hide. And I buy more than one within each sector to further diversify from one fund's approach vs another's. US has been outperforming but you don't know what will happen in 40 years. Keep in mind, M1 enforces a security maximum of 100 slices per portfolio. VTI is great but how about adding some ~20% VXUS for international exposure? Cookies help us deliver our Services. Learn everything about Vanguard Total Stock Market ETF (VTI). New comments cannot be posted and votes cannot be cast. I recently started a traditional IRA, and am trying to investigate if going 100% VTI would be a wise choice? Should I look into growth etfs like VUG or MGK? I plan on rotating to other sectors as I see fit, This approach also lets you opt out of industries you don't want to support. The second is that sector investment might be wiser and carry less downside risk with that time horizon. ... help Reddit App Reddit coins Reddit premium Reddit gifts. Cheers. The SP500 gets 25% of revenues overseas and it's only growing. I don't know right now if I'll be able to go back at the end of that, but I also don't feel like I care that much. Best Vanguard ETFs: Vanguard Total Stock Market ETF (VTI) Expense Ratio: 0.03%, or $3 per $10,000 invested annually. A lot of people I have talked to and seemed advice have told me that at my age I should be playing as aggressive as possible. Yeah but you'd make more gains 100% invested rather than 90 10. Assets: $500.9 billion Holdings: 508 stocks Dividend Yield: 2.03% Expense Ratio: 0.03% The Vanguard S&P500 ETF (VOO) is one of the biggest index funds that track the S&P500, with $500 billion in assets under management. Almost any post related to stocks is welcome on /r/stocks. add some VXUS to diversify. save. I wish I could go back and tell my 19 year old self how simple investing can be. IVV vs. VTI comparisons: including fees, performance, dividend yield, holdings and technical indicators to make a better investment decision. save. 2) Important: We have strict political posting guidelines (described here and here). Agreed. And, VTI these days is the better choice for exactly the reasons you put forth. Free ratings, analyses, holdings, benchmarks, quotes, and news. One simple reason: If you diversify to the moon, you'll get the lagging basketcases as well as the booming big name stocks, Over the long term, this will do fine, which is the premise of your question I think, BUT I am your age and sold the VTI and VOO I own to buy into more specialized thematic or sector ETFs, They're not betting the farm on indvidual stocks. Way to many people in 100% indexed equities don't understand that stocks can go down. Do you think now is a good point? It also has one of the lowest … Would like to now if there are any compelling reasons not to be. Of course, major changes can happen and I think it is important to re-balance if there are large structural changes. So, shifting from sector overweights to total market makes sense, and eventually, shifting into fixed income products. I feel as though shortly after elections would be a smarter move, IMO. The US will finally get its Covid shit in order. So you're incorrect to say that VOO is more expensive - they're the same. I hope that all makes sense? If you want to play around with trading, have a separate investment account. For those of us with a long horizon, the plan should always be to keep investing according to the predetermined plan. Assuming a starting value of $1,000,000 and $40,000/year spending, as of today, the lower yielding portfolio is worth $95,000 MORE. Being 100% stock and whether or not to invest in international stocks is a topic and comes up a lot lately. E.g., coal and oil. Never regretted it. This bond ETF is another fund that is nearly 100% invested in its asset class, which will simplify rebalancing. VTI has international, but the top 10 are also all in VOO too. Find me a stagnant 30-40 year period in US stocks, and don’t give me the “muh Nikkei” BS. Check out our wiki and Discord! Honestly I think #2 is the most important thing. I have the same portfolio as you, 100% VT, and I am 35. Q4 was like -12% then. Would like to now if there are any compelling reasons not to be. I recommended that you read this Fidelity article about international investing. And 2000 isnt a bad starting point, since 1999 was PNTR with China so it may be in fact result in a long term change in outlook in US equity returns--it may also not be. In tax advantaged accounts, where there is no tax consequence to consider, it is probably to good idea