Vanguard Index Funds - Vanguard Total Stock Market ETF
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ETFs can drift from their NAV a bit. I use M1 finance with a pie equally divided into SPY, VOO, VTI, and QQQ. There’s no need to rebalance; I just dump money into it regularly. You’re always buying one at a discount relative to the others. Spy, VOO, and VTI will converge after drifting apart, and that’s your opportunity to buy fractionally lower relative to peers. Maybe over the course of 60 years and $10 million dollars, it will make a difference of some sort. Haha I don’t really know, but the “back of the envelope” math checks out.
I second the advice to sell everything and put it all in something like VTI, then stop checking your brokerage app. It seems like you’re aware that you’ve invested in a bunch of meme stocks that might not ever recover to their highs, so it’s time to cut the losses and get into index funds.
Thanks for the input, greatly appreciated! I also considered the overlap in my research. What has me confused is that yes there is overlap, but when back testing with portfolio visualizer it seemed as if something like this versus VTI alone (to avoid overlap), the gains are noticeably less. I know historical data is not a representation for future behavior, however it had me torn between which approach to take in terms of more risk / potential for gains. Anyone have thoughts on this?
No one can predict the future. Maybe it bounces back tomorrow, only to drop more next week, but maybe next month it goes up to a new ATH. No one knows. If you might need the money in the next 1-2 years, maybe sell a part to reduce your exposure. Now the question is what do you do with the money. Do you try to buy back lower? Do you put them in lower-risk investments (maybe bonds after the rate goes up, or maybe something like VTI or SPX)? Or are you fine with leaving that money on the side? Think these through before you make a decision. Holding is not always the right answer, but panic sell is often how you lose money.
Be careful with blue chips .. how many “blue chips” in the top 10 market cap in 2002 (20 years ago) is still in the top 10 today ? Answer: https://fortboise.org/Top100/top100-20020519.html -it was difficult to know which one will still be in the top 10 twenty years later -personally, I would just invest in VTI .
If you are going to hold that many stocks 2%-1% you might as well roll them all into an ETF, which you've already kinda done with VTI. Keep in mind the real money is in continually investing money, monthly or weekly. Just sitting on VTI could yield very little over 5 years if the market corrects 10% and then slowly rises again over that period. Keep buying it all the way down. Outside of your ETF, you could then put 5-10% or so in a few stock picks that you think will have the best chance of growth over 5 years. Personally, my picks are F, DIS, and INTC. Otherwise, anything that's going to stick around its price like NEE and pay dividends, just roll into a dividend ETF. For that long list of stocks you have consider folding it into VTI. It already holds hundreds of companies or consider VBK. Small caps have already taken a beating. I think you could liquidate all those little stocks and buy in 10% of that cash in VBK every month over the course of the year and see some good returns.
Something like 11% of all investors that buy individual stocks beat the market. Phrased differently, 89% of people will be better off by buying securities like funds or ETFs that track indices such as the S&P 500, Dow Jones, or the total stock market. Investing in individual stocks is fun but my personal rule moving forward (after learning this the hard way) is to put >80% of my money into index funds and ETFs like SPY, VTI, etc and the use the remaining money for fun, investing in stocks that I think will outperform the diversified market. A lot of people suggest even less than that, like 5-10% tops going into individual stocks. I’m retarded and I do what I want. You’ve also started investing at a pretty bad time for the stocks you’ve selected, so that’s just bad luck/timing for entering the market as an investor. The diversified funds typically yield 7-8% per year. If you consistently put $12,000 into these investments each year and assumed 6% to be conservative, after 40 years you would have put in 480K but it would grow to about 1.86M. Good gains if you’re patient.
I too like NNDM. Great growth promise for that stock. If you are young you should keep it. But then again, as some people mentioned here, if the current drop in the market scares you then you are best served investing in funds like VOO, SPY, VTI, or SCHD just to name a few. Just open an account with a broker like Vanguard or Fidelity and invest on those funds monthly and forget about it.
I would look into ETFs and index funds, not mutual funds. Anything that tracks the S&P is your friend, so SPY, VOO, VTI, VTSAX, etc. I would recommend watching a shit ton of YouTube videos on this subject, you can learn a lot more there than what we have time to tell you.
I think we see a little bit of a rebound after JPow stops speaking… and then a big sell off after hours Opportunity to sell high was when SP was up 2% and individual plays were up 5%…. Looks like they will be raising rates come march. JPow hyped up jobs, but didn’t sound too confident about rates and inflation… so I think this was a transient bump and we keep sliding here Personally, I’m not really buying anything until 50 ema crosses above 200 ema on VOO/VUG/VTI
Is setting up stop losses considered panic selling? I'm saving up for a down payment (in 2-3 years time) so I am thinking of setting up stop losses (only those that are green) to at least take in some profit. I mostly have VTI/VUG and will put my funds in a HYSA after. Is this a good plan?
