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I’m looking to add another stock or two to my portfolio, any recommendations?
[Discussion] How will AI and Large Language Models affect retail trading and investing?
[Discussion] How will AI and Large Language Models Impact Trading and Investing?
Would it be a bad idea investing in the same investments in a Roth IRA and a regular brokerage account?
Is it ok to never have bonds if you start investing early?
Anything I should know about investing in Vanguard ETFs on Fidelity?
What would you all recommend for second year of IRA?
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
Let's go! For most, the best investment route is to just purchase a S&P500 index fund/ETF and hold on (*while adding to it often and extra when markets are in a down-cycle). Vanguard's VOO and VFINX have low expense ratios % and are great choices! VTI / VTSMX are also good (total market) options.
I hit $100,000 in Broad Market Index Funds (mostly VOO and VTI) this Jan
QQQ or VOO which one will you choose ?
Question about ETFs: What happens if the provider goes under as a business?
Wife's IRA has positions in high-expense ratio funds. Sell and buy VOO?
i want to start investing and i don't know where to begin
Looking to invest savings in VTX and VOO. What should I invest more in.
After watching Nvda go up up and up some more, i dove in at 600 a share. 🤔😳
What stock/suggestion have you gotten from this sub that actually WORKED?
As a whole this sub is overly negative on taking profits and building a cash position
What to do with $300,000 just sitting in my checking account?
What stocks(s) did y’all buy recently and when was it?
100% stocks is not universally good advice. Stock market indexes are not always the right benchmark for your performance.
Is FZIPX same as AVUV? Looking for Low ER small cap ETF
Is putting $50 into VOO every 2 weeks (for the next 20 years) a good or bad idea?
What index fund do I pick for my Roth IRA?
12m Emergency : 100% CD/Tbills vs ~25-75% VOO & rest in CD/Tbills?
Is it normal for the index funds to be weighted this heavily by mega caps?
Where to invest 10k leveraged from CC cash advance (5% fee)?
As a non-US resident is it worth getting Ireland-domiciled ETFs?
Advice for a 27 year old trying to leave the nest?????
Any advantage to buying VOO through Vanguard rather than Schwab?
What are y'all's plays on tomorrow's CPI news? Any calls being made?
Looking for long-term investment suggestions, 30yo • $1-2k / mo.
What is the difference between some EFTs like Vanguard S&P 500?
Mentions
Look, there isn’t a “best way” that someone will be able to provide! There are good ways! Starting with an IRA is great because it provides some tax relief when you retire! I assume you are actually wanting to start besides the IRA! Since you aren’t knowledgeble and will have time to learn I’ll give my opinion. Download the Hobinhood app; Create an account; Deposit the money you want to invest; Start with QQQ and VOO (Google or ask chatGPT about), basically you will be investing on the market; VOO mirrors the SP500 and provides an historically positive outcome, lately about 8 to 15% per year; This should get you started, start educating yourself and in the future you can diversify your portfolio; Avoid buying and selling because your profits will incur taxes, after one year of ownership taxes are minimized to 10% of earnings!
VXUS will outperform VOO again and be the safest buy of the year
