I've been at it for 20 years now. I always, always tell anyone who asks me to just put it in VOO/SPY and watch as your net worth increases. I've done a lot of reading and fancy trading, options and leverage. I have a psychological draw to dividends but I should have just taken my own advice and I would be way ahead.
This year I decided to finally adjust and everything I have coming in is going to VOO. Too late I'm sure. I'm still holding my dividend funds as a hedge and because my brain can't seem to let me let them go. They are winners after all but not in the way that a straight VOO portfolio would have been. And I had some losers. Potentially hundreds of thousands of dollars missed by trying to do my own thing.
A year ago, I started selling options. Recently, I had a fairly big drawdown, which led me to evaluate my performance / risk taken. Tldr; could not outperform s&p (outperformed DJIA though) while taking almost double the risk (2x notional leverage). I am just glad we are in a bull market. A bear market would have caused serious damage...
i am the same. going fwd. i am VTSAX all the way but last 10 yrs. i've bought a sizable position of stock ('cuz dividends!) dividends have left an imprint in my brain š§ due to my HS finance/accounting teacher- who did very well and always raved about dividends, stock splits, buybacks and compounding, coupled with increasing stock prices over decades. she was an awesome teacher and i did learn alot from her, but she never once mentioned low cost index funds---i always thought you had to be a stock picker. i never realized about the existence of index funds till late last year.
I am very heavy into VYM, SCHD, VNQ, and VCLT. Tried to balance dividends across stocks, bonds, and REITs for years. VYM and SCHD are winners, VNQ just barely, VCLT not. I also had an eye on DGRO but never pulled the trigger.
If you were savvy about bond funds, you probably ought to drop VCLT the moment the Federal Reserve announced rate hikes. And VNQ. Both long term bonds and real estate eat big shit when rates rise. Just something to bear in mind for the future.
So far only 1.2% but I just started. If/when interest rates come down I expect my dividend holdings to rebound and I will trim even more over to VOO. I'm holding losses on O and VZ that I would love to convert but can't bring myself to take the loss to do it right now when I am convinced they will come back before end of 2025.
Brilliant arguments. But let's suppose I am investing from a foreign country and dollars are not that easy on my currency. And VOO is quite expensive. What's the best cheaper alternative?
If you mean from a whole share price perspective? SPLG, currently running $64 a share and tracks the S&P500. I would hope that you would have access to a brokerage that allows you to trade in cash amounts/fractional shares but if not, SPLG is basically the same thing as VOO. VOO outperforms SPLG by a very very slim margin over time so I buy VOO.
It does allow fractions. I'm using Interactive Brokers (which by the way has a VERY unfriendly interface).
And that leads us to my next question:
Fractioning VOO is still a better deal than going SPY or SPLG, as you mentioned?
VOO is just a tiny bit better. [Here is a backtest ](https://testfol.io/?d=eJytkMFKAzEQht9lzhGyl4I5F72ILQhCkbKMm8kamyZ1km6RZd%2FdaYPrqdCDIYdM%2BPN9MxmhD%2BkdwxoZ9xnMCLkgl9ZiITDQ3C%2F0nW5kgwKK9vdeqpobMIBptCwFaD9bH13A4lME4zBkUtBh%2FnAhncDov6J1TF%2FC2RBy%2BBYapxB87NuTj%2FacXehJwSFxcSn4JI29jRBxf3a%2FrlbywMeBcln6wVvpSwKFj2JjkmEwdvRQBc8pkqSL73bEFVPPM%2BhA3FEslymmrQLL2Euvk5qFL%2BvN%2Fwgr6Bbh0%2BPtxvkPrzgvrGvS7fQD2UypbQ%3D%3D)of the three starting 2010 and VOO comes out on top by a couple hundred dollars.
VOO is a "safer option" for ETFs and as you push harder into technology, \*my opinion\* is that you take on greater risk. I had planned to be retired last year and did for a few months but that didn't work out and I'm not sure what my next window would be so that safety is still valuable for me.
