VTV
Vanguard Value Index Fund ETF Shares
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Seeking Thoughts/Sanity Check on A Revised Portfolio
Moving Roth from an advisor to Fidelity and seeking suggestions
Help in allocating funds into these ETFs from Vanguard
Rebalancing portfolio for growth and being tax savvy - is this a good plan?
Thoughts on this dollar cost averaging ETF strategy?
My portfolio on marketGOATS is 100% ETFs (VTI, VTV, CNYA, TQQQ) - and it's not doing terribly against mostly stock pickers.
Target expense ratio on mostly passive portfolio?
Opinion: Growth stocks make just as much sense as Value stocks right now
ETF to buy right now? balance tech heavy portfolio w/ value/dividend etf or DCA into broader etf?
Consolidate (VWO, VEA) into VXUS and (VTV, VOT, VB, VOE) into VTI?
Broker Dealers & Mutual Funds/ETFs Have A LOT of GME Securities Lending Counterparty Exposure - Let's Explore Some Numbers
23 years old looking for advice on an aggressive Roth IRA allocation for retirement!
What is an appropriate ETF that goes with tech heavy folio?
How can I see what is in VTI and VTV to compare these 2 ETFs?
It's way better to buy at market close than at market open, most gains happen overnight for major ETFs
Am I on the right track as a new, long term investor?
How to stop feeling overly confident in the stock market as a new investor?
Mostly VUG, mostly VOO, or 50/50 for long term growth?
Should I replace my VTV with a growth ETF or stock?
Is it worth it to invest in multiple shares of Coca Cola for Dividends?
Is it wise to invest in Coca Cola for Dividends?
Am I the only one waiting and hoping for the market to drop?
Looking for an ETF or two in order to diversify my tech-heavy portfolio? (VTI/VTV/SPY/QQQ, etc)
Mentions
This right here. I've been feeling a little tech heavy, so I've been putting new funds to VTV
Thank you and good point. My goal is to diversify my portfolio that is very heavy in large cap individual holdings. I'd love to do SPY or VTI or similar, but that essentially doesn't help me diversify since such a large portion of those ETFs are concentrated in the same 7-8 large caps that I already hold individually. So, I was thinking of something like VTV, but saw EQWL and I almost want the additional exposure to small and mid-cap that it gives vs a weighted value ETF. It also has a performance record that's fairly impressive (yes, I understand past performance is no guarantee...). Though, if I am diversifying to hedge and protect against a downturn, VTV has a lower Beta...
I don't see the problem regarding the dividend, but otherwise, I also don't like SCHD much. Maybe it serves as a defensive holding, but total returns since the start of 2022 have been pretty anemic. That being said, I have shifted significantly toward value as a more defensive and diversified approach to 2026, but chose to replace some of VOO and a few other tech heavy holdings in favor of VTV.
The downside is that both are top heavy in tech. I'm not convinced on the oft-predicted impending AI crash doom, but I'm still hedging my bets. I've reduced a lot of my tech related holdings and have instead reallocated a significant portion into value (VTV, specifically) as a defense in case it happens. I'm not sure it's the right play in 2026 for maximum returns if the bull market continues, but I definitely feel better about my diversification now if it doesn't.
The companies you listed are tech and they're all overvalued. Consider a value company ETF like VTV, treasuries (SGOV), or something with less volatility
I'm shifting some away from VOO and the tech sector and plan to invest more into VTV and some sector defensives (XLU and XLV) this year.
lol 1 year chart of VTV was 15.8% and VOO was 16.8%. Most of my funds are still in VOO and other growth stocks, just not my current contributions each month. What’s your point?
I've started shifting away from VOO and tech and primarily into VTV, which I'll be adding along with XLU and XLV this year. I want to play this year more defensively.
That index in particular tries to replicate a value index with the same sector composition as the SP500, so there's a ton of tech stocks that aren't very volatile like MU or INTC. In the US is a rare index to use as VLUE is not a common ETF, but the European IUVL is. VTV doesn't have this issue for example.
