VXF
Vanguard Extended Market Index Fund ETF Shares
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Consolidating Portfolio - VOO vs VTI + Tax Loss Harvesting
Recommended Thrift Savings Plan (TSP) allocation - how am I doing? (federal 401k per se)
Why mid cap ETF like VXF is not discussed a lot?
Please stop recommending overcomplicated combinations of ETFs to new investors. It doesn't have to be that hard!
My mom passed away from COVID last year - Left me $100K - How should I invest ?
Best split for portfolio made up of VOO, VXF, VXUS, and VGT.
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Thank you for the response I am just dumb I thought i would wait for it to go up a couple cents when it was 13.64 to 13.8 and I make a easy few grand right know down 12-14 k stopped checking but yea I hold QQQ VOO VXUS VXF the rest of my proflio I am just dumb when it comes to stocks.
VXUS covers intl stocks perfectly and AVUV or VXF fills the mid/small-cap gap Nasdaq misses. Solid long-term setup.
If it were me I would add VXUS (total international) and either AVUV (US Small Cap value) or VXF (Vanguard extended market index-every US stock not in S&P 500) .
That's an apples to oranges comparison. VGT is a tech ETF. It's 98% technology. VOO and VXF are sector diversified.
No you aren’t wrong because I say so or because you got downvoted on Reddit.You are wrong because you aren’t aware of all the facts or choose to ignore them. VIX futures price is a speculative asset, a mean reverting speculative asset. /VXF futures prices are a speculation of reversion back to the mean IV at the time of expiration.Currently traders are speculating the index will return to 20.75, this of course certainly can change before then, but it certainly is not based on 30day SPX puts bought today…come on, it’s not THAT hard to see the connection here bro.
You will never catch me dead disagreeing with the notion that VX futures are a better way to measure expected volatility than VIX. Sigh, yes "you are wrong, because I say so, what the actual settlement procedure is for this product doesn't matter, you're just wrong because I said so and some other people on reddit downvoted you". Ok man. Indisputable fact, both the futures and the options settle to the same thing. I will bite on your other point. How do you think the /VX futures for that timeframe you mentioned priced then? The ones outside of 17-34dte band. VXF6 for example. Why is that at 20.75 and not 21.00?
VOO (alone) is single country risk (revenue source doesn't make it global, as it is the performance of foreign stock markets that we're after and companies act like their home market). US only is single country risk, which is an *uncompensated* risk. An uncompensated risk is one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, sector, **or country.** VT wouldn't be a good pairing with existing VOO, as currently over half of VT is already the entirety of VOO (VT would replace VOO). A dedicated ex-US fund would be an appropriate addition. VXUS or IXUS for example. Think of it like this: * VT is essentially equal to VTI + VXUS * VTI is essentially equal to VOO + VXF So VT alone could be all you need (in a tax advantaged account like an IRA there's no taxes to work about if selling A to buy B), or cost either VTI or VOO (or equivalents) for your US exposure and pair that with a dedicated ex-US fund (VXUS is one of many examples).
VOO (alone) is single country risk (revenue source doesn't make it global, as it is the performance of foreign stock markets that we're after and companies act like their home market). US only is single country risk, which is an *uncompensated* risk. An uncompensated risk is one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, sector, **or country.** VT wouldn't be a good pairing with existing VOO, as currently over half of VT is already the entirety of VOO (VT would replace VOO). A dedicated ex-US fund would be an appropriate addition. VXUS or IXUS for example. Think of it like this: * VT is essentially equal to VTI + VXUS * VTI is essentially equal to VOO + VXF So VT alone could be all you need (in a tax advantaged account like an IRA there's no taxes to work about if selling A to buy B), or cost either VTI or VOO (or equivalents) for your US exposure and pair that with a dedicated ex-US fund (VXUS is one of many examples).
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.
I have $100k available as an initial investment for a 10 year period (possibly longer) in a personal account. I am looking to be aggressive. I asked Chat GPT, and it said: VUG - 30K VXF - 20K VT - 20K VGT - 10K VTEB - 10K I could also VTI and chill, but I’d be happy to live a bit dangerously. What do you think?
