VOO

mayorolivia

He says broad low cost index. He never specifies an ETF. Investors use SPY, VOO, SPYM etc etc interchangeably to refer to the S & P 500.

MagJack

if you wanna skip individual stocks but dont wanna be as boring as VOO at least do VGT and SMH of something that outperforms

mazsive

Take for example people who keeps putting money into VOO. Nice dividend and the growth is not bad. Over 50 years they don’t need to worry about their money and keep throwing money at it. Pulling out and reinvesting is risky, sometimes often than not you end up not doing well.

BentoMan

Some days I wake up a GOOGL bull and am like Google 100% wins the AI race — screw VOO, I should full port And other days I’m like is it really a “race” when AI will be commoditized? Does AI add that much value to Google’s core services? 

NouvelErmitage

All this to lose to VOO by 4%. Give up geeza

dontrackonme

You get voted down because over the past 15 years qqq has made almost double what VOO made. sure, you pay a few thousand more in fees, but you make a fuck ton more money

Fit_Service8662

You're at a 100,000 a year for life with VOO and chill and the 4% rule... I strongly suggest you consider that and maybe retire.

Senior-Preference678

I did receive a lot of critics about posting this information on Reddit. There are a lot of new investors and it may help them, also may have long investor that doesn’t dig deep enough to small details that can make a huge difference ahead. Just think about paying 7x time fees over 10, 15 years, how much money will be losing if fees. Using the Python tool to calculate the exact fee drag and total opportunity cost. We will assume a $100,000 portfolio growing at a standard 8% annual return to see exactly how much money is lost to the higher fees. A $100,000 portfolio invested in QQQ instead of VOO will lose an extra $7,379.10 over 15 years purely to management fees and lost compounding returns. The Immediate Cost (Year 1) VOO (0.03% Fee): You pay $30 a year. QQQ (0.20% Fee): You pay $200 a year. The Difference: You lose an extra $170 in just your very first year for the exact same top holdings. 10 Years Because your investment grows over time, the fee is calculated on a larger balance every year. That means the dollar amount you lose grows exponentially.\[1\] VOO Portfolio Value: $215,293.55 (Only $598.95 lost to fees) QQQ Portfolio Value: $211,927.64 (A massive $3,964.86 lost to fees) The Total Penalty: You have $3,365.91 less money in your pocket with QQQ 15 Years VOO Portfolio Value: $315,897.74 QQQ Portfolio Value: $308,518.64 The Total Penalty: You have lost $7,379.10 straight to the fund managers. The money lost isn't just the flat fee; it is the growth that the fee would have generated over 15 years if it had stayed in the market. That $7,300+ penalty is real money that could have paid for a vacation, a down payment, or months of living expenses in retirement. Thanks for all downvotes in advance

Pretty_Western_8805

Go buy VOO - I hope this is a small part of your portfolio. Nobody can predict the future my man. It wouldn’t be prudent to try to figure out where the cheese is with all your chips.

Senior-Preference678

I did receive a lot of critics about posting this information on Reddit. Just because the information looks obvious to you, doesn’t means over millions user on Reddit Investing the information is meaningless! There are a lot of new investors and it may help them, also may have long investor that doesn’t dig deep enough to small details that can make a huge difference ahead. Just think about paying 7x time fees over 10, 15 years, how much money will be losing if fees. Using the Python tool to calculate the exact fee drag and total opportunity cost. We will assume a $100,000 portfolio growing at a standard 8% annual return to see exactly how much money is lost to the higher fees. **A $100,000 portfolio invested in QQQ instead of VOO will lose an extra $7,379.10 over 15 years purely to management fees and lost compounding returns.** **The Immediate Cost (Year 1)** **VOO (0.03% Fee):** You pay **$30** a year. **QQQ (0.20% Fee):** You pay **$200** a year. *The Difference:* You lose an extra **$170** in just your very first year for the exact same top holdings. **10 Years** Because your investment grows over time, the fee is calculated on a larger balance every year. That means the dollar amount you lose grows exponentially.\[[1](https://www.instagram.com/p/DagP3cej-8j/)\] **VOO Portfolio Value:** $215,293.55 *(Only $598.95 lost to fees)* **QQQ Portfolio Value:** $211,927.64 *(A massive $3,964.86 lost to fees)* *The Total Penalty:* You have **$3,365.91 less money** in your pocket with QQQ **15 Years** **VOO Portfolio Value:** **$315,897.74** **QQQ Portfolio Value:** **$308,518.64** *The Total Penalty:* You have lost **$7,379.10** straight to the fund managers. The money lost isn't just the flat fee; it is the **growth that the fee would have generated** over 15 years if it had stayed in the market. That $7,300+ penalty is real money that could have paid for a vacation, a down payment, or months of living expenses in retirement. Thanks for all downvotes in advance

