VOOV
Vanguard S&P 500 Value Index Fund ETF Shares
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Is it a valid retirement strategy to initially hold growth indexes for a period of 5-10 years and transition to more value indexes over time?
Differences between Vanguard S&P 500 offers (and better understand the market)
Don’t Give Up on Value Stocks. 10 That Can Beat the Market.
Today is the first time in my life I opened a Fidelity Stock trading account. Posting here for luck. :)
Today is the first time in my life I opened a Fidelity Stock trading account. Posting here for luck. :)
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Look at VOOV -- a collection of SP500 "value stock"
VOOV is 15% less tech by market cap
What a difference a day makes. Yesterday Dow all time high. The market reacting to now 50% chance of a rate cut and dropping. Fed speak was Hawkish yesterday and Powell said the Fed is data dependent and they may not have the data they need to make an informed decision on rate cut at December meeting. Plus there is clearly some early rebalancing and trimming winners under the surface. I was going to sell some GOOG to buy VOOV but couldn’t do it.
BRK.B and value ETFs like VOOV
This is why I've moved some money into VOOV. It's still *a little* tech heavy, but still far less so than the S&P.
>Am I correct to have a sense of urgency not leaving this type of cash in CD’s perhaps. what's the time horizon? if you'll need this money in less than about 5 years just leave in CDs. if it's 5+ years, think about investing at least part of it. it's not all or nothing. you could invest half the cash, and leave the other cash in the bank. >despite the overvalued markets there are more options than VOO or VTI, which are at high valuations historically. VOOV, FNDX or SCHD has a much more attractive valuation than VOO. small cap stocks are also more reasonably valued (IJR, AVUV, SCHA), ditto for international broadly speaking. >how would you diversify? much more international, and probably more bonds. possibly diversify into more reasonably valued options. at current market valuations like CAPE ratio, the US market is likely to have disappointing returns in the next 10-12 years while international stocks are likely to perform better. Bonds are also likely to perform pretty well. The projections from Research Affiliates for the next 10 years are pretty typical, and historically their forecasts have been more accurate than not. you can see for yourself that international stocks are likely going to perform better than US stocks. https://tinyurl.com/336v3yvd >I’m 46, and not yet ready for bonds see above. Bonds beat the S&P 500 from 2000 to 2020, so you're not guaranteed to get the best long-term results from stocks. https://www.nytimes.com/2020/05/01/business/bonds-beat-stocks-over-20-years.html
Props for starting at 19 that’s already a big win. Honestly, you’ve got a lot of overlap (VTI + QQQ + VOOV all cover large-cap US). With the small amounts you’re putting in, you might be better off keeping it simple — like just VTI or even the target-date fund. The real game-changer is consistency. $20/mo now turns into a lot if you keep increasing it as your income grows. Don’t stress too much on the “perfect” mix yet — you’re doing the most important part already
Props for starting at 19 🙌 that’s already a big win. Honestly, you’ve got a lot of overlap (VTI + QQQ + VOOV all cover large-cap US). With the small amounts you’re putting in, you might be better off keeping it simple — like just VTI or even the target-date fund. The real game-changer is consistency. $20/mo now turns into a lot if you keep increasing it as your income grows. Don’t stress too much on the “perfect” mix yet — you’re doing the most important part already 🚀
Way too much overlap and no reason to have a TDF unless you're 100% in it. With your amount stick to 1 fund, either VTI or VOO would be my pick. Also VOOV isn't an S&P 500 fund, it's a S&P 500 Value fund. At your age, look for growth, not value and dividends.
the Putnam large cap value is an OK choice, comparable to VOOV or FLCOX. wouldn't be a terrible option to get the employer match. but for a slightly higher fee, thePutnam Dynamic Asset Allocation Balanced Fund is much more diversified, with international stocks. https://www.franklintempleton.com/investments/options/mutual-funds/products/38954/A/putnam-dynamic-asset-allocation-balanced-fund/PABAX#portfolio it's a bit bond-heavier than the target funds, but I'm assuming you'll get only the match with this 401k and then lean more heavily into a Roth IRA for additional retirement savings.
