VOO

PidgeySlayer268

50k VOO, 30k QQQ

Dstein99

I wouldn’t be concerned about such a small difference expense ratio, the holdings aren’t 100% identical so VOO could easily accidentally outperform FXAIX by 0.015%. The bigger difference is that FXAIX is a mutual fund and VOO is an etf, if that matters to you choose whichever you prefer, if it doesn’t, I wouldn’t be concerned about which one you choose. Fwiw I prefer etfs because like you mention they’re easier to transfer, I don’t own mutual funds so I don’t know about this but I have heard about mutual funds having taxable capital gains distributions, and an etf lets you monitor the price intraday rather than needing to wait until market closes to reprice.

InvestingNerd2020

SapceX will still be in target date funds. Since most people just blindly accept the company 401k/403b plans, Elon will still get his money. Just not S&P 500 funds, small cap, nor international. It's a great time to invest into a S&P 500 fund. FXAIX, SWPPX, VFIAX, VOO, IVV, SPY, or SPYM.

HelloTheirCruleWorld

I do VTI in Roth and VOO in brokerage personally

YourChildhood5762

You can exclude MAG7 easily but you can't have your cake and eat it too. If you believe that those companies will fail then just hold on to VOO until they fail and they will leave the portfolio, being replaced by stronger companies. If you object to them on a personal basis then tough luck. Find a safe, conservative ESG etf and be a social justice warrior living in poverty and blaming it on the man keeping you down.

a_cosmic_joke11

Do your research into what the top 5-10 companies are going to be the next 5-20+ years +VOO. Wait to have gains on the rest, take your profit, move 75% into those top 10, 25% into VOO, Roth IRA, gold bullion, etc.

YourChildhood5762

I won't comment on your choices but it will be hard to rebalance 36 equities, even yearly. They move fast in a bull market. I would try to get it down to ten to fifteen ETFs which your stocks plus a few that you hadn't considered. That will take some work, and you need to find a website that will allow you to look up one of your favored stocks and see what ETFs hold it. ETFCHANNEL will let you do that but will also try to spam you. I agree that VOO has become unbalanced but you have to hold those big stocks in some way in order to get the big gains the market offers. There are funds that hold only the MAG7, the top 25, top 50 or top 100. I use XLG. You can allocate those ETFs at a smaller percentage than other portions of your portfolios so that if the tech boom crashes, you aren't hit as badly.

Translude

You could explore Wealthsimple’s custom index account - think it’s replacing the direct indexing accounts. Essentially you can build your own index, so copy VOO but exclude the companies you don’t want to hold.

Admirable_City_9654

Regarding what you’ve found  you’re actually touching on one of the biggest blind spots in global investing. Yes, using a US ETF like VOO as a non-US investor can expose your estate to US estate tax once US assets go above $60,000. That’s the real risk most people only discover late. That’s why many switch to Irish UCITS ETFs like VUAA. They’re generally outside US estate tax scope and also more tax-efficient on dividends (around 15% effective US withholding inside the fund vs 30% at investor level). Yes, the fee difference (0.07% vs 0.03%) exists, but it’s small enough that tax efficiency usually matters more long term. Other common choices are CSP1 or IWDA if you want broader global exposure. So the real decision isn’t just cost —it’s structure, tax, and estate safety. Are you optimizing for the lowest fee on paper, or the most efficient setup for where you actually live?

Antique_Basil_4641

Thank you for providing the outcome of your experiment with stock picking. I feel so often like I'm making a mistake by just buying VOO/VXUS (and, recently, rebalancing to a 10% SPMO tilt) and that I'm being 'left behind' by not holding stocks that moon...sounds like I need to just stay the course and trust VOO to do its thing.

Antique_Basil_4641

I switched by VTI over to VOO in my IRA, but that's about it. Still going to keep DCA as usual - what else can we really do? It is all a house of cards anyway IMO.

JonRadian

I'm keeping my VOO position but will rebalance out of QQQ, which is fasttracking Space X, Open AI, Anthropic. QQQ should be ashamed of itself.

Kqzxh-900355

VOO sucks because it only filters stocks based on market cap that’s why it’s passive. Get AVLV etf instead. It screens stocks based on value and profitability of a company.

