VOO

PsychologicalDay2852

Hi! 20F in California, just started making real money for the first time and just started investing. I have a CD that expires next month and i’m deciding what to do with the money. Would love some advice from someone who knows very little about investing and didn’t come from a family that invests. Current breakdown: -Around 2000 in checkings -15000 emergency fund in savings (ever bank HYSA, just opened last week. this was in the same bank as my checkings before. i’ve probably lost a couple hundred on inflation on this the last few years). I put 70% of my paycheck in here. I’m making good money ~4000 a month at my internship, but that’ll slow to around 500 a month soon, untill I start work full time again fall 2027). My 500 all gets spent on basic living expenses. -45k in a CD (grandparents inheritance, sitting at around 3.40%. it seems silly that a hysa makes more and i’m putting so much into this CD and using it as my main investment. i’ve had it for 2 years and put all the interest last year back in. i’ll eventually use this money or a house down payment or car but not in the next 5 years) -Almost 2k in Roth ira (opened last year at around 1000, been putting in 50 a month, has been making like 2 dollars a month interest) What’s next: So, the CD expires next month. I’ve done some research I think i’m going to take 7500 out and put it in my Roth, leaving me with about 37. I’m thinking about putting 17k of that in a brokerage account with Merrill. That’s the investment i’m most scared of! The other 20k will go back in a new CD. What do you guys think of my plan? I’m most scared of putting 17k in a brokerage. I don’t know much about Merrill’s plans, but that’s where my CD is now. should I self manage it? I’d just buy common ETFs, maybe 75% VOO and the rest i’d invest something like VXUS to diversify. Biggest expense in the next few years will be rent! Right now living at home still and commuting to college. Looking to move out next year. Am I making a dumb decision? Help!

browhodouknowhere

For example I risk 40k to make 8k....but I sell puts at strikes I'd like to own the stock at Example: sell BE <120 day put at 200 strike exp 11/20. I use ai to run multiple models every week to to challenge my thesis on the ai build out. It continues to return 195-200 valuation (relative base case) So I wait for best premium sell to open or roll to a later date. Realize I have a a little more than 400k portfolio, have 300k in broad market etfs, >53 k in Schwab money market, and only actively trade a 50k sleeve. I take profits and buy VOO, put ETF payout into Schwab checking, take out taxes and let them sit in my MMF I never over leverage my sleeve. I run the wheel (option strategy), compound with VOO, generate fcf with jepq/ryld, dry powder with mmf, and day trade 50k with options

xGuardians

OP, please check your realized gain loss. I noticed you closed a large gain on VOO. Make sure your losses offset those. Remember, if you sell and repurchase within 30 days, it’s a wash sale. Would hate for you to have a fat tax bill on top of losses if you fail to recognize appropriately.

TheBlackBaron

You can also day trade with shares? That's why the much higher volume is relevant. If you're just looking to passively invest in an index then yes VOO's lower cost is preferable (although you should be investing in a total market like VTI instead of just the S&P 500).

CharmingThirdTime

But that person seems to have shares- why would someone looking to invest in an index fund choose the Spy ETF over the VOO etf?

RedEgg16

This post got recommended on my homepage so us VOO normies are here.

TheBlackBaron

SPY moves virtually identically to VOO. Day traders prefer it because of the much higher volume and options availability, not because it's more volatile.

tta82

Nonsense. VOO is a simple insurance to be a millionaire at the end of work life.

Good_Ride_2508

These two (VOO & QQQM) are best ETFs. Just buy them periodically, weekly or monthly whatever timeframe you can, and see after many years. Yes, you can go divdiedn reinvest with VOO and QQQM. This is good start. Good Luck.

FreeSugarOrSugarFree

Yeah… you’re right. Going to sell half and throw it into VOO/VTI. Brutal half of the year for me but my god did this make up for it. Uncle Sam will probably fuck me.

Slooogan

I work in substance abuse treatment. I just had a game changing idea. I’m going to open up a inpatient rehab for traders where you can only buy VTI or VOO for 30-60 days. And exposure therapy were your forced to watch people trade 0tde QQQ options. 💰

Due_Marsupial_969

Also problematic is the fact that it's not something the market doesn't know. Guys like me aren't exactly balls deep in these hail Mary stocks cuz I think AI and tech will not be printing money versus QQQ or VOO or BAC in 5 years.

Rocketboy1313

I never buy individual stocks in my IRA. As an almost silly game I have invested a small amount in more than 40 ETFs. Because I find that funny. Most people who are less whimsical than me would likely reccomend just putting all your money in VOO. Do that.

Mundane-Plant-6489

You’ll bounce back bro, but stop gambling I’d advise either picking a few stocks your strongly believe in with decent fundamentals and just adding whenever you can but focus on on your living expenses and bills first, or full port a solid ETF like VOO while you slowly build up then once you have a decent sized port and you want you gamble do so but with only money your willing to watch go to potentially nothing. People investing now have a false preconception of getting rich quick, don’t get me wrong your road to financial freedom is quicker with stocks and playing smart but it’s not a get rich quick. Accept growth will be slow and stop fucking with options until you can sell them stop buying em. Sell puts, sell calls run the wheel or buy leaps that’s as risky as I’d go fr.