People correctly saying VOO and chill, but I'd like to expand on *how*. A RothIRA is double tax advantaged. You don't pay taxes on capital gains (growth) OR distribution (withdrawals). You're still within the window to contribute for 2024. I strongly encourage you to contribute the max $7000 for 2024, and then contribute the remaining $3000 for 2025. This can be done at the same time. Also, if you're concerned about inflation or the S&P 500 being overpriced in the medium term, my three favorite high-yield return indexes for uncertain times are vanguard indexes are Utilities, Consumer Staples, and Healthcare. Utilities are a particularly good bet compared to the market writ large at the moment. I typically give 30% of my portfolio to those three indexes, and 70% to VOO. Though in the current environment I'm considering swapping VOO for some combination VYM, VOOV, or VTV. VFMO has my attention for better times.
In that case it is a great diversifier, better than VOOV. It has some strong companies with stable cash flows.
> , it's always easy to say 'park it in something better'. If it was that easy we'd all be insanely rich This is a little reductive. I'm not saying you need to find a penny stock that's going to grow a million percent, but look at PayPal stock prices - it's been stagnant for years. You'd be better off just putting the money in VOOV. It's not hard to beat 'stagnant'. I mean gosh, if you invested in PayPal in 2018 and still held today you wouldn't be very happy with yourself. > PayPal may not be 'exciting', but I don't invest in a company because I'm a hysterical fanboy that pays any price to be part of their hyped up story. And that's fine, but there's no doubt that stocks are pumped just as much through emotion as they are through inherent value. PayPal just isn't an exciting venture anymore. It might be stable, but that alone isn't going to reap investment. What's PayPal doing to convince people to invest? If it's more of the same then more of the same for the last few years has been stock stagnation - not wholly convincing. But hey I'm not saying it can't or won't reach $100, it's possible, I suppose you're going to have to ask yourself what is going to go so right for PayPal this year that's going to warrant such a price jump when it hasn't happened for three plus years. What makes this year special? You no doubt know much more about PayPal than I do, so perhaps you know of some bold ventures that will re-energize them.
Incredibly stupid answer, particularly for an investing sub. "Growth" is an equity factor, and the opposite of the “Value" factor. https://www.msci.com/documents/1296102/8473352/MSCI-SingleFactor-Growth.pdf Factor theory is a foundational pillar of modern finance. You can look up Fama French factor models if you want to learn more. Going back to the S&P 500, you can actually split the index into two distinct indices: “S&P 500 Growth” and “S&P 500 Value”. VOOG (Vanguard) and IVW (iShares) are ETFs that follow the S&P 500 Growth. VOOV and IVE follow the S&P 500 Value. Obviously, you don’t necessarily have to buy an S&P 500 ETF. QQQ, which follows the Nasdaq 100, is the world’s most famous “Growth” ETF, but there are hundreds of others. An investor can absolutely prefer having a “Growth” tilt in their portfolio for various reasons, and it is a perfectly reasonable discussion subject on an investing sub! People are allowed to buy something other than the S&P 500 without being lectured by morons with zero investing expertise. Especially not by those who don’t even know what an equity factor is.
if ur up now, sell everything (maybe hold a lil KULR for the long just to see where it ends up) and reinvest the $ into QQQ, VOOV or VOO and never sell, by the time you work and retire that 2k in any of the above mentioned ETF will 30-50x your money
Here is my list in alphabetical order: VTI, VOOV, VOOG, VOO, VGT, SCHD and QQQ
G is growth and V is value. So VOOG would tilt to companies that don't pay dividends and are expected to reinvest profits into the business (think tech companies like NVDA, AAPL) and VOOV is value, more mature stable companies that don't have much room to grow and mostly pass on profits as dividends to shareholders(Coke, Bank of America, etc) You get both with VOO!
Wow, that makes a lot of sense. thanks for looking out for me. Will definitely do VOO. But VOO > VOOV or VOOG? I get that VOO is the best, but what is the difference between G and V?
Alright cool. I know this is the "safest" option, but would investing in actual companies give a higher chance for more return and more dividends? Also why VOO and not VOOG or VOOV?