ha. then that's good. I'd invest what you can. Especially if you don't have much of a retirement and you're already 36. You want that compounding interest to work for you, and the longer you wait, the slower it takes. Just a few to consider. * [**Vanguard 500 Index Fund (VFIAX/VOO)**](https://www.google.com/search?q=Vanguard+500+Index+Fund+%28VFIAX%2FVOO%29&oq=what+are+the+best+vanguard+index+funds&gs_lcrp=EgZjaHJvbWUqBwgAEAAYgAQyBwgAEAAYgAQyBwgBEAAYgAQyCAgCEAAYFhgeMggIAxAAGBYYHjIICAQQABgWGB4yCAgFEAAYFhgeMggIBhAAGBYYHjIICAcQABgWGB4yCAgIEAAYFhgeMggICRAAGBYYHtIBCDc4ODlqMGoxqAIAsAIA&sourceid=chrome&ie=UTF-8&ved=2ahUKEwiam7Djz4ySAxUlp44IHeSEK2cQgK4QegQIAxAB): Tracks the S&P 500, offering exposure to large U.S. companies, recommended by Warren Buffett. * [**Vanguard Total Stock Market Index Fund (VTSAX/VTI)**](https://www.google.com/search?q=Vanguard+Total+Stock+Market+Index+Fund+%28VTSAX%2FVTI%29&oq=what+are+the+best+vanguard+index+funds&gs_lcrp=EgZjaHJvbWUqBwgAEAAYgAQyBwgAEAAYgAQyBwgBEAAYgAQyCAgCEAAYFhgeMggIAxAAGBYYHjIICAQQABgWGB4yCAgFEAAYFhgeMggIBhAAGBYYHjIICAcQABgWGB4yCAgIEAAYFhgeMggICRAAGBYYHtIBCDc4ODlqMGoxqAIAsAIA&sourceid=chrome&ie=UTF-8&ved=2ahUKEwiam7Djz4ySAxUlp44IHeSEK2cQgK4QegQIAxAD): Covers the entire U.S. stock market (large, mid, and small-cap) for maximum diversification. Growth & International * [**Vanguard Growth Index Fund (VIGAX/VUG)**](https://www.google.com/search?q=Vanguard+Growth+Index+Fund+%28VIGAX%2FVUG%29&oq=what+are+the+best+vanguard+index+funds&gs_lcrp=EgZjaHJvbWUqBwgAEAAYgAQyBwgAEAAYgAQyBwgBEAAYgAQyCAgCEAAYFhgeMggIAxAAGBYYHjIICAQQABgWGB4yCAgFEAAYFhgeMggIBhAAGBYYHjIICAcQABgWGB4yCAgIEAAYFhgeMggICRAAGBYYHtIBCDc4ODlqMGoxqAIAsAIA&sourceid=chrome&ie=UTF-8&mstk=AUtExfDKbz5PsnR7toyro5yq47z0VJ4piTNMIfto6jEQs_HeFa-HosxD0k43zbVTO0jhXIq0_MysWI_Z_RrSuYOYJcLR_LMZM1DteAMe9c7dMSEBp6YDMNvmLsgQ1-HgNaQs41rhIsVGhtG6I6F65vtexH9glQ-lVbYT4iJPgFcdcm4xhnw&csui=3&ved=2ahUKEwiam7Djz4ySAxUlp44IHeSEK2cQgK4QegQIBRAB): Focuses on large U.S. growth stocks, heavily weighted in tech. * [**Vanguard Total International Stock ETF (VXUS/VFWPX)**](https://www.google.com/search?q=Vanguard+Total+International+Stock+ETF+%28VXUS%2FVFWPX%29&oq=what+are+the+best+vanguard+index+funds&gs_lcrp=EgZjaHJvbWUqBwgAEAAYgAQyBwgAEAAYgAQyBwgBEAAYgAQyCAgCEAAYFhgeMggIAxAAGBYYHjIICAQQABgWGB4yCAgFEAAYFhgeMggIBhAAGBYYHjIICAcQABgWGB4yCAgIEAAYFhgeMggICRAAGBYYHtIBCDc4ODlqMGoxqAIAsAIA&sourceid=chrome&ie=UTF-8&mstk=AUtExfDKbz5PsnR7toyro5yq47z0VJ4piTNMIfto6jEQs_HeFa-HosxD0k43zbVTO0jhXIq0_MysWI_Z_RrSuYOYJcLR_LMZM1DteAMe9c7dMSEBp6YDMNvmLsgQ1-HgNaQs41rhIsVGhtG6I6F65vtexH9glQ-lVbYT4iJPgFcdcm4xhnw&csui=3&ved=2ahUKEwiam7Djz4ySAxUlp44IHeSEK2cQgK4QegQIBRAF): For broad exposure to developed and emerging international markets.
In general as the dividend of a fund increase the growth decreases. Dividend fund in general continue to pay even whine the market price drops. So by switching your investments a bit more into dividend you are erectly switching for fixed income instead of growth and reducing your risk. Also the S&P500 index has a long term average growth rate of about 10%. There are funds and stocks that do have dividends close to 10%. So in your roth you could add commp funds that invest in companes that are not a big part of the S&P500. For example ARCC is a BDC there are no BDCs in the S&P500. ARCC has a yield of 9% which is common for BDC and since the companes founding the stock has performed a bit better than the index. When the growth index has a down year ARCC keeps paying its dividend and pulls a bit ahead. The are a number of f=good BDC so I invested in PBDC and the other is BIZD. In my roth Ihave funds like QQQI 13% yield,EIC 11%, ARDC9%, PBDC 9%, EMO 9% CLOZ 8%. So if the index is down I can use the dividend to invest in VOO or any other growth index you have. And in years when growth does very well you could sell some of the growth and lock that money into high dividends funds with have a comparable return and reduce your risk of over concentatration in the magnificent 7. For 401Ks you are limited on your fund choices so for dividend you may be limited to bond funds so you may be forced to use lower dividend yields. One other advantage having dividned funds in Roth or retirment fund is that if you become unemployed you will still have money flowing into the fund. With now I cannot depoist into my roth because my income is too high but the dividend funds are depositing 5K a month of income into my roth.
Invest every dime into VOO or VT. Dont deviate. Dont pick individual stocks. Just keep investing everything you can.
