VTWO
Vanguard Russell 2000 Index Fund ETF Shares
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5 Top-Ranked Small-Cap ETFs to Buy for the January Effect
5 Top-Ranked Small-Cap ETFs to Buy for the January Effect
Wanting to invest $5,000 in 5 different indexes - should I do it slowly or just dump it at once?
Can I sell part of my ROTH IRA to my brokerage account (without withdrawing to my bank account), then reinvest it without incurring tax liability?
Help choosing Vanguard fund(s) for small investment <$5k
Is there anything wrong with my current investing strategy?
Advice on holdings for a long-term investment plan
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Just curious on your thoughts on my portfolio. Always open to advice. So I have just over $16k in a private brokerage account and then about $36k in a 457 through my employer. The 457 is split 50/50 between a large cap fund and a target retirement date fund The $16k in my brokerage account is divided as follows: 22% FGRIX (fidelity growth and income fund) 20% SCHD 19% VTI 18% VIG 6% SCHG 6% VTWO 6% AMZN 3% SHOP I kind of prefer a “set it and forget it” approach and don’t necessarily want to worry about trying to buy and sell stocks at the right time. What do you guys think? Also, just for reference, I have about 20 years until I retire and put $350 in each of my accounts each month.
Mostly boring ETFs. Mix of VTI, VTWO, VXUS. Highly titled towards VXUS.
I’m a regard and don’t know anything. However, I feel like we’re going to see a few weekly dips like this with a few green days in between. There is a lot being priced in right now that will probably send us down 5% to 10% during the first half of the year. So anyway with that said, I like ETFs with all this craziness. VXUS VTI VTWO. DCA down with every few percentage points. Again I just work at Wendy’s and don’t know anything.
After years of aggressively saving and holding on to too much cash, we finally decided to take a leap of faith and lump sum just under 400K in the market in late June ‘25. We are currently up 62K on that investment right now which is mainly (VOO, QQQ, VTI, VXUS, VTWO, and NVIDIA). On top of that, I have over 350k company issued vested stocks that I don’t plan on touching and another 190K of money on the sidelines which we view as our emergency funds + additional investment money (as needed). What we need advice on is what to do with the 190k in cash? Do we try to time the market, wait for a correction and buy more (lump sum), DCA or invest in real estate? Combined base salary for my wife and I is 315K, 100k in vested RSUs (yearly depending on how employer stocks is doing) and 50K in bonus for a total of 465k / year. We live in Texas. We are very good with money and really want to be aggressive about building wealth through the stock market to make up for years of not investing (we are both 35). We would love advice on how you would strategize and target retirement in the next 15-20 years through investing in the market. In the last 2 years, we have both maxed out on the IRS limits for 401Ks and combined have 406K in our retirement accounts. We have 2 young boys (4&2) who attend daycare. We plan to enroll them in charter schools with hopes that they land academic or athletic scholarships for college, but if that doesn’t work we have set up custodial accounts for them. Debt: mortgage at 2.6% bought in 11/2021 and 250k combined in student loan debt. Let us know your thoughts.
Solid setup. The **VOO/VWO/VTWO mix** gives you great coverage and keeps things simple — exactly what most investors should aim for. If you’re looking to simplify even further, a **“VTI and chill”** strategy is tough to beat. It gives you total U.S. market exposure in one fund, low fees, and automatic diversification. > Morningstar calls **VTI** *“one of the most efficient, low-cost, and well-diversified core equity holdings available.”* *(Morningstar Analyst Report, 2024)* Even **Warren Buffett** has long backed this kind of simple approach: > You might also consider setting aside a small slice for **Bitcoin**. **Fidelity Digital Assets** describes Bitcoin as *“a compelling and uncorrelated asset class, serving as a store of value and hedge against monetary debasement.”* *(Fidelity Digital Assets, 2023)* **ARK Invest** found that *“a 1–5% Bitcoin allocation can improve a portfolio’s risk-adjusted returns.”* *(ARK Invest Big Ideas, 2024)* And a **Yale University study** showed that adding 4–6% crypto exposure can *“improve overall portfolio efficiency due to low correlation with traditional markets.”* You’re absolutely on the right track — **low cost, diversified, and long-term.** That’s how wealth actually compounds. Adding a little Bitcoin could just future-proof it.