AvailableRoad7489

I'm 19 and a college student, so I don't have a job at the moment, any money I get is from my parents. I am trying to be more conservative + saving-oriented, so I'm taking a percentage of what I get as allowance and trying to invest for the far far future. Therefore, I don't think I'm eligible for Roth IRA as I am not a single tax filer. I think I'll just start buying into VOO and setup a recurring payment or something of the like. Thank you for the prompt answers!

OrganizationLong482

AI is carrying almost all of VOO’s gains? You’re basically asking to invest in VOO and make no money

onerandomcomputerguy

It literally doesn't matter which ETF. Someone already calculated it and VOO, SPY, VTI, etc, it's all a tie in the end

asiansensation78

You could allocate some to an equal weight S&P 500 ETF like RSP. Equal weight has outperformed in the past, though it has underperformed for a couple of decades now. You lose the momentum following effect of a cap weighted ETF such as VOO/SPY.

B00marangTrotter

Correct Tesla is 1.74% of VOO (I hate that btw cause fuck that nazi), SpaceX is not in it and NOT fast tracked to be in the s&p500, that lovely news dropped last week. Every way I've looked at SpaceX all I see is real time turd polishing.

amg-rx7

SpaceX is not going to be included in the S&P 500. S&P stated that last week. It’s unlikely they will make any changes for the AI companies wrt inclusion either. VOO will be fine.

Nonameheroz

Pay off your tax and Buy VOO?

zxc123zxc123

Well Nasdaq100 isn't getting nothing for it. SpaceX will list on Nasdaq rather than NYSE. Such an arrangement is to be expected during a Trump admin with a lot business quid-pro-quo already going on in Washington. Some in the ETF/LETF community swear by QQQ/TQQQ saying it's just the "better" version of VOO/SSO/PRO akin to how US investors say VOO is just superior "back tested performance" VT. I always felt I'm getting "enough" returns with the VOO and any extra I need I can get from margin, leverage, and/or options. Either way, not my problem since my CHAD-VOO/SSO/GOOG/GOOGL/BAC will be dumping SpaceX onto QQQ-virgins.

Consistent-Depth-703

If you can, open up a Roth IRA and deposit any post tax income you have earned in the last year. Invest in VTI, IVV, VOO any cheap index and you will thank yourself in the future.

Badmoodsbear

I would encourage you to go look at the actual holdings of those specific ETFs if you want a good chuckle. #4 and #8 on VTV #1, #4, #5, #6, #9, #10 on IWD. If you want to play the game OP is asking about, you better get more creative. OP -- If you're asking this question to reddit, you don't have a clue. Buy your VOO and go live life.

Old_Tourist2250

More VOO

Emotional-Power-7242

Short them individually or buy value, small caps, exUS. The point of VOO is to chill though. Don't worry about it.

Iunatic

Should I dump my MSFT for VOO? I can't believe I have to worry about fucking dilution like I'm holding a SPAC lol

Forget_me_never

You could sell most of your VOO and buy VOO companies that aren't AI related.

jonroobs

He’s up 31% past year, 15.5% ytd. Comfortably outperforming VOO on both those time horizons

Key_Lifeguard_8659

Look for a equal-weighted ETF with the ticker RSP or there's SPYV...a cleaned up (value) version of VOO.

ajuhssi

VOO

Original-Poet1825

VOO is not adding SpaceX. And it’s the entire market cap that’s 1.7T, not the revenue. Do you really think you can beat the market when you can’t even do basic research?

OxRedOx

The issue is that I believe there is an AI bubble. The war didn't kill the cheap money and credit or drive money to bonds. In 2023 NVIDIA wasn't worth this much, the other players were further behind, and AI data centers weren't what was holding off a recession. I think this growth, which has been accelerating, isn't sustainable. Dot Com lasted multiple years, until it didn't. I'm not touching my long term investments but I'm considering dumping my QQQ and NANC for VOO, and dumping my Intel since only a couple months ago it was at 40.

harpers25

No, the NASDAQ-100 is not "all" of our retirement funds. Actually, until a month ago, I very rarely saw anyone on Reddit recommend it, as opposed to VTI or VOO. For some reason, everyone on here suddenly thinks that 1 stock that will constitute about 0.2% of *some* index funds is sucking up all the liquidity in the world.

nicolas_06

I am not getting flustered, I actually actively work on reducing my tech exposure because of that. just saying that SP500 at least has sound grounding even through it would be better with a cap by sector or per stock to force diversification. like not more than 25% in 1 of the sector and no company with more with say 2.5% of the index would be great. to me for indefinite term, I’d choose VT any day vs VOO or QQQ because we don’t know the future. focusing on VOO 35% tech or QQQ tech related perf is by definition short term.

