VT
Vanguard Total World Stock Index Fund ETF Shares
Mentions (24Hr)
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Reddit Posts
Is it ok to never have bonds if you start investing early?
I have about 10k on hand. Thinking 50% VTI or VT,30% VXUS, and rest 20% in stocks. Unsure about my ETF choices though
Low volatility factor investing is criminally underrated
What is the quality of stock markets in other countries compared to US?
Searching for advice on F1 NRA brokerage accounts (Vanguard Vs. Schwab)
Is my portfolio made by my wealth manager too complicated?
Are these good lump sum buy and holds? VOO, VTI & VT
Thoughts on transferring “all” of my savings into equities
How should I invest to build wealth long-term in my early 20s?
Is VOO (US Megacap) plus AVDE (International All Market) a good balance of simple and diversified?
Would AVLV theoretically be any more profitable than a passively managed fund like VOO?
How much reasonable risk should I take on to maximize profit?
what's the point of tlt if it's just as volatile as stocks
I have a mental issue when benchmarking my portfolio - looking for advice.
Just transferred my workplace 401k to a brokerage 401k and trying to make the most of it
Feedback for shifting an IRA with slight SCV tilt to a full-on 5 factor portfolio.
Selling equities at a loss to pay for high interest mortgage
Does it ever make sense to have multiple brokerage accounts?
Stuck with current employer's limited 401K fund offerings, looking for advice on distributions
Have money in both Sofi Auto Invest and VT via Fidelity. Should I consolidate?
28yo, Is selling all my VGT and buying VT timing the market/performance chasing?
Are my portfolios any good? 96% equities / 4% real estate
"No more than 20% of one's stock portfolio should be allocated to foreign stocks? - Jack Bogle - Does this advice still ring true today?
Better to Hold More Specialized Funds, or Big Generalized Funds?
Ratemyportoflio : 45% VTI 40% VXUS 5% AVUV 5% AVDV 5% AVDS.
I just started putting money into a 401k. Where should I have that money invested?
Anything I should be doing to be more aggressive with my VOO/VT portfolio?
Why is the solar industry performing so poorly?
My un-intelligent way to make bets, as of now
What Do I Diversify Into? (small $ monthly investments)
Wanting to invest recent VA backpay - thoughts on how I'm proceeding about doing so
Invest in VTI and other "feel good ETFs" if you want to make less money.
How long do you recommend paper trading before doing actual trades?
Fidelity's Limited Automatic Investing Options vs Having More Accounts
My friend claims my method for investing may not be allowed, can anyone clear this up for me?
How is my Vanguard performance returns negative, when my investments are in the green?
why do people act like if the markets are down over a decade or more the world will turn into the last of us
How safe are ETFs if broad index funds didn't exist?
If safe ETFs broad market were an option - what would you chose?
Selling long dated deep ITM SPY or VT puts instead of holding shares.
90% are in blue chip stocks and VOO/VT (~85%). Also new to investing RIP
Should I keep holding ENVX and buy the dip?
Steak (Live Cattle) hits an all time high.
Please don't crucify me.. What is the actual point of all of this?
My Dividend Portfolio, 60 / 20 / 20 - VT / VIG / SCHD
Mentions
How could you think this is the reason when VTI and VT keep going up for decades as well at basically the same rate? VTI has actually *outperformed* the S&P since 2001. fyi for /u/UnknownResearchChems who's right in the wrong way. S&P 500 is actually stock picking, which underperforms the market as a whole.
VNQ and VNQI are already part of VT.
1. Automate savings 2. Invest in VT 3. Chill
If you own VTI + VXUS or just VT, you already hold at least 80% of VNQ + VNQI already, at market cap weight. Adding VNQ + VNQI would be going overweight compared to (free float) market cap weight on REITs.
I am still doing fine with VOO, VT, and VTI. All these drops are good buying opertunities
The easiest thing to do for you would be to use some global cap weighted fund like VT (or whatever the European equivalent is) and forget the rest. Everyone loves the S&P 500, but the S&P is only Large US stocks, and doesnt include Small Caps and Emerging Markets which help improve returns generally (absent the recent period of outperformance of US large caps, which is almost solely a function of many years of 0% interest rates).