[https://www.reddit.com/r/investing/comments/1b2sucu/any\_reason\_to\_buy\_voo\_or\_voov\_over\_voog/](https://www.reddit.com/r/investing/comments/1b2sucu/any_reason_to_buy_voo_or_voov_over_voog/) [https://www.reddit.com/r/investing/comments/f275sw/voo\_vs\_voog\_vs\_voov\_whats\_the\_key\_differences/](https://www.reddit.com/r/investing/comments/f275sw/voo_vs_voog_vs_voov_whats_the_key_differences/) >My goal is to just invest and let the money sit for my retirement. Then use VOO. It contains all the stocks that VOOG and VOOV have
VOO holds everything in VOOG and VOOV already. The more diversified the better. VOO is good. VTI is better, VT is best. [https://www.reddit.com/r/personalfinance/wiki/investing](https://www.reddit.com/r/personalfinance/wiki/investing/)
VOO - VANGUARD 500 INDEX FUND ETF VOOG - VANGUARD S&P 500 GROWTH INDEX FUND ETF VOOV - VANGUARD S&P 500 VALUE INDEX FUND ETF Which of these are you saying i should select?
Hi thank you for your rexplanation! For now I will try VOO and VOOV until I am sure what to do next. Thank you again.
VOOV tracks the S&P 500 Value Index and VOO tracks the S&P 500 Index. They are different indices. The S&P 500 Index is the generic large cap US equity index that many people like to benchmark again. There are 2 variants of the S&P 500 index. The S&P 500 Growth Index and the S&P 500 Value Index. If you are using Vanguard products: VOO tracks the S&P 500 Index VOOV tracks the S&P 500 Value Index VOOG tracks the S&P 500 Growth Index It's up to you if you want to spread your investments out - usually when an investor does that - it's to seek exposure or concentration to other asseet classes, sectors, industries, etc. For example - you could hold both VOO and VOOV because you want slightly more concentration to value of US large cap. Or you could hold VOO and MDY (a midcap ETF) because you want more exposure to US total market but you want to avoid small caps. Or you could hold VOO and BND because you want to have a different asset class (ie bonds) in your portfolio. It really not really about whether it's better or not - it depends on the investor's own personal investing thesis, their risk tolerance, and knowledge, etc. etc.
36yo in the US and new to investing. Currently making around $45 - 50k a year. I have no particular goal rn except to invest so I am considering to allocate $500-$1k a month to invest in index fund. I have put $200 on VOOV just to see if eveything works. Is this the same as VOO? Maybe this question has been asked frequently but Id like to know if it is better to spread my investment to 2-3 ITFs instead of just 1. Thank you !
The language you used to list your investments is inconsistent - Roth IRA is a type of account, S&P 500 is an index, and VOO, VOOV and QQQ are ETFs. What does your IRA contain? Why do you differential between “S&P 500” and VOO when they’re the same? Your plan looks fine but I suspect you don’t fully understand what your investments are exactly
100% equity right now seems a bit risky unless you’re 22. Why not VOOV? You get a small chunk of BRK. Most people don’t remember 2000-2009, basically a lost decade for stocks
VOOV is the portion of the S&P 500 deemed "value" (as opposed to growth, which would be VOOG).
Check VOOV or SPYV - the value stocks within S&P 500 are rallying hard. Unless they drop again , they should at least keep SPY somewhat suspended.
Damn I sold out VOOV too soon. That’s ok. Still beating my benchmark for the day just by not participating in this mess
Damn maybe I sold out of VOOV too early. I knew it wouldn’t fall as fast, but I didn’t see it rallying as everything else continues to fall
I’m thinking of dumping VOOV for SPYV. Much higher volume is evident
My VOOV broke ranks and fell off a cliff
Busy day for me. It’s NVDA or CHWY or ANF or VOOV or bust. I think I can get at least 3 of the 4
Chatgpt disagrees. Ranking (Best to Worst): VOO: Lowest expense ratio, strong performance, and high AUM make it a great option for preserving capital with broad large-cap exposure. VTI: Low costs with exposure to the entire U.S. stock market, ideal for diversified, long-term investment. SPY: Slightly higher expense ratio than VOO, but offers high liquidity, making it attractive for short-term traders. VOOV: Higher dividend yield and focus on value stocks may appeal to income-seeking investors, though it has a higher expense ratio. IWM: Higher risk due to small-cap focus, with a higher expense ratio and lower returns, making it less attractive for capital preservation.