I do a mix of VT, VIG, VTV, VBR...shit is solid.
Remember to diversify your sp500 with some Value VTV
Thanks for the data point. Thats about my target. I recently adjusted new contributions to my 401k to ~25% Value fund and have about 15% of current and new investments in my taxable brokerage account allocated to VTV.
Right now I’m around 10% VTV and 4% BRK. But VTV is where most of my money is going when I invest each month in my brokerage, Roth IRA, and I have a similar fund in my 401k as well. Once I am in the 20-25% range in VTV, I’ll probably adjust so future contributions to it are about 25%
What percentage of your portfolio does VTV comprise? I’ve also been buying VTV for this reason.
I’m still super bullish on the AI revolution but I’m not trying to get wiped out if the tech sector takes a breather. That’s why I’m layering in some **VTV** and **BRK.B**. It’s basically my **downside protection**. If the 'Magnificent Seven' start to wobble these value plays act like a shock absorber for my portfolio. I’m staying long on tech but I’m not doing it without a seatbelt.
I think the answer you’re looking for is probably a value-based etf. I’ve been putting money into VTV for similar reasons. Obviously anything can happen, but the focus is on companies that have certain dynamics like low PE ratios. They’re likely to be less impacted during downturns Also, something like BRK is good to hold. Plenty of diversity within the company
They have an ETF for that... VTV Just saying 😉
Not equivalent but relevant: VFQY ( quality factor) VTV ( value US ) then a lot of VBIL and bingo
The answer is not to pull your investments, it’s to keep it balanced and diversify. If you have too much tech, then consider a positions of VTV and AVUV to offset. Got a huge of SMH or FSELX? Consider SOXQ instead for less Nvidia concentration. Consider a dry powder position with JPST, and have it ready to buy more equity shares if the market drops.
Not the right place. Any S&P fund isn't bubble proof right now because the biggest bubble right now is also filled with 5/6 biggest market cap stocks in the world. What you're looking for is VTV, VYM, or SCHD. When the bubble pops 100% VOO.
Value index gains as folks run from big tech, resulting in a stagnant S&P. VTV looking like a good ETF right now. I can see JEPI and/or JEPQ selling more shares, folks looking for gains via monthly dividends. EX-US may see continued growth, particularly foreign value. FIVA may do well.
Why not sub VYM or VTV instead of having single sector risk. I like value here and you could buy a pullback in growth later.
Wouldn’t that be investing in like VTV?
You’re going to have to figure out when to re-renter the market. I would buy at least SGOV or ICSH and VTV for now instead of just sitting on it.
I bought some VTV over time but it doesn’t do exactly what I m looking for. With VTV , you’re doubling down on the 300 value stock and are not exposed to the 193 (200-7) smaller grow stock. I want to own those growth stocks - just diversify away out of those mag7.
Heres my stock port: SPY (123), QQQ (44), CIBR (131), SMH (31), VTV (54), SCHB (2,320), GOOGL (61) $230,770.
I had a few small 5x to 10x in that era and was lucky to recognize a few because of needing to buy a home in the bay area. Other than that I have only 10x 2 other companies that I did buy and hold for 10+ years. I will continue to buy stocks here and there, but fundamentally, I know diversified index styles are the main play long term. I go outside broad indexes too - VGT, VTV, QUAL. All with risk.
wtf just happened to VTV
The 1 percent fee is one of the biggest rip-offs known to man. No, you don't need a financial adviser. It sounds like she explained some things to you, maybe what an ETF was. You don't need her anymore. Put your money in ETFs such as Vanguard--VTI, VTV etc. Maybe buy a couple of blue chip individual stocks. Put some money in CDs with varying dates of maturity. Right now just keeping money in a money market fund gets you a good rate of return too. If you are young, your best investment may be a house.
