VOO

alexunderwater1

I don’t have to take a call to fix a broken pipe at 3am for my VOO shares. That and it’s by far a better return in the long run if you can stomach, or better yet, add to your position during the downturns

RetroEvolute

Ideally both. However, with current interest rates, assuming you don't already own a rentable 2+ unit property, it's probably better to just throw the money in an index fund. I was lucky enough to get a 2 unit house with a ~3.5% interest loan (and paid 20% down so no PMI) in 2020. One of the units more or less pays the mortgage, and there are of course some random expenses, lawn mowing service for part of the year, etc, but it still brings in profit every month. Less than my VOO typically does, but it's not a 1:1 comparison. 1. Once I own the property fully (loan paid off), I'll have both units worth of income with the same minimal expenses. 2. Rent continues to increase with time, which is a great hedge against inflation. The loan value/rate also doesn't change, so inflation ultimately only makes the payments less imposing. 3. By retirement, I can just upkeep the rental and make enough to live comfortably in my, also paid off by then, house. This makes my other retirement savings more of a safety-net, overflow for spending. Now, of course there are random expenses and difficult tenants, etc. But I live close to my other property, and I vet the tenants myself. So far, I've only had very respectful tenants. I'm patient and I show them a lot of respect so I tend to get it back. The bulk of my hands-on maintenance is stopping by every few months to change HVAC filters. Every now and then I swing by to get a look while I'm running errands, but months can go by without an actual visit. It's really quite easy most of the time.

Grand-Teach8810

This is when you need to know the fundamentals of a company, and know if its outside forces causing market volatility, or the company fundamentals have changed. If you can't identify the difference, then you probably shouldn't own that stock. When a stock dips, that is a time to buy it when its on sale. This may take yrs, to know, and look at business you see and use in everyday life, do some research on them, and watch the stock for a good entry point. Buying the market, VOO and similar ETF's all but guarantee you a profit as long as you hold long enough.

InspectorDabbit_

If she's "investing" by buying shares of VOO/SPY, she's probably beating 90% of the people here

Ienjoymodels

You know that all you have to do is buy VOO right?

thesupahobo

I see a lot of problems with your perspective, and this same perspective is probably going to continue to make you lose money. For one, I don't know what stocks you are buying. If you are buying random stocks/penny stocks, you are gambling. If you want individual stocks, buy big companies and just hold. Also, an immediate 1% dip doesn't matter, especially in the long term. If you hold you probably would've made money. You put these sell limits on stuff you just bought and you are trading a stock. Most people fail when they trade short term. You want to know how to not feel anxious when a stock dips? Seriously buy and just wait. When you see dips, you don't sell like a moron. You wait for the recovery or buy more. That is how you get used to it and reframing how you see red days. I am going to use myself as an example, I bought 510 shares of AMD nov 2024. It dipped below $100. As you can imagine, I was probably down like $30k at some point on AMD. Now it is almost $500 a share. Im literally up $175k+ by holding for a long time. Another one. I bought RKLB only $2000 worth on april at $84.30/share. It dropped to like $77/share. Who cares. I hold and it is $143/share right now. Granted, I probably got a bit lucky on this. What i am saying is stop fucking selling when you see red. It is a moronic move. Stop buying shit stocks. If you can't deal with red or large fluctuations, stop being an active investor. Have an automatic system put in money weekly into an ETF like $VOO or $SPY and just forget it. Come back to actually making money.

The_Baron___

If you stop gambling and just invest in VOO for the rest of your life and remember this feeling it will be $40,000 well spent

Beneficial-Idea790

I've swapped to 60% in VOO gradually over the last year as I took profit from gains from my trades because I just couldn't deal with the stress of seeing the losses to the point where it was really affecting my daily life. Now I mostly do LEAPS (this makes me stress so much less) and really limited amount on short term options. So I guess, yes, I've learned my lesson?

Mzungufarmer

I see the same crying points about real estate ad nauseum on here. Most of those are solved by a property manager. I was military so my real estate story is a bit different since I had access to the VA loan. But I used that leverage with my low salary to retire in my 30s thanks to real estate. Wouldn't have been able to do that investing in VOO.