Felling better about my big VOOV buy this morning, but my speculations are dragging me down
SPY outdone by VOOV. It’s the start of a trend. Book it (because I said so and I stayed at a holiday inn express last night)
over the next 5 years, the odds are strongly in favor of VOOV having the best performance rather than VOO or VUG. >David Hoeft, chief investment officer at Dodge & Cox, points out value stocks usually outperform growth stocks even if that’s not been the case of late. **On a rolling 10-year basis, there’s been only three periods over the past 90 years when value stocks underperformed.** >And now, he notes that the Russell 1000 growth index trades at 28.8 times forward earnings vs. 16.1 times for the Russell 1000 value index That valuation gap leaves value stocks less expensive relative to growth than they have been nearly 95% of the time since 1995. (This gap between growth and value is similar outside the United States too — in the 84th percentile of observations for ex-U.S. stocks.) >For every 5-year period when the valuation spread is wider than the 80th percentile, value stocks have outperformed growth stocks — by 12.1% per year, on average, says Hoeft. https://www.msn.com/en-us/money/savingandinvesting/since-1995-value-stocks-have-always-outperformed-when-they-re-this-cheap-and-by-a-big-margin/ar-BB1r144M
There's a VOOG and VOOV are those relevant or just VOO?
Index funds are the ones like VOO and SPY, but there are others. VOO and SPY are nearly identical, but they are both $500+. Consider SPLG, which holds the same stocks as VOO and SPY, but is about $65 per share. Ditto VOOV-it’s the same as VOO, but has a lower entry point at about $180 per share. QQQM ($190) is the same as QQQ ($465)-it’s easier to get whole shares of the lower dollar versions. I buy SPLG. That and QQQM are a good setup for a young man. I agree with others here that you’re better off to stick with any of those over individual stocks, at least until you learn a whole lot more. Be very careful with stuff like RKLB (which, btw, doesn’t grow, it’s been stuck in the same narrow band forever). I own a little ASTS, but I can afford to play. Your job is to build your foundation of 90%+ index funds, and hold off on individual stocks until you do. Congratulations on starting young.
I’m talking about stock price, being that it is irrelevant because you can buy fractional shares. And even if we are talking about expense ratio, VOOV’s expense ratio is 0.1% to VOO’s 0.03%, making VOO still the better option
What reputable person is considering Yieldmax to be low risk? Genuinely asking. And VOO actually has a lower expense ratio than VOOV (0.03% vs. 0.1% respectively), and you can buy it fractionally so the price is irrelevant.
VOO is really expensive but VOOV is at about $182 currently. It is under the native VOO stock. I invest in MSTY and CONY, they are low risk volatile stocks but I make a good income off of them and a couple others. I recently added NVIDIA (NVDA) and NVDY. I combed about 100 of the income stocks to see who pays the highest dividends These seem good by comparison.
Risk is very correlated with timeline... Very short timeline, almost everything has high risk. The longer the timeline, the more the risk drops. If you're looking for lower risk, you might also consider lower-risk sections of the market. The "value" side of the market tends to be more boring and less volatile -- stuff like VTV or VOOV. And certain market sectors tend to be lower risk too... Healthcare, Consumer Staples (think Wal Mart), Utilities are the big three. Everybody needs those things regardless of market conditions. Their returns are lower than VOO, but the downside tends to be less too. Vanguard's sector funds for these are VPU (utilities), VHT (health care), VDC (consumer staples). These can of course be bought alongside whatever else to nudge the portfolio in one direction or another. Nudging it to higher risk/return would probably be stuff like QQQM and VGT (Vanguard tech sector ETF)
So I'm NOT an expert at this at all. But I do get nervous about how concentrated stock growth is in the top of the S&P and I genuinely believe a lot of other S&P stocks are good companies that should be growing as well. So while I invest in the S&P normally, I try to diversify a little by doing equal weight ETFs and stuff as well. Currently I have (in terms of S&P exposure): $SFY $SPYG $RSP (equal weight) $VOOV Once again feel free to roast me on this as I'm a newb for sure, but basically I just don't want so much of my money tied up in the Mag7. By targeting equal weight, growth, and value perspectives on the S&P I feel safer.