>I’m not super educated on either but if I remember correctly there is some overlap. "Some overlap" is putting it gently: VTI fully includes VOO, plus thousands of additional US companies (roughly VTI = VOO + VXF at market cap weights). Right now, the weight VOO would get inside VTI is over 80%, leaving less than 20% for VXF. I'd go with VTI for the free diversification, as there's plenty of times where market favor is with the smaller companies (long term actually tends to favor small over large, VOO is fairly young and has only really existed during a large cap favor period). However, with either one, I'd be sure to also include some international coverage (someone mentioned VT: think of that as basically, not exactly, VTI + international combined into one at market cap weights).
I made the same mistake before. Too much into ETFs and it left little for stocks. Had to wait 8 months now for the market to be where it’s at for me to sell and reposition and rebalance. Now I’m 60 percent ETFs and the rest in stock and cash. Just carrying 3 ETFs. VTI, VXF, and VXUS. I personally do way better with stocks. I bought a ton in the April dip and some of what I got is up over 70 percent. Some swing trades I got last week are up 50 percent. I also do a little option trading. Profits from trading go back into my long term ETFs and long term stock holds. Pretty basic strategy.
Some of it. Our (I manage me and my husband's) target allocations across all accounts (combined) are: 40% Large Cap (VOO) 15% Small/Mid Cap (VXF) 15% International (split evenly between VEA & VWO) 5% Alt Assets (GLD, DBC, VNQ) 5% Speculative Stock Picks (across my risky passion picks) And I keep a folder in ChatGPT where it remembers that, and every three months I share my current positions/values for each account (2 401(k), 2 IRAs, 1 Shared Brokerage) - and if rebalancing is needed it queues up what buy/sell orders I should make in each of my accounts. Saves me a lot of spreadsheet time.
There is, Vanguard Extended Market (VEXAX or VXF as an ETF). Again, though, it's probably not a good idea to deliberately exclude the S&P500. Extended market funds are more to give you an ability to diversify your portfolio out to total market if you already have a S&P500 fund. There are plenty reasons people might have this, such as a S&P500 fund being offered in a pension, or maybe they started with it decades ago and now want to diversify to total market, VXF lets you do this without selling to buy VTI. VOO+VXF = VTI (US total market) VTI+VXUS (ex-US) = VT (global total market) Holding as separate funds lets you tweak the tilt, and there can be tax advantages with holding international as a distinct fund rather than mixed as it is with VT. >This fund offers investors a low-cost way to gain broad exposure to U.S. mid- and small-capitalization stocks in one fund. The fund invests in about 3,000 stocks, which span many different industries and account for about one-fourth of the market-cap of the U.S. stock market. One of the fund’s risks is its full exposure to the mid- and small-cap markets, which tend to be more volatile than the large-cap market. The fund is considered a complement to Vanguard 500 Index Fund. Together they provide exposure to the entire U.S. equity market. https://investor.vanguard.com/investment-products/mutual-funds/profile/vexax
I wouldn’t necessarily sell in your brokerage account. But overall, VXUS is 35% of the global market, with VTI being 65%. Check the math in my link above but I think VOO ends up being about 80% of VTI so 52% on your total percentage. VXF then gets 20% of VTI so 13%. What I’m giving is your standard bogleheads type portfolio, which if you need bonds you can add BND to create the [3 fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) (I wouldn’t have BND in a taxable account)
> Why diversify when S&P 500 has had such good returns? > income is $330k per year Please tell me you’re… > I max out my 401k every year, HSA, and also do a backdoor roth conversion. Ok excellent! Why should I change up my strategy since the S&P 500 has done so well for me over the past \~4 years? 1. 100% S&P 500 is hardly a “bad” choice. However… 2. Judging anything off the past 4 years is a mistake. 3. Consider that the S&P won’t always outperform other asset classes. Mid cap, small cap, plus international developed markets or emerging markets; markets go in cycles. 4. If you want to stick with vanguard you can add VXF (small and mid cap) to VOO to [aggregate to VTI](https://www.bogleheads.org/wiki/Approximating_total_stock_market). Then add VXUS (total international
Thanks, I will look at VXF. I’ve honestly not done a deep dive on the fees because I’ve been very happy with the performance. I rolled $56k into the account when I opened it in 2016 and it sits at $113k today, without me adding a dime to it in that time. I’m sure there’s some fee savings I’m missing out on, but who am I to argue with those results?