The_Lonely_Optimist

If he invests as little as 25% of his income, VOO/VTI could actually be amazing choice… if he wants to comfortably retire by the time he’s in his early 70s. 🙂

FaithlessnessDue7224

I'm 90% VOO, AMA

stupidber

I should've bought more VOO

BlackKnightsOptions

You might be alive in VOO but you aren't living 

Senior-Preference678

You hit the nail on the head. That is exactly what is happening. To make it worse, you are paying a premium for that second jacket. When you buy both, you are paying two different management fees to hold the exact same top positions: \[[1](https://www.reddit.com/r/ETFs/comments/ummgke/why_is_fund_overlap_an_issue/)\] **VOO (S&P 500)**: Costs a rock-bottom **0.03%** expense ratio. **QQQ (Nasdaq-100)**: Costs **0.20%** expense ratio. By adding QQQ on top of VOO, you are actively paying **nearly 7 times more** in fees for QQQ's portion just to double-down on Microsoft, Apple, Nvidia, Amazon, and Meta. **The Same Fabric** **Top 5 Holdings**: Microsoft, Apple, Nvidia, Amazon, and Meta. **What happens**: These five stocks already make up roughly 25%+ of VOO. In QQQ, they make up over 40%. **The Result**: Your 50/50 portfolio isn't diversified; it is just a super-concentrated bet on a handful of tech executives **The Only True Difference** **What QQQ adds**: A tiny 6% sliver of Nasdaq-exclusive stocks (like mid-cap biotech or tech firms not yet in the S&P 500). **What QQQ drops**: You completely lose exposure to the S&P 500’s financials (JP Morgan), energy (Exxon), healthcare (Johnson & Johnson), and industrials (Caterpillar) on that portion of your money. **How to Actually Fix It** If your goal is to actually add a *different* fabric to your portfolio rather than just overlapping large-cap US equities, you have a few structural options: **For Small/Mid-Cap Exposure**: Pair VOO with an un-overlapped fund like **AVUV**or **IJR** (Small-Cap Value) to capture the bottom of the market. **For Sector Diversification**: If you want tech but want to avoid the exact same top 5 stocks, look into an equal-weighted tech ETF like **RSPT**, where every tech stock gets the same slice. **For True Diversification**: Keep VOO as your core, drop QQQ, and add international exposure (**VXUS**) or bonds (**BND**) depending on your time horizon. Source: Gemini Ai

Any_Influence_8305

Thank God I'm a degenerate, imagine going through life all VOO and chill my good sirs 🤓

camellarodrigo

So you r telling me everyone holding both QQQ and VOO thinking they are diversified is basically wearing two jackets made of the same fabric and calling it layering. 94% overlap is like paying two expense ratios to own the same stocks twice with extra steps

ahabooo

This looks really good, congrats! I would only modify 1 thing, while building up emergency fund i would max the roth ira every year (only 7500). You can take out the money you put in (your base contributions) at any time without paying taxes or penalties in roth IRA. So it could be used as emergency fund as well and all your gain is tax free. You can start with SGOV, then once you have enough emergency fund in the brokerage account you can switch to VOO Look up the money guy financial order of operations. I am non US citizen as well, all the tax advantage account in the US can be managed outside US. Everything is online these days