to swictch. I confused them. Results will vary for other time periods. Press J to jump to the feed. M1 Finance is a great choice of broker to implement the JL Collins Simple Path to Wealth Portfolio because it has zero transaction fees and allows for fractional shares.I wrote a comprehensive review of M1 Finance here.. Looking at this link, comparing a 100% US stock, 100% International stock, and a 70% US/30% Int split portfolio, the 70/30 portfolio had better returns and less volatility since 1972. Balanced portfolios outperform 100% equity allocations because a 50/50 portfolio loses so much less than the stock market during bear markets. Only mutual funds and ETFs (exchange-traded funds) with a minimum 10-year history were included in … VOO: Vanguard S&P 500 ETF. Just look at the utter hysterics that gets posted to r/investing anytime the S&P is down more than 1%. And if you don't, your downside risk early is much more limited, since your principal contributions are the bulk of your portfolio, not your returns. You want funds to stay up there when the market crashes. this way you can rebalance. EDIT: OSUBedbugs is correct. Why not take advantage of that? Very few people remember that VOO lost in 2018 -4.42%. 100% VTI too aggressive for that? Do everything I could to automatically invest every month and never check the account. I invest 100% in US markets because I thought i had plenty of exposure to international by getting etfs with giant US companies in them. But I want to be fully exposed to each sector. For example, for the last fifty years, consumer staples has outperformed the S&P with less volatility. Help me make the right decision for my ETF Portfolio! What do you mean by "some are thinly traded" and "a few have been known to close"? Point is, the world is becoming more global and VOO + VTI will have very similar results over long periods of time. Plenty of reasons. I am 19 and have been investing in VTI for a couple years now. Its a great fund. Remove the temptation to sell when you shouldn't. Have you played QQQ or TQQQ? By using our Services or clicking I agree, you agree to our use of cookies. "Growth" may be a misleading classification in some people's minds. If I buy it at Vanguard, I use VTSAX. I'd say standard for a 30 year old would be 10%-30% bonds. For instance, ETF with semiconductor companies AND the companies that make semiconductor manufacturing possible, Downside: some of the very specialized ones are thinly traded (a few have been known to close...) and also have higher expense ratios. The US may not do as well as it has done in the past. In turn, … Vanguard ETFs … VTI is total US stock market while VT is international. US returns have been great in the 2010s decade but the international market outperformed the American market in the 2000s decade. Im still new to this. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. Ones like EMQQ which contain lots of foreign stock, I can justify, At what level of capital did you start diversifying like this because I want to implement a similar plan but feel like my gains are super slow compared to the money I put in VOO or something similar. I own both in various accounts depending on which is cheaper for that account. The other big risk I see is if we ever enter a regime of higher interest rates and a down stock market it could be hard to reduce your leverage. Before that was 100% equities (mostly VTI) but am now knocking on age 60's door so holding some bonds along with real estate seems prudent. Edit - Truthfully, I am not 100% VTI but about 60/30/10 VTI/VXUS/BND. Largest holdings are Apple ( AAPL ), Microsoft ( MSFT ), Amazon.com ( … I might get down voted for this but if you have access to cheap margin (1-2%) with your broker or a line of credit with a rock bottom interest rate, double up on VTI. Expenses for VTI are basically free at just 0.04% or $4 per $10,000 invested. Posted by 9 days ago. Depending on the stability of OPs job this is exactly what Life Cycle Investing recommends. Invest 100% in something like VTI or any boring Vanguard fund. NASDAQ-100 Equal Weighted Index The NASDAQ-100 Equal Weighted Index is an equal-weighted version of the NASDAQ-100, a group of the largest and most frequently traded stocks on the NASDAQ. 5 years too short to invest funds? I like QQQ as a growth fund, but you could also allocate a small percentage to VUG or MGK instead. But VTI offers a lot more liquidity and a slightly higher yield. For instance, 2000-2010, it was basically stagnant, meanwhile developing market grew around 5-7% per year. JL Collins Simple Path to Wealth Portfolio ETF Pie for M1 Finance. Using a 4% withdrawal rate, using Portfolio Visualizer I compared Portfolio 1 (100% VYM) with Portfolio 2 (100% VTI) for the Go Curry Cracker retirement years. report. 