What are they charging for management, and what funds are you in? They are currently managing it, but that doesn't mean they should. There's no evidence that FAs or fund managers can outperform market benchmarks, beyond what is expected from random chance. The simple method that gives you the best risk adjusted returns is to stop paying advisors and active fund fees, and just buy VTI+VXUS, or VT. If you really want, to keep the current large cap set up, then you could buy a US extended market index, like VXF. This would complement large cap holdings and make a sort of bastard total US allocation. Something like 85% large cap and 15% VXF would approximate VTI.
Is VGT and VOO a good balanced portfolio? Or would VOO VXUS and VXF be better?
I moved some investments from VIG to VGK. That gave me a +20% difference YTD. I also moved some VXF to CDs and Bonds at 4.5% rates. VXF is down YTD so I have saved myself some percentage points there too. I've continued to buy S&P funds in my 401k (got my annual bonus in April). So I'm very happy with my moves. I figure I gave myself an additional year of retirement.
- FXAIX and VOO are practically the same thing, S&P 500 funds, and there's no reason to hold both. - QQQ is tech heavy by accident, it's not intended as a tech fund. If tech stocks crashed and consumer goods rallied QQQ would magically become dominated by consumer goods stocks. - VT is already ~60% American stocks, so you're just buying more the same stocks that you already have in VOO, FXAIX and QQQ. I'd consolidate. Pick FXAIX or VOO. drop QQQ and add something like VXF for exposure to mid and small size US companies. Swap VT for VXUS. >but wanting to avoid huge swings? It's not guaranteed to be a smooth ride with US large cap stocks. the S&P 500 had 2 drops of ~40% from 2000 to 2008. QQQ dropped 80% after the dot com bubble and didn't recover for ~14 years.
Thank you! Will be looking into VXF and VB
You could add the US extended market (small and midcap) as well as ex-US developed and emerging markets. The easy was is just a single fund like VT, AVGE, etc. instead of the S&P 500. You could instead combine a cap weighted total US (VTI, ITOT) with an ex-US fund (VXUS, IXUS). If someone already has a S&P 500 fund (e.g. VOO), they could add extended market (VXF) and ex-US (VXUS).
For long term, most things are discounted compared to the recent past. Generally for long term investments I like ETFs that match the markets large caps (VOO for the S&P 500) and medium/small caps (VXF). If you want individual stocks, just think of large companies that you expect will exist and keep making money far in the future--almost everything is cheaper than it has been for awhile (META, GOOG, Amazon, etc).
VIG and VXF ETFs are on my shopping list.
I run a risk parity levered port at about 5x Notional to NLV and about 3.5x SPX b-weighted deltas. I get in and out of positions by selling ATM puts and covered calls. Outside of some IWM, VXF and SPLG that I got to bag hold recently due to the orange man crashing the markets, all my long exposure is in SPY 2027 leaps calls. I think your ideea of going long via ITM leaps calls for the added leverage, smaller price and embedded downside protection (it can only go to zero) seems wise. I would do this only on etfs to eliminate idiosyncratic risk as much as possible.
31 days. Every time this comes up, people point out that the letter of the law is vague and may be applies, but in practice no one ever marks it as a wash sale. Another option is to buy VOO / VXF at roughly an 80:20 ratio (you could probably calculate the exact ratio)
Extended Market Index doesn't have Tesla but it does have Trump Media & Technology Group Corp. LOL. Yes there are some evil companies in VOO, VXF, and VTI. Just take the profits that you makes from them and then donate a percentage of the profits to charities, non-profits, politicians you support, etc. Maybe choose 10% of dividends as "evil" profits and commit to donating that annually.