Vanguard has several "factor" funds that don't have as much tech in them. For example, VOO (S&P 500 ETF) has 30.6% in Information Technology. Other funds have lower concentrations, like VFVA with 5.3% in Tech, VOOV with 8.1% in Information Technology, or VFMF with 10.7% in Tech.
It's not bang on, but VOOV is probably the closest to what you're looking for.
Okay here's the same chart with VOOV replaced by TQQQ  https://preview.redd.it/51fhbr5uyi7d1.png?width=2302&format=png&auto=webp&s=bf8b63ca744397ef538fda4c7b0085ee28880c8a
https://preview.redd.it/j4bwpwmssf7d1.png?width=2301&format=png&auto=webp&s=3290307feb1b9976edbf3e6490584343adea8a18 VOO, VOOG, VOOV, VTI to compare
VOOV holds large and mid-cap securities, VOO holds large-cap securities. You can see that there top ten holdings are in different sectors of the economy. VOOV invests into marketing and other stuff like that. Some banks, berkshire, etc. VOO holds big sector stuff like Technology. VOOV is going to be much more widespread with less risk because they hold less of each company. VOO will be more volatile because they have greater holdings in the biggest companies.
This is probably a stupid question, but I'm new to investing so here we go. What's the difference between VOO and VOOV?
Markets are usually at or near all time highs. I don't know what's going to happen tomorrow, but it's probably not a good reason to change your behavior when it's the status quo. You probably should be figuring out a timeline for that money and letting that inform your decisions. "I want to use this in 5 years" is a very different scenario than "I want to use this in 25 years". You dividends on $100k aren't going to be all that significant. They're also less tax efficient than share price appreciation. That doesn't mean you should avoid dividends, but you probably don't want to aim for them specifically. If you're worried about markets taking a dive, you could put money towards the value side of the market (VOOV, VTV, whatever). They tend to have less upside and less downside, and they tend to pay higher dividends. If you time the market right (e.g. right now is like late 2021), then you'll beat market performance significantly though you might still lose money in the process. But timing the market is famously hard to do. You always have the option to not invest in stocks at all -- there are bonds, T Bills, HYSA, money funds, etc.
> It makes me laugh how even professional hedge fund managers can’t beat VOO, so how did I expect to? It ain't *that* hard. You have a negligible amount of money in comparison to them, which offers some advantage. Plus you aren't answerable to multimillionaires that get antsy at anything resembling a long term bet. The hard part is beating it without increasing volatility, or beating it over relatively short timeframes. And hedge funds (depending on the fund) aren't really trying to provide higher returns than the market. They're hedges -- they aim to provide returns relatively uncorrelated with market returns to reduce the volatility of the portfolio of multimillionaires. > The only way I would have crushed Voo CRUSHING VOO would be very hard to do without taking on big risk. But beating it by a small amount, most of time... is possible. Like, being underweight in habitually underperforming sectors will likely do it by a small amount over decade type timeframes. But those habitually underperforming sectors also tend to be less volatile, so your portfolio volatility goes up. The other thing to remember is you can beat VOO with most of your money *in* VOO, only moving some elsewhere to take advantage of opportunities. Even though I've beaten it for a long time, my returns are only slightly better because I'm also not crazy, so most of my money is still in broad indexes. But like... during the Covid crash, one could guess who might be winners in a lockdown scenario. I threw money at FedEx and Zoom. That worked out quite well. When oil went negative, I threw some at USL. That worked out quite well. And so on. Or with 2022, the Fed was talking about rate hikes for a long time. If you'd shifted some money towards the value side of the S&P like VOOV... It lost 7.5% vs 20% in 2022. Of course, timing is everything, and even if you're careful, you'll still probably lose (relative to VOO) on half your bets. But upside can generally be bigger than downside, so all it takes is catching some big winners, and letting the small winners and small losers cancel out. Just for funzies, I looked back at trades since 2017... In terms of winning vs losing vs VOO, I'm 30-18, but in terms of actual dollars gained, we're talking a few grand a year. Given the time I've spent, probably not even worth bothering. But it's also like entertainment for me.
