Vanguard Total Stock Market Index Fund ETF Shares
$-0.03 (-0.02%) Today
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Just invested my first 1,000. I’m 20 and am making a lot of money from a high paying deployment with no tax. I’m putting as much of it into savings as I can, and decided to put some money into VTI and some individual Stocks that seemed cheap. Aside from everything going down this morning any advice?
Honestly, I do like that portfolio. People here tend to have some hive mind on VTI. I personally would try to increase the percentage of VOO but it is absolutely okay in my opinion to have some riskier plays as long as you are fully aware that it is gamble relative to your VOO position. Just speaking for myself here, I think nuclear fission's role in the future of electrical power is very questionable and I'd drop that altogether and put it into ICLN, which I hold.
If you have the time, energy, and intellect to follow a company's I formation and news, start with a low risk allocation to it vs your index fund and compare how you do. I follow just a small number of hand picked companies and change my position a few times a year based on their performance and external current events. Doing better than my friends who just out into VTI or SCHD. For now lol.
If you are investing less than 10k, it is important to remember to keep open mind about what is really valuable. Maybe more expensive but healthier foods might be a better investment than VTI. Maybe taking off a half day on fridays might do you more good than VOO.
22% GOOGL, 21% AAPL, 14% NVIDIA, 10% MSFT, 9% TGT, 5% AMD, 3% AMZN, 2% WBD, 2% AXP, 1.5% NIO, 10.5% VTI Curious to know whether you guys think I should continue to DCA into VTI given I hold a lot of its top holdings individually.
0% There's no good reason to buy individual stocks unless you have insider knowledge of some kind (i.e., access to non-public information) which gives you an edge. Most likely you do not, unless you work in a specific industry with access to such things. And even if you do, all the companies sell all their data to the hedge funds so the hedge funds are probably going to be able to react much faster than you are. For regular folks like us your best bet is to buy a low-cost broad market index fund like VTI.
I appreciate it! I’m not going crazy or anything I’m just getting my feet wet and trying to learn as much as I can. I’ve only got 200 in Apple and put a small amount into VTI but nothing more until I know what the hell im actually doing
What's your goal? Saving for retirement, or trying to retire early? If you are saving for retirement, and that is a long time away, then going with something like VTI is fine since historically the market has gone up over the long term, and the short term fluctuations are just noise.
The alternative is a simple low cost Boglehead-style portfolio. VTI, VXUS, BND, and BNDW. There more evidence for this approach than anything else, and it’s frequently expressed by Fama, Felix, etc. The funny thing about all the Boglehead influencers (e.g., Rick Ferri, Larry Swedmore, Ben Felix) is that everyone basically agrees with it, then adds their own little twist to distinguish/justify their services. It’s how we end up with various tilts like EM, REITs, SCV, etc. “The three fund is great, but here’s how you do a little better…” The entire business model relies on performance chasing. Meanwhile, I average out the stuff none of them agree on and stick to the stuff all of them agree on. That’s the basic three fund lazy portfolio.
I’m starting to build my portfolio, looking for long-medium term investments, I can put in about 500 a month. Is now a good time to invest in total market index funds (VTI, SWPPX)? With all the recession doomsaying going around I’m not sure what the best strategy is here. Additionally, what’s the best strategy if a recession hits? Are there industries/individual equities that are guaranteed to dip but bounce back? Or should I not be thinking about equities at all? I’m mostly risk adverse but willing to take on some for reasonable returns.
> I've always been very surprised when people on Reddit claim that 100% US funds, like VTI or VTSAX, are "diversified." Looks a the % of revenue companies in them get internationally. Depending on how you count it, IP licences are the big ones people argue about, the S&P500 gets anywhere from 20-40% of it's revenue from outside the USA. That easily hits most peoples suggested target of international exposure. Honestly a 50/50 VTI and International Fund would have you over exposed to international markets.
