 positions for my by end of the year probably and that’s just to be weighted in larger areas of VOO/VTI, to ensure dividends and less volatility. This is just the way I manage this one, my preference for mitigating and maximizing. I just don’t see why people are against diversifying.
What? That’s a perfectly normal thing to do with ETFs. I have VFH too to increase weight in financials. VTI is more broad than VOO, they are just tools for diversification and each have their own weighted stocks. Just depends on what weight you want different ones to be. Overlap isn’t bad.
Stay away from tech on Monday. Tech is still a bubble despite some correction this week. I'd recommend VFH instead because finance sector will do well during the interest hike phase (next one to two years). Keep your eyes on VGT in coming months and buy some when it tanks further.
High inflation is followed by rate hikes, more persistent high inflation requires greater extent/more rate hikes. There are etf that hedge against rising rates, e.g. PFIX, or etf that short treasury bonds like TYO. Retail/consumer banking get benefited during rate hikes too (if short-term and long-term rates widen, i.e. yield curve steepened. Consider XLF, VFH, stocks like BAC JPM and WFC. Last but not least, so your due diligence.
I would put in the vanguard financial ETF: VFH , it has a decent dividend. And banks are going to do well for over next year because of the rising interest rate.
I agree for the taxable. I plan to shed some of the companies once I break even and concentrate on my favorites. And most of my contributions this year will be the ETFs so the other stocks will basically become negligible parts of my portfolio. For the Roth, I just had VDC (consumer staple) + VHT (health) for a more defensive posture. Maybe I should cut VFH (financial) though...
My financial stocks have been doing quite well... (At least, VFH, the ETF). Not including Paypal obviously. And oil is expected to be booming this year (and maybe the next), e.g., XOM.
This is posted from “w” on yahoo finance: 1. Does BHB extract in house? 2. Will BHB buy old inventory from VFH? 3. Has PSF started to sell in Quebec? 4. Do we see PSF partnering in some way with craft growers? 5. Has our GMP certificate come through ( as I think that is why they called this AMA ) and if so when should we expect first shipments and ball park figures? 6. Has Altum sold the last batch of shipment and are in need of alot more? 7. Will BHB start selling BOTA in canada ( as I tried to get a shipment but to no avail )? 8. Any word on Netherlands? 9. Hows the tomato's doing?
I got VFH for financial sector. Just too easy especially since it’s top 10 are great.
If you’re not sure which bank to bet on you could just do a financials ETF like VFH or a regional bank ETF like KRE. Both outperformed the S&P 500 in 2021.
I doubt it will be a major impact, but that is my speculation. To answer your question, try financial ETFs listed below: - VFH - XLF - FNCL
I guess I’ll see how it shakes out. I put a bit of money into VFH.
What's you logic for avoiding FNCL or VFH or similar?
I used to have VFH but decided there wasn't much of a point if I already had the other big ETFs, so as an alternative to get other exposures, I favored consumer staples (VDC) and health (VHT) since those are more 'defensive' and likely less correlated with tech than financial markets.
More so I like passive sector ETFs as they are cheaper and they will yield better or similar results, so maybe something like VFH for financials and for specifically Biotech IBB would work but for broad healthcare sector index, VHT would be better. I like vanguard funds because they are cheap and perform well.
If you’re waiting to buy land but still feeling the itch to stay invested, I would rotate into some more defensive etfs to weather rising interest rates. Value (VTV), financials (VFH), and healthcare (XLV) should give you good downside protection when the rate hikes come while still getting you some gains. I’m in the same position as you and that’s what I’ve been doing
In general it depends on where we stand in the business cycle, so which sectors specifically you want to go to for defense will change over time. A defensive investment is one that has a large margin of safety such that you aren't paying too much. This caps your potential downside, in exchange for also limiting your upside. In this type of investment, you're looking to protect your capital and realize a reasonable return. Since we are at the end of an epic bull run, 10 of the 11 sectors are overvalued and therefore extremely risky. The one exception right now is financials. They have low PE and stand to benefit from rising interest rates over the next few years. Personally I am invested in VFH (Vanguard Financials ETF). This is an extremely well diversified ETF that includes a taste of everything from investment banking to regional banks to insurance and so on. I am also holding stock in a few specific banks as well. I wish there were a few more sectors to invest it right now, but I'm not seeing it yet. So beyond entire sectors, you have to go through a cherry pick individual stocks that have been beaten down to low PE but that you believe are solid businesses that will recover and do well long term.
i think if you're asking this question you should've just bought XLF or VFH. as for the rate hikes: many people are expecting 1-3 hikes in 2022. i'd be extremely surprised if there were none next year. yes, banks should benefit from rising rates
You’re right. I was thinking of VFH.