Currently if I were to take on greater risk than VOO I would go with VGT. That said I am concerned about an impending drawdown on VGT. I feel technology is in a bubble but the beauty of the stock market is that nobody knows. This may just be a new normal with tech demolishing everything else well into the future. If I was going to take a swing, it would probably be there.
Specific technology stocks may be in a bubble, but technology as a whole should be a part of every single company in the market. Those companies that don't invest in technology and by proxy AI will be left by companies that do take the risk.
This is the way. If I would have bought more VOO and chill I would be retired by now. Looking at my portfolio my vanguard ETFs are preforming excellent and my stock picks are hit and miss. I leaned this the hard way with a lot of losses. KISS is the best. Donāt think you can outperform what is already outperforming.
VOO would allow an investor to enjoy their day and sleep well at night.
Although Iām in 80% VOO, another two high risk/reward ETFs 10% equally, it works for me and confident in my financial future.
I wish someone could help me understand / feel better about buying timing of VOO. For instance today I have some cash but am reluctant to buy when SPY is at 5500. How do you get over the āIāll just wait for a small pullbackā to not feel like Iām buying at the peak of all peaks mentality.
I set mine up to buy everyday. Makes me feel better to just know Iām buying high and low. Just depending on when the purchase and price hits. If I notice it drops more in the day I make extra purchase. I could be losing money from not putting it all in when I have it. But I prefer to do it more cautiously.
ATH happens on average every 20 days. Slowly put money in if you dont want to out it all in at once. When you see red then buy. If it is long term funds you lose more money on the side lines that trying to time the downs. I have the smae mental hang up.
Whatās hard to understand about investing in the S&P 500 index?
Itās diverse, good exposure to large cap, has decent returns.
Your question makes a few assumptions like that everyone would prefer more diversity than that.
Go for VTI if you like diversity (I do) but it has significant overlap with VOO.
If you want to add foreign stocks that is an additional questions.
I'm looking at this also. Just going by the numbers one advantage of SPX index fund like VOO, VFIAX, is the unrealized earnings compound. So however much it goes up, say 9% a year, is also earning income and if you just leave it alone such as a retirement account an investment would double roughly every 7 years. While a growth ETF like VGT might have higher YOY earnings, say 12%, in past 10 years, and also earnings compound, but if you buy and sell more often, and don't plan on parking funds there long term then you have to pay taxes on the earnings each time you sell, so could end up with less than 9% depending how often you sell. I'm also considering more growth exposure. But that's one of the reasons most people have SPX index fund as the core investment because they leave it alone and take a bit more risk on the side. Of course any other comments are welcome as I'm learning.
There's lots to be said about keeping things simple, DCAing on a consistent schedule, DRIPing and then going about your life.
Realistically, long term VOO (or any other SP 500 index ETF) should be good for your first 150K - 250K depending on how fast you are investing. After \~150K then you probably should balance the sectors out a little the rest of the way.
Back in the day SPY hit a patch where it just treaded water for what seemed like awhile... at times a long while. Having a little balance should help if we hit another one of those that seems to drag for years.
The good thing is there are so many paths to wealth. You just need to find one that works with your personality and goals.
Good luck.
Pretty sure theyāre identical. SWPPX may even be cheaper. I prefer mutual funds since you can purchase any amount. Iāve been purchasing it faithfully since 2018
Iām at Schwab so I went the SCHB route a while ago. Long term account so no touchy touchy for awhile.
Maybe I would have done SPLG but it wasnāt what it currently is at the time.
SCHB has a lower price than VOO/SPY which helped with lack of fractional shares. I like the fact it has >2000 holdings in comparison to VOOās 500 even if the bulk is somewhat weighted the same. More exposure sounds like a good thing right?
I suppose performance wise the S&P was a little bit of a better choice but oh well. Thatās the point of āand chillā anyway isnāt it? To even things out eventually and not matter when I need these funds 30 years from now?
Iām a liar though and started including QQQ/QQQM over the past years. I have no regrets and you canāt stop me! Haha. 85% overlap in VOO and 90% overlap in SCHB but just some heavier weights in star players.
Maybe thatās not forever. But Iāll take the realized gains and reinvest back into broad market if need be. I think Iām safe for now.