RedEgg16

From now on, VOO and chill for the rest of your life

Happy_Stand6826

no, it's actually some content creators that are transparent about their portfolio that suggested to invest in safe etfs like VOO, QQQM, VXUS etc... was i lied to this whole time lol

Happy_Stand6826

VOO, QQQM, and VXUS. this is for my roth ira & hsa. my brokerage account has those 3 as well, and SCHD but i stopped investing in my brokerage for now so i can max out my roth & hsa.

RedditLeagueAccount

\> This isn't true at all, as taking the longer view shows that it is horribly unreliable to judge future winners off what is ahead at any given point in time. Your same methodology done 5 years ago would have resulted in the completely opposite conclusion than what you're saying at the start of this comment chain even when using the same start date. I agree but it's hard to convey unless we are jumping into a call for a debate. I am not saying to ignore old data. We are both jumping into graphs from different time frames to demonstrate and I love that. This is the best approach, be data driven. My point in not weighting it as heavily is more along the lines of - if you are looking at data from 30 years ago, they are using an entirely different tech base and market compared to data from 10 and 5 years ago. There is no scenario where I would invest in a stock without reviewing the 30+ year data. But I would also be looking at the modern scenario to see what changes. Right now, in the past 5 years, we can say tech stocks have grown exponential compared to everything else for example. The old historical data isn't going to reflect these opportunities, risks, or realities. You would need to be reviewing current trends to make a decision to take advantage of that growth. You would also need to have the ability to see when the market will snap back in line. That is all recent data that you have to weight now, over historical data. We may or may not be in a AI bubble right now. Our investment decisions have to be weighed heavily by this current data. \> They don't need to go out of business to simply under perform. Correct. But if they drop, because they are currently driving the market, the entire market drops. However, these options are likely to avoid going out of business, which means they will recover. If you are near retirement, I agree this isn't the best option. But, these stocks are likely to stay and recover. \> Try again: Most of the 2010-2021 period had VTI beating VOO. Look at the graph and see the VOO line underneath the VTI one at plenty of points in that time frame. If we change the graph to show that time frame 2010-2021 [https://testfol.io/?s=8MTzu5mZX26](https://testfol.io/?s=8MTzu5mZX26) We have a .13% difference on CAGR. We have under $1000 difference for the money used which is like 1.3% difference right? Again, not saying your wrong. just the performance most of the time is close enough to make no difference. The cumulative return has a bigger differential in favor of VTI 321% vs 315% but again the graph is near touching with the 1000 dollar difference. I upped the amount a few times to see where there is a significant difference and you do start seeing it when you hit 200K IMO with a 10K difference. I started expanding the time frames (Back in time, so ignoring the recent VOO spike and keeping it to 2021). **You are 100% correct. I am wrong. VTI seems to be winning in most time frames if you ignore recent data.** So the question is whether VOO will keep it's out performance up which is reliant on tech which both VOO and VTI have but VTI has less. \> There's plenty of times where market favor is with smaller caps, not in the S&P 500. As the links here show, long term smaller caps have beaten large 100% agree. My only small cap concern when giving investment advice is I think it is more volatile so it is harder for people. There are small cap out performance cycles. For slightly advanced investors, I'd honestly prefer people split between large, medium and caps as opposed to trying to do sector investing. \> Only because of the November 2021 through current period. My graphs show plenty of other times where a long term winner could have been called VTI, not VOO. What makes the leader today the guaranteed winner going forward the next 20 years when the leader in October 2021 was different after nearly 20 years? I agree you cannot guarantee VOO will continue with it's current lead differential. VOO currently has a streak which might very well be temporary. It will crash hard when tech stocks crash with its current holdings.

marcg40

Just to clarify, they are not companies. VOO, for example, if a fund that holds \~520 different stocks. Buying 1 VOO is like buying a little bit of NVIDIA, Apple, Microsoft, Amazon etc. To answer your question, it depends on how "set and forget you want to be." There's nothing wrong with setting it to auto-reinvest. The main reason you wouldn't is if you want to try buying dips. Let's let you get paid dividends on a day the stock is up 2%. The dividends are automatically reinvested but are paying this high price. The next day the stock is down 5%, you could've bought it cheaper if your dividends were to cash and you manually bought dips. I'm sure in the long run those slight swings don't matter. The only time it would really bite you is if there was a MASSIVE drawdown.