Totally agree with OP that there is a fundamental problem with the how small cap ETFs rebalance out of their winners. I moved out of the VTWO ETF into VTX which has more of a midcap tilt. It's a little bit better but VTX has big holdings in companies like Strategy, ServiceNow and Crowdstrike, and as soon as they go into the S&P500, you lose their juice. Not sure why, but it does mean that small cap ETFs will probably underperform SPY over the longer term, which was not case in the previous 20-50 years.
Russell 2000 is a common index of small-cap US stocks. You cannot invest directly in "the Russell 2000", but you can replicate it in several ways. The simplest is an index fund which buys all of the stocks in the index for you and charges a low fee. IWM, run by Blackrock, and VTWO, run by Vanguard, are two ETFs which do that. FSSNX (Fidelity) and SWSSX (Schwab) are mutual funds which do it, but they are likely not available through Chase. Of the two, VTWO has a lower fee of 7bps (0.07%) per year while IWM charges 19bps, so I would go with VTWO. There are also many other small-cap index funds which are pretty much equivalent to ones tracking the Russell 2000 and have even lower fees. You do not have much risk if you buy more Vanguard. If Vanguard goes bankrupt, its estate cannot claim the assets of the funds it runs, they are separate. The funds may close and return all cash to investors, which could be inconvenient and taxable, but not a direct loss. Or they may get bought out by another company and continue running under a new name.
There are some factual inaccuracies here. The relevant comparison for DFAS is VTWO, which DFAS has consistently beaten. Also, calling DFA an active management firm is semi-accurate at best. They’re factor based which falls somewhere between active management and passive management. Finally, VTV is a large cap value fund, not a small cap value fund. Vanguard’s small cap value fund (VTWV) has underperformed DFA’s Targeted Value fund and Small Cap Value fund over the last 10 years (DFAT and DFSVX). Vanguard’s VBR has done better than the dimensional offerings but it leans more into mid caps than the others and mid caps have outperformed small caps over the last 10 years.
From what I've been taught your goal for investing should be to make at least 10% returns on your investments. This is what my future investment portfolio would look like. I know its hard to tell what my returns are before I invest, but with this investment portfolio, do I have the potential to get at least 10%? + WFSPX + FSSNX +VOO +VTWO +Corporate Bonds
Thanks for this! I think im going to invest in both FSSNX and VTWO. I was having a lot of trouble finding good index funds for the Russell 2000 and it sucked cause I really am interested in small-cap companies as much as large-cap. At times small cap outperforms the S&P 500 and I just wanted to get in on it! Again thank you!!!
Does that mean that you want to buy and hold? If so - then you may care about things like expense ratio and tracking error. In that situation - look at something like VTWO. IWM is the normal go-to for more active investors who may want liquidity and optionability. And depending on your broker - for buy and hold - a small cap mutual fund may be better because it's easier to DCA and expenses are lower than an ETF. For example - Fidelity offers some decent small blend funds like FSSNX that track the R2k and have very low expense ratios - so the fund can slightly out-perform the r2k over time. Also -- bear in mind - there are lots of variants of the Russell 2000 Index - I assume you are asking about the base index and not the variants like R2k Growth or R2k value. Regarding Morningstar - bear in mind also that Morningstar will rate based on their process to small cap blend - so the "best" funds will not track the r2k. A Morningstar rating for a r2k fund is likely to be considered average.
I’m invested primarily in IWM/VTWO and I keep telling myself small caps are due for a run. I’m in the same boat as you, it’s frustrating seeing VOO and QQQ consistently out gain small caps . I’m contemplating investing more into IWM if the price ever drops to $195-$198 levels .
Critique my portfolio (long term) 6.5% NVDA 17.2% NVO 15.3% SMH 34.6% VOO 3.3% VOOG 6.8% VTWO 16.2% XLK I am looking to rebalance/consolidate some positions and get into more international markets. I am pretty young and am looking for long term profitability. Thinking about just dumping everything into VOO or VOOG and then splitting those 70/30 with an international developed etf at least over the next 3-5 years as I believe it’s undervalued.
first of all, you should buy VTWO and not IWM. second, the small caps are more affected by interest rates. third, when times are good, R2000 will beat the S&P, but when times are bad the R2000 will be way worse than the S&P.
I just dumped 20’sh grand into 3 funds each. MGK SCHD VTWO I have another 80k I will DCA over the next year. I like the low prices right now and if it goes down I’ll cost average down to the bottom. So my advice would be to dump half and then keep dollar cost averaging.