Here is what I would do if I am you 1. Max Roth IRA you can open an account on Robinhood and if you want to be conservative do 100% VOO max this out (7k) each year 2. Taxable brokerage put as much in as you want I would shoot for 15% at your age I would shoot for things that have high growth 3. Spend some of it and enjoy your 20s 4. Emergency fund at your age and no bills I would shoot for 10k into a hysa you can always add more if you need too
Open a Fidelity taxable account and Fidelity Roth IRA. Sign up for 401k, set it to the sp500 fund with lowest internals, put as much in there as you can as fast as you can. In the Fidelity Roth buy as much VOO as you can afford on an auto weekly basis. In the taxable keep your emergency fund. If you have extra money, buy VOO in auto weekly basis just like the Roth. Sell ONLY when you have an urgent expense to pay for. Don’t rely on self discipline, automate. There is a ton to learn, but that is the basics. Congrats and best of luck!
Dude your 17 with 10k saved and 4 income streams?? Your already ahead of like 90% of adults lol. Keep it simple - throw most of it into a broad market ETF like VOO or VTI and just forget about it. At your age time is your biggest advantage, compounding will do the heavy lifting. Maybe keep 2-3k as an emergency fund tho. Having some cash buffer is important when your paying rent and insurance already.
Damn bro you're living the dream with no expenses at 19, that's actually insane Start with a Roth IRA and max it out ($6500/year), then throw the rest into index funds like VTI or VOO - boring but it works. Don't try to get rich quick with meme stocks, just let compound interest do its thing over the next 40 years Also maybe learn to cook and do laundry now before your friend gets tired of covering everything lol
Wow. Greed. Shoulda stopped at 500k, moved it into VOO
Totally agree. Broad index exposure removes a lot of decision risk, especially for newer investors. One thing I’d add is that even with VOO/VTI, watching how price behaves around key levels and how volume expands on breakouts can help with timing and position sizing — it’s less about picking tops and bottoms, more about confirming participation and avoiding false moves. Long term consistency + disciplined sizing usually beats trying to optimize every entry.
I am a real estate investor and developer. I have several rental properties, in addition to my own home and a starter home, which I also rent out. I do have a small portfolio with Fidelity, which I make contributions to, but my plan this year is to acquire a fifth cash flow property, at which point, like you, work will be optional for me! I do plan to still work, though, and will use to proceeds from the rentals to build up my stock portfolio. NW is about $1.25M now, but most of that is not liquid. Aiming for $3M in about five years, which sounds kind of nuts, but everyone says the first M is the hardest, and the way things are going, that seems to be true. I want a stronger balance of liquid and non-liquid assets, though, and more diversification. Current stock allocation is 60% VOO, 20% VXUS, 10% QQQ, 10% individual stocks.
$5/day is approximately $150/month. Just do that and buy VOO as others have suggested or whatever broad index you desire. With an initial investment of $0 and a rate of return of 6%, your net deposit would be $35,850 and your projected savings (including principle) would be $67,772. [source](https://www.fidelity.ca/en/growthcalculator/)
Looking for advice on taxable investment percentages in VOO vs VTI. Late 20s and work in big tech sw. How much of your taxable portfolio would you recommend being VTI over VOO considering the exposure due to salary and RSUs in tech? Currently I’m also targeting ~10% in gold, ~20-25% international funds. In wondering what the rest of the allocation should be without including an emergency fund. Thanks!
The S&P 500 (VOO / SPY) It’s not buy and hold the same 500 companies forever. It’s a living index. When a company falls apart (bankrupt, shrinks, gets acquired, loses relevance), it eventually gets removed and replaced by a stronger / more relevant company. So over decades the index naturally “drops the losers and keeps the winners,” even without you doing anything.
VOO in the 401k is perfectly fine. Options in your 401k tell me you’re either a genius or you’re one of us
And those super smart people saying that have vastly underperformed for the last 30 years lol I'm not saying staying 100% VOO is or ever was a good idea, I'm generally a VOO chill hater, but this is like saying Bill Ackman is correct about a correction when he misses for 30 years at a time.
You only have to be about 2 years old to say that. It wasn’t long ago that everyone on reddit shunned anything other than “VOO and chill.” Now we seem to hear a lot about VXUS. It’s just an echo chamber of short-term performance.
Ditch the target date fund for sp500 fund with lowest internal cost. If you work for a company you see yourself retiring from (doubtful), get some company stock early for possible NUA in the future. At your age you shouldn’t be worried about dry powder. Just fully automate and don’t pay attention to it. The chill part of VOO and chill is the hardest. Sounds like you will do great!