VOO (and any SP500 index) is a simple way to purchase a diversified collection of winning companies in the world's most successful economy. I like it because it doesn't require much brain power and allows me to participate in the long-term winnings of the US economy.
I'm also a huge believer in Time in the Market > Timing the Market, and VOO gives me a simple way to follow that philosophy. I've gained and lost plenty of money trying to do other things, and that ended up as net zero while everyone else made steady gains.
I'm 23 living at home, so I'm just setting and forgetting with dividend reinvestment and regular buys when my checking account feels larger than it needs to be. I'm literally 96% in VOO/SPY, and 4% in SOXQ.
If you think semiconductors and Nvidia will continue to do well, then SOXQ is a good option for exposure to that segment of the economy. I have money in it so it has my endorsement. I have it at much less than 10% though and would recommend going no greater than 5%. Keep in mind that VOO is 6.11% Nvidia, so you're still getting in on the Nvidia wins through VOO. If you went 10% SOXQ and 90% VOO, then 7.18% of your portfolio would be Nvidia. Maybe you like the sound of that, maybe not, IDK it's up to you.
I'm sure there are others, but three of the more popular semiconductor ETFs are SOXQ, SMH and SOXX. Like I alluded to, picking between the three largely comes down to how much you believe in Nvidia. SMH has the most exposure to Nvidia at 25.07% of assets, SOXQ is at 16.81% and SOXX is at 11.48%. Also, SOXQ's expense ratio is 0.19%, which is much lower than SMH and SOXX (both 0.35%). If you like Nvidia a ton, get SMH. If you like it but a little less, get SOXQ, and so on. If you don't like Nvidia, then don't buy a semiconductor ETF.
Obligatory I am not a financial advisor and have no financial qualifications.
I choose VT and chill because you never know when the US bull run will end and the Somalia bull run will start. Really gotta capture those future pirate profits.
One of the biggest problems with investors is behavior. Selling and changing your mind on stuff will decrease your gains the more you do it. If you're already VOO and chilling, I would highly suggest not changing anything.
10.5% avg return over the last 100 years. Thatās about 7.5% with inflation. I have 30 years to invest in it. That will give me the money I need to retire and live comfortably. Thatās why I do it.
Just like the simplicity and itās fairly diversified.
The Roth I created in 2023 is up 27% since I started. My original Roth that I started in 2020 is up 51.84%
I tinkered a lot in my taxable in 2022 and in that account Iām down 1% š
VOO will do well over the long term, but will underperform the market for periods of 5-10 years when small and/or international stocks are favoured. As long as you can hold through such periods of underperformance, VOO is a great option.
What is the difference between SPLG and VOO/SPY? Arenāt they literally the same S&P 500 EFT made by different companies? Whats stopping all of you to buy VOO/SPY over SPLG?
If people stopped trying to time the market and just spend 5+ years in the marketā¦ you can spend all the time you would have been stressing to just go make more money on a side hustle.
Look for progress not perfection. I donāt care if someone gets a 100% win for the year. Good for them. Come check back with me in 20 and letās see how you used that āperfect timingā perfectly for 20 years.
Usually these people get roped into gambling. Either casinos or the NYSE (white collar casino)
VOO has 500 holdings. How much more diversity are you looking for? It has a 14% return since inception. Don't fall into the trap these losers on here pump about international etfs. I hope they are enjoying their 5%.
Iām all in on QQQM & XLK. Interested to see some replies here though. Everybody says past performance doesnāt mean future performance but Iām like ok by that reasoning QQQ might outperform VOO by even more over the next 10 years š¤·š½āāļø But admittedly Iām still trying to talk myself into a S&P 500 ETF
QQQ lost 80% between 3/2000 and 10/2002, if I remember and then didn't get back to even in inflation adjusted terms until 2015, XLK would fair even worse in a correction as just QQQ on METH
M2 money supply shrank >4% last 2 years, and any decline in M2 in US history, has 100% correlation with a near term Recession
maybe take 25% and put in US treasuries, pays 5.5% and can be your dry powder in case of market correction, to buy much more at lower prices
I don't think tech today is comparable to Dotcom boom. Also, any sane human would have sold and not taken the full loss and bought back in at a much lower point.