saryiahan

VOO and chill

dogs_gt_cats

You should have a "fun money' part of your budget, you're allowed to live, just be sensible about it. If you like to travel set some cash aside for it. I would make the following tweaks: 1. Modify the 401k contribution such that you can afford to fully fund a traditional IRA *POST TAX*, and then do a Roth conversion (backdoor Roth) in the new year. Keep it maxed. Reason being a 401k is limited to what funds are offered, an IRA you can invest as you see fit. 1. Once the IRA is fully funded, continue maxing out the 401k. 1. In addition to your plan for your emergency fund, I'd strongly recommend setting aside 1 month of bills worth of cash in a savings account too. SGOV is great (I use it myself for 6 months of bills) but sometimes you need cash immediately and can't wait for an ACH to process. Big ups for SGOV for maintaining a well of cash/deep emergency fund representing a few months of salary. It has treated me quite well. 1. VOO is fine, though I would strongly consider adding some international exposure as well (VXUS is great). Overall your plan looks great, more on the conservative side which is great for times like these (I also lean conservative in investing). Stick with this as the core of your account and it should treat you really well. Automate as much as possible so you don't fall out of your good habits. One thing to consider - I know housing in your area is abysmal price wise, but look up the term "house hacking". At your age it is realistic to pull off, it gets a lot harder once you set down roots. Being able to put down a few percent on a mullti-unit and have tenants pay most of your bills is not a bad deal, and equity is your friend. It's one of those investment strategies that gets harder as you get older with family you can't just relocate. Overall, really well done.

RickDick-246

I would lock in those gains and probably put it in ETFs. And I have. I don’t necessarily want it in SGOV. If I were just going to try to beat inflation and needed that cash in the near term, I’d probably just stick it in my HYSA. If it’s going to remain investment money, I’d de-risk it and go 80/20 VTI or VOO and VXUS. There are a million ways to cut it. You could take half and put it in ETFs, you could take a % and put it in SGOV or an HYSA, you could leave half in individual stocks. Just depends on your risk tolerance.

trix_is_for_kids

It’s the easiest individual stock to buy because as you said it’s essentially an etf. It’s like buying VOO, just dca and forget

SpcyCajunHam

DCA into VOO for 20+ years

spilledonwhite

Yeah but VOO doesn't go down. Max drawdown -2%

spilledonwhite

I will never ever ever ever ever ever ever buy a put on SPY ever again. My fellow bulls I am so sorry. SPY +1% every week until the end of time. Full port VOO. There is nothing like it.

Logical_Stranger4889

I’ve been eyeballing that. About 90% of my holdings are in VOO/S&P 500, have wondered about allocating 10% to like SCHD or something where the balance is slightly different

RickDick-246

I start from scratch every year when I update my allocation. I’d do the exact same thing I’m doing today. 80/20 VOO/VXUS. I just wish I had learned earlier. In my 20s I bought a lot of individual stocks and probably came out barely ahead but with a lot more stress.

Tentman66

I’m 52% VOO, 6% ASML and 5% SMH. I wanted the huge ASML overlap. 

Emotional-Power-7242

The philosophy behind VOO and chill is that you just buy the entire market at cap weight for as low a fee as possible and recieve average market returns. VOO returns by definition are average (US) market returns. Technically VTI is average US market returns but VOO is close enough as to make no difference. If you try to recieve higher than average market returns you are extremely likely to actually recieve lower than average market returns net fees. The only reasonable you would buy NASDAQ is because you think it will outperform VOO. So per this philosophy you will underperform VOO. So you just buy VOO.

Themeatmanofdoom

VOO and chill such a cheat code

Xalksahsax

Once SPCX gets in VOO I'll just buy leaps like I do with TSLA. At most I lose the premium. It's a fair trade for me.

Xalksahsax

Brother, I'm parodying the permabulls. I know the market's euphoric, but it doesn't mean I'm selling my VOO. I'll happily ride the gains.

dogs_gt_cats

This is a good approach. Alternatively, you can add a small tilt towards an equal-weighted fund that focuses on the same basket. For example, VOO (market cap based) vs RSP (equal weight). Downside is equal weight ends up being a little more expensive due to its active component when it rebalances. Market-cap based midcap is probably cheaper.