Thank you everyone for your insight Im gunna hold onto. Im decently new into investments as I only hold this and VOO lol. I just wish I bought more…
Nope just VOO and chill always
VOO, schd and QQQM. Dollar cost average in twice per week. Keep excess money in Tbills
Today's events will likely have two outcomes in the next 10-20 years. Either the US maintains it's dominance, meaning little changes and S&P 500 continues to outperform the rest of the world, OR, The US loses it's dominance meaning investors will move their money to more stable markets where EU and Asian markets will likely benefit most. The former relies on the US demonstrating continued growth stability. The latter relies on loss of growth stability. So how do you position yourself to benefit from either outcome? VT (World tot. market) usually performs between VOO (S&P 500) and VXUS (World tot. market minus US stocks), which I think is you're best option for any outcome with one assumption, the money remains in the stock market and isn't pulled out to invest in other asset classes (previous metals, cash, bonds, etc).
If the president is affecting the market, it is a perfectly rational response to respond to market conditions. If your point is to say “just invest in VOO monthly and never think about it” then just say that. Don’t say demonstrably ridiculous things. Nobody is saying they want to reallocate “because of who the president is”, it’s because of his actions and effect on the market. I think you know that.
“Common advice”? I know VOO and Chill is the mantra among younger redditors only investing during a bull market. Older/wiser investors will say VT and chill or some variant of VTI/VXUS and equivalents.
If you want to stay in US equities but are concerned about MAG 7, there are some options: AVUS- Very similar to VOO/total market ETF, but generally underweights stocks that are likely overvalued based on fundamentals. DFAT- Small cap value ETF. Pretty much none of these stocks are included in VOO, so its extra diversification VNQ - Real estate ETF. Real estate is a tiny percentage of VOO, so this would provide a bit more exposure
I'm old enough to remember posts where people said: "I looked at the one year performance of VXUS and it underperformed VOO, so I think I should just invest in 100% US"
I actually went with VXF. Made that decision in 2020. I would have been better off in VOO. I'm just shy of my target of 8% annualized return so I'll take it.
I have read QQQM CHAT SMH VOO and chill lately.
Did you take the 3% under spot? Not a bad deal.... Congrats on the cash out. Now go buy yourself something ridiculous, enter some reckless positions and waste the rest on retirement or some lame ass VOO.
I need VOO to drop about 200 points.
TOPC is the S&P500 with each stock capped at a max 3% weight. I don’t know if there’s any equivalent fund that does 5%. RWL is S&P500 weighted by TTM revenue instead of by market cap (so e.g. Walmart is weighted higher, Apple Amazon and Microsoft are still pretty high, but Nvidia and Tesla are lower), making the P/E ratio a lot more reasonable. One downside to ETFs like these is they are relatively smaller funds with less liquidity than something like VOO.
It sounds like you are looking for the XMAG ETF. Personally, I would not touch it, but I have small cap, value, and international holdings already so whatever is in VOO is not a huge concern to me. Besides, the market thinks NVidia et all are worth all that money in VOO, who am I to think I know better than the entire market?
XMAG is an ETF that holds the S&P 500 without the magnificent 7. So if you split your current VOO evenly between VOO and XMAG the only change would be that your mag 7 exposure would be cut in half. There are also the funds from Research Affiliates, which (to use their buzz phrase) indexes based on "economic footprint" rather than simple market cap.
I hear you there and do have some RSP, really what I'd love is VOO just with a few taken out or a max weight of 5%
I mean if you think VOO is over invested in Mag7, then you are looking for RSP. If RSP isn't what you want, then you are basically saying that you think you can pick stocks better and to that I say good luck.
You guys would be better off getting a puppy and VOO n chill
Russell 2000 will outperform VOO
I let google, silver, gold VOO ride on my parents retirement, while I gambled away -10% last year, while three +40% 😅😅😭
VTI = Total USA market VOO/SPY are both S&P500 index funds. These are not growth , they are broad market and hold both growth and value (QQQI, JEPQ, SPYI) These are covered call ETFs, they are not even dividend focused , they sell upside to produce a premium . They will over the long term almost certainly under perform their underlying index of the Nasdaq 100 and S&P500 Simply buying VTI will give you a mix of growth , value , dividend stocks
Should I just sell my VOO and full port the metals?
This ain't no meme. COMEX suppressed prices for so long and not China was like eff you we gonna hoard it and not export it anymore since their inventories we getting drained. Silver is only rebounding back to its true value since tech giants need it. Lemme guess you a VOO and chill guy?
Hey VOO bois told ya! 😂
Start with whatever is comfortable. $50/week. Then work to increase that. Use whatever method or excuse you can. I personally played a game where I tried to beat every expense greater than my investment budget. I beat my insurance. I beat my car payment. I beat my rent and food, eventually (super slow). I now invest as much as my monthly expenses (most people can’t do this). That’s all personal finance is: spend less, invest more auto, don’t panic sell (most don’t even know what panic selling actually is). Set your investment to weekly. Use a place like Fidelity that uses fractionals. VOO is fine. That’s it. That’s all anyone needs to know. There’s a bunch more to know, and you will get there. But if you have that one basic principle you can be fine.