Oranier-Citizen

No no keep trading options, just keep the sizing small so that if you end up in a losing streak, it's not the end of the world. I'm not a "VOO and hold" cuck. If you grew this from 4k, you are good at trading. Keep trading, keep the sizing appropriate, and it will compound better than VOO. Btw look into midterms historical cycles, I don't think being long the market until the election is a good idea. Market rallies after the midterms though. Those GOOG calls you're eyeing might bleed until early November. But that's my two cents.

marcg40

1. Try to max out yearly limit as best as you can. 2. You don't have to invest at a specific rate. If you can hit the yearly limit in one shot, do it. If not, just contribute here and there; whatever you can comfortably contribute. 3. There is virtually a 0% chance you will lose all of your money. For that to happen with VOO, for example, every single one of the 520 holdings would have to hit 0 for that to be possible. At that point, America would probably not exist anymore. 4. You can but it's easier to just set and forget into those. If you want to branch out do a bit more research to see what fits your goals.

RedditLeagueAccount

I said unless you have a data point. Glad you do. I am fine with being proven wrong. My graphs and links were the VOO VS VTI part of the conversation. We will also run into a phase at some point where active managers might beat the passive indexes because they can predict and make profits off of the known changes different passive funds might make to rebalance or add new stocks to their holdings.

MrWood1001

Please do not keep averaging down that is one of the worst things you can do investing. I suggest you put some money in index funds like VOO

TheCheez-It

Less than 1% from all-time high means it's back to VOO and chill. I'll see you next volatility season.

Tho76

Could whack it into VOO or VOOG, can't go wrong with either for safety Could also look into different sector ETFs. [Here's a list from State Street to at e least give some ideas](https://www.ssga.com/us/en/individual/capabilities/equities/sector-investing/select-sector-etfs?WT.mc_id=ps_etf-sec_sectors-funds_us_google_text_psnb_mf1_lp_jun26&gclsrc=aw.ds&&_bt=812154141777&_bk=sector%20etf&_bm=p&_bn=g&_bg=70797238455&gad_source=1&gad_campaignid=1939483851&gbraid=0AAAAACz5AuPTTX7fn2ch2dTKoG3QKCfTW&gclid=CjwKCAjwj7HTBhBiEiwA8s35Os2NZIq5fYE-q13T1IfwN0DKMQqD10dOZoP_hgTnJrZyquuKaqAcvBoCZRcQAvD_BwE). Make sure to reinvest dividends!

Aggressive_Web_8463

He’s saying that VOO or ITOT or the OEF are all very similar, they hold the same positions with small differences, nvda, aapl, goog, msft…  I don’t think you can go wrong with the vanguards or blackrocks (Ishares) but I would suggest a reputable institution, call me old but I’m not investing with RH or anything.  Most important are the five Q’s - your timeline for investment, your risk tolerance, your objective (down payment, retirement,) your liabilities / short term savings are in place, tax situation, & finally your other assets, how does this fit, etc. once you decide those things you’ll know

island_dwarfism23

VOO and QQQM have a highly significant overlap, particularly among large-cap tech and growth companies. Due to this, holding both is significantly less diversified than people expect. However, the overlap is not necessarily a problem if the goal is to deliberately overweight growth-oriented companies. For investors who prefer a simple, broadly diversified portfolio, choosing either VOO or QQQM would be sufficient. VOO provides broader exposure across the S&P 500, while QQQM is more concentrated in large-cap growth and tech-focused companies experience greater volatility. Rather than trying to time the market based on recent performance, consider establishing an smaller starter position and dollar-cost averaging (DCA) into the ETF(s) that best matches your investment strategy, risk tolerance, and desired level of concentration.

Ravens3505

For example over the last 10 years $QQQ has averaged 18.8% annual gains vs 14% for $VOO. When you compound those gains over a large period of time it’s a ton of money lost

Ravens3505

Yes that is true and gives you a little more safety. But you are leaving a ton of gains on the table in the end. It’s a personal choice. I tend to believe the entire stock market for the most part moves together. Nasdaq goes up more on good days, goes down more on bad days. If we all believe in the end we’ll be way up regardless of the many downtimes in between, the compounded gains left on the table choosing $VOO will be a lot. To each their own

peteonmargin

Seem? It’s pretty virtually understood based on his post history there is little care and intent to pay related taxes on these plays. I’ve personally consoled friends and clients over speculative TFSA activity and associated consequences. People leave Canada and stay out to avoid payment similar to inability to consolidate debt. Should CRA slap this guy with business activity in both nonreg and TFSA he’s looking at a rough 600k-700k tax bill. Thats a generational amount. No instalment tax planning considerations were even considered. Had he spoken to an accountant he could s.85 roll over these funds into a company and massively reduce this while opening avenues for future business opportunities. But instead you and him don’t care about what can happen. You might as well comment on everyone else’s thoughts to get out of options and put the proceeds in a safe index fund that practically guarantees a small pension like VOO, XEQT, VFV, etc. Your last sentence is the funniest I’ve heard. There’s a reason why taxes are trying to be pushed by the conscientious; a very lucrative career if pursued at high technical levels. 

LanceX2

You could just VOO the rest.