Look for yourself. VXF is the ETF equivalent. Surprisingly, it and VTI have produced very similar results over the past 23 years, ending up neck and neck. Although VXF was up a lot more at different points in time. Interesting. [https://testfol.io/?s=bfVqZMzViFl](https://testfol.io/?s=bfVqZMzViFl)
You could check out Vanguard's VXF. Which is everything US besides VOO.
Aside from shorting, you can buy an equal weight index like EUSA or RSP. Another option is an extended index like VXF
You're probably looking for VXF instead of VTI then
VXF - the rest of the US market that is not held within VOO. Still - real advice is to probably just embrace your paralysis by analysis, and turn it into laziness and apathy and continue to just keep buying VOO. Sure, next year or two may be bad for VOO (maybe not, this is not a prediction), but if you’ve only been investing for such a short period of time, you’re 31, so next couple years won’t matter if you’re lazy, apathetic and just keep adding to your position for 20-30 years.
VOO - US Large Cap VTI - US Large Cap QQQM - US Large Cap AVUV - US Small Cap VTV - US Large Cap VXF - US Small Cap IWB - US Large Cap VO - US Mid Cap You have different ticker symbols but you aren’t diversified. Heck, most of your “diversification” is just a repetition of the same companies with a different packaging. Functionally you have 91% VOO. The only real diversification I see here is the 9% you have in Small and Mid cap funds.
I believe they are incorporated as a corporation and are eligible for inclusion. They changed incorporation status in 2019 to become eligible. Good call out, most of the candidates above are in the top 10 holdings for VXF
I believe the top holdings in VXF (Vanguard ETF) are usually good candidates for who will be next. I don’t believe APO is eligible due to how they’re incorporated. Based on the rules. Thats why KKR was selected over them.
Either of those are really fine. If you have a 500 index fund and really want to [create the total US market](https://www.bogleheads.org/wiki/Approximating_total_stock_market) (i.e. VTI) you could add an extended market fund like VXF, which is the small and mid cap companies.
i recommend buying shares in exchange traded fund or etf. read about etf in the link below. https://www.investopedia.com/terms/e/etf.asp 2 popular etf's are from vanguard. the are voo & vfx. you can buy shares in either etf or in both. if you only want to invest in one etf, buy shares in voo. if you buy shares in both, you will invrst in the entire usa market. voo etf invests in large cap companies. the annual expense fee is 0.03% https://finance.yahoo.com/quote/VOO/ vxf etf invests in mid and small cap companies. the annual expense fee is higher at 0.06%. https://finance.yahoo.com/quote/VXF/
Ah yes thanks for the correction and confirmation. I think I’m going to pair these with iShares for tax loss harvesting purposes (if needed). (VOO ~ IVV, VXF ~ SMMD, VEA ~ IEFA, and VWO ~ IEMG)
So VTI= 85% VOO + 15% VXF (approximately) So holding all three is sort of redundant Now some people may want to be "overweight" mid/small cap stocks so sometimes instead of holding VTI they will do something like 70% VOO + 30% VXF giving them more exposure to small / mid cap stocks But I see no reason to hold all three.
I am a big fan of just doing a Bogle style portfolio like VTI/VXUS/BND. I see so many people basically saying "It can't be this easy, I need to mess with it, what if I do some VOO/VXF split, maybe split my bond funds and do longer dated corporate bonds, or shorter dated treasuries, maybe split VXUS between developed and emerging , maybe add some additional dividend stocks?" I mean sure its probably fine but you might not be actually doing anything benefital ....I think people just cannot believe investing can be as easy as buying 3 funds then doing nothing, and most likely you will out perform the people that make more complex portfolios
Okay, so if I wanted to break VT up for rebalancing purposes in the future, I could do a weighted sum of VTI and VSUX? And then breaking each into developed and emerging, VTI could be split into a weighted sum of VOO and VXF, and VSUX could be split into a weighted sum of VEA and VWO?
>Is this redundant? Yes. VTI is essentially VOO + VXF. >vxus This is good. >vti, voo, vxf I'd either: * Use only VTI Or * Pair VOO with VXF The first handles the US at market cap weight, the second lets you pick your own S&P 500 vs extended market coverage (do note that VOO and VXF are both market cap weighted among their holdings).