If you’re going to hold a stock for at least a year (which you should, if for no other reason than nabbing a lower capital gains tax rate), investing hours of research into that company is the right thing to do. If you hate sitting in cash, allocate your reserve funds to VT, VOO/SPY, a standard 60-40 portfolio, a ray dalio all-weather portfolio, etc so you don’t have this FOMO compelling you to make rash decisions
I'm new to this. Invest in what? VOO? SPY?
Just VOO or VT and chill dude. Trust me. No sense wasting all that stress and energy on something that will ultimately probably lose to the market annual return in the long run.
That's fine to not know it all yet, that's why the suggestion to get it invested into an S&P500 index (largest 500 publicly traded companies in the USA) while you learn more is a reasonable suggestion in my opinion. S&P500 is the benchmark that most other things are compared against to determine if they were "successful", i.e. did they beat the S&P500? When you hear about people saying so and so "beat the market", they're almost always talking about them outperforming the S&P500 specifically. So if you invest into an S&P500 index fund like VOO, FXAIX, SPY (separate S&P500 index funds managed by Vanguard, Fidelity, and Spyder repsectively) you will be matching the "market rate". Whether that is a gain or a loss is another story. Order of importance of what accounts to put money into is generally described on this sub as: 1.) 6 months of expenses in HYSA (i.e. money market fund, highly liquid) as "emergency fund" 2.) 401k contributions to meet full employer match 3.) Max an IRA 4.) Max out the 401k contribution 5.) Taxable brokerage As far as what investments to make, if you're young something like 50% S&P500 index or US total market index (like VT), 50% Global index this sub might recommend. But it depends on your risk tolerance. There are other funds that have a good chance to outperform those, but you might see -50% on a down year where S&P500 might just be down -20%. Personally I like to research companies and pick stocks, but I'm also not a professional, so I like to hedge my picking by allocating around 50% of my entire account portfolio to S&P500, then pick riskier index funds or individual stocks with the rest. I also spend all day every day focusing on it, which not everyone wants to do, so the general recommendation on this sub (this sub slants to low-risk consistent gain over time) is to stick to index funds.
Mutual funds are not traded on the market. you have to buy shares from fund management. Any dividends received by the mutual fund are payed out to fund shareholders. Mutual funds also occationally have capital gains distributions. ETFs are similar except: * shares are purchased on the open market. * ETF have a way to avoid capital gains distributions. But in extreme cases they may have one. Otherwise they are basically the same and some mutual funds also have very low fees as ETFs. The capital gains distributions is the only tax difference. I invested in FXAIX a fidelity mutual fund that invests in the S&P500 II have only seen one captial gains distribution from this fund. besides I just took that and the dividend and reinvested them for more shares of FXAIX. And there are no taxes if FXAIX is in a ROTh, IRA or 401K. The tax difference between these two funds is a minor issue. Not enough in my opinion to avoid mutual funds. If FXAIX is in a taxable account and there are no capital gains distributions there is no difference in taxes when compared to VOO or any other S&P500 ETF index fund.
put gains into VOO and stop while ahead!
Yeah that's my process, I have ETFs for the long haul VOO and chill mentality where about 60% of my investments go, then I put that 40% into riskier options. This one was in the red longer than it was the green, and was the first time I just let it ride.
An emergency fund is generally 3-6 months of fixed expenses plus any large known expenses that will be incurred in the following year or two. Have that in SGOV in taxable. A taxable account should have “something” set to auto weekly in VOO. Don’t care what it is. Start comfortable, then work to increase until it is uncomfortable. Then work to increase even further. If you have a large urgent expense that is in excess of your emergency funds, then you will no doubt have to sell assets (VOO), where else would it come from? Do that forever. If you have income, if you have expenses, have auto investment. Only sell when you have an urgent expense to pay for that is beyond your emergency funds. Do it for a while and it will make sense. I keep almost no emergency funds. But that is not recommended.
Please just put the starting cash in VOO and 'only' play with the 16K in profit my man. This can only end in loss porn if you keep on full porting like this.
You are over exposing yourself by choosing VTI and VOO since they share similar holdings. Personally I'd keep VOO but either works, swap QQQ with SMH unless you want less volatility but since you're pretty young I would go with SMH. SCHD isnt bad but if you want more growth given your age again I would go with SCHG or add VXUS as well for international exposure.