Mouse0022

and its unlikely an index like VOO and VTI won't bounce back up. By the time you get the signal to get back in the market, you already missed the bounce. Just put the money in, DCA, and wait it out. Another way to look at it, if you see a big drop and you're seeing losses in VOO/VTI, then that just means it's a time to buy more. Buy and hold. Do not sell.

holdencasey7

In a year you'll be saying "but I didn't buy VOO a year ago". Don't try to "make up the losses", just invest in index funds. Even if you get unlucky and always invest at all time highs, you'll be fine (https://www.sevenhillscapital.ca/insights-and-perspectives/does-buying-at-the-all-time-highs-matter)

AeneasKurtz

But *I didn't* buy $VOO at the start of the year so instead I'm down over $15k. If I stick to $VOO I won't make up the loses in such short time and it's just as likely I'll buy at the moment that the market begins its correction than if I bought an individual stock. That's my thinking and what's blocking me: I'm no longer comfortable taking loses after losing so much while the rest wins

Square-Conclusion735

Tbh 10 percent annualized while learning options through the dumbest market of our lives is actually a W compared to most of this sub. You basically paid a few percent “tuition” to understand risk, sizing and your own psychology, which is stuff you don’t get from just buying VOO. Lock in what you learned, size the YOLOs way smaller, let the boring stuff compound, and use the rest of your brain for real life. MU just covered part of the tuition bill 😂

leaning_on_a_wheel

Just buy and hold a broad index fund, that’s all you need to do. If that $100k was in VOO you’d be up almost 10% on the year.

ra__account

Most dividends by retirement age will be taxed as qualified, not at the ordinary income level. In general, keeping dividend paying stocks/funds in a tax sheltered account is good but if you're swinging for the moon with Rocketlab or whatever, putting those in tax sheltered accounts is good because if they 10x or whatever, the savings on the capital gains tax far outweighs making the 2% yield on VOO 15-20% more tax efficient.

OmnipresentCPU

I’m throwing like $3-500 positions at various 2x leveraged return stuff like AMUU on AMD and MUU for poops and giggles. But mostly resisting the hype and sticking to bagging VOO and VGT on a schedule

Legaon

I think what OP is actually referring to is the (capital gains tax distribution) part. Since IPOs + major IPOs, like (SpaceX) — has found a way to be included in these — indexes — S@P 500 index/FTSE Global All Cap index. The ETFs that “track these indexes” = (VOO) or (VT). And (SpaceX total valuation), is also being included with other “company revenue streams”. Tesla + etc. It just does not seem fair that: (1)IPOs, that launch on day 1 — should be able to bend the rules to — allow passive ETF investors to have to: (1)have ETF mangers sell massive amounts of shares in the ETF = massive capital depreciation activity/(2)use that money to now “buy SpaceX shares”. —passively managed ETFs, selling massive amounts of shares very quickly = major capital depreciation event. Big tax event for the (ETF manager). And the (ETF manager will just “have all of the ETF investors) — pay “tax event”. Capital gains distribution tax. Even though I do think that (space exploration + planet colonization of military bases + harvesting of the planet’s resources) — will become astronomically profitable in the next 10+ years. —>It’s just that: (1)if SpaceX IPO can bend the rules — and cause massive amounts of “capital gains distribution taxes”. Then, other IPOs might do something similar in the future.

Legaon

I think what OP is actually referring to is the (capital gains tax distribution) part. Since IPOs + major IPOs, like (SpaceX) — has found a way to be included in these — indexes — S@P 500 index/FTSE Global All Cap index. The ETFs that “track these indexes” = (VOO) or (VT). And (SpaceX total valuation), is also being included with other “company revenue streams”. Tesla + etc. It just does not seem fair that: (1)IPOs, that launch on day 1 — should be able to bend the rules to — allow passive ETF investors to have to: (1)have ETF mangers sell massive amounts of shares in the ETF = massive capital depreciation activity/(2)use that money to now “buy SpaceX shares”. —passively managed ETFs, selling massive amounts of shares very quickly = major capital depreciation event. Big tax event for the (ETF manager). And the (ETF manager will just “have all of the ETF investors) — pay “tax event”. Capital gains distribution tax. Even though I do think that (space exploration + planet colonization of military bases + harvesting of the planet’s resources) — will become astronomically profitable in the next 10+ years. —>It’s just that: (1)if SpaceX IPO can bend the rules — and cause massive amounts of “capital gains distribution taxes”. Then, other IPOs might do something similar in the future.