>Is it worth buying both VOO and VTI? Almost never. >Or just stick to one. Generally yes. >However, I have been informed that I should also be putting a percentage into VTI as well. Bro would typically *replace* VOO. VXF would be the one to use *in addition to*. Essentially, VTI = VOO + VXF combined into one at market cap weight (currently that'd be over 80% VOO). >I know VOO and VTI have something like an 84% fund overlap, I don't like using the word "overlap" in this situation, as "overlap" to me sounds like there's a decent part of each that isn't held in the other. VOO is a proper subset of VTI (it is fully contained within). >so is it worth doing 70% VOO, 10% VTI, No. VXF instead of VTI would work better here. But also, what about getting some global coverage? There's plenty of times where favor is outside the US.
Why do you have VOO VXF and VTI. VTI is VOO + VXF. It just doesnt make sense
Any feedback on my portfolio? 38, both spouse and I work, 2 kids (They each have around 200K in 529s). We both max our 401Ks and IRAs yearly. Those are all VOO. Below is my brokerage. 40% VOO 15% VTI 10% VUG and VGT mixed 10% VXF 20% VXUS 5% BND and BNDX mixed
I am lucky. I flipped out of VXF yesterday and flipped back in for a small profit.
That is not what diversification means. In order to diversify, the funds need to be tracking different indices...or at least indices with little overlap. Consider either a completion index, like VXF, or an international index, like VXUS.
>The market isn't even that hot if u don't include 7 stocks... Small stocks are doing great though, VXF (total US small and mid cap stocks) is up 30.7% in the last 12 months.
I still have some VXF kicking around, and that's as much exposure as I want to this trash. Mods can feel free to do what they did last time, lol.
Oddly enough I was signed up for "high risk," and with no bonds. To be honest, now that I am no longer using the digital advisor, I've been keeping the same funds that I was invested in and keeping those same proportions (however, lately I've been skipping the international funds and just doing all the non-international to bring down my international % down.) For example, currently, my brokerage account is made up of VIGAX (3.93%), VTIAX (11.43%), VTSAX (62.49%), VVIAX (3.05%), VBR (1.45%), VTI (6.37%), VTV (.33%), VUG (.48%), VXF (.11%), and VXUS (10.04%). I have no idea if my plan is pretty silly since I don't fully understand all of it or all of the funds. My current brokerage rate of return is 12.5%.
Why do you think you know better than the market? But if you do, buy VXF
Buy VXF for some mid-cap tilt
Dividends tend to be a newb trap. If you're worried about over exposure to big tech just do a mix of VOO and VXF and overweight VXF.
I do 50% VOO, 25% VXUS, 25% VXF so all my bases are covered Also own a bond fund that I stash some extra in VWALX bc it’s nice getting monthly tax free distributions into my bank account. 3-6 month emergency fund in VMFXX, should probably be bigger though but I don’t pay rent
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.
I have a decent chunk in VXF (long term it's done far better than IWM). I'd recommend that one if you wanna tilt non-large cap.
So what you're trying to do is out think the market, generally a bad plan. If even you think you're right, you might be completely wrong or missing a key piece of information. However, the easiest way to hedge is either buy VT (You buy the world stock market and hedge everything) or you tilt towards something like small/mid cap companies (for example you over buy VXF instead of VOO)
Ah, i guess large caps have grown quite a bit in the last tow years. Not long ago it was like 20% VXF
>Well, 50/10/40 is going to slightly underweight mid and small caps, since VTI is more like 15-20% VXF iirc https://www.etfrc.com/funds/overlap.php shows me about an 87% weight of VOO in VTI.