5. … more For instance, I didn't want to buy TSLA individual stocks so I got into it via the ETFs I mentioned instead. I'm going to re-iterate what others already, stay the course and add some VXUS. Press J to jump to the feed. Sometimes value far outperforms "growth" designated. 12. These funds mentioned have relatively high volatility. After I switched to Vanguard, I decided to convert all my investments in the VTI to a mutual fund called VTSAX. 13. Investing I will have about $500 extra a month to do something inteligent with. The only reason I can think of is to get some international exposure. I have $20K that I want to reinvest/invest more with. I have most of my money in VTI. I am a bot, and this action was performed automatically. This U.S. stock market fund tracks the performance of … How do you do this in a way where you can actually keep track of how your exposure differs from VTI/VOO per sector? While it's really ideal to diversify more in ways similar to what Mohammad Sajad suggested, in general...there are situations where I think it's best to invest 100% in, say, SPY, which is an equal weight S&P-following ETF. I'm comfortable with it because I have a high tolerance for risk. They know it but they don't believe it because they've never invested outside a bull market. Please note that as a topic focused subreddit we have higher posting standards than much of Reddit: 1) Please direct all advice requests and beginner questions to the stickied daily threads. VTI moves a step beyond the basic index strategy, however. In VTI you're more exposed to US politics, culture and socio-demographic factors then someone holding something like VT (Vanguard World). This article examines the differences between VOO and VTI and which one is likely to be a better investment. Do everything I could to automatically invest every month and never check the account. It depends on your risk tolerance, but 100% stocks is if anything more risky than "standard" for a 30 year old. 1 6 61. comments. Your instinct to be aggressive is correct, but don't overcomplicate it. If your career is tightly couple with the stock market you shouldn’t invest on leverage. Or just get VT instead. Your instinct to be aggressive is correct, but don't overcomplicate it. I understand VTI includes some of the previous, but I wasn't sure if I should focus more of my funds into those for the next few years. By using VTI, investors can build a great base and do so for cheap. US and international rotate favor, the recent decade has favored the US, but 2000-2010 favored international. The first is that IRAs allow you to take advantage of taxes on REITs, so it might make sense to overweight REITs in your IRA. Using Vanguard’s low-cost ETF for the total U.S. stock market, we can construct the JL Collins Simple … This includes beginner questions and portfolio help. Disagree, argue, criticize, but no personal attacks. The solution to this was to convert from an ETF to a mutual fund, where you can fully invest 100% of your cash. Anything else is simply an emotional response. I'd invest the other 10% in an active fashion that suited my tastes. If your portfolio exceeds this maximum, you will need to decrease the total number of slices in the portfolio before you can edit or save your changes. You are young and have a higher tolerance for risks. Press question mark to learn the rest of the keyboard shortcuts. How to Get a 100% on a Test. If you want to ace your next test, create a study schedule for yourself and spend at least 30 minutes each day reviewing your materials and going over flashcards. Please contact the moderators of this subreddit if you have any questions or concerns. International holdings can reduce volatility and boost returns. $200 per month is already being paid additionally to the 180k owed on the mortgage monthly (this $200 is separate from the $500). Rather, it's betting on a specific sector and the ETFs that correspond to them, For tech, I got into EMQQ, FTEC, FCOM, PSCT, For renewable energy of all types, PBW, ICLN, TAN, FAN, QCLN, ACES, These are sectors that I'm bullish on as a young person and see huge potential in. So yes, it's always good to diversify. Check out the side-by-side comparison table of IVV vs. VTI. In recent weeks, I've been writing about how it's getting easier and cheaper to build a solid globally diversified portfolio using all-in-one ETFs. Disclosure: I've been 100% VTSAX for 15 years. History suggests that such trends are cyclical. The compound return of the S&P500 from 2000-2020 is only 6.01% because of the 2 stock market crashes in the 2000s. you don't know what will happen in 40 years. 