I’m reducing my large cap growth exposure a bit and moving to some VTV. Adding more gold and will continue to Buy some more IBIT (3% at most) as it falls more. I still don’t love bonds. I have a strong 15% int’l position and still adding more fspxs in my 401k (I may rebalance my contributions when I get close to 20%). Side note: been trying to get the lady to sell some of her aapl. She has 215k worth. Begging her to take some profits and rebalance (even like 10-15k). She refuses. Am I wrong ??
Here are today's returns. Why can't the market just let the bubble burst? Why are the most expensive companies bouncing the most? It's ridiculous how inefficient the market is. ARKK: 4.69% TSLA: 6.82% PLTR: 4.78% QTUM: 3.25% Vanguard Value ETF (VTV): 0%
Chiming in with the "dump SCHD, DGRO, and BND" folks. These are not what a young person needs to grow their portfolio for retirement. I know you say you like the criteria used to pick the holdings in SCHD and DGRO and you want to favor those types of companies. That's value investing and it can be a good choice. But you have better options than SCHD and DGRO. Check out: RWL, VTV, FFLV, DVY, CGVV, and PVAL. I own PVAL and love it, but think all of these are great value funds. Also, you haven't mentioned this aspect of your plan, but if you haven't already, I would ditch Robinhood for Fidelity, Schwab, or Vanguard. Robinhood may have a great interface and some excellent features, but it also really tends to gamify investing and lure people into risky and advanced stuff that can get them into trouble.
I completely feel you !! I sold all my S&P at close break even, I don’t want growth and more money right now instead my priority is not to loose money. I’m only doing value & dividend investing like VTV SCHD & don’t have Mag 7. I’m happy with the slow and steady return. Please do your own research. This is not a financial advice, and I am not a financial advisor.
You don't HAVE to invest in nVIDIA or even over-valued tech stocks you know. You could trade VTV or
VTV if you want more tilt towards finance sector….
What you're saying is better achieved through factor investing. Basically, you keep VOO/VTI as a major portion of your stock investments, and then add tilts like value, dividends, small cap, sectors like real estate, etc. So you can have something like 50% VTI, 20% VXUS, 10% VTV/SCHD, 10%VB/VBR, 10% VNQ, etc. That way you still get some gains from growth/overall market, but tilt your investments to be less top heavy.
Vanguard Value ETF (VTV) $171.00 -$16.15 (-8.63%)Overnight Uh...wtf?
Why SPHQ over SPMO? Just curious, I just bought some SPMO recently. What do you like about SPHQ? Spmo has a 5 yr return of 130% with an expense ratio of .13%. Sphq has a 5 yr return of 81% and .15% fee. Sphq's dividend is higher though, 1.07% to .64%. Does sphq leans towards value and spmo leans towards growth? I bought a really good value etf, VTV. Check it out. .04% fee and 2.09% yield.
I'm switching a significant portion of my VOO holdings to VTV and VYM. I'm not going to collapse just because NVDA runs out of lotion and hands.
VTV is like the SP500 without the Mag7.
You stay the course or diversify. Identify the ETFs that are most vulnerable. Instead of investing more heavily in common index funds like VOO or QQQ, you can diversify with DGRO (holds less tech, lower PE) or VTV which is more value focused. The U.S. in particular is vulnerable so global diversification can help, but EFV would give you the same value tilt with global stocks. Ultimately, when the bubble bursts, everything will go with it. Diversifying might save you a 10-15% decline and you might recover a little quicker, but very little, if anything, will be saved from a crash.
If you are concerned of overvalued stocks, you may try RSP (equal weighted s&p 500) or some 'wide' value or dividend ETF like VTV or VYM (they won't include 'overpumped' stocks).