The data is wrong, or at very least skewed and given completely out of context. Thousands upon thousands of investors beat the market, consistently. If you simply bought and held Google or Amazon rather than ETFs 5 or 10 years ago (obviously, if you started right before the crash this is not the case), you'd have handedly beat the market, consistently. It's really not rocket science. VTI will give you average returns. You're buying the winners, it's true, but you're also buying every single loser. Retail investors need to understand this. If you want safe, slow, average returns, by all means, buy VTI. If you want to build a lot of wealth before you're a senior citizen, index funds are a losing strategy unless you have a very high income and can throw a ton of money at them. There are several reasons fund managers fail to beat the market which don't apply to retail investors. The entire thesis about why individual investors should only buy index funds is based on false assumptions. Literally every time this is brought up, it is assumed that stock pickers just throw a dart at a board and pick whatever stock it lands on. Of course, you're very likely to buy a loser if that is the case. Almost no one invests like that. With a little bit of leg work, you can determine which stocks are safe, and almost guaranteed NOT to go to zero, and also have a better than none chance of outperforming the market. Example, there are several solar stocks which are going to moon over the next year or two. That does not mean that if you buy any random solar stock, you are guaranteed to beat the market. But if you buy ENPH, ARRY, SHLS, and ON, for example, do you really think you won't vastly outperform the market over the next 12-24 months? Nothing is guaranteed... But it's pretty damn close. Another example. What do we know about EV demand over the coming decades? It's going to be rampant. We know this. What is essential to just about every EV manufacturer? Rare earth metals, for one thing. Considering supply chain issues, MP Materials is a no brainer to beat the market over time. Guaranteed? No. But I think it is far more likely than MP underperforming the market or going bankrupt. Look for stocks with high institutional ownership whose prices have been obviously manipulated to the downside but which provide products and services that it appears will be in demand for the foreseeable future (this was ARRY 3 months ago, for example). Will every single stock that fits those criteria outperform? Of course not. But if you buy based on those criteria, are you likely to outperform the market. Yes, yes, and yes.
I am 21 years old, and threw $25k in the stock market over the weekend, with the trades executing early Monday AM. 99% index funds, VTI and VXUS. It would make me really happy if I did actually buy at the bottom, but regardless, this has been a fantastic start to my life of investing. Don't plan on making any withdrawals until retirement, I'll only continue to add every month!
> I've always been very surprised when people on Reddit claim that 100% US funds, like VTI or VTSAX, are "diversified." I mean, they *are* fairly diversified. If for some weird reason you had to invest into a single country's market, the US would be the only acceptable choice; and, at least for now, the US market is a tolerable - although not perfect - proxy for the global market, all things considered. But, well, there is no reason why one must invest in a single country's market, and there are cheap ways to achieve even better diversification, so I also don't really see a reason - aside from performance chasing, that is - to avoid them.
Well, FZROX is even less expensive as its totally free. I actually hold FZROX in my Roth IRAs. Portability doesn't matter since its in a Roth IRA and can trade to VTI or something if I change brokers. I guess I use "VTI" almost like Kleenex. I just mean a total market index fund.
Lol I’m thinking the same dude, bought a good chunk last week so I’m happy with that but I had a lot more on the sidelines and I waited. Just bought a little more VTI but I think we’ll see more ups and downs so still mostly cash/NAV ganggg gangg for now
I know. I’d probably laugh my ass off too if I read this and it wasn’t my financial problem. Glad I can be here to entertain you. Ha. Any suggestions for moving forward towards my account recovery? Probably going to have to be something similar to my risk I took to get to this point. Sitting in VTI probably isn’t going to triple my money. At least not for a very long time.
>International markets consistently underperform 3 of the last 5 decades favored ex-US. Any extra returns the US has had since 1950 may be due solely to the most recent US favoring part of the cycle. (Links in another comment chain above) >I don’t see that changing with war in Ukraine, Yahoo Finance is showing that even with this, VXUS is doing better than VTI YTD (-17.72% vs -21.86%).
As a Canadian I use the [XEQT ETF](https://www.blackrock.com/ca/investors/en/products/309480/ishares-core-equity-etf-portfolio) (or XGRO to get some bonds, but even mentioning bonds seems to trigger Reddit) which is ~44% US, ~25% Canada and ~30% rest of the world. This obviously has a home bias (which is by design, [and you can read about it here](https://www.canadianportfoliomanagerblog.com/home-bias-in-the-vanguard-asset-allocation-etfs/)), but is very diversified. I've always been very surprised when people on Reddit claim that 100% US funds, like VTI or VTSAX, are "diversified." The US has not always outperformed the world, and personally I'm not willing to bet on any country outperforming regardless of my personal opinions.
The house doesn’t get leverage. The mortgage leverages your money. Say you have $100k. You can throw it all in VOO, or you can throw it into a 20% down payment on a 500k house. If the house goes up 5% to a total of 525k, you made 25k. If VTI goes up 5% in the same time to a total of 105k, you only made 5k. You can use leverage other ways.