PiBolarBear

I have ADHD and my therapist used to tell me the world isn’t all or nothing but damn it feels that way sometimes. I’m doing something similar with much lower amounts. 80k in money market funds at Fido, 20k in $VOO and 10k in $MGK. 

SuburbSteve

Every 8 years plus or minus 4 years we will have a big market correction, so you have to be prepared to live through them. A 30 year old will see 4 big corrections by the time they are 60. It is part of the process , just buy VOO and VTI and never look at them.

-sakuranbo

yolo it in your college tuition then regret not putting it into VOO instead 4 years later

Immediate-Owl-6916

Setting a moonshot limit order the night before and having it not just fill but blow through your ask by market open is a special kind of pain only this sub understands. Turning the NFLX rug into a green week either way should count as hazard pay honestly. "VOO and leave the degen life behind" lasts about as long as it takes to glance at the next 0DTE chart, we all know how this ends. Godspeed indeed.

RemyVonLion

What isn't a meme stock besides VOO/S&P500?

tachyonvelocity

I'll save you guys the time: VOO YTD +13%, 1-year +23% OP's portfolio, which he's promoting for money, is YTD +12%, 1-year 17% Since he seems to be also concentrated in tech, the appropriate benchmark is actually QQQ, which is YTD +17%, 1-year +26%. I am up YTD +22%, 1-year +44% on a non-concentrated portfolio. Maybe I should make my own fund.

Fit-Engineer8778

Been bag holding MSFT since like an ape I bought the top last time and it finally went green. Contemplating just selling it and put the funds into exxonmobil and QQQM/VOO. Idk yet. Need a regarded take to convince me otherwise.

calvin_tam

People been telling me to VOO and chill, I say fk that, HTZ and chill in your brand new Lambo (rented from hertz)

Hopeful_Tea_7551

Thanks for the perspective. This is the only biotech stock I own, I bought the majority of my shares back when it was $3 a share. It's a company I've followed for years going back to when it was NantKwest...I otherwise don't invest in this sector. IBRX is a long term speculative bet for me. Curious if by "write options against them" you're referring to writing covered calls? If yes, I've been interested in that but not sure if it's a strategy that still works (even if you're conservative with how you do it). Additionally, when VOO, QQQ, VTSAX etc. are returning 15%-25% (give or take?) over not just a short, but intermediate to long term horizon...I also have a hard time arguing against investing in those, although I worry about whether or not those index funds, given that they track market cap weighted indices like the S&P, are truly as diversified as people think they are.

natewOw

Bro you're 20. You don't know fuck all about Jack shit. You don't have the education or the qualifications to be worried about this. Just VOO and chill.

Dazzling-Junket-7370

VOO if long term investor Very hard to out perform the market consistently Very easy to match the market always Boring but powerful

fuzzyfurrypaw

Since I’m not buying any more of it, I’m just gonna let it ride and hopefully it catches another wind in a couple years. VOO and SPMO are your friends if you haven’t got in and just want to invest instead of getting rich.

fuzzyfurrypaw

Depending on if you wanna get rich or just beat SP500. Full ported few years ago, and a pretty much flat till a year ago. Questioned my choice many times over the years but told myself just wait. Even after all the correction, currently I’m still beating VOO (unless it’s dropping further down). But I stopped accumulating semi after full porting and have been now just doing SPMO just in case.

Ok-Location-9544

If your in it for the long road, VOO is your safest bet bc it’s the stop companies in the US, not just tech focused or any other sector. Although tech makes up most of it right now, VOO adjusts as well. I do 50/50 VOO VGT and hope for the best in 30 years. There is some overlap, but I’m alright with it. I don’t see tech going away anytime soon.

hecarimstevejobs

Wish I just stuck with this. Was $VOO and chill from 2021-2024, thought I was smarter than the market o & sold out of it to rotate into individual names. Portfolio would now be up +100% if I just stayed the course. Instead it’s been stagnant, & actually a little negative since I tried being the Wolf of Wall Street. Biggest regret was buying $TTD at the beginning of this year. Turned 22k into about 7k in just under 9 months. Feels pretty bad.

coopermug

True. Most people I talked to lost money. I did too but I got lucky with AI and I was able to get back. If I start over again, I'd just buy VOO

bbddbdb

VOO has the lowest management fee of any of its competitors

Useful-Contribution4

Its a bubble. But who knows when it pops and by how much. You can still be up in the end. But im not a regard so I VOO and chill.