Start broad, investing in stuff like VOO and VTI. Once you've got an big pile of money in those, you can add more money and narrow down into trying to pick sectors that you think might outperform, like VGT (tech) or VFH (financials) or whatever. Track their performance compared to your broad funds. Once you've got a handle on that (years), you can think about putting money in individual stocks. Start with large cap stocks everybody knows about. That's about where I've stopped. Don't make decisions based on unrealized gains/losses. Otherwise, you're liable to sell your winners and keep your losers, which isn't a great plan long-term.
Yeah, I would never try and convince someone to YOLO all their money in these. So the '08 financial crisis just crushed bank/investment company stocks, and a large chunk of preferreds are issued by them. They did however recover much more quickly than finance company common shares after the '08 crash. See how long Vanguard's VFH etf took to recover. I don't think we'll see anything like an '08 crash again in my lifetime, but who knows.
If tech single stock, MSFT. If dividend is best and single stock, CVS, VZ, KHC If energy, dividend, single stock, VLO If sector, not tech, finance VFH, maybe SYLD or MOAT Get out of mutual funds. I’m still holding a bunch of legacy myself, but they aren’t the future.
VFH has outperformed the S& P 500 nicely this year and also other times.
Sector specific: VDE, VFH, VGT.
Nice pickups . I added LRCX (Lam Research) and another share of VFH (Vanguard Financials ETF). Thinking of picking up another share of GOOGL if price dips even more this week.
I bought VFH (vanguard banking ETF) in October of 2020. All the banks were still at there Covid lows while SPY had recovered 100%. I sold 2 weeks ago. It was a lagging sector.
This is a pretty heavily concentrated ETF... 5% in a couple stocks each, is this actively managed? What's actually happening here seems to be that TSLA is recovering from its May bottom, but those gains are just being canceled out by PLUG. Is FSLR Is PLUG worth owning on its own? That's the kind of ETF where I think you actually need to look at the top holdings' earnings and forecasts, and see if these are on the right track. This is not like buying VFH or something - winners are being picked, it's not necessarily a true sampling of the industry.
Haha oh nice I’m flattered! Honestly, while there are concerns of a black swan event like a new vaccine-resistant covid variant, I have a feeling that the global supply chain will recover, even if it’s a bit slower than expected out to 2023. The big thing driving CPI increases really is semiconductors and travel/lodging/fuel. For semis, I feel this is representative of a long-term trend being accelerated by covid. TSMC, Intel, etc. are building out massive capacity to meet this demand and they’re getting tons of federal funding to do so. Eventually, car prices and things like that will get back to normal but I imagine demand for semiconductors will stay elevated when we reach equilibrium. Personally, I’ve been DCA’ing into SMH and buying semis for the past year or so When it comes to travel/lodging/fuel, this is just catching up to pre-2019 numbers. Nothing to see here, IMO. Otherwise, when you consider an environment where interest rates are going to increase, you want stable, cash flow positive companies. Some might disagree with me here but honestly I like big tech. Companies like AAPL, AMZN, GOOG, MSFT, have huge cash piles, large cash flows and are pretty recession-proof as we saw with the Covid crash. If you’re worried about the high PE, Financial companies are lower PE and tend to benefit in either higher interest rate or higher volatility environments. Can’t go wrong with VFH if you don’t want to choose anything in particular. Finally, if you’re scared but want to stay broadly invested, you can always go with VTI or VT. You could use puts as insurance as well but eh I’d generally advice against it So yeah in general I tend to stay invested, really only leave like 10% in cash max. No bonds because if interest rates increase then bonds will just lose value (also I’m young). I keep retirement accounts diversified and just DCA but for my regular brokerage I’m pretty tech heavy, though I try to lean toward mostly quality tech names
There is overlap everywhere in your portfolio. Not anything inherently bad about that per se. I would suggest VOO, QQQM as your primary holdings. VFH or similar is always a good idea, and any other sectors you would like to hold.
Thanks for the input. I also have IHI because I liked companies like TMO, but I never thought about it from the perspective that you've mentioned. That sounds like a very good logical reason to be in it for the future. I looked up XLY and XLF because I wasn't familiar with them, and it seems like they are counterparts to VCR and VFH. Any reason you invested in SPDR funds over Vanguard, out of curiousity? Also as a side note, I'm very jealous that you've been in QQQ for that long!