Vegetable-Pay1976

VOO is only US and heavily concentrated. Use RSP for equal weight. DIA for less tech. QQQM for more tech. VEA for developed markets (Intl) and EMXC/IEMG for EMERGING markets. Or just MSCI/IEFA\VTI. Van Eck even has sector specific ETFs but indexing is king imo.

sermer48

In theory you could short the components you don’t like proportional to their percentage of the index times what you’ve got invested in said index. You’d have to pay the borrow rate but I think that’s the only way you’d be able to exclude AI companies while staying invested in VOO. I think that would be counterproductive but since it’s what you’re asking…

chris_ut

You have all your retirement funds in QQQ? Thats unusual but you can solve the problem by switching to VOO/SPY which doesnt have fast tracked inclusion.

chris_ut

Been holding VOO since 1998 or we talking individual tickers.

socalkid2428

When the VOO includes these companies the OP will by default be invested in them. It's a trivial exercise to calculate the allocation to whatever companies OP wants to include and figure out what dollar amount that is. Then short those companies in those amounts and you have a net zero exposure. If you're forced to bet $10 on red and you really don't want to then you just bet another $10 on black (and some small amount on 0/00) then you're effectively neutral. Except in the stock market the house edge is a lot lower. May not be possible in a retirement account but you could just do it in a regular brokerage account. The amounts would be small relative to the total invested in VOO or other equivalent funds. I think it's a bad strategy because the point of indexing investing is to avoid letting personal opinions get in the way of what companies you're invested in, but it's the strategy to accomplish what OP is asking. I suspect most of these posts complaining about being forced to be invested in these companies are performative and people won't follow through with anything. Especially if they go up in value. Nobody is going to return those gains. And if you really think these companies are going to end up as failures the stock market has much bigger issues and you're probably better off just investing in something else completely.

Tarun122

trying to exclude AI from VOO is basically trying to exclude the entire market at this point. if you're really that worried about concentration just add some small cap value or international and call it a day

ThePermMustWait

Maybe, I just went VOO/VTI/VXUS for 98% of my funds.

ToonamiNights

GSEW and EUSA are equal weighted indexes with low expense ratios. So LILY and JP Morgan have the same weight as Nvidia and Google. However over 5 year + periods these will likely underperform VOO or SPYM. S&P index funds drop companies that shit the bed and reallocate for you.

hangukfriedchicken

Why are you so worried? It would be less than a 0.5% weighting overall. Mag 7 stocks weigh at over 7% of VOO each.

JabCrossE4E5Quark

Instead of 100% VOO you can do something like 110% VOO and 10% short semis. Keeps your gross at 100% long but will outperform VOO if semis underperformed. You would need to add leverage through margin, using options, or leverage etfs though

cryptopo

Pretty much yeah. Psychologically, people should think about VOO less as a specific ticker with a specific price and PE and more as just “America’s 500 best companies.” I’m perfectly happy just leaving a good chunk of wealth there over large timescales with that framing. We sacrifice/forego a lot in this country (infrastructure, healthcare, education, etc) to give our business overlords free reign. I certainly want to get as big a piece of it as I can.