You said you got into day trading with help of a friend, someone suggested to get some ETFs below, which is what you should have done from the start. You have to change your style, I thought I could do options because of Instagram people, and then was like, yeah naw, not doing that. You were doing homework when you were day trading? So do the homework looking up ETFs. Sounds like your dad was trying to hand gift you things, now reset refocus, do some research. VOO and VTV are in my Roth IRA. Qqqm and VTV are in my taxable brokerage. Search compare etf similarity stock, you don’t want to have ideally qqqm and VOO, qqqm is 100% of VOO, but you also started as day trader, from the start?? Good luck to you. It just Feels like a pick me girl post. I had the option to not interact, and I did.
VTV has had 278% gains since 2004 vs over 1600% gains for Nasdaq 100. I'm not sure how any amount of "risk adjusting" can rectify that
I had to look up TSP, that should tell you how little I know about investing. I would say the **I fund** should be at part of your portfolio. https://www.tsp.gov/funds-individual/ I keep 40% in VTV, 20% in VXUS (similar to the I fund) and 30% VBLTX. The remainder is older Bond shares that I just let ride. Like you, I'm concerned about overvalued stocks and volatility. I highly recommend Jack Bogle's seminal treatise, it simplified my plan. https://www.thegoodlifejourney.com/home/common-sense-investing-jack-bogle
I think "risk adjusted" is kinda woo woo and can't really be nailed down to a mathematical formula but in my gut feeling it's a great way to describe my thinking in this topic It feels good to sell good in the upper 20s of PE and buy VTV that's in the high teens PE and know the VTV is overall more stable.
I was wondering if anyone had ideas on where to park my retirement funds to ride out and possibly take advantage of a potential dip. VTV sounds like a decent place for my Roth Vanguard stuff. Any other suggestions, especially in the TSP space? That's where a majority of my funds are since I'm a former Fed.
I think VTV has outperformed the s&p and nasdaq 100 on a risk-adjusted basis for the past 5 years.
VTV is an ETF that removes mag 7 and some other tech. I've moved some of my retirement to that. I don't need 37% of my wealth in mag 7; I don't care if they outperform or not
The valuations of these major contributors don't make sense for those of us with a stable retirement. Hence, my choice of VTV. *However* if you have a longer retirement horizon date and a Roth, avoiding these reduces gains. Roth is where volatility should be embraced.
value stock crew report in. VTV, JEPI
You should learn more about investing. Plot $VTV (Value stocks low P/E) against $VUG (growth stocks (high p/e)
I would make the majority of your portfolio in some safer ETFs/stocks. I would say something like VOO/VXUS/VTV should be your biggest bag, maybe like 50%. You are really spread pretty thin across a lot of different meme/penny stocks, some of which have really small value. I would consolidate some, and focus more on some stocks/ETFs that you really like (SOFI/NVDA). Then I would save some play money for the riskier penny stocks/memes.
VTV is up about 10% YTD. In a normal world that is incredible and should be taken every year.
What’s the benchmark for being bad? Not every fund is trying to outperform the S&P 500. Some funds are in the business of generating income, others trying to minimize drawdowns, others focused on shorting. Point is, the funds usually exist for investors to choose their approach and let someone else do the work in that approach…e.g. I think tech is overvalued so I want to invest in SCHD or VTV to capture potential upside in non tech names while also potentially shielding myself from an AI “bubble” event. I don’t expect SCHD or VTV to outperform the S&P 500 in a bull market, but that’s not why I bought it. Just an example.
now these days. These days you need a mix of of VTV and VTI
VTV and BKRB went down more than SPY today
I've 30% of my US equity in Vanguard value etfs such as VTV and VBR. Both have PE's under 20 for a basket of stocks.
I’d ditch RSP and SCHD. If you don’t wanna use an S&P 500 index fund, I’d go w VUG to cover growth and SPYV or VTV to cover value. FNDX and FNDF have great track records if you want to mix in fundamental analysis ETFs, but their OER is a bit higher at 0.25% if you’re cost conscious.
Are you me? I do almost the same thing. Most of my money in ETFs (VTI, VXUS, VTV, VIG, VGIT) but I swing trade on the side with gold lol but I use GLDM.