“Wrong” is a strong word. To be “safe” you do want to avoid putting 100% of your money in one country because there are always country-specific risks. VOO is S&P 500 and while US centric, most of the companies are multinational in both employees and customers, so it isn’t too bad. I think bogleheads suggest a 60/40 split which is what VT does. I personally do a 80/20 split of VTI/VXUS.
Yep, I think they’re a bit narrow-minded, but I just can’t knock on them because VT is infinitely better than bonds or HYSA, or not saving for retirement like a lot of people.
I can’t speak for others, but I don’t hate investing in emerging markets. Index providers differ somewhat on which markets they consider “emerging”, but according to most definitions emerging markets make up about 10% of world market cap. That’s what you get in Vangusrd’s Total World Stock index fund (VT), and that’s what I target in my portfolio.
You’ve got a fever and the only prescription is VT and chill
Buy VT and keep buying every pay check. This gambling thing will likely just keep doing this.
If that’s what you want it’s fine, but it’s not a rule you have to follow. In thirty years of investing I’ve never heard of it. Some investors do all US. Market cap weight is about 60-40. Whatever it is, consider what the reasoning was behind it was. If it appeals to you, go for it. If you wanted to use VT, just do half and half VT & VTI. Or since you need two funds anyway, 80:20 VTI:VXUS. That would be the simplest and most direct way to target whatever US:XS mix you wanted.
Not sure what rule you’re referring to, but your selections look like the rough outline of a global stock portfolio. You could do that in one ticker with VT. Then add EIS or other focused funds as desired.
People who aren’t DCA’ing with a retirement target in mind (Aka a 20-40 year time span) and are investing in individual companies will absolutely get wiped out eventually If they hold that mindset. Broad market ETFs like SPY and VT dip 30% during crashes. An investment portfolio in individual growth stocks can be nuked 50% in a few days unless a person has the foresight to sell and stay out. Psychologically, 99% of people can’t do it and are delusional during a crash buying dips convinced it’s the bottom. It’s why intraday trading makes a lot of sense to me right now with the fun money while the rest bathes in treasuries.
6.5% Now is the time get in on ex-US. Stuff VT and focus on ways you can stuff more.
VT, allows diversification across the entire world. Then you can add AVGV to balance out the large cap growth that we see and add bonds and that's it :)
Let's do a thought experiment... Pretend it's Jan 2022. You've done all your research and decided that it's best to lump sum it. After all, the odds over DCA are in your favor. Time in the market beats timing the market. OK, you put on your big boy pants and dump your 100k into the market on the first trading day of the new year. Happy New Year! You did it! Over the next 9 months, you watch your investment begin a slow, arduous grind down 25% to $75,187. How are you feeling now Mr. Tough Stuff? In October, 2022 your investment begins it's slow arduous recovery. It takes another 15 months until December, 2023 until you break even back to 100k, or did you panic somewhere along the way and sell? This exact situation happened to a colleague of mine, only he purchased VFORX, a 2040 Target Date Fund because you know, they are SAFER (sarcasm) and all because they have some bonds in them to act as a ballast. Bonds got crushed in 2022. He is still not back to even. Not a big deal at all if you are going to hold VT for a minimum of 15 years. If you are like my colleague who checks his balance 3 times a day and was about to have a nervous breakdown, well... You have clearly stated that you might pass out if it drops. I hate to break it to you, but it's definitely going to drop. Corrections and crashes are normal and part of the cycle. What will prevent you from panic selling?
Correction. Over 40 years I would do 50% VT & 50% AVGV. Rebalancing annually.
I never get why people get a big piece of the pie and then thing DCA requires them to spread it out... DCA isn't about spreading out a big lump sum....DCA is built on continuing to invest 15% or more of your income month in and month out....you aren't trying to average your input...your trying to get the money in the market and let the market over time average out the risk for you. Spreading out a lumpsum into multiple deposits is just trying to time the market. Get the money in there and let the time horizon, while you are continuing to pump more money in there, take care of the market volatility and such. Invest it in VT, or VOO, or VUG, or AVUV, or QQQ, or mutual funds or whatever. Get it in there, spread it out according to your investment plan and let it go to work. Otherwise you are just trying to time the market a different way.