I bought sold some of my positions this morning close to the peak and bought VOO at 455, AMZN at 170, QQQE at 70, and VTWO at 70. Only doing little chunks at a time.
For a single fund, VT is the broadest, covering at least large parts of everything else you listed, if not actually essentially fully holding them. VOO and VTWO are different parts of the US market: VOO being the S&P 500 (more or less the 500 largest companies), VTWO being essentially ranks 1001-3000; VTI would be essentially the US total market: VOO + VTWO + that gap from basically 501-1000, plus some after 3,000. SCHD and QQQ are also US market funds, but have other inclusion criteria and have moderate to heavy overlap with at least VOO, though a decent chunk of SCHD does appear in VTWO as well. By weight, over 60% of VT right now is the US market. VWO is emerging markets, so no US, but is basically fully included inside of VT. VT would also be the only non-US developed market coverage of the funds you listed.
You put it all in tech? Are you in ETFs or individual holdings? You're being crazy aggressive and hopeful given how frothy tech is right now. If you're not older than 40 (hope so given just getting started), I recommend you sell it all, book that loss and take it against regular income over the next five years, and buy VOO and if you want more than one thing, maybe 10% in VTWO.
Personally, i would sold off roughly 80% of apple shares for the immediately gain and leave the other holding alone, and use some portion to buy any QQQM, SPLG, TLT, IYY, VTWO for the market risk control. Of course, put some money to max out your IRA or open one if you don't have to cut off the investment gain as well. if you still have some money leftover, buy some SCHD and Real Estate ETF for extra cash flow and build second layer of risk control.
Disagree, there's sector targeted ETFs you can use, but buying individual stocks is too risky IMHO unless its less than 10% of your portfolio. You could get VXUS, VTI, QQQ, VGT, VTWO etc rather than just VOO if you think certain sectors will beat VOO, or just go trend investing and get MTUM.
An equally weighted combination of those 10 ETFs have an annualized return of 15.81% over the past 10 years. VOO has 13.45% in comparison. VTWO is definitely an underperformer with just 8.27%. Also, I don't think there's any reason to have both SPY and VOO, as they track the same index. I've been told SPY is for trading, VOO is for holding. SOXX is the higher performer with 23.35%, but it's a sector ETF, so anything could happen in the long run. Same goes for IYW with 21.05% and XLK with 20.55%. I personally wouldn't pick 10 different ETFs. If you want higher returns than VOO, then I'd go for VOO + QQQM.
So basically a time machine so I can snag more VTWO
Small caps are about to explode upwards next 3 months. $IWM $TNA $UWM $VTWO everything smallcaps. I'm going all in.
High risk? VTWO. Set it and forget it for great returns long-term with lower risk? VOO, VT, or VTI.
Look at VTWO, VIOO, and VXF and compare them to VOO. Don't just focus on outperformance, but also consider risk-adjusted returns and volatility. There's a common pattern: as a whole, big companies are more stable and profitable than small companies (wait, don't riskier assets have a higher yield? Yes, within the same category, but some categories are just inherently underperforming). Suppose you understand that all large companies are essentially holding companies while small companies operate in isolation (like playing a solo co-op game). In that case, you'll realize there is no reason to believe that small-cap stocks, as a whole, can outperform large-cap or large-cap-heavy indices. Sorry small-cap value fans, but you will never win. People invest in individual small caps because no amount of leverage on large-cap stocks, even companies like NVDA, can replicate the explosive returns from a successful small-cap investment. But there’s a major problem: even those who have made billions from small caps typically have only one or two big winners—nobody has a consistent track record of finding small-cap winners repeatedly over the long term. TLDR: As long as the US isn't trying to be EU, large US-based internationally-operating holding companies are going to be both safer and more profitable than any trivially constructed index when accounting for risk and leverage.
It's a running joke that investing in VOO and VTI is a crime, you don't need VTI if you got VOO. While VTI is market weighted, it is also market cap weighted which means it's top heavy even though they advertise themselves as being more diversed, so you end up being LESS diversed investing in both. If you want to diversify and invest in mid caps and small caps, aka 501-3000, you would rather invest in funds that specifically focus on them instead(eg. VTWO(Russel 2000 - small-mid cap), VONE(Russel 1000 large cap), IVOO(S&P Mid Cap 400, VIOO(S&P Small Cap 600), etc.). But in general most portfolio that did well with above 10% returns usually consist of SPY/VOO/VTI, one or more mega cap tech companies, and some dividend companies with DRIP enabled.