Singularity-42

The FIRE wisdom says that safe withdrawal rate that also accounts for inflation is 4%-4.5% - so you should be able to withdraw $400k-$450k every year, in 2026 dollars value, in perpetuity. This assumes investments in broad based index funds like VOO or maybe even better VT (or some Bogleheads mix). CDs are gonna get eaten by inflation and by the time you're 90 it may not even be enough to live on. You gotta stay invested in appreciating assets.

Fun_Training6342

Don't be greedy kids, but VOO and chill.

digitFIRE

I think you’re right. I don’t want this party to end. I’ll just highlight the letters in different colors on my VOO and Chill sign to make it look like I’m having fun. 🪊

suspiciousswimming8

i traded all thru sept-april and it wasn’t bad. i dont miss VOO at all. i just wish i started during the tariff crash.

digitFIRE

All of these semi conductor and space regards are making bank and I’m behind the Wendy’s dumpster holding up a “VOO and chill” sign with a sad face. Should I just jump on the ASTS, MU, and RKLB bandwagon now?

ubiquitouslifestyle

Call us when you’re not trading in the greatest bull market of all time. You’ll miss your VOO.

suspiciousswimming8

man if only i left that VOO/VT and chill shit last year. actual head in the sand

Whole-Specialist-706

fr that credit suisse high income bond fund is a massive red flag anyway considering everything that happened with CS a few years back. get out of that junk, liquidate the individual corporate bonds, and dump it all into a clean split of VOO and some safe short-term treasuries. your life will be so much simpler.

Outrageous_Tip_2133

A lot of people invest passively and never sell. If you buy ETFs of index funds like VOO/VTI/QQQ and never sell, that is the best way for retail investors to play the game in the long run. As an active trader or stock picker, you will always be at a disadvantage against bigger players who have advanced algorithms and often have major insider info before you will.

GatorBo69

To already have learned this lesson at such a young age is amazing to have. I don’t know what you lost your money on, but I would assume it was meme stocks or speculative trading.. Put your future income into more stable ETFs like boring ass VOO and VTI if you have to… And realize that you now have $100k of tax harvesting money that you can use for the rest of your life to offset your gains. $1500 a year if you’re single, $3000 if married. You’ll be fine, bud!

big-baller-47

My wife’s boyfriend has a higher return on his VOO stocks than my shitty MSFT 🫩

Few-Sail-6562

You get off of WSB and stop gambling. Reddit is a good place to find out stocks to invest in, but you have to do your own research too. Invest in index funds/ETFs right now if you cannot afford to lose that kind of money. Build back up and then dedicate a specific percentage that you can play with. I started with 5%. I buy some speculative stuff, but I stay mostly invested in ETFs like VOO and QQQ. Its boring, but my wealth is growing. I don't mind risky stuff, but I keep that to less than 20% of my portfolio. I'd be much more conservative if I was older.

JohnDuttton

Just always remember this would be $4.53Million if you just invest in VOO when you turned 65. That should help you sleep at night

Putrid_Pollution3455

Real chads pay for dates using margin spending off their insanely large pile of VOO