You can try and find stocks that are less overvalued, that lets you be in the market while avoiding some of the excessive valuations. This isn't easy, eg /r/valueinvesting is all about digging into fundamentals which takes quite a bit of work, but you could also check out ETFs like VTV
A lot of LCV is going to be heavy in FAANGS, NVIDIA, and so on. For example, I just looked at FDRR and the top 3 holdings are NVIDIA, Microsoft, and Apple. But others will be less so -- VTV has no tech stocks in its top 10 holdings. You should be able to see holdings on Morningstar. Ways to avoid: sector funds (industrials and energy seem to be doing well, check on FIDU and FUTY). International value is having a bang up year and has very little technology and certainly no FAANGS etc. You could look at FIVA, JIVE, DFIV, VYMI, or even small/mid cap international value such as AVDV or DISV,
Ok so defensive holdings are also down (VTV, BRKB, WMT etc). Gold is stalling. 10 yr under 4%. Someone is planning for a shopping spree
If ex-Magnificent Seven is what you want, there is exactly such a fund for it, XMAG. If you want to exclude some other set of stocks, there's a few ways. You could look for funds which don't include it like value funds VTV or fundamental-weighted funds FNDX or ex-GICS-tech SPXT. Simple but not very targeted. You could stub out the stocks by buying the broad market and shorting the particular stocks or an ETF of those stocks which you don't want, and top off your beta with some leverage back into the broad market. Kind of a lot of work. You can look for a direct indexing service and craft your own portfolio of stocks without those stocks. You could just buy your own portfolio of stocks.
I'm riding the AI / Crypto wave + general tech, but I do have healthy allocations to both VTV and AVUV in case of rotation to value... and, there's the perk that on some days when the Dow is up, these funds are also.
I’ve been with my advisors for like 10 years now. Most of the time I didn’t realize what all they were doing. Turns out they just have it parked in VUG, VTV and some international ETFs. I’m under $1million and am seriously considering cutting them loose this year. It’s just not worth it.
While this isn't an ETF sub, I'd like to plug my favorite large cap value ETF: VTV. The top 20 companies in that fund would be phenomenal to hold as single stocks in the value portion of one's portfolio. Worth a look... Most people seeking value turn to SCHD, but the truth is that it isn't that great of a fund. VTV contains the best value companies overall, minus the focus on quality that's inherent to SCHD's inclusion criteria.
You can mitigate USD decline by investing in international equities, ytd they are trouncing their us equities counterparts eg AVDV (up 35%) vs AVUV (4%), IDMO (32%) vs SPMO (25%), FDD (44%) vs VTV (9%) etc. Or simply buy GDX or SIL to profit from the consequent stagflation from USD depreciation. Yesterday I just watched on youtube a daytrader show the 17yr trendline in DXY is on the verge of being broken which could lead to a further 25% decline & he's worried this heralds the end of American exceptionalism including the stock markets. Needs a truly exceptional president to do that.
Berkshire, Pepsi, visa, Mastercard, gold, $VTV, private equity and alternative currencies.
Ok I'm thinking about these changes based on everyone's feedback: Bucket 1: 5% in swvxx/vmfxx/spaxx (wherever my accounts land after consolidation) and 5% VTIP Bucket 2: 40% VOO/FXAIX/SWPPX 20% FFTWX/SCHD/VTV 5% SCHF Bucket 3: 30% SWLGX As retirement nears I'll shift percentages from Bucket 2 to Bucket 1 and reduce percentages in Bucket 3 as well.
Well, for large cap value, VTV exists. So take a gander at this chart: https://totalrealreturns.com/s/VFINX,VYM,VIG,SCHD,VTV Dividend appreciation and the extra criteria SCHD has seem like better strategies than raw value, though there are periods on this chart where VTV is winning. > I tried doing a covered call strategy on my own a few years ago with various degrees of success. I think you need to have pretty good market timing in order for it to be successful- and a pretty good read on macro currents. I don’t believe that an ETF which does a covered call strategy automatically is a winning strategy. Strong agree. I'd be interested in seeing a couple of actively managed covered call ETFs rather than these gimmicky indexed ones. I suspect one that focuses on dividend-paying value companies and intentionally selects dates that avoid earnings spikes could outperform buy and hold (on those stocks, not necessarily the market as a whole).