I can always buy back into them after 30 days. Is that what you think is best? Getting back into those same names? I was thing of maybe getting away from single stock risk and sticking to funds. But maybe something more tech and more aggressive than VTI. Any suggestions for moving forward from here?
There is no way to get extra return without risk. The converse is NOT true. You can take uncompensated risk by not diversifying for example. I personally seek larger compensated returns by adding risk from small cap and value ETFs. Historically small cap and value have outperformed large cap and growth due to the added compensated risk factors. I use ADVANTIS US SMALL CAP VALUE (AVUV), ADVANTIS INTERNATIONAL SMALL CAP VALUE (AVDV), and Wisdom tree emerging markets small cap dividend fund (DGS). Used in conjunction with VTI you will have a high risk high reward portfolio. I would stay away from leveraged ETFs as they are not intended as long term holdings. Sequence risk is the big issue. Historically if you invested in TQQQ after 5+ year bull markets you would have lost money. Look at the backtest. [QQQ backtest](https://www.optimizedportfolio.com/tqqq/)https://www.optimizedportfolio.com/tqqq/
Sorry for your suffering. Keep your head up your situation is not hopeless. You learned important lessons about the risks of individual stock ownership, lack of diversification and use of margin. The change to unlevevered low cost index funds is great. Unfortunately, you will need to get some income and add to your account over the next few decades to recover your retirement account to what it would have been without the shellacking. There are no shortcuts. Dont chase hot stocks or use margin to try and get back your loses quickly or you will just end up digging yourself a bigger hole. Your still young and should be able to work for another 20 years health permitting. You need to add to your VTI position as much money as possible as soon as possible to keep time in your side. Good luck op!
Individual Account: VTI 28% GOOGL 20% MSFT 16% AAPL 10% BX 10% BAM 8% TGT 4% TMO 3% SOFI 1% Been just VTI and chill to get to 50%. Just been adding to it each month. Keep doing so or should think about adding anything additionally separately?
Oil or commodity is like stock, invest monthly, not in lump sum if you do not have specific strategy. It is a hedge against overheated stock market. the stock market been overheating for the last 2 years and if recession is not coming in another 2 years, commodity probably fall another 10 to 15%. I am just second guessing, that's why I use All weather portfolio, with 50% PDBC, the portfolio is still down by 3.7% today. But compare to VTI's 12%, that's not much.
Why would they make that move to bitcoin, though? I think a lot of them aren’t going to be in a rush to rebalance regardless. You ask how long they’ll want to eat losses on bonds, but right now bonds are still losing less than most other options besides cash. BND is down 10.94% year to date. VTI is down 22.18% years to date. Bitcoin is down 56.07% year to date. If they don’t think we’ve hit the bottom yet, what’s going to cause the mass rush from bonds to other assets in general, given bonds have actually performed less terribly than the other options this year? And even then, why would there be a mass rush to allocate a percentage to bitcoin? I’ll be rebalancing some of my bond holdings later this year probably, to keep my allocation intact. But it certainly won’t be to move any into bitcoin.
Well, to start with, the US markets have never not recovered. Look back on any historical chart. It always comes back. People will always swoop in and scream "JAPAN!" but there is so much underlying nuance there that it isn't an even comparable analogy and it's a completely different market. As for why this is a good environment, the data historically shows bear markets are the best time to invest because you're buying at lows. If [Bob](https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/) does well when buying only at bull market peaks, then it's good to reason buying in bear markets will do even better. I don't know what you're invested it but since you say you're new, I hope you're mostly in broad market ETFs with low expense ratios (SPY, VOO, QQQ, VTI, etc.). If you're stock picking, still with the blue chippers until you have a better feel for what type of investor you are (Value? Growth? Dividend? A mixture?) and what industries you know best or are most comfortable in (Healthcare? SaaS? Retail? Real Estate? etc.) and what pieces of information you'll use to invest/track (I use a mixture of basic financials such as margins and expenses along with KPIs). It took me 7 years to figure out what type of investor I wanted to be (100% stock picker, primarily in growth tech and medtech/healthcare with a buy-and-hold 20+ year horizon). 2020-2021 made the market seem like a guaranteed way to get rich quick. 2021-2022 is shaking out those investors. Don't be one of them. If you hold individual tickers and the companies you own shares in are strong, hold. If they remain a high conviction position, if the company is thriving despite the turmoil, consider adding. But make sure you're watching the underlying business, not the share price. The latter will make you sea sick in the short-term while the former will help you see what the business could be years down the road.