LumpyShock9656

Crazy to think VOO is actually down today

UnnecessaryPancake

Trading in my Roth, so VOO calls

planes01

Because VOO is a more diverse index that's why

deadmonkey03737

The entirety of VOO is within VT. It’s pointless to concentrate extra funds on just those companies

WakeJman

might as well put the remaining on VOO

thailanddaydreamer

VOO

steady_compounder

If this is long-term money, the bigger risk is usually waiting for a perfect entry that never feels perfect. VOO can still drop after you buy it, but that is true in almost any month. For a beginner, a simple plan of buying steadily from each paycheck is usually more useful than trying to outguess headlines.

ComparisonOther4318

You’re not being too conservative at all, you’re doing what most people *wish* they did at 22. I’m late 30s, \~80 to 90 percent in broad index funds, 10 to 20 percent in individual stocks for fun and potential upside. That “core and satellite” setup lets you scratch the stock picking itch without nuking your future. If you just keep shoveling money into VOO and QQQM for the next 10 to 20 years, you’re already on a very realistic path to “seriously wealthy” by normal human standards.

Routine-Shoulder5785

the sentiment changes so fast man. It was supposed to be a pump like ytd now kioxia miss and everything dumps. Boomers are right, VOO and chill. No, i’m not a bear, i hold many memory calls

sentientshadeofgreen

I'm not such a pompous twat that I'd shit on all of retail investing, but yeah, doesn't take a financial advisor to know that investing in VOO is pretty low risk long-term, just like driving a Prius will save you gas money.

sidaeinjae

I live here. We buy VOO.

GolfLiftPlayPool

Collect my dividend from my emergency fund thats in VUSXX and buy VOO or SCHD idk might fuck around and get some VMFO or CHPY. Depending on how im feelin Sheeit

RedEgg16

VOO and chill everyone

Ravens3505

Everyone will tell you $VOO but the answer is $QQQ

Froggymcnugget

Just put it in VOO pure spy and call it until retirement

Comfortable_Goal9110

Bro you're 21 please put 90% in VOO locked away 

Bitter-Refuse-8623

Yeah I definitely got in on that juicy $192 NVDA. Was like VOO , I love you but you gotta go hang out with SCHD, CUBE, and ARCC for a minute

Cruian

>Also while it is good to go as far back as possible for data, you do not always want to weigh that old data to heavily This isn't true at all, as taking the longer view shows that it is horribly unreliable to judge future winners off what is ahead at any given point in time. Your same methodology done 5 years ago would have resulted in the completely opposite conclusion than what you're saying at the start of this comment chain even when using the same start date. >A few stocks are carrying the overall market and they are not at risk of going out of business. They don't need to go out of business to simply under perform. >VOO performs the same as VTI at worst. Not necessarily. While the market cap weighing should keep them, close, it can't be guaranteed that VOO ends up on top over any given future time span as my link above shows. >Yes, it did barely beat it that one year. Try again: Most of the 2010-2021 period had VTI beating VOO. Look at the graph and see the VOO line underneath the VTI one at plenty of points in that time frame. >You don't invest for a 1 year slight out performance. You are looking for performance 20 years down the line. My graph did show a nearly 20 year period where the winner would have been VTI, not VOO. 1 year of "slight out performance" wouldn't have canceled out the lead VOO built in the 90s to be strong enough to last through the S&P 500's under performance of the 2000-2010 decade (https://testfol.io/?s=cd5unIyuFP6), swing into the lead for most of the 2010-2020 decade (https://testfol.io/?s=d78mCGd0XF9 - look not at the end value but rather the line graph and see how often the blue was above the red). >Both our graphs show that VOO wins long term. Only because of the November 2021 through current period. My graphs show plenty of other times where a long term winner could have been called VTI, not VOO. What makes the leader today the guaranteed winner going forward the next 20 years when the leader in October 2021 was different after nearly 20 years? >VTI has more dead weight, there is no way getting around that mathematically. Most stocks everywhere aren't worth investing in, the difficulty is finding tomorrow's winners. There's plenty of times where market favor is with smaller caps, not in the S&P 500. As the links here show, long term smaller caps have beaten large: Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ Notice in the last link the small blend beat large blend by over 2 whole percentage points in CAGR after 80+ years? >VTI only will have higher performance chances during a recession This is false. https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf (PDF) or the archived version if that doesn't work: http://web.archive.org/web/20201205183933/https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf (PDF) (Archived copies from Archive.org's Wayback Machine) 2003, 2004, 2006, 2009, 2010, 2012, 2013, and 2016 all showed both large and small caps in the US rising with small beating large (that's 8 out of 20). Let's remove any that were negative for at least the S&P 500 and it becomes 8/15, that's now over half the time in rising market situations. >The data also shows SPMO beats both of them which is what I mentioned I use instead so Factor investing is very different than using broad coverage funds and isn't a strategy for everyone. Even favored factors can and have had some periods of under performance in ways not everyone can tolerate (example from earlier today:L https://www.reddit.com/r/portfolios/comments/1vb4fgg/is_this_still_a_good_investment/).