Your strategy is inefficient because it’s based on constraints. It’s not based on logic but numerical goals. Constraints are inherently inefficient. There’s no reason you should build for a specific number like $500 a month in dividends before allowing yourself to buy into another investment, for example. On the other hand, it’s not a bad idea to invest in VOO for 100 shares but why stop at 100 and move to a different investment just because you hit that arbitrary number? Maybe 100 shares is exactly the amount you need because you intend to sell calls. You could just as well continue investing more into VOO, put the “game” aside, and gather 100 more shares to do even more covered calls. It’s not a bad strategy. It’s just not going to be as efficient as you’d be if you invested with purpose. It can’t be.
Did better last year with 3 PM ETFs than VOO did over the FIVE YEARS. I'm about the gains man. IDGAF about anything else other what I know will make me money. VOO is too fucking slow for my taste.
Yes, there is a risk/reward decision to be made here. I understand that. I am a successful swing trader, and I have read up on index funds. Ergo, I feel comfortable using the stock market and understand that the value of an ETF is derived from the value of the underlying index - hence why I want a whole-market index. \>However, VOO is not purchased BECAUSE of the underlying. It's purchased because of the perceived future value based on past performance. VOO, or any ETF, is purchased for any number of reasons depending upon who it making the purchase. And yes, people panic sell when "the markets" are down - and do you know why "the markets" go down? Because people are selling. It is a self-fulfilling prophecy. The same greed and fear that makes people panic sell is the same greed and fear that makes them buy it all back at higher prices, and therefore, perpetuate the cycle. This is why DCA and "buying the dips" are so commonly espoused as principles to investing. As for me, I anticipate that Vanguard ETFs will continue to appreciate in value because the US and other stock markets will appreciate in value and because Vanguard is well managed. I also understand that there are ETFs that are based on bonkers investment strategies that I wouldn't touch with an Iraqi Dinar. You are taking about the *price* of an ETF share which will fluctuate with market conditions, but the *value* is still there so long as the overall stock market continues to appreciate in value *over the long term,* and the underlying index and management is solid. Vanguard wrote the book on index investing (literally) and they have always come highly recommend to me from everyone I trust on the subject. Cherry picking one year of bad returns doesn't scare me. I'll buy a dip everyday and twice on Sunday. I also don't want to buy bonds because I have more faith in the greed of the stock market than I do in the management of the US federal government. I don't want to buy CDs because banks can and do fail. I truly appreciate you taking the time to compile such detailed responses, but I do not share your fears or cynicism. And that is the beauty of investing - there are so many options and ways of doing things that we can all have our own opinions and be right within our own context.
u/VOO_bull_forever can sing you a song about being a UNH baggie
I’m 30 years old (USA) and planning to start investing for long term. I already do around $1000 in 401K (company matches around $600), have 6 months emergency fund in HYSA, 30k in Robinhood in stocks, options and some etfs. I wish BUILD something for my long term (10 plus years outlook) - planning to start with $2000 per month in ETFs. How do this look : VOO - 30% QQQ - 25% SCHD - 20%
I find the reddithead "all ETF" unanimity puzzling, personally, and while overbalancing on a single stock can be risky, if owning 500 stocks in order of market cap is "risky" while owning VOO is "safe", then the world is upside down. So, while I might still use SPY or QQQ for rapid purchases of a relatively large position, by now I own approximately 800 positions with none of them unnaturally large. As just like you, OP, I love learning about companies, how they evolve and adapt, and how they adjust to macroeconomic conditions; I also find it interesting to watch how trends sway giant masses of people together. Last year was a good year for most everyone, of course, but with a relatively large international group of stocks, return here was over 40% on a mix of personal, retirement, and trust accounts; and always with a fairly large bond and short term position, probably even too large (30-40%).
And what do you think is going to happen to the rest of VOO if 3 of the MAG7 go to zero?
>50% FZROX (basically VOO but no fees?) VOO + smaller US companies, but basically yes >20% FZILX (international emerging markets with no fees) emerging *and* developed markets >20% FTEC (fidelity tech etf) This is fine as long as you can stomach more volatility for a longer period of time >10% FESM (fidelity small cap) No need, since this is already covered in FZROX. Unless you're purposefully tilting towards small cap. Overall: looks good to me. I'd get into the market immediately. If you hadn't rolled over it's not like you would've moved all your 401k to cash.
Thanks for the AI answer. "Like any stock, the market price of VOO shares is also influenced by the supply and demand for the ETF on the stock exchange during the trading day. However, mechanisms are in place to keep the market price closely aligned with the fund's underlying NAV". However, VOO is not purchased BECAUSE of the underlying. It's purchased because of the perceived future value based on past performance. Let's look at 2022 as an example. The S&P drops more than 18%. No one is buying VOO so the value of VOO drops almost 1:1 with it. But it doesn't drop as much as the S&P 500. Why? Because there are some people still buying VOO despite the dip in the S&P, but not enough to sustain the value of VOO. But VOO still performed better than the S&P. If you want to see what happens to VOO when no one buys it, that's as far as you need to look. In the end, VOO is still a stock. So the rules of a stock still apply.