Bro I’m so regarded I thought VTWO calls would be the same as IWM calls 
Alternatively, you can also do VOO and VTWO if you want to manage the allocation between large cap vs small/mid cap.
If I were you, I'd ask him to split it two ways. Pick a stock for one of them, and for the other, VTWO, a Russell 2000 index etf. VTWO would be my choice.
^ look I said VOO/SPLG, VTI, VTWO, and XHB/ITB are ETFS, BLK and JPM are banks/institution.
^ look I said VOO/SPLG, VTI, VTWO, and XHB/ITB are ETFS, BLK and JPM are banks/institution.
I'd say that's a very sensible way to go. I would offer an alternative for your Russel 2000 allocation. Two of the most sure signals of higher expected returns long term (even out of sample after academic discovery) is the reinvestment effect and gross profitability. Companies that reinvest aggressively into asset growth (think small cap growth companies) tend to do awfully long term in terms of stock returns. Companies with high gross profitability also come with higher expected long term returns. Combine that with low book to market price (cheap / "valuey" stocks) in your small cap allocation and you get much much better performance than the Russel 2000 in aggregate. Consider looking at funds that target these equity characteristics. The seemingly best in class is from Avantis, it's called AVUV. Throw up a chart of AVUV vs VTWO and you'll see the difference. If you want to judge long term historical returns, the only similar fund that's existed for a long time is DFSVX, from dimensional fund advisors and it's a small cap value fund. Dimensional employees are the ones who founded avantis, so a lot of the methodology and knowhow are similar.
Personally I’m still up about20% YTD but Goodbye to all those sweet 300% gains I had. Moving forward I’m putting away the rest of my money for atleast 1-2 years in MAG 7, BLK, XBI, VTWO/IWM, and looking anymore recommendations.
Vanguard options: VB, VIOO, VTWO.
what do we think of VTWO/IWM, BLK, VTI, XBI. Retirement account worth about $1500 across these.
Correct but regardless of the price of the underlying stock the price will more proportionately based on the index. IWM is currently trading at about 225. If ^RUT were to move up 5% IWB would move to about 226. VTWO is trading about 90 and it would move to about 95. Therefore proportional strike prices would theoretically see the same % gain or loss. So why IWB vs VTWO
The big ones I'd consider: S&P 500 (SPY, VOO, IVV, SPLG,,,) - An index tracking the growth of 500 big companies weighed by market cap, as in the biggest companies will affect the price moreso than smaller companies. Usually the best option which is why everyone talks about it S&P 500 Equal Weighted (RSP) - Same as S&P 500 except every stock is weighed the same, the price changes of the smallest companies matter just as much as the largest ones. Should in theory give you better safety and diversification, but usually has less growth than regular S&P 500 ETFs, simply because big companies are big for a reason - they're good at making money Russell 2000 (IWM, VTWO) - Tracks the growth of *not the 2000 biggest companies*, but the 2000 biggest *after* the 1000 biggest. So the #1001 largest to the #3000 largest by market cap. Essentially tracks startups and and struggling firms. Can be a good investment as many stocks here are undervalued and have big growth potential, but they can also struggle if the economy isn't doing too well. Lately it's become more attractive to investors because of potential rate cuts and slower inflation which will help keep small companies afloat. In a good and stable economy, this index can easily outperform the S&P 500 Nasdaq 100 (QQQ, DE) - Similar to S&P 500 but tracks the 100 biggest companies listed on Nasdaq, meaning it's very centered around the technology sector and also really top heavy at the moment with a small handful of megacaps (Microsoft, Apple, Google, etc) doing most of the work at the moment. If any of them have a bad day, Nasdaq 100 will have a bad day. Still, the tech sector has grown rapidly in the past decades and has consistently outperformed the S&P 500 over longer time periods, and will probably continue to do so if technology continues to advance the way it has. Just be prepared for some massive dips here and there. Personally I have most of my long time savings in Nasdaq 100, it's in a bit of a bubble right now but I believe in AI technology and the growth that'll come from it. The red days still hurt, seeing your account drop 10% in a couple of weeks is never fun, but I think in 10 years it'll have grown the most of any of the indexes I mentioned. Just my opinion as a relatively new investor.