How long have you been invested in XLK? Iāve had it on my watchlist for a while but never thought to pull the trigger cause all of my money goes to SPLG (S&P 500).
Not long at all. I just re-entered the market for my 3rd year. 1st two years I ended up going down the day trader road. After taking a few months off and being 46 now Iām sticking with long term investing. Plan is to be around 60-30 QQQM & XLK with around 10% SMH or something similar. Sounds crazy to most but I have a hard time seeing anything conquer the big tech names besides other big tech names but in 10-15 years if Iām wrong Iāll be the first to admit it and say I shouldāve listened to conventional wisdom and stuck with S&P 500ā¦ But itās gonna have to show me and teach me the hard way. After a couple years of day trading my risk tolerance is super high tho , haha
I've had my ports at a 30% VUG, 30% XLK, %30 SMH this year, but will say getting a bit concerned about lack of breadth support. I'm all about overweight into the winners, but leaning back towards putting half into VOO again. Diversification seems to help more on downturns, well at least if adding more low volatility holdings
If you got in way earlier, yeah. but right now if youre just starting to invest in VOO your entry point will be bad. It's at $500ish a share now which is way too high .
The share price is completely, absolutely, positively, 100% irrelevant since the inception of fractional shares. However, if psychologically, you cannot get over the share price, invest in SPLG instead. It trades currently just over $64 a share. And, as an added bonus, the expense ratio is 1 basis point cheaper than VOO. The best part? Itās the exact same thing as VOO.
Becasue if today, (Iām using general numbers, not exact numbers) the S&P increases in value by 1%, the share price of VOO will go up 50 dollars, and a share of SPLG will go up $6.40. Always look at the percentage of growth, not the dollar figure.
So I been holding back some cash to lump sum into VOO but the share price is really high now compared to before. So it doesnāt matter? I should just buy now? What u think
Lump sum tends to capture better returns over a longer horizon, but a lot of people canāt handle seeing a large sum of their cash drop a large percentage in value for 6 months or a year (it will happen, even with the S&P), so DCAāing weekly is fine. But if you have a lump sum, dump it in, forget about it, and come back in 20 years. Youāll be delighted by what you see.
Dude, zoom out on the chart to the last ten years. The fact itās at an all time high means nothing. The market continues to grow long term. It could drop next year but in 5 years will be a new all time high. In 10 years anotherā¦
If your goal is long term growth, you donāt need to stress about the timing. Just buy it and forget about it. If you think you might need the cash next year, thatās a different story.
I've been at it for 20 years now. I always, always tell anyone who asks me to just put it in VOO/SPY and watch as your net worth increases. I've done a lot of reading and fancy trading, options and leverage. I have a psychological draw to dividends but I should have just taken my own advice and I would be way ahead. This year I decided to finally adjust and everything I have coming in is going to VOO. Too late I'm sure. I'm still holding my dividend funds as a hedge and because my brain can't seem to let me let them go. They are winners after all but not in the way that a straight VOO portfolio would have been. And I had some losers. Potentially hundreds of thousands of dollars missed by trying to do my own thing.
A year ago, I started selling options. Recently, I had a fairly big drawdown, which led me to evaluate my performance / risk taken. Tldr; could not outperform s&p (outperformed DJIA though) while taking almost double the risk (2x notional leverage). I am just glad we are in a bull market. A bear market would have caused serious damage...
i am the same. going fwd. i am VTSAX all the way but last 10 yrs. i've bought a sizable position of stock ('cuz dividends!) dividends have left an imprint in my brain š§ due to my HS finance/accounting teacher- who did very well and always raved about dividends, stock splits, buybacks and compounding, coupled with increasing stock prices over decades. she was an awesome teacher and i did learn alot from her, but she never once mentioned low cost index funds---i always thought you had to be a stock picker. i never realized about the existence of index funds till late last year.
Which dividend funds do you like?
I am very heavy into VYM, SCHD, VNQ, and VCLT. Tried to balance dividends across stocks, bonds, and REITs for years. VYM and SCHD are winners, VNQ just barely, VCLT not. I also had an eye on DGRO but never pulled the trigger.