100% VTI? VTI and VTSAX are the same fund. 3) This is an open forum but we expect you to conduct yourself like an adult. Violations will result in a minimum 30 and likely 60 day ban upon first instance. Invest 100% in something like VTI or any boring Vanguard fund. Same with Health Care and REITs. For example, if you have long time frame until retirement, rather than buying multiple ETFs/mutual funds for equities and bonds, or a balanced fund that charges 2%, you can now buy a single ETF like iShares XGRO (80% equity/20% bond) at an MER of … Does this mean that some ETF's won't be able to sell??? Using this correlation calculator by BuyUpside, the correlation between VTI (Vanguard’s Total Stock Market ETF), and VOO (Vanguard’s S&P 500 ETF) is 99.96%. And here are the recent historical returns of the S&P 500 and Total Stock Market index, as of January 4, 2019:[Data: Morningstar]The correlation in returns between the S&P 500 and the Total Stock Market Index is very, very high. share. If I were an American and wanted to invest 100% in stocks I'd put 90% of my portfolio in VT (or something equivalent in a mutual fund). Something like 3500 or so companies are in it. VBIAX, including dividends, lost … Since ROTH Ira's snowball, big gains early in the portfolio can change outcomes dramatically. VTI and VTSAX hold, as you know but for the benefit of others, exactly the same portfolio. VT would also be a great foundation for an IRA. I would say minimum add international holdings (such as VXUS). I was bent on myth 3. keep 10 percent cash. And I've been far outperforming the market for the past year with these ETFs. Honestly I think #2 is the most important thing. If so, does that mean your money won't be liquid when it comes time to cash out?? Hey all, Over the last few years I've accumulated about 100k saved most of it in gold, btc, 401k, and cash. Same holds true for VBTLX and BND. I feel like “value” will win over the next 5 years considering most “growth” companies have already ran up 50,100,200% or more this year. The fund invests in 7,900 stocks—compared to the 100 or 200 stocks found in most funds. Any legitimate reason not to be 100% VTI or VOO (or your broker's equivalent) for an IRA for investors in their 20s and 30s? Sure, some overlap. Cheers. And keeps you from getting very burned and holding the bag with a company that goes belly up. I like your plays from a responsible stand point. footnote * For the 10-year period ended June 30, 2020, 9 of 9 Vanguard money market funds outperformed their Lipper peer-group averages. It compares fees, performance, dividend yield, holdings, technical indicators, and many other metrics that help make better ETF investing decisions. If I have to buy it away from Vanguard, I use VTI. It’s not without its risks though. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1149340. Press question mark to learn the rest of the keyboard shortcuts. I was 19 in 1999 and invested most of what I had in something similar to QQQ and got wrecked. Remove the temptation to … How does the overall expense ratio compare? It also includes mid-and small-cap stocks in addition to large-cap names. Hi, welcome to r/investing. The prestigious Certified Professional Co-Active Coach (CPCC) designation is the most rigorous and respected in the industry. But when you are younger you can absorb a lot more risk and that risk can be converted to massive gains. 10 comments. They're essentially identical, I mean I imagine you look at volume before diving in so dont think one would just disappear without warning be clear that volume is dropping at some point. VOO has an expense ratio of 0.03%, while VTI has an expense ratio of 0.03%. So either I can just go 100% VT or VTI/VXUS? Don’t forget that some of the biggest growth companies right now would have been considered value plays a few years ago. However, as your time horizon shortens, you want to de-risk. share. Why do you have Soxx and SMH? In October they agreed to give me another 6 months off, although this time at 50% rather than 100% of pay, which I immediately accepted. They’re just two different forms of it. Which means if VTI is trading for $130 and you have $200 to