This is exactly backwards. _Growth_ stocks have the higher expected returns because they're higher risk. https://totalrealreturns.com/s/VTV,VUG The main reason to invest in high-dividend funds is when you're in the income-drawdown phase of your life, it means you don't have to sell shares, which avoids the investor psychology problem where 99% of people make their situation worse when they do anything. Especially in downturns.
VYM and VTV would be a couple examples of perhaps similar risk and reward to VOO. But they do reduce their stock value appreciation through paying dividends (2.55% for VYM.) That does help in the first year of ownership for sure, that I am considering. IE I am ready to retire, and have a large gain in BRK that is going to be a big tax event. The nice thing if I take that tax event this year, I can expect to get 2.55% of income next year from VYM that will be in qualified dividends. If instead I go full into VOO now, and pull out that same 2.55% next year, it will have the taxes for any gains from today until that period next year as income taxed gains. Similar will be happening if I decided to move from VYM to a different fund before a year, I will be getting more 2.55% more of the growth in income taxes instead of dividend. This is only advantaged in that I am 55, looking to retire at 56. i can put my IRA into a annuity and get $60k of lifetime income, and this %2.55 can give me $15k a year. which seams like a near perfect amount for retirement. the IRA will be all capital gains. If I can place the annuity for the IRA to be just under $59,800 my capital gains will be all in the 15% bracket.
> All that matters is total return. SCHD & VYM annualized 10 year return has been 9.3% while SPY was 13.5% and QQQ was 14.2%. Over a five year span SCHD and VYM look relatively better (13% return, vs 13.8$ for QQQ). On the other hand, Nasdaq (pre-QQQ) was so brutally ravaged in 2000 that it took until 2018 to get your real dollars back (2015 or 2016 in nominal dollars). If you had retired on QQQ in 2000, you'd likely be dead before breaking even, slowly cashing out your retirement at a loss. > forced annual taxation on money you don't need and will just reinvest anyways. Zero tax for married couple making less than $94,000, then 15% up to $583,000. This might be a tolerable hit. Imagine moving $2M of non-401K money into dividend stocks at the age of 62, for an annual income of $80K, plus an expected appreciation/income growth of 5%. Your Social Security would push *some* of this into the modest 15% bracket. However, if you had a growth fund instead, then cashing out would be subject to comparable cap gains tax. Dividends are likelier than stock values to hold steady in a downturn, so you're less likely to have to dig into depreciated capital. > To be clear that is not allowed in the US but I would love a VOO/VTI l Sounds like you might want some BRK-B. > However to intentionally pick stocks/MF/ETFS based on the size of the dividend is dubious. The increase in tax drag makes it even more so. Most value funds seem to have paid returns the same 5 and 10 year returns as SCHD and VYM (while paying about 2% dividend). So dividend funds are essentially value funds, so by your argument, if you don't want the income, SCHD and VTV are interchangeable, minus *slightly* smaller tax hit for VTV (2% dividend, not 3.9%). When they deliver 7% *real* growth, pay something like 3% in dividends, which is taxed at 15%, then the total tax hit on returns is 1/10 of the 7% real return, or 0.7%. That might be an acceptable factor for somebody who believes that growth stocks (eg, QQQ) can suffer punishing two-decade crashes like in 2000.
VTV erasing overnight gains every open pisses me off. I'm about to dump the fucker.
I use combo of: VOO + SPMO + RSP + VTV VOO Broad but top heavy SPMO Momentum, rebalanced RSP Equal-weighted VTV Value tilt Allows you to capture momentum with some downside protection. Allocations based on your risk tolerance.