VT is fine. At 40 you may want to consider something like BNDW as well to get some bond exposure too. That really depends on your risk tolerance. But you're 40, not 20, and at least a little bond exposure is probably appropriate. If you itemize your taxes, you could potentially get a foreign tax credit if you chose VTI and VXUS instead of VT. Iirc lump sum works out best about 2/3 of the time. The remaining 1/3 DCA works out best. But with DCA you get the benefit of a little emotional reassurance that you won't put it in and the market immediately takes a dive.
Vanguard did a study a while back. Lump sum wins 2 out of 3 times. Dollar cost averaging ($20k spread over 5 months) wins a third of the time. You risk losing money in a drop by investing all $100,000 at once, but you also risk losing out on potential gains by waiting. Humans have loss aversion where losing $100 feels worse than making $100 feels good. As a last point, consider that you’re choosing to lump sum invest into cash. You see a dollar as the default holding. Many of us view shares of VT as the default holding and choosing to invest in cash as the bad thing. Next, VT is a great choice, but I’d honestly consider going with a 90/10 VT and BNDW split. I’m not sure about 7%. That’s historically what the S&P 500 has returned after inflation, but VT might do better or worse going forward. I usually try not to think about it. I favor VTI, VEA, and VWO in a 60/30/10 ratio instead of VT to get a slightly lower expense ratio, to optimize for taxes, and to get slightly more holdings. But it’s more important to avoid to tinkering/market timing/performance chasing. So if you’ll be tempted to mess with it, VT is probably better. You could also do VTI, VEA, and VWO for the first $100,000 that you lump sum and use VT going forward when you add new money. Hope this helps!
Historically all at once has been best. Emotionally dca. The choice is yours. VT is fine but I’d pick something like VTI or VOO
With 3-4 years, you are likely to come out ahead with index investing. Market drawdowns typically recover within that time period and then make up for it. There are select instances of particular sectors that took very long periods of time to recover, which makes the case for diversification. VT and VTI are the safest options for locking in growth, though their performance reflects that safety. If you're on a specific time table then you would be likely to meet your goals with the broad indexes. I would additionally look at a money market fund like VMRXX to park *cash* in if you want to outperform HYSAs.
Amateur investor here with a lump sum of money ready to invest in VT (VT and chill approach). With the recent volatility due to earnings release, GDP news, and overall bearish market sentiment - should I wait a bit before investing or just dump it in now? I know I shouldn't try to "time the market" but also not trying to be impulsive if I could potentially wait a bit for the market to settle. Any and all advice welcome!
A standard brokerage account is a fine vehicle for retirement investing. The obvious disadvantage is that you’ll incur tax liability on the distributions made by your investments in the tax year those distributions occur. That’s just the cost of doing business. Depending on your retirement income level, however, you might pay 0% or 15% on capital gains withdrawn from your brokerage account (and remember your invested capital is withdrawn tax free because they’re after-tax dollars). You might pay 22% or higher on the same withdrawals from a traditional 401(k) or IRA because they’re ordinary income. Plus, unlike tax-deferred accounts, brokerage accounts have no RMDs, so you get complete control over when you incur tax liability. Finally, when you pass on your brokerage account, your tax liability is wiped clean and your next of kin inherit the account with a stepped-up cost basis as of the date of your demise. That is a huge advantage compared to a tax-deferred account, which remains taxed at ordinary rates and your heirs are required to withdraw down to a zero balance within 10 years of your demise. The key advantage for tax-deferred accounts is for high earners to lower their current tax liability in the years they’re stuck in the higher brackets due to their earning power. Roth + brokerage will always be a powerful combination, at least so long as capital gains and dividends remain taxed at rates favorable to ordinary income. So do not fear the taxes associated with the standard brokerage account. The key is to invest in tax-efficient index funds. VT is perfectly fine. Bonds can be a bit tricky in a taxable account: Instead of a Total Bond Market ETF like BND, you may want to use a U.S. Treasury ETF like VGIT (Treasuries are state and local tax-exempt) and/or a good municipal bond ETF like VTEI (municipal bonds generally are federal tax-exempt). You’re on the right path. Go forth and build wealth.