No-Ant-5811

Fair enough man, I appreciate the level-headed response. You hit the nail on the head with the timeline difference. ​At 52, I don't have a 40-year horizon to just sit around and wait out three different cyclical boom-and-bust periods. When you are younger, you can afford to hold a tech stock through a massive drawdown and wait a decade for it to recover. At my stage, capital preservation and actually enjoying the money is the priority. ​You are right that advanced memory has massive technological barriers to entry for new companies. But my point is that the current big three (MU, Samsung, SK Hynix) already have the tech. The only thing stopping them from massively overproducing and flooding the market right now is just the time it takes to physically build the new mega-fabs and the capital to fund them. Once those are built, the floodgates open and the margins compress. ​Holding 100 shares for 40 years is a totally valid play if you have the decades to let it ride and don't mind the extreme cyclical volatility. But for me, letting that 18% trailing stop protect my heavy position, scaling out at 1000 and 1200, and rolling the cash straight into VOO and FTEC is how I sleep at night. I'd rather be off the grid at the lake with secured profits than stressing over data center CapEx reports for the next ten years. Good luck on the long hold!

No-Ant-5811

"This time it's different" is the lie Wall Street sells retail investors right at the top of every cycle. People telling you DRAM is suddenly a "non-cyclical commodity" are completely ignoring how physical manufacturing actually works. From an operations standpoint, you cannot have a non-cyclical physical commodity when the only barriers to scale are capital and time. Yes, the demand for advanced memory will be constant and growing. But the supply is what makes it cyclical. When profit margins are this high, every manufacturer on earth (MU, SK, Samsung, plus the massive Chinese fabs) sinks billions into building new mega-fabs. When all that massive new factory capacity comes online simultaneously to meet this "regular" demand, the market floods, the supply bottleneck breaks, and premium pricing collapses. A continuous need for a product does NOT equal continuous peak profit margins. The world has a continuous, regular need for steel, plastics, and oil—and they are some of the most brutally cyclical manufacturing sectors on the planet. You can bet on the "non-cyclical" thesis and hold forever if you want. Im protecting my 270 shares by scaling out at 1000 and 1200, rolling the cash straight into VOO and FTEC, and parking my fifth-wheel at the lake for the summer. Ill let you guys hold the bag when Wall Street suddenly remembers how factory capacity actually dictates margins.

Ambitious_Arm852

Yeah all they do is "VOO and chill"

SnooChocolates9431

Put a high percent into VOO, then choose maybe 2-3 stocks you believe in. You want to be diversified but not so much where you have an alphabet of stocks you’re keeping track of. Also, time in the market > timing the market

Riggie_Prettycrab

Well done, buddy. Nice chunk to toss into VOO and start over at $15k. You got this. Or a Lambo. You could get a Lambo.

Deltrus7

Great, you learned, right? So now just start plugging away in shit like VOO and VTI.

MuchConcentrate

Who was able to buy (I guess not sell?) VOO at $630 right at 8:00 pm?

Fit-Way8939

VOO up 0.7%...

Bobbybobinsonbob

I personally just invest 10% into my 401k, getting a 8% match. And I invest 20% of my paycheck in VOO, so I can have a nest egg that I don’t have to wait until retirement to use Also at the age 29

Various_Couple_764

if you look at active verses passive funds it can be hard to tell if the active management makes a difference. Often the fund hold different assets . but if two find hold the same class of assets then often all you have to do is look at the total return for example PBDC has an expenses of 0.75% and BIZD has expense of .4% and both invest in class of companies called BDCs (business Development Companies) BIZD is a passive index fund. PBDC tries to pick the best BDCs. If you look at total return PBDC does have a higher total return. So sometime there is a clear advantage. Note due to SEC rule that these funds have to follow they have to report a fictitious total return of 13%. Neither of these funds have payed that much in expense. you hav got read the prospectus to see th actual number. If however you look at VOO and VTI yesterday the total retune is different but so is its investments.

Efficient-Fudge-3515

Is he? He’d likely do better just buying VOO and holding.

Frequent-Basket7135

I invested in volatile stocks for quite some time. I made a lot but idk if I’d do it again. It took up so much of my mental bandwidth. For round 2 I might just VOO and chill and live the easy life. It gave me enough to have a nice car and low payment on a mortgage. 