Pullback and shuttle shares of tech to small cap from what I can tell. VTWO has gone up about $10/share out of $90 in the past month.
I went VTWO instead of IWM a little regretful because lack of liquidity. But holy shit I bought some cheap ones, only catch is it needs to go ITM for any bidders We’ll see
Been watching VTWO. Idk if the small cap narrative is actually gonna work out.
 I personally prefer VTWO myself. Think they hold smci and mstr
VTWO calls already printing, options trading on boomer etfs mostly works for me so far
Don’t like buying at open but here’s my play UAL 44p 7/19 and VTWO 100c 9/20 Instantly down 
I was looking at IWM holdings and then I saw VTWO, lol no contest
I’m trying to board the VTWO express tomorrow
Personally, I’ve just been adding small cap tilt to my ETF portfolio but dollar cost averaging some VTWO, currently at about 5% of my taxable portfolio, and 10% retirement accounts. I think it will pay off.
Your Dad's FA basically buys a little bit of everything in different sectors and diversify in different mutual funds that covers all of the bases. He bought some tech , some retail, some energy, some banks, some international , some small cap, some growth, etc, etc. My problem with this approach is that I am not seeing any insight being applied, it's just checking off boxes. What's the point of paying them? I'm not surprised the portfolio has grown so little - at any point in time, some sectors are up and some are down - by casting a wide net it means the bad will drag down the good. The point of using a FA is as much about what to avoid as what to invest. I'm not seeing that being the case here. First of all, regarding the equity section, the FA is essentially trying to mimic VOO or SPY. So, why not just buy VOO or SPY? That'd be my recommendation - not only is VOO/SPY a lot cheaper than hiring a FA, it outperforms 90% of the managed funds over a 10 year period, including this eyesore of a portfolio. Second, regarding the mutual funds, too much pointless diversification - instead of investing in separate funds for blue chips, mid-cap, growth, value - just invest in VOO or SPY and be done! VOO/SPY already covers the blue chip, mid cap, growth, etc. Again, there is no insight or any special knowledge being applied here - if the FA had concentrated on some sectors then, ok, the VOO/SPY wouldn't work. But they're investing like a VOO/SPY except they're doing it clumsily that underperforms the VOO/SPY benchmark. Your Dad's portfolio can be summarized as 92% VOO/SPY, 6% International (VTIAX), 2% Russell 2000 (VTWO). Your Dad can buy those three ETFs himself and get better return.
I didn't say hedge fund managers. You stated that you were happy making what the typical funds makes, I assume VTI, VTWO, etc., which is around 10% annually. That doesn't mean index funds make money every year, but over long periods of time that's been the average return. At any rate, I'm done talking to you.
> I suggest plugging in AVUV into Portfolio Backtest since inception (Oct. 2019) and comparing to the S&P 500. You'll find it outperformed (14.8% vs 13.7% with higher volatility), so I'm really unsure which funds/benchmarks you are referring to. I typically measure small cap ETF performance from when small/micro caps hit their stagnation period (roughly November 2021 to November 2023) to the present day: the original COVID dip and jump adds too much noise to the data. Almost none of them have notably outperformed the base Russell 2000 or S&P 600, not SPSM or VTWO or ISCB. AVUV is the only small cap ETF I've seen that's surpassed its November 2021 peak.
So if I were your age again: 1. Auto invest with every paycheck 2. Stick with VOO (S&P500), VTI(Total US Market), VT(Total World Market), QQQM (Nasdaq 100), VTWO (Russell 2000 small caps) for now. At 21 I would weigh it more heavily towards QQQM (Highest risk, highest reward of the past 20 years (QQQ was 1999 and QQQM is a near identical product with lower fees from same company) 3. Delete the app from your phone, only bring it back to rebalance every year 4. Paper trade with wall street survivor (or similar simulator) to try out different strategies 5. Sometime when you're around 25 or you can adjust your strategy based on what you have learned.