"The Little Book of Common Sense Investing" by John Bogle is one good place to start investing. However, it seems to me that your summary of historical returns overstates the case for small-cap stocks. Since 1989, the rolling returns of investments held for 20 years ranged from 5.6% - 10.0% (8.0% average) for the S&P 500 large-cap index versus 5.7% - 11.7% (9.2% average) for the S&P 600 small-cap index. See chapter 3 of "Investing On Your Own Two Wheels". According to Morningstar, the total U.S. stock market is about 70% large-cap, 20% mid-cap, and 10% small-cap. JL Collins recommends a total U.S. stock market fund like VTI in "The Simple Path to Wealth". This covers all 3600 stocks of public companies traded today on U.S. markets. Since you have a 35-year investment horizon until you retire, you should employ a relatively aggressive investment strategy. So, don't hold too much cash in your retirement accounts; and overweighting small-cap and mid-cap stocks within reason will be OK. Whatever your asset allocation is, periodically rebalance your portfolio at least once per year. In any case, you are on the right track.
The most basic advice that produces slow but steady winners : put your money in VOO or VTI or whatever broad fund you like until you're ready to move some of it to individual stocks or options. If you never get to the point that you want to move it to individual stocks or options then you end up happy anyways. I'm currently at the part where I dabble lightly with selling covered calls because I don't feel like being too risky. Others like to buy calls that expire same day or sell naked puts like the OP. The important part is to identify where it can go wrong, and do what you can to avoid that or accept the outcome if you don't. Now watch me buy some PLTR calls. Just kidding. Maybe.
Historically speaking, dividend stocks are no better than other stocks for total return, so if your goal is just to grow your wealth, there's not much reason to choose VYM over VOO/VTI. And in a taxable account, dividend investing is inefficient, so it's actively worse. It could be worth it if you're specifically targeting dividends for some reason, but there are other ETFs that you could consider: DVY, NOBL, others.
Volatility isn’t a bad thing. What’s your time horizon? Chances are if it’s many years or decades, you’re better off skipping the dividends for quite sometime. Buying broader index funds such as VTI or VOO will provide much greater returns over the long run.
If you want simple, just buy VTI and leave it at that. If you want to be a bit more dynamic, do 80% VTI and the other 20% in more focused investments. Don't forget to allocate small amounts to bonds, gold + bitcoin along the way.
If you're going to be buying VTI, then you'll already be heavy into the highest-cap stocks, including those FAANGs. If you want to play with stocks on the side, adding more weight at the top end might not be the best way to do it. If you're investing for the long run, statistically the best time to invest it is right now. If you can't handle the risk of a short-term dip, just buy in on a fixed schedule over 6-12 months. If you're investing for the shorter term (just a few years) - then don't, just stay in cash.
Pre 1980s, Small cap value was the best long-term investing choice. Post 1980s and the rise of the internet, Large cap blend (S&P 500). Although the 2000s small cap value had a good run. The best of both worlds is a Total USA fund. VTI, SCHB, VTSAX, FSKAX, or SWTSX.
These funds would say they either reduced volatility or tailored it to your situation (which can be done thru etfs also). Also $VT outperforms $VTI after adjusted for volatility. Theoretically most outperformance comes from taking on volatility. We like to act like we’re all Vulcans just trying to end up with the highest score, but in reality we’re humans. That’s why the goal is to maximize our wellbeing which will mean gambling for some, and reducing volatility for most
Just FYI... if this is a buy-and-hold portfolio, then the mix of 30% QQQM + 10% XLE + 10% XLF is likely to be pretty close to VTI in the long run (60% Growth + 40% Value being not far off current overall US stock market) but with more funds and higher expense ratios. I would just go with 100% VTI in that case. If it's not meant to be long-term buy-and-hold and you will change your portfolio composition over time, then nevermind.
Long-term you’re fine with either. Total Market is “generally” thought of as a better long-term investment because it’s more diversified than S&P. If you have VOO now, I wouldn’t sell out of it to put into VTI until you’re back to break even.
Started a position in VTI because of how much people recommend it already had VOO I don’t see the point of having both VTI is down right now does it make sense to sell out lock in the loss and swing it all into VOO as they basically track the same anyway?
When in downturn you have to focus on your stars and heavy hitters ​ i.e AAPL, MSFT, VTI, VOO .. CANT BE still trying toa vg down and hope for the best for these growth stocks thats not even earning high revenue with profit and not a hug amount of cash available ​ down by 20 you want your Jordans, Kobe, Lebron on your team not trying to count on your bench players to bring you back . ​ I'm only focused on the A-list of equities none of this other b.s moving forward
Watched a Vanguard Briefing for 2022 Forecast, at the end they mentioned CME Group Fedwatch site, 25 to 50 basis points possible increase today, wow. Anyhow I predict we will get into a bear market soon, stocks might go down or they might not, so I think my plan would be to buy a little every week in the following: VTI/VXUS FAANG stocks Solid plan for a long term investors with a 40 year retirement goal that also wants to dip into stocks a little? How much money should I put into stocks? I have 40% of my portfolio sitting in cash right now, unsure if I should dump it in stocks in this year and next to wait for a rebound up, or keep some for things like money for a downpayment for a house.
but you have 20% IWM allocation, which is the same as VOO allocation. what you say and are doing contradicts imo, i think you have to go back to the drawing board. lay out what you want to aim for and allocate to that. my personal opinion is your ETF allocation is trying to do to much. you're unnecessarily making it a complicated portfolio. you can do something like 80/20 VOO/VXUS (hits what you say you want to hit.) if you want to actually hit small caps (as your current planned allocation indicates) you can do 70/10/10 VOO/VXUS/IWM even within that you can instead do VTI instead of some VOO/IWM mix.