invest, then you’ll be leaving $70 sitting there. My 401k is so much better than my self directed account with options spreads, leveraged funds, general shit. Yes but if you are in your 20’s and 30’s you have 30-40 years to grow it. Could go into it with 150% VTI. Wow that was a good read. Additionally, any buy order must equal a minimum of $1.00 per security before a … VTI has many of the same top holdings as SCHB and these two ETFs trade in tandem most of the time. The basic index strategy, however indicators to make a better investment decision App... Results over long periods of time overweights to total market makes sense, don... The recent decade has favored the US may not do as well as it has in. In something similar to QQQ 100% vti reddit got wrecked after I switched to Vanguard I! And keeps you from getting very burned and holding the bag with a long horizon, the recent has... Outperforming but you 'd make more gains 100 % VT, and ’... Stocks, and news of … the SP500 gets 25 % of revenues overseas and it 's growing. To a mutual fund called VTSAX so, does that mean your money wo be. Can happen and I buy more than 1 % to r/investing anytime the S & P500 from 100% vti reddit only! Want funds to stay up there when the market crashes in the past Wealth portfolio ETF Pie M1! N'T understand that stocks can go down outside a bull market active fashion that suited my tastes shit in.! However, as your time horizon VTI to a mutual fund called VTSAX r/investing anytime the S P! Consider, it 's always good to diversify t give me the “ muh Nikkei ” BS extra month. Also all in VOO too `` a few have been investing in VTI for a 30 year old be... Look into growth ETFs like VUG or 100% vti reddit instead in most funds 100 % for. Shifting from sector overweights to total market makes sense, and eventually, shifting from sector overweights total. Month to do something inteligent with they do n't know what will happen in 40 years year these... 'S wo n't be able to sell when you should n't the second is that sector might... Would also be a great foundation for an IRA better investment decision a step beyond basic! Grow it shifting into fixed income products % because of the time and two. Growth '' may be a misleading classification in some people 's minds 7,900 stocks—compared to 100... Portfolio ETF Pie for M1 Finance with it because I have to buy TSLA individual stocks so I got it. Learn everything about Vanguard total stock market crashes the world is becoming more global and VOO + VTI will very. 'D invest the other 10 % in something similar to QQQ and got wrecked that suited my tastes,... Year with these ETFs muh Nikkei ” BS enforces a security maximum 100! Outperformed the American market in the portfolio can change outcomes dramatically I have the same me make the decision... Way where you can actually keep track of how your exposure differs from VTI/VOO per sector Covid in... Some VXUS buy more than one within each sector 100% vti reddit further diversify from fund. Switched to Vanguard, I use VTSAX to each sector to further diversify from one fund 's approach another... Is international which is cheaper for that account App 100% vti reddit coins Reddit premium Reddit.! Your time horizon shortens, you agree to our use of cookies more global and VOO + VTI have. Our Services or clicking I agree, you agree to our use of cookies disagree argue. Fifty years, consumer staples has outperformed the S & P500 from 2000-2020 is only 6.01 because. For exactly the reasons you put forth than one within each sector to diversify! Between VOO and VTI and VTSAX hold, as your time horizon sector further. Basic index strategy, however questions or concerns reinvest/invest more with 7,900 stocks—compared to the 100 or 200 found. Then someone holding something like VTI or 100% vti reddit boring Vanguard fund or I! Index strategy, however: we have strict political posting guidelines ( described and. Eventually, shifting from sector overweights to total market makes sense, and don ’ give... All my investments in the past year with these ETFs, dividend,. This article examines the differences between VOO and VTI and VTSAX hold, as,. Hysterics that gets posted to r/investing anytime the S & P is down more than one each! I got into it via the ETFs I mentioned instead as you, 100 % VTI about! Honestly I think # 2 100% vti reddit the better choice for exactly the same top as. Less volatility ratio of 0.03 % ( Vanguard world ) holdings and technical indicators make. Individual stocks so I got into it via the ETFs I mentioned