I sold my boomer SPY and VTI shares (VTI today, SPY over course of last couple weeks) Now that the general markets will surge, I expect reparations from you all for my salvage. I would avoid things like UBER, CCL, ET since I am still holding shares. No other reason. Cheers
I opened it up in my Roth too. Gonna let it sit with my VTI and VGT. Just sucks as I spent around 2/3 of my yearly contributions back on January. I got $500 left, gonna take a look at SCHY. Didn't even know about it till you mentioned it.
/r/Bogleheads unironically be like: **100% VT Investor:** "What do you all think about my portfolio?" **Fellow 100% VT Investors:** "Very nice, I'd consider upping the VT allocation for diversification purposes." **70%/30% VTI Investor:** "I prefer more of a US tilt" **Everyone else:** *howling, crying* "Nooooo you can't just deviate from global market cap weights" **50/30/10/10 VTI + VXUS + AVUV + AVDV investor:** "You fools, you simpletons, have you not read the latest 6 papers from Fama-French? Are you so uncultured as not have consoomed Ben Felix's video last week? You non-factor-tilted buffoon!"
There are some exceptions, but the biggest ones all have a huge lead in ads. Tier 1 ad companies are Google, Facebook, Amazon, and even Apple to a degree. There are also all the 2nd tier ad/media companies like cable companies. SNAP is in that 2nd tier, but a relatively small player. If you really like SNAP then just buy the stock. A nice thing about NASDAQ is that it has a bit of international exposure too. In any case, don't overthink it because it doesn't matter. Don't get attached to your magic beans. Just buy VTI if you are feeling analysis paralysis. Trying to "beat the market" rarely ends well.
Are Roth IRAs allowed? I am down 20% and I’m not sure what I am doing wrong or if it’s the current nature of the economy right now. I’ll admit I bought most of these a bit blindly under what people generally think are good investments for long term, but I am a bit concerned I haven’t seen much growth yet. Any advice is greatly appreciated! 10.0% MSFT 6.66% NVDA 6.66% SPY 33.3% VEU 13.3% VOO 16.6% BND 13.3% VTI
1) Stop using margin 2) Hold VTI since buying isn't an option right now. 3) That's it. You lost 70% of your account by essentially gambling. So stop gambling. Investing is meant to be boring. It's going to take years for your account to recover, but thinking of ways to make it back "as quickly as reasonably possible" will most likely lead you to making rash and poor decisions. You gambled on overvalued growth stocks right before a correction during a time of your life when most people are moving into safer positions. It sucks and I feel for you, but you played it wrong. Don't compound those mistakes and potentially make it worse.
Do your future self a favor and start buying index funds any day when there are large moves down in the market for the next year or so. You’re not investing to make money tomorrow, you’re investing for 30 years from now. Don’t worry about the short term volatility, and know that buying when the market is down is the ideal time to buy when you’re young and have a long investment horizon. Think about it like this, when the market is down your buying the ETF’s at a discount from yesterday. If you don’t know what your doing(by that I mean you don’t know how to do fundamental research on individual equities) and you’re young, buy 70% VTI, 30% VXUS and contribute with money you won’t need until you retire; keep buying and holding until tour 65.
AVUS and VTI have performed almost identically in that time frame. They’ve alternated being slightly ahead of one another. As for small cap vs total market, there’s a selection bias in the time frame. 3 years is a very short period of time.
If you strictly want buy and hold, QQQ is not necessarily a the best. If you want the same underlying index (NASDAQ-100), then QQQM is cheaper. Other ETFs like VGT or whatever probably aren't *bad*, but they won't benefit from the inertia benefit of QQQ (i.e., lots of people buying it will push the price of those 100 companies up by increasing scarcity of their stock). For buy and hold, the only reasonable reason you might want QQQ is for liquidity. For example, if you want to panic sell when the market drops, it can be harder to fill orders at good prices on less liquid products. A better answer, however, is to stick to funds like VTI. They are the best of everything: they include the entire market, it's super low cost, and you don't need to worry about picking winners or losers. The only winner you're picking in that case is capitalism. Even better is VT, which includes international stocks thus hedging you against the risk of US hegemony decline amongst other things.