Whole small cap index is cheap relative to history Index VTWO Bonds are disgustingly cheap. I don't know how anyone can look at TLT and not see a deal
Important is to diversify your investments! Very important, like others said, is taking in mind inflation! Talking about the USA, you might have a house to rent there... I have friends (I live in Colombia) that bought a house there in Florida. The renting pays close to 1% a month of the value of the price of the property, which is a very good number, which you will probably not get in Spain. You can also invest in the stock market. You might want to read about for an example the All Weather Strategy of Ray Dalio. I am investing in it. The (30%) stock part of the investment can be bigger for younger people or smaller for older people. Investing in an ETF on the Standards and Poors 500 index gives a intermediate return of 10.5% per year. Beware you should only withdraw money when new maximums are reached, not in corrections or dips!! You can also buy in dips or crashes in the stock market if you have cash available. I invest in VTWO, IVV and INDA etf´s whenever there are corrections. If the correction is bigger then I search for more money to invest in it, and then I wait for the market to recover. It can take 4 to 5 years in worst cases... only for patient people. You also get dividends. They are small, but all of them count and can be reinvested. Also you have to take in mind the taxes the authorities will charge you. Good luck
VTWO has an expense ratio of 0.1%, though your broker might be able to beat that. I'm not a financial advisor.
IWM and VTWO are small cap index funds. AVUV is a factor fund, it focuses on small cap *value* stocks, with additional screening by momentum and quality factors. AVUV is run by people who formerly managed Dimensional's small-cap value mutual fund DFSVX, which has outperformed the S&P 500 since its inception in 1994.
I keep seeing this recommendation. Why AVUV over IWM, VTWO, etc?
You also have to factor in the other SP 500 ETFs. IVV, VOO, and SPLG have almost $1 trillion under management. Then you have numerous Index mutual funds. FXAIX has $373 billion SWPPX has $60 billion. VFIAX has $792 billion. And it’s worth noting that IWM has $67 billion and VTWO has just $8.3 billion.
Sadly VTWO is still down 20% from ATH. Its been a weird "recovery" in the market.
Well that's the thing. So you have this high risk high volatility stock that has made you a good deal of money. Five shares at $500 each is $2,500 on an $8,000 account that's roughly 30%. You never want any one position to be more than 10%. So you would sell that down to two shares and then take the $1,500 that you get and throw it into VOO or VTWO which is like the piggy bank position. You always want to keep shoveling money into index funds. Never sell them always accumulate on deals or when you make good profit on individual stocks. This lowers the overall volatility of your portfolio and reduces risk. Save up some more money put on different positions. You're going to have wins and losses but the important part is the index fund always keeps growing. This is how you make money over time in a simplistic trading way. No matter what you don't take money out of the index to buy individual stocks you only keep adding to it. If you mess up and you lose a few thousand dollars on individual stocks, you keep working, you make more money and you try again always building the index fund. Makes sense? This way regardless of how well you do or don't do you keep accumulating assets. Obviously this goes much easier if you become a better trader but that's beyond the scope of this reply
If 50% of your account is an index funds, you can grab those or anything else. Sell the baba shares. Whatever lost that is, you can sell an equal amount of gain to reset your cost base. For example if you had a $2,000 loss on baba, you can take a $2,000 profit on spy and roll that into VTWO. If you're not going to use the capital loss this is a good strategy because you're basically zeroing out and rolling from one index to the other. There is a rule about like products but I've been able to slip by a transfer between spy and IVV without getting caught so, your luck may vary
If you have 60% of your net worth in big cap stocks like spy voo and VTI, it would also be okay to buy some small caps and mid-cap ETFs and stocks to kind of even out your portfolio because they are still underperforming and have not hit a bull market's cycle just yet. There's lots of good ETFs for small and mid caps VTWO IWM VTWV VOE VB SCHA MDYV Or maybe consider investing in actively traded ETFs FLPSX - buys undervalued companies in the small and mid-cap region. (Mostly) and is an actively traded ETF that has consistently done very well versus s&p 500 ZSCCX- uses Zach's proprietary info to maintain a solid ETF holding of small cap stocks. I found out about this ETF a little over a month ago and I'm already up over 11% since purchase I noticed in September and October. How every time Apple, Microsoft and the top magnificent seven stocks had a big move. My coal account was moving with it and wanted to kind of diversify a little more so I added a few hundred dollars of each of these above and my account is doing very well and I believe small and mid-cap stocks will continue to do well in 2024. Just my opinion. Best of luck. Not financial advice. I'm just a dude that reads a lot of reddit post
Why IWM more active than VTWO when 2x the expense ratio?