Agree here. I would say any investments must have a long term investment as you stated in your post. Glad to hear you already have an emergency fund. To play it safe: VOO or SPLG, funds that mirror the S&P500. You could also elect to do VT for every stock on the planet or VTI for every stock in the US stock market. But I personally just like the S&P funds. You’re young and if I were you I’d have a skew towards some large cap growth stocks: SCHG, or MGK if you want an even heavier weighting towards the mega cap companies.
Forty years is a good long time frame for investing. Be aware that whatever you decide now, you will modify before you get even close. With that mind, the question really boils down to where to start. I would not choose VOO. It is limited to one country, and only about five hundred stocks out of over three thousand in that country. In forty years the stocks that are in that index will include many that it excludes today. It’s popular because this sector of the stock market has been a strong performer for a number of years. But such things change. Forty years ago the same logic would have led you to invest only in Japanese stocks. They took 35 years just to recover back to their levels of 1989. Cast a wider net. With nearly ten thousand stocks, VT lets you own the world in one ticker. Because we never know what will happen in the future consider gold for diversification. It’s not widely known, but it has outperformed stocks so far this century. Put 3/4 in VT and 1/4 in IAU. You will refine your ideas of what’s the best fit for you before too long, but this will get you off to a good start.
I think it's just follow your gut feeling. Do you like small caps, do you like international. Personally I like both so I went the easiest route with VT.
VOO will automatically rebalance among the S&P constituents, based on market value. You can do it yourself, by investing in VTV to start, and plowing the gains of the broadening if that is what actually happens, back into VOO. The problem is, though it is not that hard to make the entry move, it is very hard to perfectly time the move back. Better to let VOO do it for you. VTI or VT (all world) is taking the rebalancing part too far IMHO. It is good to be lazy, but "chilling" is going too far.
I think you misunderstood the recommendation. They are saying drop VT.
To get started, open a brokerage account and start putting it in a diversified portfolio of ETFs. You could start with a TBill fund like SHV to get your feet wet, or go with a three fund portfolio like VT, GOVT, and IAU, with the majority in the stock fund VT. Instant global diversification.
Correct move. Idk much about VT, but I’d find out of VT is good in a taxable account vs an alternative fund that’s more tax friendly.
25? 95% VT, 5% BNDW. I'm partial to the 120-age rule of thumb for what percent should be equities.
I would hold onto the signing bonus just in case you switch jobs or whatnot and there's a clawback clause (which of course there is). Next I would max tax deferred accounts. Last I would backdoor IRA. As far as investment selection you could go with 100% equities, all allocated to VT
VEQT from my understanding is a Canadian biased VT. VT/VEQT are if you want global exposure, VTI is more US market exposure, which in recent history has outperformed global funds.
I still think betting on a single country is a bad idea. Especially considering that, since so many people invest in VOO and SPY, their stocks are likely to be overvalued. That's why it's better to invest into a total-market index fund like VT or ACWI.
Great question. I would love to use 100% VT and trust the global markets. I’m not quite there yet, hence the VTI.
Why not use VTI + VXUS then? VT drifts with global market cap weight, while VXUS would always be 100% ex-US, so you could just do 70/30 VTI/VXUS of you want the fixed ratio. Plus using VXUS should have a very slightly better expense ratio than VT (granted, probably only 1-2 basis points) and the ability to always claim the foreign tax credit for the VXUS side.
Me personally, I use VT and VTI. Pure VT is about 60% US. I blend it to bring my asset allocation to about 70% US.
op is trying too hard, new information is the catalyst [https://www.tradingview.com/news/reuters.com,2024:newsml\_L3N3GX3VT:0-tesla-shares-bounce-after-promise-of-new-affordable-cars/](https://www.tradingview.com/news/reuters.com,2024:newsml_L3N3GX3VT:0-tesla-shares-bounce-after-promise-of-new-affordable-cars/)
Stay diversified. VT is all you need
Max out your 401(k), but pay off your debt before you open an IRA. Diversify your investments with VT, GOVT, and IAU, say, 70:20:10, to give you a truly diversified global stock portfolio, and a little bonds and gold to give you some dry powder to take advantage when stocks go on sale.