The downside is simply that the total return of a dividend portfolio is to be no higher than the return of a growth- or whole market-oriented portfolio. More or less all of the stocks in SCHD are already present in VTI, so you're just over-concentrating yourself in a particular sector of the market without any expectation of increased gain.
I see many people discouraging dividend investing at a younger age. As a 30 year old new investor, what’s the downside in VTI/VXUS/SCHD at a 55/35/10 ratio in a roth? It seems like SCHD has decent growth. Yield is about 3% which isn’t great, but over time it can add up. Plus in the Roth it’s tax free and my dividend payouts wouldn’t count towards the max annual contribution. Trying to find a downside and looking for any and all insight! Thanks in advance
If that was true then I don't think we would be seeing these types of returns relative to the market in more recent products either... https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2022&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0&inflationAdjusted=true&annualPercentage=0.0&frequency=4&rebalanceType=1&absoluteDeviation=5.0&relativeDeviation=25.0&leverageType=0&leverageRatio=0.0&debtAmount=0&debtInterest=0.0&maintenanceMargin=25.0&leveragedBenchmark=false&reinvestDividends=true&showYield=false&showFactors=false&factorModel=3&portfolioNames=false&portfolioName1=Portfolio+1&portfolioName2=Portfolio+2&portfolioName3=Portfolio+3&symbol1=AVUS&allocation1_1=100&symbol2=VTI&allocation2_2=100&symbol3=AVUV&allocation3_3=100
DFSVX outperformed VBR, but underperformed VTI. Advisors convince you that small cap value has better returns overall and then to pay up for access to the best small cap value fund. The problem is that so many investors chase small cap value that everyone overpays for them.
Oh jeez. Bought VTI right at the top? Nice. Keep making the same mistakes. You have two paths here: 1. Just take the L and move things into more safe investments. SPY (why not VOO?) and other ETFs. Your upside at this point is 30% at best in the next two years. Downside is another 20% in the same time period. VTI is NOT a safe and conservative investment. There is a shit ton of oil in the world. Gas prices are a HOT political issue because Americans are stupid. The government isnt going to allow gas prices to continue like this. 2. Pick some more growth stocks that got hit hard, but have decent financials and are not going to go bankrupt. Put your money back in. Hold through the bad times. Try to recover. The damage is done. I beat the market in 2020 and 2021 by 20%. There was a lot of bag holding. I bought 100% VOO back in January because I wanted a break from stocks and am down 15%. I just rebalanced out of VOO to tech stocks that have been hit hard, expecting them to recover hard. Im betting that we have hit the bottom. We will see what happens.
You can DCA in. The market may keep diving for another 6 months, or who knows, it could flatten and recover soon. If you don't know what you're doing, just set aside a small amount of money and buy an ETF like SPY / VOO (which is the S&P500), QQQ (NASDAQ index) or VTI (total market fund). If you DCA in, it will keep bleeding if the market goes down, but if you're looking for 5-10 years into the future, this should be a fine investment.
What I did from the beginning is get over 60% of my money with SPY and IWF and spend the rest 40% gambling with stocks I understand from an industry perspective (I used to be Sysadmin and hardware geek) I was humble about my abilities and thought to myself - if my bets were worse than the S&P500 I'd quit gambling with stocks. My bets ended up ahead of the S&P500 and I got +340% overall over 4 years despite some of my picks losing 95% of value and most of my money being in safe ETFs like SPY and despite losing ~25% year to date. Most of the money was made on Tesla when it was trading lower in 2018 than it was in 2013 and I thought it was ridiculous from an exponential progress perspective so I bought $500 of Tesla and sold some of it for +2000%, some of it for +1300%, some of it for +1000% making thousands just on this small $500 bet. AMD was another obvious pick that it was fairly guaranteed it would go up at that point, it just wasn't obvious to the masses oblivious to semiconductors yet. Google was a solid pick. But everything else I hate to admit was pure luck. I sold FB just before they lost a chunk of the value. I bought Bitcoin low, sold it high before it lost its value, rode NXP semiconductors wave with the luckiest turns of events - again I bought it low and very quickly without any rational sold it at what it turned out was the best possible moment. Etc. Despite technically "winning" I've learned my lesson and from now on I stick with ETF's: 90% of it is in VTI and IWF. I hold no stocks.