DocInABox33

Your basis is price, not returns. That’s ok because that’s where all beginners start. When you realize it’s about reducing your risk WHILE getting returns, you start to look at metrics that matter more. Look at the high and low for QQQ vs VOO. That’s called variance and when you standardize it you are looking at risk adjusted returns. As an example, would you rather have a 90% chance of 5% gain or a 1% chance of a 200% gain? Seasoned investor picks the first because not only is it better returns you also compound the higher return. Math part for above: The first option has an expected return of 4.5% (0.9 x .05) Second option has an expected return of 2% (0.1 x 2) The examples are extreme to illustrate the point. A more realistic understanding is compare the standard deviations for VOO and QQQ. The greater that number, the more risk you take. And remember it’s percentage of the dollar number. A lot of people assume if you are up 50% in one year and down 50% the next you are break even. But use a simple example to convince yourself it isn’t: YR 1: start with $1,000, 50% return, end with $1,500 YR 2: start with $1,500, negative 50% return, end with $750 So you could be up massively with QQQ versus VOO but the reason those returns are higher is because the risk works the other way. TL;DR better to pick the turtle than the hare.

Own-Committee-3934

If you VOO till you die you’ll be a millionaire

turtlenips69

Buy VOO

veryfastsnail99

DCA into my all VOO account. Degen wise some SPY puts but not trying to lose all my gains from earlier this week so lol

Particular_Rice9607

might as well buy VOO now

JungleRollers

Why QQQ instead of VOO?

ryuujinusa

Yeah, I don’t think there are many lower than VOO. I’d argue VOO is one of the lowest.

TrashBandicook

> It’s the cheapest way to buy and hold the S&P that I’ve found yet  Isn't it more like Walmart knockoff S&P500? They're not paying the licensing fees to S&P, hence the lower fees. But it also means they're using their own methodology that might show slightly different performance from say VOO.

MLG_Ethereum

Fun fact, WSB least mentioned ticker is VOO

No-Apartment1185

How about take half and put it into a VTI or VOO?

benchplayer3

From what I understand, you have minimal savings now, but in 5 years you expect it to be around $400k? I would probably do something like 80/20 S&P/VOO for 3-4 years. Around the 1.5 year mark before you buy, you're going to want to start taking money out of the market to keep in HYSA to stay liquid. You're also going to want to minimize capital gains for tax reasons, so structure it in a way that you know the money you take out has been in the market for at least 2 years.

newdad62222

I’m up about 75% YTD in my Roth thanks primarily to Micron, but the price had become the last thing I checked before going to bed and the first thing when I woke up, along with the many many times throughout the day. It became exhausting. I dumped everything into VOO recently so I could breathe, and I’m also not nearly as confident about MU as I once was.

Detailed23

MM's keep moving the money around then doing massive leg sweeps on retail, myself included twice this year. At some point this is all going to end because every sector has had this done. The final leg sweep will be VOO.

alwayslookingout

I love those huge red days before I had kids and more disposable income. I just DCA few thousands into VOO or QQQ every time the market dips 1% or more.

burner118373

Buy VOO or similar in a tax advantaged plan every time I get paid.

Superunknown999

You can still use funds. VTI and VOO for example. They track different indexes so it won’t trigger a wash sale but the correlation for gain/loss is like 99%. So if you own VTI and it’s down and you want to tax loss harvest, just flip it to VOO. 31 days later you can move it back to VTI if you like but in the meantime you’ll have essentially the same return in that 31 day period but now have a tax loss on the books.