ZoeDesires

Only a true degen would make $700k in a single day and still be crying over the $350k they left on the table. 😂 Seriously though, massive congrats! Please lock at least half of that in VOO so you don't give it all back to the market next week. We both know you won't, but a girl can dream. See you on Monday! 🚀

MaximumCarnage88

I vote for VOO. Or something a little broader: SCHX/K/B or VTI. Go back to basics an you will weather any crash just fine. Over concentrate on space themes and the market may leave you behind.

RedditLeagueAccount

I agree that my own link only shows recent out pacing. However, prior to that they are essentially even. Also while it is good to go as far back as possible for data, you do not always want to weigh that old data to heavily. Good information for sure. It is also a question of how much times have changed though. Unless there is serious reform/change even if a recession happens the same structure is in place for the past 30 years. A few stocks are carrying the overall market and they are not at risk of going out of business. VOO performs the same as VTI at worst. Your link is also good but I don't think it disproves what I said. You are calling out that "even as recently as 2021 VTI beat VOO " Yes, it did barely beat it that one year. But the total number still comes out to VOO winning because the following years VOO recovered and out performed. You don't invest for a 1 year slight out performance. You are looking for performance 20 years down the line. Both our graphs show that VOO wins long term. VTI has more dead weight, there is no way getting around that mathematically. VTI only will have higher performance chances during a recession. We have more bull markets than we do bear markets. The math doesn't support it there either. The data also shows SPMO beats both of them which is what I mentioned I use instead so... Feel free to keep using VTI if you want. You are entitled to your own opinions and beliefs. I'm going to stick with never recommending VTI if there are options that are just as safe with better chances to outperform. I'd also talk about QQQ but I am expecting a harder market crash soon. We will see if AI can pull a big win.

Cruian

VOO is very young (2010). Using the investor tier mutual fund versions can provide data back to the early 90s. https://testfol.io/?s=8MTzu5mZX26 Uses the creation of VTSMX in 1992 and shows even as recently as 2021 VTI beating VOO and that the same was true for a large part of the 2010 decade (despite having been below VOO at basically the start of that decade). With a 1992 start date, all of the VOO over performance only started in late 2021.

Eazy12345678

pay off some bills or invest it in VOO or FXAIX

Rich-Possibility2954

Always the right time for etf like VOO Buffett proved it will beat the world’s best investors long term 

Inevitable_Zebra_0

Search Dollar cost averaging. This was invented specifically to avoid risks associate with choosing the right moment to enter. Instead of putting all in at once, you spread out across a period and invest a portion each time. ETFs like VOO are a great idea. I'd also add here QQQ (high tech growth, higher risk, but you're young so you have time) and SCHD (conservative, best dividend stocks but slow growth). Splitting between these is a common strategy. \> I'm seeing a lot of Reddit threads, news articles, YouTube videos This has always been the case. At any point in time since the advent of social media, at any given day, there're doomer prophets screaming about the incoming apocalypse. This was the case in 2005, 2010, 2015, 2020, you name it. The point is, it's all noise. Trying to make investment decisions based on reddit posts and youtube sensationalists isn't going to lead you anywhere, that's how you will lose money. Or worse, one of the days some PoS influencer will convince you that the only way to win the market is to take leverage and play risky bets - options, shorting, etc. If you like money, your job is to filter out all this noise.

therealjerseytom

> a safe, big name ETF like VOO There's nothing inherently "safe" about VOO. *All investments have risks.* You have to figure out if the risks (and benefits) of a particular investment suit your needs. Step one is identifying what you're even trying to do with your investments, and over what time frame, how much you're willing to lose, etc.

Zestyclose-Ice-3434

Just invest every month whatever you can spare into VOO and dont think about it.

dddd11122233

Yes yes and yes. The nice thing about VOO or similar index funds is you don’t have to worry about the day-to-day news or what anyone says, opinions, theories, worries. If you’re young and just put automatic investments in your check, don’t worry about it and let it compound over years you will be set later in life. VOO, or similar, is the best retirement plan. Put as much in as you can now while you’re young and just don’t worry about it, look in 20 years and you will be thrilled. It literally could retire you at an early age if you put in as much as you can in these younger years. Compound interest is an amazing thing. You don’t have to worry about individual stocks or any of that. Just do it consistently and you will see great results. Ignore any noise about the stock market and just keep investing consistently when it’s up and it’s down. This is for the future you

Various_Couple_764

I you buy individual stock you might get lucky have the next Aapple or Amazon. Or loose it all when the company goes bankrupt. So your invesmtn might eventually make you rich or you loose all of your money. And you don't know how long you have to hold for the investment to pay off Individual stocks can be massively profitable but the risk is much higher. With VOO and QQQM you are buy the a large basket of stock in the hope that some will perform very well and those good stock outweigh the bad ones. SO EFT focus on the average performance o the market . This reduces the growth that can occur, and dividend. But is also reduces the risk. history has show the market index fund are very good overalll performer with less risk and more reliable but smaller growth. Yes ther are people the buy 10K of stock and hold if for about 10 years and have more than a million. But that rarely happens. .