LetterheadWorth1985

I have a deeply shameful confession: Most of my money is on VOO. 😔

F1CKEN

VOO and chill

F1CKEN

i dont have the intellectual capacity to focus on any other stock besides VOO

Rph55yi

What about SMH and chill? This has far superior returns than VOO over the past 5 years. One of the top performing etfs of all time.

richierva

Soooo true! Here’s one: in one account there are about 8 corp bonds paying from 3.5 to 6%. Would you get rid of all the 3.5 and 4% that are losing a little? Reinvest in treasuries or even bnd or similar? Or maybe just VOO?

Maleficent_While2653

The entire global market is being driven by AI, whether you like it or not. You can diversify all you want, it's still AI driving your portfolio. Most of VOO is completely flat except for the AI stocks. Even the top names in VXUS are companies like TSMC, Samsung, SK Hynix, and ASML.

aleksdude

Like many posted here. At 25 I was broke too. Not too late to kick the gambler habit.. live the boring life of sp500 investor all in VOO.

WickedSensitiveCrew

Yea. It is Mag 7, SPY/VOO, and ETFs that are generally most recommended bull or bear market. Now it is a bull market you may get a wider variety of tickers since it safer to name drop stocks near 52 week highs such as a RKLB, NBIS, or memory stocks.

imlimonsson

If you have a plan on what you want to do, then do you even need a financial advisor? Sell off the corp bods / ETFS that are underperforming and buy SPY / VOO yourself and save on the management fee.

Serious-Mongoose-242

Over 95% of daytraders lose money, also more than 95% of professional money managers don’t beat the sp500 over a 10 year period. So all this work your doing could be beaten by just buying and holding VOO. Sad reality

hugh2018

Beating the S&P and safe investments are not compatible goals. If you can recalibrate your expectations and accept the very decent long term, inflation beating returns of the total stock market, VT is a great option (or whatever equivalent is available in your country). Yes VOO works out too long term, but if you study the history of the market, you’ll understand that international does occasionally outperform the US over significant periods (like the lost decade), and having exposure to both is a decent hedge against that back and forth.

RickDick-246

An expensive early lesson. Not to pile on to negative thoughts but it’s pretty clear you don’t understand options well enough to play them. I say “play” because it’s gambling. Not sure the time horizon on that $100k loss but if you just had VXUS/VOO for the last year you’d have about $120k. Next year you’d probably have $132k. The year after that you’d probably have $150k. This is a good time in your life to join r/bogleheads.

Sluzhbenik

The S&P is up 9% YTD. S&P earnings growth is up 28%. I don’t see this as an indicator that VOO is getting out of hand.

Kokachi_007

I would advise thinking long term and letting your investment grow for 10 to 20 years. Do fixed monthly investments you can afford regardless of what the market is doing. Invest in an S&P500 etf like VOO which will give you an average around 8% over 10 to 20 years. Also automate your investments.

alreadysharpened

VOO and chill…

whowatawhat4

Life let's you learn from your mistakes and move on. Download the docs you need to write off your losses which you can do $3k at a time on your taxes. Delete Robinhood. Rebuild. Learn long term investing strategies - i.e. VOO and chill. You'll be ok.

KeyInstruction641

*you are not with that company anymore. Sell it and put the money in something like SPY or VOO and then forget it.* *Or the WSB way buy the Space X IPO and go to Mars. Well maybe.* *GL retard.*

_iLL_Pull

Throw in some SCHD for the dividends with your VOO and you have your core. Then sprinkle some satellite plays and then yes, Chill.

FatFluffyFish

Yea I did. Rip that guy, sometimes VOO/QQQ/SPY and chill is a sagely advice.

badfirstimpression1

Build a hefty 80-90% VT/VOO base and buy stocks with the rest- for me I'm in RKLB, ONDS, and DNN. Use a ROTH IRA if you can as you can rebalsnce within it tax-free.