HauHauHauHauHauHau

Says the retard that told someone with a $300 port to sell everything and put it in VOO

Halbaras

QQQ is honestly a pretty weird fund when you dig into it, and it's only as popular as it is thanks to being there first and the way GICS classifies companies. VOO is purely market cap weighted and as neutral as a single-country US bet can bet. Owning it isn't making any statements about sectors or technical strategies, you just own the market. It is legally classified as a diversified fund. QQQ tracks the 100 largest market cap stocks on the Nasdaq (the Nasdaq-100 index) only, using the weights published by that Nasdaq. This has never strictly been market cap weighted, and the Nasdaq has fiddled around with their methodology a lot over the years (and has dispensation to arbitrarily change the rules for their index weights in 'exceptional circumstances'). For example, under the rules they've introduced recently to benefit SpaceX specifically, companies with a tiny float can be up to tripled - so QQQ is forced to buy three times more SpaceX than is reflected by the actual pool of available shares. QQQ has become fairly socially acceptable for self-described 'passive' investors to slot into a portfolio for 'aggressive growth', but it's really just a proxy for US megacap tech, or a way to overweight the Mag7 within a portfolio. In reality the Nasdaq-100 is just the top 100 companies on the Nasdaq exchange excluding financials (so you get Kraft Heinz and Costco with the tech), which is a fairly arbitrary classification. Nobody obsesses over a hypothetical 'only certain NYSE-listed stocks' fund the way they do over QQQ. The reason it's not done more cleanly through a market cap-weighted tech vehicle is because under GICS rules, Google and Meta are counted as communications companies, and including that sector with technology would bring in the likes of Verizon. Tesla and Amazon are classified as consumer cyclicals, and you can't add that sector to a tech etf without bringing in Home Depot. The Nasdaq corresponds fairly roughly to what consumers imagine a 'tech company' is, so buying it is the default. QQQ isn't the default because it's a specific bet on weightings set by the Nasdaq exchange, which companies list there and mega cap tech continuing to dominate. None of that is actually all that passive. Legally they're not even classified as a diversified fund. IYW is arguably a better expression of what retail buys QQQ for, and if you look at it and go 'that looks too concentrated', you shouldn't be buying QQQ either. **TLDR; VOO is a real passive fund, QQQ is a mild form of active investing for people who like to think they're bogleheads without honestly engaging with the higher potential risk and reward.**

ThisIsMyRedditAcct20

You shouldn’t. VOO and chill. Something like 2/3rds of the time you are better just putting it all in right away, but if you are nervous, spread it out. In my tax free account I have individual holdings, but in my taxed one it’s all ETFs with roughly 10% in VO and 10% in VB.

ThisIsMyRedditAcct20

The heck are you on about? Put it in VOO and chill. Inflation is not at all hard to beat

Vast_Dare8583

Because the majority of investors are lazy and love ETF's. My mate works at BlackRock and he agrees with me, you're portfolio is your ETF. Plus I'm guessing the people that write VOO and Chill have a stake in VOO and would like to see their stock heading north ;o)

Three-stripes

Yup, I have generalized anxiety disorder. Diagnosed at the hospital. The way I cope with it is to not look short term. A few months is very short term, 1 year is still considered short term. Dollar cost averaging into VOO for 5 - 10 years is a more reccomended horizon to deal with this. I just drop money in once a month and I don't bother to check, I also only invest what I'm ok to loose. Past 5 years my returns have been ok, would definitely have been more if I had started to DCA earlier or at the start of my investment endeavour. But I tell myself I didn't have enough of a nest egg back then to have had the guts to DCA than I do now, doing it now is better than doing it tomorrow. Ur be more comfortable with your risk appetite and adjust from there

kikibuggy

Noob here but why VOO and not SPY?

Life-is-beautiful-

If you have other things to do in life, VOO (with auto invest periodically) and chill is a great option.

fredagainst

OP was asking about VOO vs QQQ and VOO is more diversified than the latter. Of course there are other ETFs that are more diversified than VOO

Sportfreunde

I don't think VOO is diversified, all its stocks are large caps and all in one country. VT is far more diversified. You're assuming the US will continue to be around the current 50-60% of the global market say 30 years later when you can see power and the foundations of current global order shifting in real time within recent years.