VTV, VBR, if you want more value-oriented ETFs. Or look for single stock pick values, like UNH, or UPS. They're out there, just rare right now.
I just took my acorns account and rolled it into my fidelity account. Is any of this redundant? Should I look to sell some and invest in others? I'm mainly looking at long-term/retirement. GOOGL - 29.51% VTV - 21.58% OHI - 14.28% O - 8.48% VTI - 7.61% SCHD - 6.81% VOO - 5.79% IXUS - 3.93% IJH - 0.95% BITO - 0.49%
There are plenty of funds to tilt value. VTV is a large cap one, VBR is small caps. You can also find them for developed countries, or emerging. Aside from the easy index funds, Dimensional Fund Advisors is a longterm name in the category and historically has done pretty well with their funds; Avantis is a newer competitor with plenty of value-focused funds. You can also always stick some money into Berkshire Hathaway.
> Does anyone have any advice on what to do next? My retirement goal is 2035. Speaking for myself, here are my choices, that I'm gradually working toward: BRK-B - it has consistently beat the market, and keeps 35% in cash (T-bonds) on hand for opportunistic acquisitions. Don't time the market. Let someone smarter and more experienced time the market for you. SCHD - boring dividends, paying almost 4%, but total return of 8.5% *over inflation* for the past decade. P/E of just 18 or so, so the valuation is reasonable. Less likely to get pummeled in a bear market. VYMI - Maybe. International dividends. VTV - and other value funds, P/E 20 or lower, again priced reasonably by historical standards. TIPS (inflation adjusted bonds) - paying 2.6% over inflation. But only in a tax deferred retirement account. This is to hold cash and bet on a future interest rate fall (like another bout of Quantitative Easing). If QE happens, they'll shot up in value. I'm staying away from: hot stocks and index funds, because they are heavy with exactly the get-rich-quick, get-poor-quicker stocks like the ones that OP is cashing in. Alternatively, there are equal-weight index-compisition funds out there that contain homeopathic amounts of TSLA. If the $600K gain is not in a retirement account, it has to be carefully cashed out to avoid tax consequences, checking out [IRS capital gains brackets](https://www.irs.gov/taxtopics/tc409). It will be hard to bail out without paying $90K tax. You could even write calls against your gainer stocks to squeeze out more money and insulate against *some* losses if you pursue an extended sale schedule. Eg, a March 26 in the money call goes for 24, about 13% of NVDA's price. But you have to know what you're doing, and assume the risk of a sharp fall if you dilly-dally in diversifying.
VGT has served me very well, but it's really pushing the envelope at the moment. SP500 is at all time high. Consider some diversification - VTV, QUAL. Not saying to avoid the AI/Tech but going all in there could be some bubble turbulence coming. You have a long road so don't sweat it if you are contributing along the way. I survived the dot com bubble and the housing collapse and have done well because I continued to contribute equity heavy along the way.
If you believe that, probably “value” ETFs like (VTV) or even dividend growth (DGRO) to keep some big stocks while minimizing the effects of any AI stock crash. There’s also ETFs concentrating on the rest of the S&P 500 like XMAG (the lower S&P 493) or iShares new XOEF (the 500 minus the top 100). While AI may be a bit overhyped IMHO, ..but still will be a force to be reckoned with.
Not the I agree with your assessment , but if you want to limit your exposure to these big tech you can 1. Buy value funds like SCHV or VTV, the tech companies are usually classified as growth so value funds won't hold a lot of tech companies but will still give you large cap exposure 2. You could buy some equal weighted S&P 500 fund like RSP, as its an equal weight fund it will allocate much more to the smaller components of the S&P500 outside the large tech companies (nvidia , msft, goog, meta, apple) 3. Buy foreign funds like VXUS / SCHF/SCHE 4. As you said allocate to small/midcap funds like VXF 5. Allocate to bonds, if the large companies take a down turn, they are so large they could drag other stocks down as well, so invest in some safe haven asset like bonds.