_SirPunsALot_

Did you build a portfolio that consists primarily of VOO so you could pick stocks or did you do it to own an index ? If former, VOO is a wrong instrument for you. If latter, you are wasting your time trying to actively manage a passive instrument.

crazybutthole

Me I used to own a hundred shares of QQQ and QQQM but I have been slowly selling all the shares in my IRA 😔 I was going to start some weird sector thing with dfus until sp500 recently announced they wont rug pool for SpaceX so I am loading up all my handy cash into VOO and SPYM. And it actually came at a good time for me cause I sold a lot of QQQM and QQQ - Thursday and Friday morning. Then Friday the bottom dropped a couple inches. So that was good

tocinoman

VOO or SCHG and wait 30 years

cowboy_shaman

Well the good news is SpaceX won’t be able to join the S&P500 ($VOO) for 12 months and has to also show profitability. The market will have determined its fair value by then

redditfirefly

Couple of things to think about to stay in US stocks but reduce exposure to the big AI scalers and Mag 7. Reduce VOO and shift some to VTI. Broader set of companies. Or shift some to RSP-a fund that is equal weighted. Or consider some VTV, value fund as a way to downshift your exposure.

IntergalacticPodcast

This question seems odd to me. Have you considered investing into individual stocks, diversifying withy the stocks that you like from VOO and getting rid of the ones that you do not like? The entire point of buying and ETF is trusti8ng that they know what they are doing.

ForeverInTheSun82647

Did you read what I wrote. Defense sectors. Not the defense sector. Portfolio builders use defensive sectors to round out Risk. Such as healthcare, staples, finance. They won’t draw down like tech in a bear market. Utilities and energy are good too. If you just have VOO or an S&P etf it’s heavy on some sectors and light on others. All really depends on your risk tolerance and what your financial goals are. Everyone is different and their portfolio should be built and catered around their risk profile.

Pepston

Just roll with it. Nothing makes sense anymore like we saw with Tesla. Just put it in VOO and chill

kuedhel

funny, this is what I already had besides VOO. Thank you.

Constant_Ad_4811

**SpaceX, OpenAI, and Anthropic would not hit VOO on day one of an IPO.** They would first need to trade publicly for a year, then meet the profitability criteria, liquidity criteria, float criteria, market-cap criteria, and still be selected by the S&P committee. That gives you a decent monitoring window before they ever become part of VOO.

someguy-79

Those names won’t be part of VOO for a while because of S&P 500 restrictions.

FarVillage188

short them. let's say you have $1k in TSLA through VOO. you can short $1k in TSLA and you'll be TSLA neutral (any drop or gain in value through VOO will be offset by the opposite impact through direct TSLA holdings).

Illustrious_Gift1609

VOO #1 VXUS #2. Stocks…MO, ABBV, IRM MAYBE PFE

dir5029

S&P, the index provider which decides the makeup of VOO, is not changing its inclusion criteria to add new mega AI offerings quickly. You may want to consider adding RSP, the equal weight S&P 500, to your 401k to balance things out. RSP has retuned 800% since 2003 (its inception) compared to 807% for the SPY (tracks the S&P 500 like VOO) over the same time period.

NinjAsger

OF is asking " What strategy can be used to exclude new AI companies (Anthropic, Open AI, Space X) from this VOO positions ".

KushSouffle

You probably shouldn’t be an ETF if you are concerned about the individual holdings. The whole point of VOO is to buy it and add to it. You are buying the top 500 companies on the US stock market. Let the managers manage.

waymorerocks

Exactly. If you are buying VOO you are accepting you can’t predict what will or won’t be a winner. There is the possibility these companies could be good for VOO and your returns, you simply don’t know. There will be no fast-tracking, if they earned a spot in VOO then they meet your investment thesis. By excluding them, you are stock picking. These IPOs could be a bust, or they could be the next MSFT, NVDA, META etc that account for the majority of your returns for the next decade.

Much_Candle_942

VOO follows S&P index, which hasn't done fast track inclusion for the new IPO companies you mentioned. If you want to hedge against AI bust,  * Buy a put option on any AI focused ETF which has heavy weightage on the names you want to avoid. * Buy SOXS or similar inverse ETF. Both these strategies are short term hedges. In long term, the best way is to gradually sell VOO and go into equal weighted index or some other ETF of your choice.

Aromatic_Location

Which new big AI companies that aren't valued fairly? I ask because I don't think any of them are publicly traded yet. They're looking for an IPO this year. Also you're ok with Google and Meta, the largest AI companies but not others? I think you should just stay in VOO. You may not have an investor mindset.