Sounds like your advisor is looking to take a nice holiday this year! Put it into a 60/40 split of 60% VT and 40% BND and call it a day.
Can plug your portfolio into a portfolio visualizer (https://www.portfoliovisualizer.com/) for backtest comparisons. May have to smooth over your withdrawals to approach your actual results but offers an opportunity to compare to other options you may have made. Perhaps utilize a VT%/BND% for ease of stock bond split comparisons.
As I said - its just the underlying that is different really Its like saying whats the different between VTI and VT? Its holding different stocks The difference between SHY and TLT? The duration of the bonds they are holding The yield is different cause the bonds in it are different as well
Invest in VTI & VXUS Or just VT
You can always keep it simple and buy the whole market like VT. Not my approach but totally valid and works
I've been looking at S&P 500 index funds such as FNILX, VOO, SPY, IVV, SWPPX, VFIAX, and FXAIX. I've also been looking at world stock ETFs like VT. At the core of my misunderstanding is what is the difference between individual S&P 500 indexes? Aside from different brokers and slightly different expense ratios. For example: As I write this, FNILX is $17.77 (0 exp ratio), and VOO is $462.20 (.03 exp ratio). They both have similar, if not identical, holdings yet are drastically different prices. Expense ratios aside, is FNILX a better buy because it has a much lower cost "per share" or do the prices here not matter because we're only looking for % increase as a goal?Is it even logical to think "I should buy FNILX because it's roughly $17 and may grow to $500 versus buying VOO because it's already almost $500 and is probably near its ceiling for growth?" Also, why the dramatic price differences for the same holdings?
First build up some buffer of emergency savings. Then, if you are a US citizen, open an account at treasurydirect.gov, and you can buy up to $10k a year in series i savings bonds. These are inflation protected bonds, and have a very small penalty if you need to cash them in within 5 years, you lose only 3 months interest. Next, once you have a bit of buffer, start investing long term money that you know you won't need to touch for 5+ years. This should all go into a broad market index fund like VT. You can buy this from brokerage account on any major site, I'd suggest Vanguard or Fidelity. That's all you really need, to be honest. Just keep enough a buffer in the savings bonds that you know you won't have to touch your long term/retirement account, and you can keep that fully invested. The earnings of the companies that make up these indexes historically increase by an average of about 6.4% a year over time. Valuations will rise and fall, but over 10+ year periods these steadily rising earnings will eventually lead to better returns than what you can find most anywhere else.
An index fund invests what you put in into a large basket of stocks. VOO tracks S&P500, more or less the 500 largest US companies. VT tracks thousands of companies across developed markets (US, Europe, Australia, Japan...). That way you are well diversified.
DocuSign, Tesla, VT, some energy ones. I'll check again later. For now,.in shell shock
This “it will go up, down or sideways” comments are getting too boring in this sub. If you have nothing to say or you think markets are unpredictable and you should hang a portrait of Jack Bogol in your house and VT and chill why are you in this sub anyways? It’s a place for regarded gambling
For some context, I have a basic knowledge of the stock market so I'm entirely open to any criticism or advice and it will all be appreciated. I'm generally risk adverse (though my holdings might not necessarily reflect that) and would love to know how to better round out my portfolio as well as general advice given my current financial standing. I'm currently single and 34yo if that matters. At the moment, I feel like I have inconsequential shares of well performing stocks and not enough in safer ones (VT). Given I can spare maybe ~$500/month to invest, I often have trouble deciding which to invest that money into or which ones to let go. Some quick points: * I have no debt. * I do not own a home. * ~$150k AGI. * 70k in my savings. * 60k in 401k and I believe I can double my contribution to max it out. * In the event of company IPO, there is potential of reaping a substantial amount of cash (~300k gross, but hard to tell atm). My current holdings (I've only invested ~$18k to date): * 7 shares of MSFT @$250. * 8 shares of TSM @$105. * 10 shares of AAPL @$10. * 25 shares of VT @$88. * 302 shares of PLTR @$13 * 1200 shares of GCEH @$2
Sell any single stocks that aren't doing well. Then take that money and buy a low cost index fund. I find the market (vti) overvalued right now and if it was me would choose VTV. But you would need to be patient. Value sometimes underperforms growth for awhile (VTV is large cap value). If you want to just make market returns and forget about it, just sell the losing stocks and put it all in VT. (Total market). For what people are referring to about tax loss harvesting, they are saying you can get the most out of your losses by selling an equal amount in gains from whatever the losses are. But, reinvest it in whatever you choose going forward. That principle is now tax-free in essence. Up to 3000 in losses above the amount of income from any gains from stocks can reduce income taxes if you have excess losses over the amount of gains. It is capped at 3k max per year on income. Capital gains and income refer to 2 separate things. Hope that helps.