1. Value funds are trading at traditional or slightly inflated P/E of 17 to 20 or so (eg SCHD, VYM, VTV, BRK-B). This is a 5% to 6% real value-based return. 2. The overall market (SPY) is at 27. This is a 2.7% real return. 3. The difference between them is the hot tech stocks, that are soaking up a lot of investment dollars. So my view is that by stuffing money into value based funds you will enjoy a nearly-traditionally valued stock market, though a crash in the high flyers could percolate down. If you look at [stock market concentration](https://i.imgur.com/5WgdkNd.png) from [this paper](https://www.morganstanley.com/im/publication/insights/articles/article_stockmarketconcentration.pdf), you will see that the top 10 companies make up 27% of the market in 2025, vs 15% in 2015. Market concentration also peaked before the 1990s tech bubble burst. You have to go back to 1960 to find a comparable level of market concentration as 2024. The 1960-1970 period was [stagnant in terms of real returns.](https://bostonportfolioadvisers.com/wp-content/uploads/2022/02/BPA-Commentary-Q1-2022-Chart.pdf), picking up in 1980. So the lesson I choose to get is to invest in value stocks and funds with PE<20, and let other people buy speculative stocks and the index funds that are forced invest in them. Every dollar that buys TSLA and PLNTR is a dollar that isn't driving up the price of BRK-B and SCHD.
Not a good idea to put all eggs in one basket. This is true even for a NASDQ index fund/etf. But... there is nothing wrong in having play money in a sector. Large portion of my equity is in VTI and VTV, but I also have 7% in a NASDAQ index and 5% in small CAP.
You will still lose to inflation. VTV bro. For the kids
You are way too overweight on large cap tech(which has lower expected **future** returns due to overvaluation), underweight value stocks and international, and underweight bonds. Overall, your portfolio is very risky. I'd say something more like: 30% VOO 10% VTV 10% AVUV 10% BND 24% VXUS 5% SCHP 5% NVDA 5% GOOGL 1% Bitcoin ETF This limits your exposure to any single stock, while still maintaining exposure to assets you believe in(GOOGL, NVDA, Bitcoin)
An anecdote In defense of the Value perspective and method of investing. (and I little bit of not so humble brag) Term "value" as appears in the marketing name of a value fund is not the same thing as value as applies to a method and a perspective that investors employ on this sub. I doubt that many of the components of VTV would get the r/ValueInvesting seal of approval. (not that they would be bad businesses) My alpha is ***really bad*** right now. I got totally outperformed by the AI frenzy. My alpha should be more like 50%. smfh and cry. Over the last 5 years (the data period I have on my platform): * Annualized return: 26.7% (vs index of returns of 16% over same period which includes huge components of growth BTW, and during the AI frenzy with NVDA killing it to boot.) * Risk adjusted alpha: 25.64% * beta: .40 * r squared: .04 That is very respectable performance during a ***really bad*** time frame for me. My "bad" value is beating "good" growth when growth is doing extraordinarily well. I'm completely uncorrelated which makes perfect sense. My businesses are not listed in the index. I'm substantially less volatile. Though I seriously wish I was even less volatile on price. I had a 50% drawdown in the last year. Those dividends are a nice damper on my price vol. I'm in solid industry leading companies that provide real services with good profits and return on capital. They pay out nicely. Jan 2024 pretty much kicked off the AI frenzy. (closer to march Nvidia earnings IIRC.) So you've chosen your end points carefully. People do this all the time to try and sell their newsletter. I'm looking at you, goldbugs. "If you had bought ABC at this absolute low and then sold at this absolute high you would have made ALL the money. Subscribe for this one simple trick." Such bullshit. Why do I do this bit of chest thumping? I genuinely believe that buying wonderful businesses at fair prices is a very good way to put your excess capital to work. It's good for people. It's good for America.