5 years was an example. Let's look at 10 years: VOOV: 105% VTI: 154% S&P 500: 181% QQQ: 374% SMH: 806% Yes, holding these is aggressive and I would only do it with a long term horizon. But anyone who was only invested in S&P 500 for the past 10 years has underperformed significantly. I would never recommend individual stocks, but holding some position in these growth ETFs has been very lucrative long-term.
There has also been a ton of hype around growth stocks over value. VUG (vanguard growth etf) is down 2.26% today. VOOV (vanguard value etf) is up .8%.
QLD, VOOV, AAPL, IXUS, AVUV, VGT, FMAGX, FBGRX, FSKAX, FBTC Absolutely no idea what I’m doing lol
Hmm, how are intl stocks and us stocks correlated though? What would be a good complement to VOOV instead?
VOOV has .1% expense compared to .03% of VOO But yeah since it sounds like you want to avoid tech industry - which is basically every growth and index fund today - then a good value fund like voov/vym/schd are all good bets. SCHD just rebelanced their holdings and removed most/all tech FWIW SCHD holds a lead over VOOV and VOO over past 10 years and is .06% iirc
I personally am almost all-in on value, so I respect the VOOV pick. I would suggest you research some better fund constructions though. These days you can get a much better designed fund with daily rebalancing. My suggestion would be AVLV. Could even buy AVGE or AVGV and have an all in one globally diversified, tilted fund, but if you prefer VXUS that’s reasonable. S&P500 value gets the job done but it’s not optimal by any means.
Why not VTI instead of VOOV? You just get the whole usa that way. You can always sell company shares when they vest and rebalance into your 2 etfs.
Opened a fidelity brokerage account. While trying to set up recurring transfers from my ext account, there's an option asking for a symbol. I want s&p 500. Not individual stocks ofcourse. Can someone direct me please. When I type VOO it gives me VOOG, VOOV and VOO vanguard 500 index fund ETF. As a beginner which is better.
I'm not quite like everyone else here, but I'd say 25% BRK/B, 20% VOOG, 25% VGT, 20% VOOV, and 10% O. Or you could be super simple and smart and do 100% VOO.
NVDA - 99% VOOV - 1% (to ensure portfolio diversification) :)
VOOG is fine, but it is different than VOO and VOOV. VOO = all 500 stocks in the S&P500, weighted by market cap, meaning the biggest companies have a bigger share than the smaller companies. VOOV = is 448 of the 500 S&P500 stocks, weighted according to "value" criteria. VOOG = is 229 of the 500 S&P500 that the fund judges have the best "growth" characteristics, also weighted by market cap. VOOG has performed the best of these three the past 10 years, and that makes it one of those choices I mentioned: if you choose something other than VOO, have some reason to do that.
Thanks for the advice! I'm using Robinhood and I searched up VOO and found 3 different ETFs being VOO, VOOG, and VOOV with VOOG having the highest percent increase in the last 3 months. I bought a share of VOOG. Am I doing this right?
To illustrate, why not go a step further? Why not AAPL or MSFT over VOOG? The two together make up a quarter of VOOG, and both have vastly outperformed VOOG (and have no fees, as low as Vanguard's are). Presumably your individual risk tolerance is such that you don't want to put all your eggs in one basket, so you're spreading risk across a whole ETF. Same story with why anyone would choose VOO or VOOV, they think tech is overvalued, they think other sectors are undervalued, etc. If your tolerance is such that VOOG is the best bet for you, go for it.
don’t recommend dividend stocks. just buy VOOV if u want the blue chips w dividends. you will never pick the winners. also USFR gives guaranteed 5% a year
VOOV or VLU might be your flavor
I bought VOOV and DRGW for his investments. We will see how that goes in 10-15 years.
VOO, VOOG and VOOV are a nice trio
Congratulations on starting your investing journey so young. IMO you have a lot of overlap with individual stocks and funds. Example you have some of the top stocks in the SP500 including the tech stocks and you also have VOOV and VGT. ARK has a bunch of repeat stocks among their several funds also. Again it's awesome to see younger people invest but because you're so long you could afford to pick six or your best performing stocks of the last five years, sell everything else and just keep investing in those six. Less is more when you start investing young. Diversify as you get older and actually need that money.