So money is about when you will spend. 30 days or less = checking account (monthly bills) Emergency funds or large known expenses = SGOV in a taxable. Money that is meant to grow 5+ years = VOO or QQQM (if you want a bit more risk and growth). The risk you take when you invest is that you have an urgent event, have to sell, and it might be a bad time in the market. Once you get used to auto weekly investment in a taxable, over years, you stop worrying. You see it is just an accumulation game. If you have an urgent expense, sell to pay it and keep the auto going. It removes the emotions. When you pick stocks, now your character is tied to that choice. If I chose the wrong company, I’m a failure, or I’m sentimental, etc. hard to be so attached to a VOO for example.
Nothing wrong with VOO and chill bro.
That’s not how index fund ETF’s work. They track the underlying index. They increase because the 500 (example VOO) companies they hold increase. They have a mechanism to rebalance to the underlying. What you describe is backwards for the ETF. That is certainly true for the individual stocks, they work that way, more buy orders than sell orders, price go up. more sell orders than buy orders, price go down. That can happen intraday for VOO, but when it gets out of whack there is a mechanism to algorithmically make it track back to index without causing cap gains (tax efficient).
This is an exaggeration. Nvidia, Msft, and Google make up around 19% of the VOO portfolio.
This is a pretty simplistic take. If my Google, msft, and nvda go to zero, so the VOO and VTI people are also losing 90% of their portfolios.
Here's the problem with VOO for long-term investments, which is what you are asking about. VOO, to improve in value, has to be purchased by other people. It's basic supply and demand economics. Not only does someone have to buy VOO, but they also have to buy enough VOO for your investment to either remain even or (you hope) improve. But that's not all. The person who just bought VOO now is in the position that you were in. They also have to get other people to buy VOO for demand to improve so price can improve. Rince and repeat. If you look at the shape this becomes, it's a pyramid. Hence , a pyramid scheme. Now, people don't like to admit it because they probably have VOO and need you to buy it or their investments go to hell. This goes for anyone who peddles ETFs on the Internet. Of course they want you to buy their ETF. They NEED you to buy their ETF. They have money in said ETF and want to retire some day. And that can only happen if they can convince other people to invest in their ETF. The problem is that there are only so many people on the planet with only so much $$$ to spend. So, at some point, your ETF investment is going to drop like a rock. Banks, Bonds, and Premiums. Long-term, low risk and safe investments.
Thank you for your comment. At this point it's modest money. But if that changes in the future, then I would consider taking to a financial advisor. I'll admit that my view is biased against them from bad experiences in the past of just being sold products that rack up commissions and don't benefit me. I'll do some research on VOO.
Now take your profits and park at least half of it in VOO. Or keep making regarded plays and see what happens, it's your money
Doesn’t really matter. A pro is used for goal based investing, motivation, optimizing. What you say is correct, if you’re just auto buying all you can, what is the point of optimizing (I actually with this and teach it)? I just don’t believe people do this without someone holding them accountable (or at least I haven’t seen it). If you make good money, you probably want a pro. You could do it yourself, it just likely won’t be worth your time. If it is modest money, just VOO and chill.
VOO is another popular one after those you've mentioned, but aside from that, you should explore the tax preferred options before going into regular brokerage funds. A 529 account for your daughter, IRA, HSA, and maxing your 401k should come first, which should be pretty hard to do for most people every year. The benefit of them is that they are tax advantaged, so it's like getting a free 15-22% every year.
You should learn to do this with regular money as well. You’re about the age I got my stuff together (you are wayyy more advanced than I was then). Get a Fidelity account. Buy whatever is comfortable of VOO or QQQM (what I use) on auto weekly basis. Work to increase that weekly. You sound like the type that wants to optimize with tax advantaged accounts, and that’s great. But I’m telling you seeing money as a tool for when you will spend will create a great habit in you. If you plan to retire early. If you plan to have incomes in excess of your expenses (pensions), then this is a valuable lesson for you. Best of luck, sounds like you will do great!!
Of course nothing happened yesterday but when I full port today it drills. Thankfully I have learned from my retardedness in the past and I’m half VOO, half silver 😮💨
Missing a year of great growth for just OK, this is gambler talk brother. You won’t know this until 10 years later. You’re focusing on the magic recipe and not the behavior. Pick an allocation that suits your goals. Add to it on auto weekly basis. Sell only when you have something urgent to pay for. That’s all personal finance is: spend less, invest more auto, don’t panic sell. When I look at people’s investing, I want to see how often they sell without having something to pay for. I see how automated they are. And I see how often they increase that automated investing (progress). What they choose is normally whatever. I’ve seen people do fine with auto Walmart and Apple… it’s easier to just VOO and chill though. People tend to find good uses of concentrated wealth (boats houses vacations). Best of luck!!