WorldlyWar2143

Oh Korea sweet Korea when did our paths first cross? looking back I see it well just have to find my very first loss I should've bought more I should've bought less somehow, I thought youd want the best for me and my money but boy I'm wrong you just want to take that money well guess what i'm dumber than you and all those stupid investors in VOO ill buy calls ill buy them all I'm grabbing this market by the balls please just don't let margin call now listen here you little shit I've got nothing else to lose this is my last attempt at finding a hit before my portfolio ties a noose none of your people are leveraged like me none of them at all margin threshold looking feeble again, like most of your people difference is, i'm still retarded look what you've just started a battle of the short bus riders whoever loses gapes the widest

Ramona00

Is there a VOO alternative for Europe?

Necessary_Roll_114

That's crazy good money. Why not stick it in SPY or VOO at 400k? That's loads of money, or put like 300k in your 401k and then play with the other 100? I'm not being a dick BTW, genuinely curios as to what your though process was at the time, as I want to try and recognise it if I ever see in myself.

WeakEchoRegion

SMR just needs to VOO and chill and it can retire in 60 years

BogleDick

I know they say not to put required cash in stocks but I’ve kept roughly 40% of my cash to close savings in a mix of VOO SPMO and VGT - all held for years with long term gains. Went under contract on 07/27 and just liquidated today. Had to swear it out the past 5 days but I’m fortunate the gamble paid off

default-username

1. NASDAQ 2. S&P 500 3. Dow Jones industrial average Those are the three most well known indices in the equities market. Look them up and learn about them. QQQ, ONEQ, QQQM, QQQE - these track the NASDAQ VOO, SPY, SPYM, SPYX - these track the s&p 500 And you shouldn't trade the djia, so I don't know any index funds that track that. All of these index funds are so that you don't have to pick winners and losers. You're just playing the market as a whole.

Wookiee27

If you want to not look at your portfolio everyday, buy VOO and VTI. If you do, GOOG MSFT AAPL.

wallix

I’m 52 and I feel like I have about 50k too much in savings. I would love to pay my house off but I still owe about 270k. Looking for a way to take a bite out of that in 10 years or so. Seems like VOO is the popular choice?

fortheloveofghosts

VOO, VUG, and VXUS and chill.

HeckleHelix

Last year I paid homeowners insurance my premium was $4k for the year. At the end of the year, my $4k was gone & I had nothing to show for it. For the amount of time I've owned my home, had I placed that premium into $VOO, set to DRIP & left it alone, my account would now be worth more than my house. Instead, the insurance company took my money every year, invested it, & they made the money. Better to just invest those premiums into your own account & insure yourself through quality ETFs & stocks.

Hooker_Thresh

Def have both but I built my base of 100K into QQQM before I started investing into VOO

UntitledCSGO

Part of it is the fee, VOO costs a fraction of QQQ to hold. The rest is that boring is the point here, a broad index you never have to think about

Capable-Commission-3

Mostly because Reddit investors are not very informed and too lazy to become informed. Not to say it’s invalid. VOO is excellent and if you can’t actively manage, tolerate risk, or are uncomfortable picking companies, VOO is excellent. But the dogmatic, matter-of-fact tone that comes with it is obnoxious. As for it vs the Q’s, VOO is more diversified, has lower volatility, and a lower expense ratio. Q’s are great when tech is booming. But when it’s not, it’s not.

scoofy

If you’d bought anywhere between 97 and 00, you would have broken even only 11 years later. There are time when the makers are, in fact, crazytown. VOO and chill is very good for 30+ year horizons.

Acceptable_Quit_9026

As others have said, if you have a fairly long investing horizon - say, 5 years or more - just invest in a diversified index fund, like VOO. Be aware that it can, and will sometimes, swing dramatically, and there will be red days - but in the long term you almost certainly will do well. Don’t check it every day if you don’t need to - just take a look periodically. Be consistent - keep adding to the fund whenever you have cash available. And let it do its thing. You’ll be fine.