Automatic-Prize-8737

paper hands on LUNR at 12 bucks, been holding since it was like 8 and i'm just numb at this point. NASA etf is a meme but at least you got VOO and MSFT doing heavy lifting there that RKLB cost basis is rough tho

jbcsee

The average investor just throws everything in VTI/VOO/etc... they are doing just fine. It's only the degenerate gamblers who are down 10%.

Cruian

>Also wondering when I should get out of VGT because I wanted to be a little aggressive while I'm still young. Sector bets are a form of uncompensated risk, which I would not consider aggressive. An uncompensated risk is one that doesn't bring higher expected long term returns. It should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ >An uncompensated risk is a risk that you can diversify against. * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk or if that doesn't work, the archive link: https://web.archive.org/web/20260107205255/https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, **sector,** or country. Even long term, the winners can come from far more boring areas. Tech revolutions: * https://www.pwlcapital.com/investing-technological-revolutions/ * https://www.morningstar.com/stocks/you-might-think-industry-growth-drives-stock-returns-heres-why-youd-be-wrong >50% VOO, 30% VGT, 15% VXUS, 5% NASA Why so low on ex-US? Why skip the US extended market? >Should I double dip with possibly 70% VOO 30% VXUS in the Roth, or switch to something like VTI in the Roth? I'm a total market style person, so I'd be using VTI or equivalents over VOO everywhere. Personally, 30% ex-US is my "floor" so I'd be compensating for the taxable being underweight ex-Us by having extra in the IRA (unless I was able to correct that easily).

Cruian

>VTI has no point. Similar to bonds, they will be safe during a recession, but at all other times, VOO would out perform. Every 1 year we spend in a recession, we have 5-10 growth years. It doesn't math out. And if you are not retiring, VOO will recover better within a few years. VTI has spent plenty of times above VOO, even long term and in good times. Looking towards factor investing research, small caps have tended to beat large in the long run.

RedditLeagueAccount

Something to lead with every post on here really - The average top performing investors are dead people. You want to set it up where you set it and forget it. That means making things simple. Not too many stocks. Avoid overlap. Diversify a bit. Roth is good. Fill that first every time. After that, it depends on your plan. Do you want to retire early? Going FIRE changes all the picks. While young, I am personally of the opinion of zero bonds. You don't need those until you are 1-2 years out from retirement, if at all. **VTI** has no point. Similar to bonds, they will be safe during a recession, but at all other times, **VOO** would out perform. Every 1 year we spend in a recession, we have 5-10 growth years. It doesn't math out. And if you are not retiring, **VOO** will recover better within a few years. **Traditional brokerage** should be safe growth ETF's unless you are planning on **FIRE**. You get taxed on dividends and cannot sell/rotate without tax penalties if you wanted to attempt that. So whatever you stick in there, generally its something you never need to sell or collect dividends on until you are 60+. So it is best to do growth ETF's. FIRE changes things a bit in the brokerage since you stop working before all the traditional retirement programs come in to support you and you would not have access to your Roth. **Roth** you *can* get a bit wild on since its fine to sell as long as you leave the money in the Roth. Not saying you should but it is safer to play around in. So you can be more risky there. I would still recommend focusing on Growth/value ETF's. Later there is no penalty to sell it all and shift into other options. I personally prefer **SPMO** to **VOO**. Grows a bit faster, if there is a drop, it drops a bit more but the graphs I looked at say **SPMO** does outperform/recovers fine. In either case, **keep in mind there is a lot of overlap** between them and **VGT** so those are not exactly diversified choices. **VOO** and **VGT** overlap by about **71% by weight** and share 36% of their holdings by number of stocks. Investing in **VOO** and **VGT** is almost investing in the same thing. (**VTI** is in the same boat btw, lots of fund overlap. No point selecting it to have a different option from **VOO**). **I would currently count VOO, VGT, and VTI, as all the same thing. Pick one of them**. **VOO** and **VTI** will rebalance if tech stocks crash. Slightly smaller profit margin, a bit more safety. **VGT** can't rebalance because its tech only. **VGT** will have a better upside if tech does not crash but has a higher risk. I personally don't see NASA going up without a major tech breakthrough. We need asteroid mining before we get mass space adoption. All the money is in AI right now and we only got real space investment to one up people during the cold war. No other countries are trying to do anything cool in space so right now its all about - do we think launching more satellites will be enough to drag the stock price up. For me the Roth is- 70% SPMO 8%- individual stocks to play with. 20% VXUS - increased it from 10% as international stuff is happening which will require growth or they fall apart. 2% bit coin - I think its a scam but the scam has lasted a long time semi successfully so far so I am getting the ETF versions with a stop loss instead of directly investing. Brokerage- 90% SPMO 10% random stuff from when I was new to investing that I haven't sold because they seem to be doing okay. It's very boring. I don't see a reason to change it until i'm 10 years out from retirement.