WeeklySignalLog01

VTI or VOO and chilll

Confuriously

• How did your net worth trajectory look afterward? It would be very much like compuned VGT and VOO for the foreseeable future. • Did you stay the course or shift strategies? I started investing around 27, and I was playing with stocks for the first decade. I have made some great decisions (+1000%) and some terrible decisions (-99.9%). After a while, I realized that I might as well put all my money in VOO/VGT and call it a day. I think if you have a promising career, this is the investing strategy you should use, just forget anything about picking stocks and timing. • What would you tell your 40‑year‑old self? I just turned 40 recently, so i can't say too much hahah

CommercialWeakness22

I tend to keep most of my portfolio in ETFs (VOO, QQQ, IXUS, QTUM and NUKZ) and usually only have a maximum of 5% in any single stock. Of a single stock runs and I can't make sense of the new valuation based on the news I will trim my position and look for reentry at a lower price, missed some gains on IONQ but it didn't make sense to me why it even got to 40 in the first place. POET I will not reenter because it is moving on pure speculation and the most recent news have been a 400m dilution and the loss of their main client. I am currently FOMOed into Joby about 15% of my portfolio but the current price is a good 20% above my entry and I see it going higher based on catalysts coming this year and early next year. Current losers I hold are FIG and NOW, those I was at first 40% and 30% up but currently sitting at ~10% loss, not worried since I only put a few Ks in them. Entered PATH last week with a small position, hoping for earnings to help the stock regain some of that 30% loss ytd.

Emotional-Power-7242

Not being in the EU actually makes it easier because you can buy US-domiciled funds such as VOO, VXUS, VT, etc. EU investors can't buy these funds and instead have to buy EU-regulated funds (usually domiciled in Ireland). A quick search shows that Serbia has some regulation on transfers to brokerages, that they must come from a local bank. You'd have to ask a Serbian source about that idk. You may also have some Serbian tax advantaged accounts we wouldn't know about (401k equivalent or whatever).

InvestingNerd2020

You can purchase VUSA with Interactive brokers. It is the equivalent to VOO in the USA.

PM_ME_PHYS_PROBLEMS

Just tell them you're all in on VOO and they'll get bored.

planes01

I think what you and your father are doing is amazing. Your picks are good (personally I would just do all VOO for simplicity though). My recommendation is to continue investing like this once you take full ownership of the account and you will be well off for a long time. I hope to do this with my kids someday.

Ziegelmarkt

1: Awsome for you. I'm working on financial literacy with my 10 year old daughter and this summer we'll start doing something very similar, albiet at a much lower monthly contribution. 2: Nothing wrong at all with your picks but ***Consider*** swapping QQQ with VGT and VTI with VOO. I'm not going to get in to why they're my personal preferences, so read up on them yourself and see if you think it's a good fit. Only thing I disagree with is SCHD at your age. Dividends are great, sure, but save that for late stage investing when you're focused on wealth preservation and starting to do monthly/quarterly withdraws. Instead, maybe drop that 16% down to 10% and put it in something more aggressive like DRAM or EUV (ETFs) or a single stock in a booming sector.

m0viestar

No etf or fund manager is going to be putting in buy orders in IPO day, that's not how fund rebalancing works.  Most large funds like SPY and VOO rebalance quarterly, and a mid-june IPO means they won't make the Q2 revbalance.  

Beyblade_Badboy

This was actually a month ago. Doors open for him but he was so worked up that he was so underpaid for so long. I honestly think he is just mad at himself and this was an epiphany? He was also a swing trader and when i showed him my VOO and chill position; i think he felt like he was doing it all wrong.

Various_Couple_764

Many pension funds don't own ETF like VOO. They have commitiies that evaluate individual stock and then buy those individual stocks. And they have people to do an independent evaluation of the stock before they buy it.

AconcernedPickle

At 2 trillion, spacex in VOO will account for roughly .12%. Even if they quadruple the valuation or float, it’s still less than 1%. Maybe it’ll join other large caps in the 3-6% range someday, but holy hell overreacting. In all my several years, I’ve never seen such stupidity as I have over spacex. Are the rule changes bogus? Yeah. Will it destroy your 401k/IRA? No. Will it be cool? Not really. Is Elon a twat? Sure. And if someone is really going to trade on moral grounds, they better liquidate, convert to wampum, and hide that ish under their mattress because ain’t none of it moral.

ThatLooksRight

VOO and chill, man!