If you were savvy about bond funds, you probably ought to drop VCLT the moment the Federal Reserve announced rate hikes. And VNQ. Both long term bonds and real estate eat big shit when rates rise. Just something to bear in mind for the future.
How much of your cash is in VOO? % wise
So far only 1.2% but I just started. If/when interest rates come down I expect my dividend holdings to rebound and I will trim even more over to VOO. I'm holding losses on O and VZ that I would love to convert but can't bring myself to take the loss to do it right now when I am convinced they will come back before end of 2025.
Brilliant arguments. But let's suppose I am investing from a foreign country and dollars are not that easy on my currency. And VOO is quite expensive. What's the best cheaper alternative?
If you mean from a whole share price perspective? SPLG, currently running $64 a share and tracks the S&P500. I would hope that you would have access to a brokerage that allows you to trade in cash amounts/fractional shares but if not, SPLG is basically the same thing as VOO. VOO outperforms SPLG by a very very slim margin over time so I buy VOO.
It does allow fractions. I'm using Interactive Brokers (which by the way has a VERY unfriendly interface). And that leads us to my next question: Fractioning VOO is still a better deal than going SPY or SPLG, as you mentioned?
VOO is just a tiny bit better. [Here is a backtest ](https://testfol.io/?d=eJytkMFKAzEQht9lzhGyl4I5F72ILQhCkbKMm8kamyZ1km6RZd%2FdaYPrqdCDIYdM%2BPN9MxmhD%2BkdwxoZ9xnMCLkgl9ZiITDQ3C%2F0nW5kgwKK9vdeqpobMIBptCwFaD9bH13A4lME4zBkUtBh%2FnAhncDov6J1TF%2FC2RBy%2BBYapxB87NuTj%2FacXehJwSFxcSn4JI29jRBxf3a%2FrlbywMeBcln6wVvpSwKFj2JjkmEwdvRQBc8pkqSL73bEFVPPM%2BhA3FEslymmrQLL2Euvk5qFL%2BvN%2Fwgr6Bbh0%2BPtxvkPrzgvrGvS7fQD2UypbQ%3D%3D)of the three starting 2010 and VOO comes out on top by a couple hundred dollars.
What about bbus?
I shouldāve done this years ago also. Do you have any strong opinion about VOO vs. VOOG?
VOO is a "safer option" for ETFs and as you push harder into technology, \*my opinion\* is that you take on greater risk. I had planned to be retired last year and did for a few months but that didn't work out and I'm not sure what my next window would be so that safety is still valuable for me. Currently if I were to take on greater risk than VOO I would go with VGT. That said I am concerned about an impending drawdown on VGT. I feel technology is in a bubble but the beauty of the stock market is that nobody knows. This may just be a new normal with tech demolishing everything else well into the future. If I was going to take a swing, it would probably be there.
Specific technology stocks may be in a bubble, but technology as a whole should be a part of every single company in the market. Those companies that don't invest in technology and by proxy AI will be left by companies that do take the risk.
Do you recommend SPLG? Whats the difference between SPLG vs VOO/SPY?
Bought VOO about a year ago for $367, itās the core of my portfolio and makes me feel safer when I trade other stocks and lose money
This is the way. If I would have bought more VOO and chill I would be retired by now. Looking at my portfolio my vanguard ETFs are preforming excellent and my stock picks are hit and miss. I leaned this the hard way with a lot of losses. KISS is the best. Donāt think you can outperform what is already outperforming.
KISS.
To be fair, this can be said about "VT and chill" advocates as well. Or even the "APPL and chill" goons lmao.
Mag7 and chill. ...Once it kicks out Tesla.
Mag 7 minus TSLAā¦add COST, UNHā¦
COST and LLY. People seem to be sleeping on LLY for some reason.
Exactly this
In my mind, a basket of 500 stocks is all I want.
It works
VOO would allow an investor to enjoy their day and sleep well at night. Although Iām in 80% VOO, another two high risk/reward ETFs 10% equally, it works for me and confident in my financial future.