I can tell you what I did for my scv but I don't know if its best for everybody. I used vti and vxus as opposed to VT for my base holdings. added avuv and avdv for some tilting. The overall look of portfolio is 45/30/15/10 VTI/VXUS/AVUV/AVDV. I was basically trying to keep 60/40 US/EXUS and also 3:1 All market to scv tilts.
For some context, I have a basic knowledge of the stock market so I'm entirely open to any criticism or advice and it will all be appreciated. I'm generally risk adverse (though my holdings might not necessarily reflect that) and would love to know how to better round out my portfolio as well as general advice given my current financial standing. I'm currently single and 34yo if that matters. At the moment, I feel like I have inconsequential shares of well performing stocks and not enough in safer ones (VT). Given I can spare maybe ~$500/month to invest, I often have trouble deciding which to invest that money into or which ones to let go. Some quick points: * I have no debt. * I do not own a home. * ~$150k AGI. * 70k in my savings. * 60k in 401k and I believe I can double my contribution to max it out. * In the event of company IPO, there is potential of reaping a substantial amount of cash (~300k gross, but hard to tell atm). My current holdings (I've only invested ~$18k to date): * 7 shares of MSFT @$250. * 8 shares of TSM @$105. * 10 shares of AAPL @$10. * 25 shares of VT @$88. * 302 shares of PLTR @$13 * 1200 shares of GCEH @$2.6
Ah. I understand it now. I understood what I need to do. But still don't know why this has to be done. If you have the patience and can dumb it down further for me, I really appreciate it. Also, I'm assuming I need to sell VT that I've held for longer than a year for this to work correctly. Please correct me if I'm wrong
VTI and VT are good, aye lets say you have 1k bucks loss on the losers - close them out fully Then you close out 1k profits of literally \*any\* winner, like on VTI So your realized profit is net 0 and you can save the cap gain tax of the 1k winners in the future The just proceed to buy back into VT / VTI / whatever
Thanks. Low cost index funds, as in, VT VTI? I'm not sure I understood your point about equal out profit and loss. If I just sell these lossy ones, wouldn't the write off just apply to our salary part of earnings? Maybe my question doesn't make sense too. :(
You have an entire average pretax American salary to invest every year. Just buy VT and chill
OP listen to this guy. The money is gone. There is no such thing as "breaking even". Events from your previous losses have already transpired. Time moves in one direction. There is no "momentum" or continuity from your previous trades. It's done and the money is gone. There is only now and what to do in this moment, and in the now, you are bad at trading. Real bad. Sell all. Buy vanguard ETFs, voo, or vti, or VT, something simple. No leverage plays. No margin. No options.
At that point just grab VT and chill.
I see, I should look into some balance then. Maybe a heavy ratio of VT could achieve this.
I see, thanks, I don’t have the first clue in the finance/materials/oil/property world, so I will just dump it in VOO/VTI/VT when the tech sector is down.
Depending on your restrictions, you can bypass that view only by selling ITM puts on VT. You get assigned VT when those puts get exercised. + You earn some premium along the way. I don't know it that will work for you. Keep in mind you get assigned 100 VT that way. For me, also in EU, i can normally only buy etfs that have UCITS in their name or are otherwise complient with the EU law. But I can get thoses US etfs by selling puts on them.