Well, 50/10/40 is going to slightly underweight mid and small caps, since VTI is more like 15-20% VXF iirc. This suggests a teeny bit lower expected return long term and a teeny bit higher beta. I prefer to underweight one specific segment of the market: small cap unprofitable growth. This segment, in every market for all time, is a *dog*. Negative returns left and right. Think speculative biotech company that implodes 4/5 times due to failing a phase three drug trial. AVUV or DFSV are good options. They specifically target small cap, value (low price to book ratio), profitability (strong gross profitability) companies. Its inherently riskier (volatility, sequence risk, dispersion of outcomes) than just VXF as a blend approach, but it has higher expected returns. SPY returned like 10% CAGR since '93, but DFSVX (OG version of DFSV, very similar to AVUV, small cap value mutual fund) returned a bit over 11% cagr for those thirty some odd years. Largely due to ball busting outperformance in the early 2000s. These funds expressly avoid small cap unprofitable growth companies.
This is a good selection for what you want. This is basically Fidelity's version of Vanguards VXF, which is an extended market index that invests outside of the S&P 500.
VXF. Vanguard extended market index. A one stop shop for a low fee index that has small and mid sized companies. This is an excellent holding to diversify a S&P 500 fund.
>If it was a Fidelity Zero fund.....even better. FZIPX. It picks up where FNILX ends. Together in the right ratio (which highly favors FNILX), they basically form FZROX. VXF is another common one.
A good mix SCHG, VOO, QQQ and sure little into VXF is fine not a ton of overlap. SCHG gets a little overlooked it covers a great mixed selection and preforms right between QQQ and VOO consistently. [https://totalrealreturns.com/n/SCHG,VOO,QQQ,VXF?start=2014-08-19](https://totalrealreturns.com/n/SCHG,VOO,QQQ,VXF?start=2014-08-19)
You could try VEXAX/VXF, it's an "extended market" (i.e., US non-S&P500) index fund.
>Started buying SCHD recently That's going to be minimal diversification and if this is a taxable account, result in a tax draft. >I want to diversify some VXUS or equivalent is a natural first step. Then maybe VXF to capture the US extended market (stuff not in the S&P 500). >bond ladder but didn’t know if others had better ideas since I don’t have an exact timeline and am still decades from retirement? >Also looks like Public charges 0.1 to 0.5 cents per $100 on bonds so assume I should use a different service to buy bonds if so? What about a bond fund?
I am torn. Prem Watsa, Canada's onetime Buffett, hedged in early 2010s, missed out the gains, then unhedged (dehedged?) a few years later. US largecap growth equity valuations have been sky high for a while. Eg compare PEGs for VOO vs VXF or VXUS. I feel like even with the higher interest rates, there is an overhang from the QE. Big Tech, crypto, SaaS (remember those?), in general high valuations without fundamentals. Then again, if you try to beat the index, it will beat the cr@p out of you. Definitely over the long term (> 7 years). We have seen this over and over with all the gurus including Warren Buffett (the least beaten, to be fair, and probably will thrash the S&P again. He is a wily one.)
I changed my reincurring investments to $6 a day into VOO, $10 a week into VXF and VXUS. I plan to do that unless the market drops down to like $430 like the start of the year was.
>I was stuck on deciding whether to go into VOO or VTI Think of VTI as essentially being VOO + VXF combined into one at market cap weight. Why would you ignore VXF? I'd use VTI. >such as the FTSE USA Index etc... This seems to only cover large & mid caps. Why ignore small? >Are the nuances between these benchmarks negligible? Am I overthinking here? I'd just look for a cheap fund that has good enough coverage of the category you want to cover. I'd personally aim for total market over S&P 500 only, just as I aim to cover both developed and emerging markets for my international holdings.
Seems complicated to me, if you like these weights just do: IVV - 40% VXUS - 25% VXF - 35% Or to just pick 2 funds: VTI - 70% VXUS - 30% Or 1 fund: VT - 100%
You have VOO, so when you say "small caps," I'm hearing "everything not in VOO." That's VXF. 0.05% expense ratio, just a notch over ISCB and under IJR, but without any (mainly mid-cap) companies missing. Or, if you want to remain disproportionately in VOO, you could just get VTI to include a little VXF-equivalent at a lower expense ratio. If you want to start playing the value versus growth game or pay a premium for non-index funds (like AVUV), that's a different story.