I made similar mistakes. We must have been listening to the same people on reddit and also both got suckered into some SPACS. I had PSFE and sold for a 70% loss two years ago to tax harvest. Still holding PLUG and PLTR from your list. Not planning to sell either. PLTR has been on a roll and too often I have cut my winners early (NVDA for example). With new money I've mostly been buying VOO and a little bit of VTWO (Russell 2000 index fund). Bagholding several losers but waiting for them to have their day again. Of the options you gave, I prefer the "let it sit and act like its gone and restart on a new account". That's kind of what I'm doing. In the past, I gave up on some stocks that were down and I thought might not come back, and then they came back and I felt like a dunce.
Have you done any back testing on this strategy? One of the more popular for those who are savvy is to play spread divergence on small caps and the spx. Basically you run a 20-year chart and come up with your divergent windows. Skew heavier on VTWO the more separated it gets from the traditional performance of VOO. When they converge you roll into all VOO. This is a reasonably easy trading strategy to pull off and it's very tax advantage because you only have a few trades per decade. I mention this because right now you're in a pretty decent spot to put it on
qqq calls, VTWO puts. Same as every fuckin day
You're making this way too hard, you know what they're going to do when rate cuts are on the horizon? Buy small caps, buy financials. Most the time you also sell metals and mining. This cycle is a little iffy on that. What I would certainly not do is buy anything you listed. That sounds like an excellent way to underperform. Seriously track whatever you think is going to work for the next 3 years. Next to it just add VTWO, blk, stt, boa in a 50/20/15/15 allocation Get back to me on this around 2026
I would consider getting into small caps like VTWO (VANGUARD Russell 2000 index) at such a young age you have a lot of time to watch those small caps expand and build wealth.
Reddit is currently red hot for VOO/VTI n the Magnificent 7. I'd read an article that the market will switch back to Russell 2000 in a "once-in-a-generation" market opportunity. Is VTWO a terrible idea or too soon? Would VTI and VTWO be a reasonable portfolio split?
There are just too many choices, Blackrock, Bank of America, t row peice, ebay, State Street, tlt, Western digital, Seagate, levi, Goodyear tire, Michelin, intel, small caps alone, like Russell 2000 30% off, VTWO is an easy way to trade that. Play the correlation and when the Russell and s&p meet back up roll back to the s&p. Right now the Russell is doing one of its historical underperformances against the s&p. I mean a list is continuous and far more expansive than this, take your pick look at all the good trades and good values
Just curios... Is there a 3x leverage VTWO etf I can trade 0tde FDs on?
Google these funds and click on yahoo finance or morning star links. Go look at the holdings tab. You will find they are mostly the same companies in the funds you mentioned. This you would be buying more of the same companies. Top holding companies of every fund you listed were Apple and Microsoft. VOO, SPY are more diverse as they have more companies and, usually, would be less risky. However, more risk can be more reward as you see QQQ has more growth over the last 5 years. I personally like VTI as it has a mix of small, medium and large sized companies. SPY is only large companies. Nothing wrong with that approach btw. If you were wanting diversification you would choose small companies like a Russell 2000 index (VTWO as an example), maybe some international index (VWO -emerging markets, VGK European) and maybe a bond fund (BND). The best way to explain the financial system is that money doesn’t usually disappear it flows from one asset to another based on market conditions. Anyway, I’ll leave the allocation percentages up to you, just a few suggestions.
The most basic you can go is VTI, or some other all-world index Most of the all-world indexes are ~60% US stocks If you want to change that weighting you can go for VEU (all world except US) and a US etf of your choice, depending on whether you want the biggest 500 (VOO) / 1000 (VONV) / 2000 (VTWO) / 3000 (VTHR) US stocks These are all vanguard etfs, but there’s tons of other products that are almost identical. Vanguard is good and cheap though
I have SCHD and VOO, and am currently looking into something like FNILX or VTWO to add into the mix. VTWO has more exposure into small caps, but at a higher expense ratio. FNILX tracks the S&P500, but with no expense ratio!
Take advantage of the small cap discount with VTWO?
I don't understand why it's such a hard concept to force them to buy generic ETFs like $SPY or $VOO for S&P 500, $VTWO or $IWM for Russell 2000, or $VTI for full market exposure. Hell, you could even let them fade the market using inverse ETFs like $SQQQ or $RWM.