Mobile-Bar7732

Considering there are very lax rules for algorithms and trading I think Elon is going to use an automated trading platform to pump the stock price so it can meet the minimum requirements for index inclusion. This is why he's been fighting to lower the requirements. Once it's in the indexes, funds like SPY, VOO, QQQ, etc are forced to buy shares when they rebalance the funds.

Adventurous_Elk_4039

That’s only assuming the US outperforms. What about last year when international beat the US? If you had only VOO, would have been missing out too. None of us know the future.

Jdog86788888

Well it depends what your goal is. If it’s income, I’d say O or KO. If it’s growth and just let it ride, I’d say NVDA. If it’s just a regular hold and chill path: VOO. And it depends the account: Roth vs taxable.

InvestorAllan

Agreed. And double vote for VOO

InvestorAllan

But then you miss out on USA growth. I’d double down on USA ETF. VOO! Foreign diversification is for much bigger portfolios. IMHO

spddemonvr4

That's funny. Jokes aside, i feel anyone with less than 100k should almost never go cash(unless it's needed). Their ability to time the market is more likely delayed and will miss more upside if they just sit and hold. And if you need to get out of a risky trade, move it to something like SPY, VOO or VTI, don't sit cash.

Fastest_light

VOO, or VTI, QQQ, QQQM, no individual stock, no cryptos.

millerlit

I would choose an ETF.  VOO because they regularly take out bad companies and put in growing companies.  They do all the research for you.  VOO is the sp500 which is the market benchmark.

ServerTechie

Switch to FNDX instead of total US market (VTI), S&P500 (VOO), or Nasdaq (QQQ). FNDX uses RAFI fundamentals index to select stocks based on company health and cash flow, not market cap or hype. If you use a target funds though in 401K or otherwise, you’re kinda stuck.

w3bCraw1er

Exit VOO, VTI

w3bCraw1er

Thanks. That means I need to exit VOO and VTI.

EndMaleficent3798

Niggas bought VOO and then said how come i didnt 2x my sbjft

gentlesandwich

VOO is up 30%+ YoY. We're so obviously overdue for a correction, it's painful.

paninimeanie

VOO and chill brother

Alex-CPA

VOO

juicevibe

Wow. Clearly you don't know how to pick stocks. Stick to VOO or QQQ.

EvictionSpecialist

100% of either. These two are basically the same IMO. With the last 5/8 yrs I prefer XLK, but it's all tech stocks. But I've been quite happy with it. I hold more XLK vs VOO.

A_Guy_Trading

this is incorrect. VTI is over 99% the same as VOO. The difference is the .07% exposure spread across almost 3000+ companies for VTI. The other 99%+ are exactly the same as VOO

colbyshores

It wont be in the S&P500 because to be included in the group the company must be profitable for which SpaceX is not. VOO n' chill is still the way to go.

kinetic_honda

I fear the sentiment around this stock is going to drive young investors away from index investing and will unfortunately lead to so many people missing out on compounding growth over so many years. Scary how many people on reddit are talking about trying to divest away from VTI/VOO because of this. To each their own I suppose

Sotarif

I’ve done some research on this and the simplest solution is to move to SP500 index ETFs like VOO, add some momentum like SPMO, tech like SOXX and international like VXUS. That carves out any forced inclusion IPOs like SpaceX, Openai etc. Then if you want some space diversification in your portfolio add a small amount of an etf like NASA which has a number if space stocks. It does have a small l slice of spacex pre ipo and is obviously risky. But I think there may be more upside in space stocks in general. I don’t like any changes in index rules like Nasdaq has approved which only benefit employees founders and pre ipo investors so they can cash out at obscene valuations. But that doesn’t mean these stocks won’t be a buy after a period of setting or probable decline.

CJBlueNorther

Damn, have y'all looked at Autozone's all time chart? Why VOO and chill when you can Autozone and chill?