You can make considerably more money with individual stocks. If you pick the right stocks, you can make more in individual stocks in 1 year than VT or VOO in 10 years
Investing auto. Set a weekly buy for stock or ETF. If you don’t like the idea of setting an auto for a particular stock or don’t plan to hold forever, you’re probably making a mistake. This is the advantage of VOO and chill. You never really feel bad about just acquiring more of an index. If you think you “held too long”, that means you didn’t actually learn the real lesson: don’t buy stuff you have to check all the time in the first place. Buy weekly, sell only when you have something urgent to pay for.
Are there others stuck on the "VOO and chill" train ?
The downside of VOO is that you won't outperform the sp500 index but the positive is that you will never underperform either.
It only takes one time for you to lose all of your silver. I’ve been robbed one time already in 30 years and I live in an area where people don’t typically get robbed. They did not make off with any of my VOO though.
Because SLV is an Trust (similar to an EFT) that tracks the performance of Silver. Etf's and Trusts hold a certain percentage of the underlying asset typically %60 to %80 and use the rest of the cash to rebalance so it tracks the day to day performance. All Trust and ETF's do this to some extent. This allows people to buy shares at a cheaper price and still get the performance of the underlying. SPY, QQQ, VOO, GLD are all the same. Gold spot is $4600 but GLD is $422.23/share, S&P 500 Index is 6977 but SPY S&P 500 ETF is $695/share. This allows more access to expensive equities that would be out of reach for many.
So you pay $36 to buy VOO at Acorns when you can do the same thing at Fidelity for free?
The wheel account is only 14% . Just mainly to sell puts and collect premium and interest. Everything I have in Fidelity is automated. Acorns is automated as well the biggest position is VOO at 45%!. I have the basic plan pay $3 per month. I’m not aware if there’s other fees . I opened initially to roll my extra change then started automated investing to diversify. Just don’t want to handicap my compounding . So was wondering if combining acorns with a fidelity brokerage will give me an advantage to compound more effective or not ?
Ditch acorns. Just buy VOO auto weekly in a Fidelity account. Only sell when you have an urgent expense to pay for. Once you automate like this, you will see money is easy. If your plan relies on effort and self discipline (wheel strategy): bad plan. Set to auto. Work to increase the auto. That’s all personal finance is: spend less, invest more auto, don’t panic sell. It’s harder than it sounds. People get fancy ideas. Best of luck!!
S&P 500 ETF like VOO has lower fees and better performance than an actively managed target date fund. You do not need bonds on your 401(k) in your 20s.
I've gotten down voted for being anti target date funds, and this is exactly my contention -- they are far too heavy in bonds far too early. To be 10% in bonds 40 years out from the target date as an early 20-something is ridiculous. Not to mention their expense ratios are far higher than VOO or VTI.
VOO is up 20% this year, VXUS is up 35% this year.
Honestly the diversification angle makes sense if you're already heavy in S&P everywhere else - target date funds give you some international exposure and small caps that you're missing out on with just VOO/SPY. That 10% bonds isn't gonna kill your returns at your age and the fund will automatically adjust as you get older anyway
VOO and chill. Get back to work and auto invest your income, you can obviously live cheaply now, take advantage of that. If your parents don’t work. And you don’t have 2 years work history earnings, they are not really useful as co-signers brother.
>I'm 70% U.S. equities, 15% Int'l That is a shocking split to me. The US only makes up around 65% of the global stock market. You can say the S&P is the best, but while VOO is up 20% this year, VXUS is up 35% this year.
It’s about either size and scope and an honest inward look at progress. If you make good money and don’t have fat bags, you should probably find a trustworthy pro. It quickly gets to a point where it is not worth your time to do yourself. If you have a goal where failure is not an option, probably want some pro help. Everyone “can” do it on their own. Especially if they keep it super simple, VOO and chill. But I just don’t believe someone who DCA’s into half a million or a million will not panic sell once the money gets super big in their mind. Also, if you’ve made good money for a while, and haven’t increased the investment amount relative to your bills, you probably want a good pro. There’s a lot of trash pro’s, so don’t be surprised if you move from time to time.
No. This is theatre. Nothing ever happens. And if it does, it's short lived, as you are seeing today. Political noise has nothing to do with long term investments. But if you're playing options, then yea it could cause some issues day to day. QQQM and VOO and chill.
Imagine if all the money you lost on options + fees was used to buy shares of VOO