MyAccount2024

The strategy is when the companies collapse VOO removes them from the index.

FreeOGPoohShiesty

It really is as simple as dumping money into VOO and trusting the process isn’t it? Maybe some VXUS. I’ve been doing this for a long time and see the results but I’ll get bored and buy stupid shit sometimes.

volckerwasright

That is far more capital intensive and would likely require selling VOO, unless OP has a massive unallocated cash position

iPhoneOver9000

This makes no sense. You buy an index yet you want to exclude certain companies that will be included. Then go sell VOO and buy all the other 497 companies and not Space X, Open AI and Anthropic when they go public.

daily-trader-365

Stay in VOO then

SuburbSteve

Absolutely wrong. I have held VGT and VOO for years and it was an informed decision and they have done well. Many people, especially under 50 hold way to much bonds or fixed income they should be 100% equities.

crazybutthole

You have a year until it becomes a problem SpaceX goes public in five days and cannot be added to VOO until it shows four profitable quarters in a row. Same will apply for anthropic and openai. Relax. We got time to figure this out - if spacex magically reaches $6 trillion valuation in a year then come back and let's freak out together

Pecanpie007

Not sure what you are trying to achieve, not making money? VOO without the AI companies won’t protect you from draw down. If market tanks everything will tank. Maybe go with BRK if you are so concerned about valuation. But ‘cheap’ valuation doesn’t necessarily mean ‘safe’ or ‘has room the grow’

Strong-Hovercraft702

What happened to VOO+chill

spilledonwhite

Non-degenerate coworker just texted me asking if I would be in tomorrow and that he wants to buy the dip on VOO and VUG. Bullish.

BraPaj2121

Look at VOO holdings… what % are these companies? Tesla is 1.74%.. if you add up all the ones you are worried about it is probably <5%.. if those companies go to shit they will get cycled out of VOO

almarcTheSun

This person asked a specific technical question and everyone is here preaching why he's wrong to ask it. Feels more like r/wallstreetbets at this point. I can't help you with the math here since it's pretty complicated, but I guess you could find out what companies specifically you are bearish on and buy put options on them in a specific ratio compared to your exposure to them through VOO. This way you'll now have hedged your position. Else, I guess you can simply look at the composure of your index of choice and buy into specific stocks to get your S&P delta reasonably close to it, excluding AI stocks. It's a lot of work but it should be doable.

ImpossiblePromise363

You are better off chilling with VOO

Logical_Lemming

Once the IPOs are done, I'm sure we'll see ETFs come out that are "VOO minus AI megacaps". I would just look for something like that.

hroaks

The strategy for Voo is You just leave it. the whole point of passive funds like voo is no human intervention. If Tesla dropped 99% VOO would only drop a percent or two.

jpc1215

DIA probably would work better for this, or SCHD There is no way to limit exposure to companies in the S&P500 with VOO. Just “comes with the territory” so to speak

IO_Doctor

After losing $150k a few days later. He has now put the remaining $70k in VOO.

Dalewyn

Unless you crunch those kinds of numbers for a living or hobby, it's just useless noise. Whether VOO grows +500% or +50%, at the end of the day your investments grew and you're creaming your pants while you're angry the price of bananas at your grocery store are up 50%.

Dalewyn

Once you get your toes wet investing, it really doesn't take much to realize most of the market growth is just plain old inflation. The only difference between you the investor and the guy buying groceries at the supermarket is you hold assets while the guy holds cash. "VOO and Chill" is basically about putting yourself on the right side of inflation. If you hold assets, your net worth keeps pace with inflation. If you hold cash, inflation throws you to the wolves.

MSFusionHV

Are you aware that a huge amount of highly educated professionals struggle to beat simple index funds long term? Search SPIVA and be amazed. You have very little chance of outperforming VOO+VXUS or simply VT long term. Why waste your time and energy on a loser's game? You are too confident and will get burned eventually.