Feels like you're skipping steps... Like loosely from less to more risky... Relatively risk-free (government bonds, CDs, etc.) Broad funds (VOO, VTI, VT, etc.) Growth vs Value funds (VUG, VTV, VOOG, VOOV, etc.) Sector funds (VGT, VHF, VHT, VNQ, etc.) Individual stocks Like, maybe you should spend some time on those steps in between rather than jumping full on into individual stock picking.
What I’m thinking I’m going to do is pull everything out of VOOG VOOV and VTI and put it in VOO at the very least maybe pull from the xl[]s and do the same.
What I’m thinking I’m going to do is pull everything out of VOOG VOOV and VTI and put it in VOO at the very least maybe pull from the xl[]s and do the same
With the way you are investing you will never beat the market. I sound like a broken record with the other comments but at the same time I think you are obstinate. You ask for help and then send backlash to everyone who helps you. Your portfolio is over diversified (yes it’s a real thing). Invest in only VOO or VTI or VOOV. Or just choose a few. Choosing this many ETFs makes absolutely no sense and it proves you’ve done little to no research in an investment strategy. To answer the question you will ask me. I know you did very little or no research because no professional would suggest you do anything near what you’ve done with your portfolio.
Overlap causes a concentration in any assets within that overlap which… is the opposite of why you want to get an etf. For example: VOOV and VOOG and both completely contained within VOO. VOO itself is then completely contained within VTI, as is VO and VB. Then you also have significant overlap in pretty much every other ETF there. Add in the fact they’ll all have different management charges and you’re probably just costing yourself money.
With the VOO VOOV and VOOG I understand that there is a lot of overlap but I am confused what the harm in overlap is. With the XL[]s those are mainly in case a certain sector starts doing well I can hopefully capitalize. All of these seem very safe though and like it is unlikely for me to lose in the long run on any of these ETFs.
The combination of VOO, VOOG and VOOV is a pretty clear indicator. If you want a clear divide between growth and value then stick with the later 2, if you just want to track the S&P 500 then stick with the 1st. There’s not much reason to having a seemingly random allocation to all 3 (a quick google or a search on yahoo finance will show you this I’m not even able to buy these in my country) Same scenario with the XL{}s why those sectors? And then why an increase in those sector weightings when you already have a lot of overlap with other your other investments. Go through each of those, ask yourself if you actually know what it is. Then ask yourself why it’s there. If you can’t answer either of those then why have you bought it?
For a low - medium risk strategy I would invest in - VOO VOOV VOOG QQQ SCHD
As has been stated many times. Start off by putting the money into something like VOO or SPY. Then as you go to add more money you can try other things. Like more specific ETFs like VOOV or VGT. There are so many that focus on companies with certain attributes within the S&P 500. For now, go with the smart long term safe bets that have mentioned countless times. You will naturally start to learn more, which will give you confidence to try other investment opportunities.
You’re half correct. VOOV is VOO but with a value tilt. The same fund exists for S&P “growth” companies - VOOG. Vanguard may publish their criteria for each online but at the very least you can search their holdings to understand which companies are held by each fund.
What do you think about VOOV?
Don't listen to this person. This is not good advice. If you dont own real estate, \~20-30% of your assets should in treasury-like assets or cash/HYSA. The rest can be in index funds. Index funds are investing, not gambling. Decide your risk tolerance and decide the mix of index funds from there (VOOV - medium risk, VOO/VOOG - medium/high risk, QQQ - high risk, TQQQ - super high risk). If the above poster means 95% of your investment funds should be in index funds, then I agree. Invest in things like index funds, then have some fun with the other 5%. Maybe you hit it big with one guess!