Far-Doctor3527

TLDR: VT and chill Hello, responding here because I am also unhappy that my passive funds will buy SpaceX. I have decided to not take any action regarding the SpaceX IPO, and accepting that my funds will buy it even though this IPO seems like an obvious grift. I am not trying to convince you to take action or not take action, just explaining my reasoning because this IPO has made me worry about my portfolio and maybe this will be helpful to you in your own decision. First let's understand what types of funds could be affected by the IPO: \- Total world market funds (VT and the like). These track the total world's equities market, which is roughly $154 trillion in market cap. \- Total US market funds (FSKAX, FZEROX, VTI, VTSAX, and the like). These track the total US equities market, which is roughly $77 trillion in market cap. \- S&P 500 funds (FXAIX, VOO, and the like). These track the largest 500 companies in the US by market cap, which total to about $62 trillion. Note that this is about 80% of the total market. \- S&P 100 funds / Mega cap funds (FGRTX, QQQ, and the like). These track roughly the top 100 companies in the US, totaling roughly $55 trillion. Note that this is roughly 70% of the total market, and roughly 89% of the S&P 500 \- Large cap funds (FNILX, FSPGX, and the like). These are functionally equivalent to the S&P 500 so I will not add anything here, they may be slightly larger or smaller percent of the total market than the S&P 500 depending on holdings. \- Mid cap, small cap, and international funds: unaffected The first thing you want to think about is: what are you invested in? You don't have to go super granular but most passive investors have their investments in some version of the above funds. Are you more of a total market person, or more S&P 100? It doesn't matter which one you are, but take a look at your portfolio and understand what you are invested in. Now let's assume SpaceX does IPO at $2 trillion and let's look at how the SpaceX IPO affects the broad categories: \- Total World Market Funds: 2 / 154 = 1.2% of the total world market \- Total US Market Funds: 2 / 77 = 2.6% of the total US market \- S&P 500 and other large caps: 2 / 62 = 3.2% of the S&P 500 \- S&P 100 and other mega caps: 2 / 55 = 3.6% of the S&P 100 Now let's assume that the worst case happens: SpaceX IPOs at 2 trillion, and then the price goes literally to 0. If you are mostly in total market funds, your portfolio would go down by 2.6%. If you are mostly in large cap funds, your portfolio would go down by 3.2%. If you are mostly in mega caps, your portfolio would go down by 3.6%. But let's be realistic, even with this IPO likely being an Elon grift, do we really think this is going to 0? I don't. Maybe it loses 50% of its price, maybe 80%, I don't know. But it's a real company with real revenue (though small revenue compared to its huge valuation), so it's not going to 0. I'm not going to redo all the calcs but just for example, assuming it goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by 1.6%. But here is the biggest consideration: 100% of SpaceX is not going to be publicly tradable. We don't know exactly what the percent it is going to be but likely only like 5%. This means that the indexes will only track 5% of SpaceX's market cap. So assuming SpaceX IPOs at 2 trillion and goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by (2 \* .05)/62 = .16%. To be clear, this is like a fifth of a percent, which is inconsequential, the market moves more than this on a daily basis. Another point: I don't know what is going to happen in the future: I don't know if SpaceX's price will actually shoot up for whatever reason, so as an uninformed person, I think actively shorting SpaceX is not a good idea. Remember the famous quote "the market can remain irrational longer than you can remain solvent". I am a regular person and don't have any privileged information about what is going on with SpaceX so I think shorting it would be equally risky to shorting any other company that doesn't have a high-profile controversial figurehead as Elon Musk, which is something I wouldn't do (and likely something other passive investors wouldn't do either). At the end of the day, passive investors get to benefit from all of the companies in the market without having to do the work of researching and understanding each business, and making bets about which one will go up or down. We have benefitted from all the other great businesses that have continued to skyrocket without having to use a second of time to evaluate them. If you want to take action against the SpaceX IPO that is totally ok, but you could be introducing complexity to your portfolio, and spending your valuable time thinking about how to hedge against something that will impact your portfolio less than regular daily market fluctuations. Again, not trying to convince you one way or another, and to reiterate, I am not happy that I will be buying into this IPO passively because I do think it is a grift, but by looking at the actual numbers I have decided that this is not consequential. So to summarize all of this information, even though I am more of a Fidelity stan than Vanguard, "VT and chill".