saryiahan

VOO and chill

greenpride32

AAPL is a great company, but their biggest growth years are likey behind them (which you greatly benefited from) and not ahead. They are back on the path to growth, but very recently had a stretch of 3 years of flat revenue - not something you'd expect at their multiple. I think the wise thing to do is sell some AAPL and put it into the SP500 (using an ETF such has VOO). The SP500 index tracks 500 of the largest profitable companies, rotates winners in, and losers out and adds more weight to the biggest winners. If you bought an SP500 ETF, effectively, 6.5% of that is APPL as it commands the second largest weight in the index. So it's not as though you abandoned AAPL, you just diverisifed out of it. SP500 has a long term annual increase of 10.4% (CAGR) with dividends reinvested. That rate doubles your money roughly every 7 years. I personally sold a portion of my AAPL holdings in past week, as I do not believe their big runup is supported by financial performance. And I own sufficient amounts through both VOO (SP500 - \~6.5% weight) and QQQM (NASDAQ 100 index- \~8.55% weight). Also AAPL reports Q3 earnings after the market close today - so there is potentially a wild price swing coming in the near future.

lanimatran

If you decide to go with that plan, I would treat your combined fund as a single portfolio and allocate them to difference places to maximize efficiency: \- all of VGT should stay in Roth to capture the higher gain tax free \- all of VOO should stay inside brokerage to capture its tax-efficiency \- all of VXUS should stay inside brokerage since it historically underperforms \- Reallocate to match your desired allocation

RedditLeagueAccount

I am currently leaning more bearish through 2027 so I am just doing VOO or SPMO but with a stop limit so I can get the gains I can. Voo is heavily invested in tech anyways. If you are bullish on tech, this will get you like 80% of the gains with a bit of downside protection. **Space** wont be relevant until we have another cold war or a significant break through in tech. Self landing space ships sounds cool but isn't the breakthrough required. The most likely thing I would see driving major gains is successfully mining an asteroid. Less technical requirements compared to terraforming a perma living space and clear immediate profits. I want to live in the sci-fi future but that requires complete support on a societal and financial level. That focus is in AI for now which is also pretty sci fi but they didnt set up society for it and the stocks are way over valued IMO. **Government bonds** are a bad decision unless you are close to retirement. Even during recessions, the temp gains lose compared to when stocks finally recover. I am in the camp of never bonds until you are 1-2 years out from retirement. **Energy, precious metals, and chips** will all have some churn for a while. You can maybe gamble on **farming** stuff if you want. or other oil byproducts. We haven't seen the hit yet on the increase gas prices for them. Things like fertilizer will have to go way up. Even during a recession people will need food. I would generally recommend avoid hopping around but if you want to keep jumping through cycle stuff, that's an option. Another fun gamble - **European defense funds**. America is doing weird things and very much flagging as not an ally to European countries. Regardless of if Trump is right or wrong in what he is doing, I would suspect European countries will be required to invest more in their own military.

willienwaylonnme

Genuine question for the older fellas in here - has the market always been this insanely volatile? I'm scared to even stick my money in VOO right now.

Status-Put8162

Buy VOO on every dip and wait to reenter in the winter. Easy game.

Prudent-Corgi3793

DFIV has beaten VOO since inception by +3.5% per year (+27.5% cumulatively). Plus with lower volatility.

WhiteLotus_1776

In my Roth IRA, I do 70% VTI / 10% VXUS / 20% SCHG ….. and my wife does 70% VOO / 10% VXUS / 20% VGT in hers. Over 15 years, that’s done great for us. Pretty much the same setup in our brokerage accounts and Roth 401k’s

JahMusicMan

Since you are young, you'll be changing your investment strategy as you get older. I wouldn't sell VGT, as you probably have capital gains. Just start contributing to VOO and VXUS and Nasa only

Historical-Rate-8717

My brother in Christ by all conventional metrics VGT \*is\* aggressive. Technically speaking even 100% VOO would be considered aggressive from a portfolio construction perspective. Also becoming "more aggressive" is the opposite of diversifying, it implies you're concentrating more seeking outsized returns(alpha,) versus the index(beta.) 30% VGT is a massive tilt towards growth already.

Dragon_slayer1994

Your thought process seems a bit squirrelly TBH probably should keep at least 80% in something like VOO that you won't touch and speculate with the rest to your heart's content

Callbrucewayne

how the fuck do you have over a million and decide to leverage that into an earnings play. Ive blown up my account twice and have done a lot of dumb shit but holy fuck man , please take the remaining and put that into VOO , find more meaning in life , jesus will guide you. Do not chase brother it will all be gone

Utilize3372

Even VOO and chill is VOO and get rekt. Thanks BHO

ChefRobear

Oh - in that case, I guess it's just the price you pay to play. That sucks, but good job taking control of your future. VOO is good, safe, and recommendable. I would also just look into a few of your personal favorite companies that you love, and maybe hold some of their stock.

saltandpepper96

VT or VOO and fuggitaboutit until closer to retirement.

Novalll

Never do this again. Congratulations. VOO and chill

breadispain

Selling VOO at a loss in less than a 3 month window was your second biggest mistake after buying options. Make a commitment to your position and stick with it.