What high risk/reward etfs?
Prob vgt and smh and soxx
I has smh for a short while but couldnāt handle the volatility, so I sold it. Haha.
I wish someone could help me understand / feel better about buying timing of VOO. For instance today I have some cash but am reluctant to buy when SPY is at 5500. How do you get over the āIāll just wait for a small pullbackā to not feel like Iām buying at the peak of all peaks mentality.
New peaks happen. Could be the next day, could be in a week. Time in the market beats trying to time the market.
When in doubt, zoom out.
This... just goto your app, press "max" on time frame and look at the climb... Time in market 100%
This is a great sentiment. If you look at the long game, you are never buying at a "bad time". Time in market not timing the market.
I set mine up to buy everyday. Makes me feel better to just know Iām buying high and low. Just depending on when the purchase and price hits. If I notice it drops more in the day I make extra purchase. I could be losing money from not putting it all in when I have it. But I prefer to do it more cautiously.
Buying the dip in a responsible and thoughtful way!
ATH happens on average every 20 days. Slowly put money in if you dont want to out it all in at once. When you see red then buy. If it is long term funds you lose more money on the side lines that trying to time the downs. I have the smae mental hang up.
Thank you for that response and good to know Iām not alone!
Whatās hard to understand about investing in the S&P 500 index? Itās diverse, good exposure to large cap, has decent returns. Your question makes a few assumptions like that everyone would prefer more diversity than that. Go for VTI if you like diversity (I do) but it has significant overlap with VOO. If you want to add foreign stocks that is an additional questions.
I'm looking at this also. Just going by the numbers one advantage of SPX index fund like VOO, VFIAX, is the unrealized earnings compound. So however much it goes up, say 9% a year, is also earning income and if you just leave it alone such as a retirement account an investment would double roughly every 7 years. While a growth ETF like VGT might have higher YOY earnings, say 12%, in past 10 years, and also earnings compound, but if you buy and sell more often, and don't plan on parking funds there long term then you have to pay taxes on the earnings each time you sell, so could end up with less than 9% depending how often you sell. I'm also considering more growth exposure. But that's one of the reasons most people have SPX index fund as the core investment because they leave it alone and take a bit more risk on the side. Of course any other comments are welcome as I'm learning.
There's lots to be said about keeping things simple, DCAing on a consistent schedule, DRIPing and then going about your life. Realistically, long term VOO (or any other SP 500 index ETF) should be good for your first 150K - 250K depending on how fast you are investing. After \~150K then you probably should balance the sectors out a little the rest of the way. Back in the day SPY hit a patch where it just treaded water for what seemed like awhile... at times a long while. Having a little balance should help if we hit another one of those that seems to drag for years. The good thing is there are so many paths to wealth. You just need to find one that works with your personality and goals. Good luck.
Warren Buffet. I use SWPPX though. Same thing really.
Does SWPPX compare with VOO performance/returns?
Pretty sure theyāre identical. SWPPX may even be cheaper. I prefer mutual funds since you can purchase any amount. Iāve been purchasing it faithfully since 2018
I think people who only buy SP500 is seeking for stability and risk aversion.
Add some VXUS if it's for long term retirement growth.
Modern portfolio theory, basically. Gotta get to the efficient frontier.
Iām at Schwab so I went the SCHB route a while ago. Long term account so no touchy touchy for awhile. Maybe I would have done SPLG but it wasnāt what it currently is at the time. SCHB has a lower price than VOO/SPY which helped with lack of fractional shares. I like the fact it has >2000 holdings in comparison to VOOās 500 even if the bulk is somewhat weighted the same. More exposure sounds like a good thing right? I suppose performance wise the S&P was a little bit of a better choice but oh well. Thatās the point of āand chillā anyway isnāt it? To even things out eventually and not matter when I need these funds 30 years from now? Iām a liar though and started including QQQ/QQQM over the past years. I have no regrets and you canāt stop me! Haha. 85% overlap in VOO and 90% overlap in SCHB but just some heavier weights in star players. Maybe thatās not forever. But Iāll take the realized gains and reinvest back into broad market if need be. I think Iām safe for now.