HNeerkaje

Ok...I just realized I did not answer his question at all!! But I guess it's because S&P 500 by nature of it's construction is inherently less volatile then the NASDAQ 100 dominated by tech companies today. Tech growth won't last forever. What if tomorrow tech drops but energy sector is valued similar to tech is today? S&P 500 would beat NASDAQ 100 by a landslide. What if Financials take off? Tokenzation is coming, 24X7 trading on US exchanges will be real in a few yrs. So not only is SPX better suited to handling crashes in the tech sector because of it's diversity, but also able to provide the potential future upside of non-tech sectors. Bottom line: If you want long-term risk adjusted returns then it's the S&P 500 (been officially tracked since 1957). Hence I guess VOO & chill. Though personally I prefer BKLC (0% expense ratio) PS: I am not chilling..no pain ..no gain..my motto!!

infowhiskey

Former older coworker of mine (and friend) keeps 300k ish in her checkbook cause she doesn't know how to transfer money into a VOO like a position. Her words.  I explained everything but she said, nah, cash is fine.  It's not my job to invest for her, it is what it is. 

Worst-Eh-Sure

VOO follows the S&P 500, which has been crushing pretty much everything else since 2009. That means anyone born in 1991 or later would have their entire investing life knowing only S&P 500 outperforming everything. So why would they invest anywhere else? I’m concerned that when this glass castle of wealth collapsed a lot of people are going to lose everything. They don’t know diversification, they are all in on VOO. They will have no idea what to do when stuff hits the fan. These are the same people that think a 5% interest rate is “high.” Like compared to what? There is actually documented evidence of interest rates going back about 33,000 - 4,000 years. And the interest rates during Covid were the LOWEST IN RECORDED HISTORY. Ask anyone that bought a house in 1980, interest rates for a mortgage then was like 16%. I understand home purchasing has a lot more factors than just interest rates, but my point is that 5% is not high. Not at all. But because interest rates have been so low for so long there are plenty of adults that have no understanding of the longer history of interest rates or the typically cyclical nature of the stock market because to them it’s just invest in IS tech and that’s it, forever. When investment account balances go up most people think, “gosh I’m smart!” Versus when it goes down, people really look into it and try to figure out why. Lots of people right now think they are super good at investing because they are VOO and chill. Be real interesting to see how they handle the market changing to literally anything else. People - The thing I want everyone to do is diversify. Save yourself now and diversify. Because one day (tomorrow, next year, 10 years from now) the market will change and I do not believe it will be good for people that just stay in their cap weighted index funds on the s&p500.

GroundbreakingSir386

Some people want to sleep good at night but I think if 70% of your portfolio is in VOO or QQQM you’ll still sleep plenty fine investing in individual plays.

HNeerkaje

They track different indexes and behave differently. QQQ - Tracks the NASDAQ-100 Index Index consists of approximately 100 of the largest non-financial companies listed on the Nasdaq stock exchange. As things stand today they are dominated by tech companies but does not have non-tech giants such as Berkshire, Visa etc. VOO - Tracks the S&P 500 Index Index consists of approximately 500 of the largest US companies including financials, utilities, and energy. Ofcourse it also includes all the tech majors. VOO excludes any international stocks. Tech has been on a tear for a while now and hence you see QQQ outperforming. Both provide different exposures. You make your choice depending upon the exposure you desire, your ability to accept volatility, risk level etc etc. PS: **QQQ is overwhelmingly a concentrated subset of VOO**. When you remove the few international companies listed on the Nasdaq, nearly every single company inside QQQ is already owned by VOO.

Caz5-_-

Go VOO & chill brah. maybe a little in bonds to lower portfolio variance. Bro you’d hate my portfolio, absolutely beta maxed on INTC, MU, NVDA. Its rough over here, july had me a little nervous. Also ignore any SCHD recommendations, you need growth ignore dividends they underperform growth

Consistent_Laziness

VOO is up 54% on my Roth. The holdings I have above that is: AMD (182%), NVDA (83%), AVUV (55%), and special shoutout to FLR which is higher YTD but I haven’t had it for too long. In my rollover i did all this at the same time and since that time VOO is up 3%. What I have higher than that is: AMD (153%), VUG (12%), FLR (18%), AMZ (23%).

Budget-Class-1297

Wtf do you keep buying VOO puts for? It's one of the least volital stocks around. There are 252 trading days in a year and on average, except in a long bear market, it either goes up a smidgen or basically stays even for the day 215 of them. Even 2% decline over an entire week is pretty rare