Arbiter51x

Yeah but I bought VOO yesterday and im already up 1.5% in two hours and it doesn't get much better than that.

kumako10

Everyday, it's either joever or lambo. Idk if I can do this anymore. I should just VOO and chill

Turbulent-Year2663

F VOO and chill

AlmostAsianJim

Every time I get the urge to buy the chips/memory pullback, I remind myself that $VOO gets plenty of exposure to them and I buy $VOO instead.

eromynAwonKtnoDI

If my position goes break even I promise I'll find a job and just fullport VOO

carlo_on_fire

VOO

Feralmoon87

I mean you could just VOO and chill

Long_Illustrator_988

> I’m 22 and also run a business, so my thought is to use the business as the primary wealth generator and consistently move some of the profits into diversified investments rather than trying to get rich from stock picking. Exactly. QQQM and VOO already is a bet on US equities, particularly large-cap tech. "Stock picking" is probably not the easiest way to get rich, although it can work out, but if you have a successful business spending your time on stock picking is like divorcing your gorgeous wife so you can try and bag some famous model by crafting the perfect DM (as if that's going to work). What's nice about your business is you're not necessarily competing against the best and the brightest, whereas with stock picking you kind of are. Also, the guy telling you to stop thinking small is giving reasonable advice, but there are a million ways to skin a cat. Personally, I think his advice is a little too strong on something that is just one of many ways to get wealthy. I got wealthy, by the way, and I got there by being a cheap fk that built up my portfolio. I didn't sell any businesses or have any huge windfalls, I just put in the work year after year. My advice is to not listen to him and do whatever you want with your business. Your plan is perfect, you just need to execute.

FailOk1528

VOO and SPY are basically the same S&P 500 exposure in different wrappers. VOO is cheaper for long-term holding, while SPY is more useful for active trading and options. TQQQ is a completely different product—it targets 3x the **daily** return of the Nasdaq-100 and resets every day. It isn’t simply “QQQ with three times the long-term return,” because volatility and the path the market takes matter. If this is retirement money, TQQQ probably shouldn’t be treated as a core index fund.

Key_Category_8531

It's okay, this is too advanced concepts for you Just VOO and chill

Turbulent-Year2663

I will buy VOO, plz just get me to my entry position

WorldlyWar2143

I really gotta take a look at whats been working for me. My retirement port is down menially in comparison to my gambling port, and the only difference is 3x versus 1x etfs lol. Maybe I should really just sell the rip, if it ever comes, and dump it all in my 3 fund port gradually. VOO/VXUS/IWM has been kicking ass for me and I should probably just stick to that

smalltalk2k

I don't think Investing a portion of your paycheck every two weeks is dollar cost averaging. It is periodic lump sum investing. You put the money into the market as soon as it becomes available. Actual dollar cost averaging is having a lump sum of cash and intentionally holding it back to invest in pieces over time. That is market timing because you hold cash expecting a better price. The data shows lump sum investing beats DCA most of the time. ​The idea that you do not lose money until you sell is a behavioral fallacy. Your wealth is exactly what your portfolio is worth today. If the market drops, you lost that wealth. Believing otherwise is mental accounting to avoid the pain of a loss, which is known as the disposition effect. The long term effect does change though depending if it is in individual stocks or broad market index funds. Broad market index funds will recover over time where individual stocks may not.  ​The forced selling point highlights a real risk. Human capital and equity returns are positively correlated. When the economy tanks, job loss often happens at the exact same time your portfolio drops. If you hold only equities like VOO (U.S. S&P 500) and carry a mortgage, you are exposed to sequence of returns risk even before retirement. I think a good solution is not avoiding stocks. It is holding an emergency fund or a fixed income allocation like BND (U.S. Total Bond Market). That breaks the correlation. If you lose your job during a recession, you spend down the safe assets instead of liquidating stocks at a loss.

O22O

Dot.com bubble doesn’t compare to today’s ai ~~\[bubble\]~~ run in any way. You can’t compare 0 revenues by pets.com to today’s monster profits by semis. Also, that long breakeven wasn’t just because of that one bubble popping. It was the serious rate blunder by the Fed, 9/11, massive war, and even more wrong policies and decisions years over years. But crazy trillions in valuations is still a concern and market has to correct. Those who came in early, can hold out for longer. Those who are fresh like myself, will go into the red much sooner. I only joined last October and I am maybe two more red days away from going red for the third time already since October (I got 72% in VOO/VXUS), this time mostly thanks to the 10% I moved into semis this June. My lesson learned - I should have done 100% ETFs until gaining a stronger green layer over my portfolio. It’s easier to lose the profits (sad, but easier).

Jehoopaloopa

Will work until the equity markets crash and you’re -60% on VOO

Audi52

This is why I VOO and chill

farmer15erf

So if i sell my positions that gain 100% and have free money to keep invested in it that's worse than VOO?

farmer15erf

DCA into TQQQ and come out ahead of VOO regardless in the long run. My TQQQ position from a year ago is only up 28%, really sucks right now.