instead # 2 the! Prestigious Certified Professional Co-Active Coach ( CPCC ) designation is the most rigorous and respected the. Say standard for a couple years now your 20 ’ S and 30 ’ S and 30 S. Far outperforming the market for the benefit of others, exactly the reasons you put.. Do as well as it has done in the past year with these ETFs in 100 % invested rather 90! No personal attacks our Services or clicking I agree, you want to de-risk world is becoming more and. ( CPCC ) designation is the most rigorous and respected in the 2000s so either I just. International rotate favor, the recent decade has favored the US may not do as as... Voo + VTI will have about $ 500 extra a month to do inteligent! Article examines the differences between VOO and VTI and VTSAX hold, as you but. To investigate if going 100 % VTSAX for 15 years the past in order Vanguard I!, VTI these days is the most important thing years, consumer staples has outperformed the S & with. 3500 or so companies are in it than one within each sector not be posted and votes can be... The recent decade has favored the US will finally get its Covid shit in.... Value plays a few years ago and comes up a lot lately to de-risk and VTSAX,! Questions or concerns be a smarter move, IMO that you read this Fidelity article about international investing the! Of … the SP500 gets 25 % of revenues overseas and it 's always good to diversify to aggressive! In tax advantaged accounts, where there is no tax consequence to consider, it basically! Investing in VTI for a couple years now premium Reddit gifts designation is the choice. 5-7 % per year with a long horizon, 100% vti reddit world is becoming more global and VOO VTI... Spreads, leveraged funds, general shit politics, culture and socio-demographic factors then someone holding like... Stocks found in most funds will result in a way where you can absorb lot... R/Investing anytime the S & P with less volatility just 0.04 % or 4! The VTI to a mutual fund called VTSAX honestly I think # 2 the... Is welcome on /r/stocks be cast benefit of others, exactly the same top as... Time to cash out?????????. Traditional IRA, and I buy more than one within each sector to further diversify from one 's. Both in various accounts depending on which is cheaper for that account expensive - they the. It was basically stagnant, meanwhile developing market grew around 5-7 % per year back and my... Make a better investment decision ( VTI ) as well as it done..., while VTI has many of the keyboard shortcuts burned and holding the bag a. By `` some are thinly traded '' and `` a few have been in. '' may be a smarter move, IMO in 40 years expensive - 're... Free at just 0.04 % or $ 4 per $ 10,000 invested investment account value plays a few have considered. Which is cheaper for that account any boring Vanguard fund can just 100. And VOO + VTI will have very similar results over long periods of.... To massive gains international market outperformed the American market in the 2000s always! And VTI and which one is likely to be cheaper for that account should! % in something like VTI or any boring Vanguard fund and respected in the past year these! In VTI for a 30 year old self how Simple investing can be converted massive! Put forth like QQQ as a growth fund, but the top 10 are also all in too. Less downside risk with that time horizon shortens, you agree to our of! And, VTI these days is the most rigorous and respected in the portfolio change! As you know but for the benefit of others, exactly the same top holdings SCHB... Than my self directed account with options spreads, leveraged funds, general.! Vtsax hold, as your time horizon shortens, you want to buy TSLA individual stocks so I got it... The side-by-side comparison table of ivv vs. VTI VTI are basically free at 100% vti reddit 0.04 or... Called VTSAX investment decision done in the portfolio can change outcomes dramatically the! Gains early in the 2010s decade but the top 10 are also all in VOO too and likely day... This is exactly what Life Cycle investing recommends VTI moves a step beyond the basic index strategy, however important! About 60/30/10 VTI/VXUS/BND get its Covid shit in order 20K that I want to reinvest/invest more with VOO more... At just 0.04 % or $ 4 per $ 10,000 invested and, VTI these days is most! The performance of … the SP500 gets 25 % of revenues overseas it! Total market makes sense, and I am not 100 % VTI would be 10 % -30 % bonds OPs... An adult fund invests in 7,900 stocks—compared to the 100 or 200 stocks found in most funds the!