MSFusionHV

That's easy. All of it (eventually). You'd be much better off in VOO or ideally VT long term. Don't performance chase like a sucker.

zxc123zxc123

VOO/SSO/GOOG/GOOGL/BAC are some of my largest positions. I don't have QQQ since I'm already overweight tech. Instead I have leverage Russell2k. Etrade/MS offered me to join the SpaceX IPO but I didn't sign up. Already go indirect exposure long ago.

fallnstars

sort your investments by return and sell the one with the highest %return. dont sell MU as it just had a massive correction and youre most likely down or flat on it and it might make another run up. VOO has had a mild run up and had a mild fall so it might be a good candidate. GOOG/AMZN also depending on how long youve been holding it. MU/RKLB youre probably going to sell at a loss if you do.

Ok_Ambassador_4311

VOO calls at open

bigdipboy

Switch to VOO instead of VTI if you want more protection from space x shenanigans

RooneyToons_10

Rate my portfolio This is in my brokerage account with 15k invested. My retirement accounts are 100% VOO so I’m looking for growth here and using Google as my anchor. GOOGL - 49% NASA - 33% AVGO - 13% KEEL - 5%

Nutella_1000

VOO ( 500 of the biggest American companies)

booobReviewer

"Throw your phone in the river" is the most important part and the hardest to follow. The behavior gap — the difference between what the average investor earns and what the average fund earns — is something like 3-4% per year because people tinker. Automating removes the ability to make emotional decisions. VOO or IVV on automatic investment, dividends reinvested, check the balance once a quarter. Everything else is noise.

AvailableRoad7489

should I be buying right now? I have like $5, do i just put that into VOO?

jason_saver

at 61 youve got a really solid base there. for the 3k in taxable id keep it simple — VTI or VOO. the covered call ETFs generate income but theyre less tax-efficient in a non-registered account. at your stage the priority is preservation and steady growth not chasing yield. time in market beats timing the market even with 3k. not financial advice but thats how id think about it

jason_saver

at 61 you've got a really solid base there. for the k in taxable i'd keep it simple — VTI or VOO. the covered call ETFs generate income but they're less tax-efficient in a non-registered account. at your stage the priority is preservation and steady growth not chasing yield. time in market beats timing the market even with k. not financial advice but that's how id think about it

Various_Couple_764

They are both very similar grwoth funds. both have significant price volatility and different levels of growth or loss. If you hold over a long time you one may grow more than the other. Based on history QQQ is doing sa bit better but there is no guarantee that QQQ will com out ahead. but in some times VOO will come out ahead. However after 25 year you would have sell them fro income. One you sell a share of either fund you loose all future growth of of these shares. Eventually we all eventually have to stop working indwell need income to preplace work income. The problem with both funds is that they tend to go through long periods of no growth. IF you are selling share for income during a period of no growth or significant looses. During these periods of time you run the risk of running out of stock to sell. So some investors add dividend or bond funds for income You want enough income to every more than your living expenses. Some therefore just before retirment add these funds for income. Others add dividend or bond funds to VOO or QQQ or other growth index funds and and split the income from dividend and growth funds equally and depoist an equal ammount of money in each fund they have.

biglebowskidude

SPY - Bull vs Bear Currently $737.55, down 2.58% today. Not a company, but here's the index breakdown: Bull case: US corporate margins near historic highs, Al infrastructure adding $1-2T in enterprise spending, S&P 500 has recovered from every major crash in history. Every 20%+ correction has been a buying opportunity on a 3-5 year horizon. Bear case: Forward P/E at 21x is 90th percentile historically. Magnificent 7 = 30% of the index \- if tech multiples compress, the whole index feels it. Real rates still restrictive. Fun fact: VOO and IVV do the same thing as SPY for 0.03% vs SPY's 0.0945%. Long term holders should consider switching. Verdict: Best long-term wealth builder for most people. Short term - choppy until rate picture clears. Full analysis at norrisaius — code REDDIT-FREE-TRIAL

54415250154

The only mention of VOO after 12h is your comment 

Puzzled_Fisherman331

I have active puts sold on VOO at 620 for June 18th. They had roughly a .05 delta a day or so ago. Your strategy is a little too risky for me. PS- Yes I do like SPX for the tax efficiency but wanted a CSP this time.

LilEddieDingle

Guess I can continue to hold my VOO, was considering bailing after decades. Elon is a fucking moron and I do not trust him for half a second.