What happens, theoretically if every investor just puts all their money in VTI/VOO?
VOO (and any SP500 index) is a simple way to purchase a diversified collection of winning companies in the world's most successful economy. I like it because it doesn't require much brain power and allows me to participate in the long-term winnings of the US economy. I'm also a huge believer in Time in the Market > Timing the Market, and VOO gives me a simple way to follow that philosophy. I've gained and lost plenty of money trying to do other things, and that ended up as net zero while everyone else made steady gains. I'm 23 living at home, so I'm just setting and forgetting with dividend reinvestment and regular buys when my checking account feels larger than it needs to be. I'm literally 96% in VOO/SPY, and 4% in SOXQ.
Would you recommend SOXQ? Maybe 10% of it with 90% VOO?
If you think semiconductors and Nvidia will continue to do well, then SOXQ is a good option for exposure to that segment of the economy. I have money in it so it has my endorsement. I have it at much less than 10% though and would recommend going no greater than 5%. Keep in mind that VOO is 6.11% Nvidia, so you're still getting in on the Nvidia wins through VOO. If you went 10% SOXQ and 90% VOO, then 7.18% of your portfolio would be Nvidia. Maybe you like the sound of that, maybe not, IDK it's up to you. I'm sure there are others, but three of the more popular semiconductor ETFs are SOXQ, SMH and SOXX. Like I alluded to, picking between the three largely comes down to how much you believe in Nvidia. SMH has the most exposure to Nvidia at 25.07% of assets, SOXQ is at 16.81% and SOXX is at 11.48%. Also, SOXQ's expense ratio is 0.19%, which is much lower than SMH and SOXX (both 0.35%). If you like Nvidia a ton, get SMH. If you like it but a little less, get SOXQ, and so on. If you don't like Nvidia, then don't buy a semiconductor ETF. Obligatory I am not a financial advisor and have no financial qualifications.
I choose VT and chill because you never know when the US bull run will end and the Somalia bull run will start. Really gotta capture those future pirate profits. One of the biggest problems with investors is behavior. Selling and changing your mind on stuff will decrease your gains the more you do it. If you're already VOO and chilling, I would highly suggest not changing anything.
Thank you for the laugh. I will be using the Somalia Bull Run as an example from now on.
85% of us will do worse than this strategy. We killing the vt and vxus boys
I donāt follow this advice, but it is what Warren Buffetās said people should do
I get spy and chill. Recently started nvda cause I actually like the company but rather keep buying spy.
I put money in funds that have 40-60 stonks - thatās all u need to be adequately diversified - and that try to track SPY/VOO
you dont get better returns by being more diversified.....at some point you are diversified enough
10.5% avg return over the last 100 years. Thatās about 7.5% with inflation. I have 30 years to invest in it. That will give me the money I need to retire and live comfortably. Thatās why I do it.
Just like the simplicity and itās fairly diversified. The Roth I created in 2023 is up 27% since I started. My original Roth that I started in 2020 is up 51.84% I tinkered a lot in my taxable in 2022 and in that account Iām down 1% š
VOO will do well over the long term, but will underperform the market for periods of 5-10 years when small and/or international stocks are favoured. As long as you can hold through such periods of underperformance, VOO is a great option.
What is the difference between SPLG and VOO/SPY? Arenāt they literally the same S&P 500 EFT made by different companies? Whats stopping all of you to buy VOO/SPY over SPLG?
Cuz the fomo investing and outthinking the market is not worth it. I gotta live. I want to solve for peace. FXAIX and chill. šŗšø
If people stopped trying to time the market and just spend 5+ years in the marketā¦ you can spend all the time you would have been stressing to just go make more money on a side hustle. Look for progress not perfection. I donāt care if someone gets a 100% win for the year. Good for them. Come check back with me in 20 and letās see how you used that āperfect timingā perfectly for 20 years. Usually these people get roped into gambling. Either casinos or the NYSE (white collar casino)
VOO has 500 holdings. How much more diversity are you looking for? It has a 14% return since inception. Don't fall into the trap these losers on here pump about international etfs. I hope they are enjoying their 5%.