> Also would it be smarter to wait on that and just put money into VOO right now while it’s down? It's [futile to try to time the market](https://www.whitecoatinvestor.com/should-i-try-to-time-the-market-friday-qa/). You want to always be owning it. When you are in the accumulation phase, you should be rejoicing when the market is down (assuming you can keep your job during the chaos). Having said that, you can do better than VOO from a diversification standpoint. It's lacking extended market U.S. stocks and EX-U.S. stocks. A single ETF solution would be VT. If you are determined to keep VOO, add some VXF and VXUS. (Approximately 50% VOO, 10% VXF, 40% VXUS basically gets you global market cap weighting as of today.) But really, just go with VT and focus on plugging as much money into it as you can while you are young.
>is my portfolio too S&P500-heavy? Yes, because >Taxable Brokerage: 100% VOO (S&P500) >Roth IRA: 100% FXAIX (S&P500) Have no ex-US (international) to balance them out. Every dollar you throw into these 2 accounts throws off your US to ex-US ratio more and more. You should have a target US to ex-US ratio for your combined portfolio (day a 401K has terrible international choices, you'd ignore it there but overweight out in another account to compensate). >I have some international holdings in there, but I've been thinking I should diversify a bit more into either small/mid cap Use total market funds instead of S&P 500 for the Roth IRA (you can go ahead and make the change today - IRA means taxes aren't an issue), in taxable add VXF to get to a target S&P 500 to extended market ratio, then use total market going forward. Also, get your international back to your target. >more specific ETFs (QQQ, for example) in either my IRA or taxable brokerage. QQQ has heavy overlap with both the US total market and S&P 500. When you buy QQQ, you're saying 2 things: * Which of the US exchanges a stock trades on is a key component for future returns * You expect financials (and maybe REITs) to under perform every other market sector QQQ is also currently focused on large cap growth, but historically the best long term returns have come from small value.
Just buy a total US market index fund like VTI. Alternatively, you can add a "completion" index fund like VXF
Use US Total Stock Market. If you must, S&P500 and VXF Vanguard Extended Market Index Fund.
VTI and VOO should normalize and become less top heavy; VXF, VB, and VO will benefit as money rotates and FOMO kicks in.
VFFSX - Same as VOO, 0.01% fee (basically free) - My top pick VIEIX - Same as VXF (Extended Market, this is every stock not in VOO, in the US) VTSNX - Same as VTI (Total Stock Market, you buy every stock in the US). My 2nd pick. The rest are all kinda bad. You can add bonds, but you seem young, so I'd just go all stocks at this point. Sad you don't have any good international funds, but c'est la vie!
Please help me, I'm just starting out. What are your opinions on this breakdown?: In Roth IRA - Fidelity ZERO Total Market Index Fund (FZROX): 40% Fidelity ZERO Large Cap Index Fund (FNILX): 30% Fidelity ZERO Extended Market Index Fund (FZIPX): 15% Fidelity ZERO International Index Fund (FZILX): 15% In Taxable Fidelity Brokerage Account - Vanguard Total Stock Market ETF (VTI): 40% Vanguard S&P 500 ETF (VOO): 30% Vanguard Extended Market ETF (VXF): 15% Vanguard FTSE All-World ex-US ETF (VEU): 15%
>specifically VOO and VTI. There's almost never reason to hold both. By weight, currently over 80% of VTI is already the entirety of VOO. So you'd only need VTI (think of it as VOO + VXF combined into one in a certain ratio). This leaves out international coverage, going global could both help increase returns and reduce volatility compared to US only in the long run. VXUS or similar could be added to full that role, or VT (2 letters) will essentially act like VTI + VXUS combined into one in a certain ratio. >I’m considering index funds Good choice.
Pretty much everything in QQQ is in SPLG. Both are good investments but if you are looking to cover parts of the market that aren't in SPLG, there's VXF which has US small caps and any US large caps not in SPLG, and VXUS which has foreign stocks.