That was what my thought was, but after realising that a higher dividend payout doesn't always make it better, I'm thinking about VOOV, it pays out roughly the same and appears to be recovering already, I'm trying to find out some better things to look for before reinvesting
i actually am of the opinion that it’s time for value and bonds to outshine the nice recent runs of spy and qqq 80/15/5 VOOV /BBD/cash
add value stock VOOV and dividend etf. add a little BOND and cash given market conditions, probably 20% so you can buy any dips on ur indexes
> I have considered just doing it with VOO Holding VOOG and VOOV (or VUG and VTV) separately and altering the ratio based on economic info seems feasible too. It's not as exciting, but shifting towards value when the fed is like "hey we're going to continually jack interest rates for the next year" seems like not-crazy prognostication skills. Or shifting towards growth when Covid hit and the fed turned on the money printers. It's just... hitting for average, not looking for home runs. Tax drag would be rough in a brokerage though.
So I have $40k across VOO VOOV and VOOG. Was gonna match another 40k of VTI and VXUS. What do you think?
The first and most important thing to understand is that it matters WHEN you make your buys, especially for the more exciting growth plays. So for example, most here are saying buy an S&P500 ETF like VOO or SPY (or something very close to it like VTI). But the S&P500 is at a multiple of around 23 Price/Earnings at the moment, which is a bit high, and you can look at a long run chart of P/E to see what's more normal. And that tells us now is a better time to buy value plays that more consistently return capital to shareholders, like a dividend growth ETF as a core position, such as VIG or DGRO, or maybe at least something with a value tilt, like VTV or VOOV
Yes you could and it will be fine. You’re going to get better performance in the long run if you have VOO+VOOG or just VOOG in a bull market. I added VOOV (value) because I think it will do better over the next year or so. Here are their annualized returns for perspective: VOO = 12.3% (5 yrs)/12.6% (10 yrs) VOOG = 13% (5 yrs)/14.1% (10 yrs) VOOV = 10.6% (5 yrs)/10.3% (10 yrs)
Split it between the VOO, the VOOG, and the VOOV
As for the growth it seems like a good investment but value might outperform sometimes and if you have both (for instance VOOG and VOOV) you basically have VOO
The ones that start with V are funds managed by Vanguard. Vanguard is highly respected in this space. They pride themselves on low costs, which is a benefit for investors. Again, it is pennies on big investments, but they are a customer owned company. Whereas another company would try to skim pennies from more people. The founder of Vanguard, John Bogle, was one of the first to theorize about passive index investing and saying how, for most people, investing in broad indexes provide better returns at lower risk and is a better fit for most people. Heck, even Warren Buffet agrees with the approach, despite Berkshire taking a slightly different view with its own money as a firm. VOOG and VOOV are not the S&P 500. They are subsets of the 500. The growth segment and the value segment. Growth is more risky more return, value is less risk less return. You can look up the funds on Vanguard's site here: [https://investor.vanguard.com/investment-products/etfs/profile/voog#overview](https://investor.vanguard.com/investment-products/etfs/profile/voog#overview)
This is amazing, thank you so much. When I search up VOO on Charles Schwab, there is VOO as well as VOOG and VOOV. Should I pay attention to either of those or just focus on the S&P 500? And if I can invest directly into the S&P 500, then what is the point of something like a Roth IRA which grows based on my ROI? Because it isn’t taxable?
[You can fiddle with this](https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=2&startYear=2000&firstMonth=1&endYear=2023&lastMonth=5&calendarAligned=true&includeYTD=true&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=0&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=true&showFactors=true&factorModel=3&benchmark=VFINX&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=XLC&allocation1_1=14.32&symbol2=XLV&allocation2_1=14.28&symbol3=XLI&allocation3_1=14.28&symbol4=ITB&allocation4_1=14.28&symbol5=FEZ&allocation5_1=14.28&symbol6=VOOV&allocation6_1=14.28&symbol7=VOOG&allocation7_1=14.28&symbol8=VOO&allocation8_2=100) and see just how close you are to VOO. Your sharpe and sortino ratios are worse than VOO. This does not account for fees, which are worse than VOO. Anyone arguing that the S&P 500 does not provide adequate diversification for the lay investor should be ignored. If you're running a hedge fund then that answer is different, but this is /r/investing, we're not doing that here. Personally, my entire 401k is in the S&P 500 and my IRA is in some very different stuff that I play around with and usually don't clear a lot of money on. It scratches the itch to play with stocks but not in financially detrimental way.
VOO already leans growth. If anything split it between VOOV but I would just keep it simple and only buy VOO.