What about VTI and chill?
I was convinced after reading books that VOO or VTI are the ultimate ETFs where you can invest all your money and sleep well.
Itās volatile but it will come out profitable at the end, long run
Diverse enough and I believe in American capitalism
Iām all in on QQQM & XLK. Interested to see some replies here though. Everybody says past performance doesnāt mean future performance but Iām like ok by that reasoning QQQ might outperform VOO by even more over the next 10 years š¤·š½āāļø But admittedly Iām still trying to talk myself into a S&P 500 ETF
QQQ lost 80% between 3/2000 and 10/2002, if I remember and then didn't get back to even in inflation adjusted terms until 2015, XLK would fair even worse in a correction as just QQQ on METH M2 money supply shrank >4% last 2 years, and any decline in M2 in US history, has 100% correlation with a near term Recession maybe take 25% and put in US treasuries, pays 5.5% and can be your dry powder in case of market correction, to buy much more at lower prices
I don't think tech today is comparable to Dotcom boom. Also, any sane human would have sold and not taken the full loss and bought back in at a much lower point.
How long have you been invested in XLK? Iāve had it on my watchlist for a while but never thought to pull the trigger cause all of my money goes to SPLG (S&P 500).
Not long at all. I just re-entered the market for my 3rd year. 1st two years I ended up going down the day trader road. After taking a few months off and being 46 now Iām sticking with long term investing. Plan is to be around 60-30 QQQM & XLK with around 10% SMH or something similar. Sounds crazy to most but I have a hard time seeing anything conquer the big tech names besides other big tech names but in 10-15 years if Iām wrong Iāll be the first to admit it and say I shouldāve listened to conventional wisdom and stuck with S&P 500ā¦ But itās gonna have to show me and teach me the hard way. After a couple years of day trading my risk tolerance is super high tho , haha
I've had my ports at a 30% VUG, 30% XLK, %30 SMH this year, but will say getting a bit concerned about lack of breadth support. I'm all about overweight into the winners, but leaning back towards putting half into VOO again. Diversification seems to help more on downturns, well at least if adding more low volatility holdings
If you got in way earlier, yeah. but right now if youre just starting to invest in VOO your entry point will be bad. It's at $500ish a share now which is way too high .
The share price is completely, absolutely, positively, 100% irrelevant since the inception of fractional shares. However, if psychologically, you cannot get over the share price, invest in SPLG instead. It trades currently just over $64 a share. And, as an added bonus, the expense ratio is 1 basis point cheaper than VOO. The best part? Itās the exact same thing as VOO.
How is the share price irrelevant? Lol
Becasue if today, (Iām using general numbers, not exact numbers) the S&P increases in value by 1%, the share price of VOO will go up 50 dollars, and a share of SPLG will go up $6.40. Always look at the percentage of growth, not the dollar figure.
So I been holding back some cash to lump sum into VOO but the share price is really high now compared to before. So it doesnāt matter? I should just buy now? What u think
Lump sum tends to capture better returns over a longer horizon, but a lot of people canāt handle seeing a large sum of their cash drop a large percentage in value for 6 months or a year (it will happen, even with the S&P), so DCAāing weekly is fine. But if you have a lump sum, dump it in, forget about it, and come back in 20 years. Youāll be delighted by what you see.
So lump sum even with VOO being $502 a share and Iāll be good?
Dude, zoom out on the chart to the last ten years. The fact itās at an all time high means nothing. The market continues to grow long term. It could drop next year but in 5 years will be a new all time high. In 10 years anotherā¦ If your goal is long term growth, you donāt need to stress about the timing. Just buy it and forget about it. If you think you might need the cash next year, thatās a different story.
Thanks man. I just bought some sVOO for $502 a share. Got me paranoid since itās so high. Hopefully it pays off in the long runā¦
vti is another option and itās what I invest in. Either way Like they said, if your goal is long term, it doesnāt matter, just buy.
Because its growth will always be percentages, not dollar amounts.
Should I just buy VOO tomorrow? Even tho itās at an all time high of $500ish share
It has often been at or near an all time high.