I don't understand why it's such a hard concept to force them to buy generic ETFs like $SPY or $VOO for S&P 500, $VTWO or $IWM for Russell 2000, or $VTI for full market exposure. Hell, you could even let them fade the market using inverse ETFs like $SQQQ or $RWM.
> VTWO That is a really good fund to buy and hold with about half the expense ratio. It's just that their volume, for example, today is less than a million while IWM usually has an average of almost 40 million.
VTWO has a lower expense ratio
I think you mean the S&P 500, but either way the closest you can get that I'm aware of probably VTWO, which tracks the Russell 2000 index. That's companies 1001-3000 so you'll be missing out on companies 501-1000. I personally think you'd be making a big mistake by not just buying VTI, but you do you.
If the Fed sticks to their word, they should increase rates in June. If they don't, I think they'll be seen as untrustworthy. I don't think a pause is sufficient if they want to bring down the sticky part of inflation. ​ Its interesting though how now MMFs are paying more than inflation finally (\~5% vs 4% inflation). Frankly, its great that inflation even dropped to 4% without anything breaking, I think the 2% inflation target wasn't realistic for this year, more like for late 2024, but its their rodeo. ​ I'm bullish on tech companies and skeptical of the other companies. Im not sure tech companies should be going back to ATHs when money isn't free anymore, but the non-tech companies are definitely in for a reckoning. Non-tech is capital intensive, which is tough when money isn't free. Also CBRE sector will be crashing soon with rates being so high. ​ Personally buying VXUS and VTWO right now, but shy of VTI due to the recent run up and high P/Es...
Good work! My main piece of advice would be to keep things simple. You have several ETFs with a good amount of overlap. For example, VOO and VTWO are contained in VTI. VT and VTI will largely overlap in terms of US exposure as well. I’ll also say that if you’re interested in small cap exposure in particular, it’s my opinion you can do better than the Russell 2000. I like Avantis funds for their quality screens. If you are looking to invest in all equity markets with a tilt to small caps, then there are few simpler ways than to just by AVGE. The custodial accounts I have for my kids hold just that one ETF.
IWM getting beaten to hell again...all of my VTWO shares ended up loaned out today, which is the first time I've had that happen with an index.
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I'm holding VTWO but not putting anymore money into it. Sticking just to VOO, it beat our these small caps looking at last 10 yrs.
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You are right, I missed that. I just went by the date of the article. Even then, I doubt the index is anywhere near as concentrated as that list would suggest (the top 10 add up to over 30%). The top 10 according to IWM and VTWO add up to about 3% in each case.
FWIW, the holdings of IWM and VTWO seem to match closer than the stocks mentioned in the Motley Fool article. So, based on 2 out of 3 agreeing in a triple-redundant system, I think I will discount and ignore the Motley Fool article as nonsensical rambling that has nothing to do with the Russell 2000 index. That still leaves open the question of what the stocks in the index are and what their weightings are in real-time. Is the Russell 2000 some kind of state secret?
No no, add every week or every month regardless. Add all you can if it's more than 20% down. At 10% down I start using some of my spare money and at 20 I stop going out to eat. I start trying to pick up extra work. I do whatever I can to come up with a few hundred dollars here and there to throw at the market. I haven't really bought anything fun in months I just keep buying VTWO shares. Once we are back to new all-time highs I'll start taking trips and doing more social things. It just requires the discipline to give up fun stuff during the drawdowns but even if you can't do it as religiously as I do adding extra money when you can when you notice the market is off more than 20% helps. Then you gamble on the side having fun like we doing here with spare money but preferably you do that when the market is around all time highs. The nice thing about doing it that way is you're also more likely to have a good feel for direction because right now. There's not really a trend. It's not up or down, we just trade range bound
>VOO, what does that stand for? It doesn't exactly market itself. It stands for 500. Roman numeral V and two 0s. The 400 fund is IVOO. The 600 fund is VIOO. The Russell 1000 fund is VONE and the 2000 fund is VTWO.
Large diverse index based ETFs for your equity side VOO VTI RWR QQQ VTV VONE VTWO
There's very few if any ETFs that would be considered a wash sale and IRS has not published any list AFAIK. VOO, VIG, MGK, VTI, VTWO are different enough IMHO that you're fine. Trading between SPY and VOO though is getting risky. ​ You could even sell Ford and buy GM etc. and not a wash sale.
VTWO sounds like a good recommendation, I will watch it . Thank you.