T-Bills or USFR or SGOV are probably the best for short term savings. I think Series I Bonds are great for medium term savings (minimum of 1 year). A 50/50 bonds/equities portfolio is also not a bad option for something like this, albeit a bit riskier. I would do 50% VT/50% GOVT. Or 34% SGOV/33% VT/33% GOVT.
Well I use T212 and VT is in View Only mode… treasury bills i could jot find
Put it in VT and treasury bills.
Yes, that's what I meant is to be an active investor, not for me. I just put everything on VOO, or VT or SPY etc etc and call it a day. If it works good, if it doesn't work , well the whole thing is a modern Casino anyway that is accepted by everyone in this planet earth.
Before you load up on taxable, look in the Bogleheads sub for the financial order of operations. Emergency fund, pay off high debt, company match for 401k, HSA, Roth IRA then taxable. (I feel like I forgot something). VTI/VXUS or VT are good ETFs to get going in all of the investment accounts I mentioned.
VT and chill until you are more familiar
I need to at least max out mine my wife’s Roth IRAs this year, and I was wanting to do more, but what are yall thinking going into this possible market correction? I’ve been DCAing $150/wk per account to get the max contributions for each account, just into mainly VOO, SCHD, VEA, VWO, VTI, BB, SFYX, MSOS, VT, O, and a Fidelity Go account. People are suggesting putting my investing into a money market account or my 4.6% savings until we get lower, but not sure if SGOV in the Roth would be a good option or stay on track DCAing into my usual funds and ride it down. Open to any advice.
That is still a good play tho. But u really don’t need Voo and vti together. This is what happens, u have overlapped your portfolio significantly by doing so. U would have been okay with just VT alone.
For the expanded investment menu. If you’re satisfied with the TSP options, of course that’s fine, but a self-directed brokerage IRA opens up a world of options, including ETFs like VT, GOVT, IAU, COMT which allow you to access investments not available in the TSP. I rolled mine over in 2007 and have been happy with the results. In addition, I used some of the funds for Roth conversions.
I think virtually every regular, non-insanely rich person would benefit from a “Boglehead” strategy, meaning that you invest in the total market via funds with the lowest possible expense ratios. That means either going 100% VT or something like 65/35 VTI/VXUS. Then as you get older (since you’re so young, we’re talking decades from now) you can start gradually transitioning over to bonds. Doing this guarantees that you’ll capture average returns, all with very little work and relatively low risk. Active stock pickers lose out against this strategy something like 95% of the time over the long run. There’s no good reason to focus on dividends, imo, especially not at such a young age. They’re not free money, and they create taxable events when you might not want them.
Dump it, and switch to VT or VTI and then forget about it for the rest of your life
Since you mentioned ETFs I assume you have a brokerage account. For a simple diversified starter portfolio, consider VT, GOVT, IAU, about 60:30:10. With just three funds you cover all the bases. For stocks, VT let’s you own virtually the world in one ticker. No need to get bogged down in large caps, small caps, growth, value, international, emerging, etc … you’ve covered them all. GOVT is US Treasury bonds, and IAU is gold. This is a highly diversified portfolio that you can keep long term or use to buy time while you gain experience and refine your own ideas.
It depends on what index you're looking at. FTSE All World is 62% US, MSCI ACWI Index is 64%, SIFMA is 45% US. I like Vanguard's recommended 60:40 fixed allocation split that they use in all of their all-in-one funds - Target Date, LifeStrategy etc. I would prefer my US allocation not go above 60% or dip below 35%. So I prefer using a fixed US:INT allocation to ensure I can hold long term without the risk of exceeding that range of US exposure in either direction as a result of tracking a global index or holding a fund like VT that tracked it for me.
To avoid tinkering, just go with *one* ETF: VT. Then don't worry about it.