The market will always favor market-cap weighted ETFs , thus I like QQQ and SPY, but SCHD has a really good natural filter for high quality "value" stocks, which is useful for the current "growth-to-value rotation" narrative. I would take VOO over VTI, but you will find tons of opposition to this on Reddit (ETF and Bogelhead subreddit). if you want easy hands-off growth, do either \[in ranking of less to more volatility/risk/performance\] : 1) VOO , 2) VUG/VTV split at preferred ratio , 3) QQQM/(SCHD or VTV) split at preferred ratio.
At the very least, if you know exactly the funds that PC uses and want to manage them yourself, you might be able to do an ACATS transfer from PC to a brokerage like Fidelity and have Fidelity cover all fees. At least for a transfer like that you can avoid tax implications, but then the conversion of the funds to VTI is where you \*will\* deal with the tax implications obviously. The only thing is that the balance you're transferring likely has to at least be $25k. I looked into doing this with my Acorns account and they told me that it was possible as long as I had that $25k account value to transfer.
I don't think 5-7 years is too risky in general, BUT that is pretty dependent on what you are investing in and if you will rebalance to less risk as the date of your purchase nears. Either way though, if you are invested in the market with money you'll need (like for a down payment on a house) you run the risk of the market turning against you at the wrong moment. If you have the flexibility to add a few years to your wait if things really turn sour to recover, then investing a bit (assuming you have your emergency fund and such) should be ok. It sounds like your timeline is flexible which is good, but I would probably do like Lucrumb said and stick to a fairly conservative mix with that money. Boring ETFs (VTI for example) are where I tend to go with money I am saving for a purchase I can delay for a couple years (finishing basement, vacations, etc). I do dumber things, like investing in individual stocks, with money I dont really need ever, and even then I'm significantly more conservative than many people you'll find... so take my advice for what I charged you for it and plan based on your own tolerance for risk. =)
$VTI should be fine moving forward same with $BRKB. They will move with the overall market. Do you use market indicators such as 20,50,100,200 DMA's? Market momentum is more important short term than fundamentals for individual stocks. Now the 25% in $VGT and your individual stocks I know for a fact $ARKG and $PLTR are below all DMA's and have no momentum and I assume $PSFE is as well. I admit I'm a bit older and have no idea what MAAMA is, sorry. The Spac stocks haven't even been around for 2 years so they don't even have 200 dma's on the 2 year chart so I believe a lot of funds and big money have no idea how to price in the downside risk. With all this said the tech stocks are prolly overcorrecting in the market just as they were overvalued 1 year ago. If you believe in the companies I would hold but not add new money to any of them and add any new money to stocks in different sectors or just add new money to $VTI. Also I would not worry about losing 30%. I lost a hell of a lot more than 30% in 2008 . The 75% you have invested in $VTI & $BRKB will make up for that over a longer time frame if you don't need the money in the next 5-10 years.
Investing in Microsoft and APPL is smart!? I mean dude…literally everyone knows that. I can’t believe you’re explaining that buying 2 of the best performing stocks is good like it needs explaining. You don’t know shit either. FYI I have a boomer account myself with VOO, VTI, APPL, Microsoft, Costco, Home Depot, caterpillar, Chevron, Target, Siemens. That account is hella green. But do I know what I’m doing? ABSOLUTELY NOT. I literally just buy those because they’re big companies and I use their products
It's already been said, but just to reiterate. AAPL, AMZN, and TSLA are already in the top 5 holdings of VTI. AAPL by itself is 5.69% of VTI. I don't see any reason to overweight those stocks even more than they already are in the index. It's a lot of additional risk.
BRK.B is already a top holding in VTI so kinda redundant (but if you're gonna hold single stocks Berkshire is good). ditto for VGT, the same stocks dominate VTI and VGT ... good grief, 20% of VGT is Apple and 17% is MSFT. limited small/mid cap exposure, but small and mid tend to beat large cap stocks over time. https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png no real international company exposure either...
New portfolio: 65% VTI 10% BRKB 10% VGT 10% MAAMA directly 5% high growth memes that right now consist of PLTR, ARKG and PSFE (just keeping these around since it’s down so much and I still believe in some of these companies).
You're on reddit so I assume you're between the ages of 16-30. You can do better than SCHD, VTI and VOO. You probably want to retire in 20 years right? Assuming so, short term volatility shouldn't scare you at all. If you want to stick w/ ETFs and passively invest to build your wealth go w/ QQQ GIGACHAD
Mine is kind of bad. You can see the first year of investing gone wrong. NVDA 34.51% HUT 16.68% U 16.4% QQQM 11.6% UPST 10.94% VYM 9.22 % VTI .91% ( I just started this) I also have 268 shares of APOG in a different account. I plan on adding 2022 dca all to the 3 ETF's for balance.