VXUS is great. Since you already have US exposure and you want to limit ex-US to 10%, it probably makes more sense to go this route. VXUS holds both developed and emerging markets. VT would have a lot of overlap with VOO and it would be more difficult to control your ex-US allocation as it will shift with market cap. For reference, VT is about 60% VTI / 40% VXUS VTI is about 85% VOO / 15% VXF VXUS is about 75% VEA / 25% VWO
If inflation isn't as bad as expected, time to buy some $VXF?
Honestly the best counterweight would be to overcorrect in small and mid caps (like buying VXF for example) as the biggest companies of the S&P are all huge tech. But honestly I'm not here to pick the winning sector I just DCA into VOO and VY every week and go about my day. Over the long term that strategy has proven to work again and again. If tech blows up, great, you can buy strong companies for cheaper lol.
VXF to get some midcap / small cap action.
You can only invest in historical returns if you have a time machine. You can invest in the S&P 500 over the next 30 years, but there is zero guarantee that your returns will in any way resemble the 1993-2023 period you cherrypicked on Portfolio Visualizer. This is why total market indexes > S&P 500. Ever since Vanguard's total market index fund arrived in 1996, S&P 500 index funds have been obsolete; better to capture mid-cap and small-cap in addition to large cap. You could add VXF to VOO, but it's easier to just do it in one fund with VTI. Add VXUS for international and you're assured to collect the returns of the total market, rather than betting that US large-cap will perennially outperform.
Yup. VXF is the rest of the US market not in VOO.
Does VTI = VOO + VXF? Never heard of VXF.
Best of breed funds for a tax-advantaged account (e.g. 401k, Roth IRA): VTI, VXUS, VNQ, BND Best of breed funds for a taxable brokerage account: VTI + VXUS VOO is okay, it's just been obsolete since we've had VTI. When you get the chance, switch VOO->VTI and you don't have to worry about adding US mid/small-cap separately with VXF.
The two obvious compliments to VOO are VXF (the rest of the US stock market) and VXUS (the rest of the world’s stock market). If you own all three you more or less own the entire stock market.
No. VTI is S&P 500 + US extended, as it is a US total market style fund. It wouldn't touch ex-US at all. Think of VTI as essentially VOO + VXF at US market cap weights. Ex-US is "excluding US" (international). Your VEA + VWO. VXUS should effectively be VEA + VWO combined into one at market cap weight (which last I knew was about 75% developed, 25% emerging give or take). Compared to VXUS weights, you hold more emerging which could be fine if that's done knowingly and intentionally.
>What's the best ETF to pair with VOO? VXF, VXUS, and a bond fund. >3 of the Golden 5 ETF's. What are the "Golden 5"? I've only recently started seeing this and am afraid it is the newest thing being spread by influencers that do little more than performance chase the last few years. >Am I too young to have SCHD since I'm younger and have more risk to take? Dividends aren't free money: they stop the share price by the distribution amount. So best case scenario, they're a neutral event. >Since I have higher risk should I have a large cap growth like SCHG? Small value, not large growth, tends to have the best long term returns. >The 4 others I am considering to buy are SCHD SCHG SOXQ and QQQM (do not plan to hold VXUS) That definitely sounds like performance chasing.
> On the bright side, I gained money. Well yeah - it's been a bull market for the last 15 years or so. It would be difficult to not gain money. > My goal is also to have dividend stocks Why? Are you retired? > I'm assuming you meant sell everything and put it into VTI or do I keep VOO and VTI? VTI already has *all* of VOO. 85% of VTI is VOO. So if you have 100% VTI, your portfolio is 85% VOO and 15% VXF. If your portfolio is 50% VOO and 50% VTI, then your portfolio is 92.5% VOO and only 7.5% VXF. So the portfolio with 2 ETFs ends up being less diverse than the portfolio than is only one ETF. VT would actually be the better choice in the long run.
SCHD QQQM and VXF + VBR (Now AVUV) I credit QQQM with the throw over the edge. I hold a bigger QQQM tilt than SCHD at about 2:1.
That's a fun way to get a tour! Not beating VOO but not trying - prefer global exposure. S&P 500 direct indexing for tax loss harvesting, VXF for the rest of the US, VXUS for international. One of these decades international will win again...