Why not invest in etf first until you learn more about investing. Like start with VT/VTI/VOO. Any of those 3. It's perfect right now since stocks are down. You get to buy the dip. The only one I like is nvdia. If you really want individual stocks, get the one you know or blue chip stocks to start. Like Amazon. A lot dips these days. But really start with etf and buy more if the market is down. Just concentrate on 1 etf for now and slowly add another when you know more.
Sounds like you paid $14k for a gambling addiction at 19. I recommend taking all your money out of Robinhood and putting it into Fidelity (or another reputable broker), and make regular contributions into a tax advantaged account buying VOO or VT for the rest of your life, you will make way more than $14k this way.
I’m in a similar situation, would VT sound good as well?
A lesson to everyone here to just by $VOO and $VT and then uninstall the app
You bet. You can conquer fear by taking things one step at a time. For a basic three fund portfolio, an excellent starting point is VT, GOVT, IAU, roughly 60:30:10. These represent stocks, bonds and gold. Because of low correlations, meaning they tend not to all go up and down together, the combo will give you a smoother ride than any one individually. You can also start with a generous cash allocation to further tame the scary. As you gain knowledge and experience you’ll gain confidence too.
I nominate VT. It contains all the stocks in VOO and VUG, plus small caps and developed and emerging markets. It’s casting a wider net for potential growth and is a more forward looking approach. As every prospectus states, past performance is no guarantee of future results. It may be boilerplate, but in my experience no truer words in finance have been spoken.
Yeah, international is a generally good idea if diversification is what you're going for. VT obviously would basically capture that but a lot of people split VOO/VXUS for tax reasons. Small caps honestly I don't really know.
1. No. 2. Lump sum in January yields higher average returns (more time invested in the market), but it'll be a bit more volatile than DCA. 3. Yes. VOO is only gigantic companies on American exchanges, and it's a blend of growth and value companies. There are other options... To list a few: * VTI -- Invests in most American stocks regardless of size, but weighted on size. So it's like 3/4 VOO, but the other 1/4 has smaller American companies. Generally does almost the same as VOO * VT -- Invests in world stock markets. Has underperformed for a couple decades, but who knows what the future holds. * VXUS -- Invests in world stock markets excluding the US. Has very much underperformed, but who knows about the future? So you can think of VT as VTI + VXUS in a certain percentage... I think 60-40ish. But you could take VTI and VXUS in whatever percentage you want. Then there are things like precious metals, commodities, bonds, REITs... Their returns aren't very correlated to US stock market returns, so holding some combination can reduce volatility in your portfolio. Plus rebalancing your portfolio periodically can act like a weak "buy low sell high". But generally stocks are the highest-performing asset, so these blended portfolios are usually trading away return in exchange for the lower volatility.
Do you mean saving during the year and then lump sum investing? Don’t do that. Invest as soon as you can. The lump sum investing vs DCA debate only makes sense when you already have the lump sum. On the other hand, there are alternatives to VOO. VT holds the whole world market. It behaves differently (and has performed worse recently), but it avoids making decisions about what stocks to hold.
I also have a 401k and a brokerage. Remember to invest in ETFs and not just let the money sit in your account. Buy VT or VTI/VXUS and don't stop adding to it til you retire
Even Warren Buffet has basically said almost everyone is better off dumping their money into low cost index funds like VOO. Other reasonable options are VTI (total US stock market) and VT (total world stock market). To answer your questions: 1. No, it's not too late. 2. Generally lump sum will be better. Time in the market beats timing the market. You will have times where DCA will beat out lump sum but studies have shown early lump sum is generally better over the long term. 3. Some people think they can beat the market. Some people want to invest in specific companies that they like. Some want to invest in other sectors. A lot of people have literally no idea what they are doing and should really just be putting money into these types of funds. If you're really interested going for the low cost index fund investing route, I would recommend looking into r/bogleheads. There are a lot of resources in the sidebar there that will educate you on their preferred portfolio (the famous three fund portfolio split between stocks and bonds).
VT, VTI, or VOO 1/3 SCHD, VYM, or SPYD 1/3 QQQM, SCHG, or VUG 1/3 Do your research. Understand what the funds hold and their weight. Expense ratios, dividends, historic returns, sectors, liquidity, overlap…