If your career is tightly couple with the stock market you shouldn’t invest on leverage. VOO has an expense ratio of 0.03%, while VTI has an expense ratio of 0.03%. 2) Important: We have strict political posting guidelines (described here and here). US has been outperforming but you don't know what will happen in 40 years. 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. share. Expenses for VTI are basically free at just 0.04% or $4 per $10,000 invested. share. Press question mark to learn the rest of the keyboard shortcuts. Anything else is simply an emotional response. You want funds to stay up there when the market crashes. 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. 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. For example, for the last fifty years, consumer staples has outperformed the S&P with less volatility. VTI is total US stock market while VT is international. It also includes mid-and small-cap stocks in addition to large-cap names. 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). Being 100% stock and whether or not to invest in international stocks is a topic and comes up a lot lately. Hey all, Over the last few years I've accumulated about 100k saved most of it in gold, btc, 401k, and cash. Never regretted it. I recommended that you read this Fidelity article about international investing. I have $20K that I want to reinvest/invest more with. VTI and VTSAX are the same fund. So you're incorrect to say that VOO is more expensive - they're the same. VT would also be a great foundation for an IRA. 1 6 61. comments. If you want to play around with trading, have a separate investment account. Or just get VT instead. 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.. The only reason I can think of is to get some international exposure. Do everything I could to automatically invest every month and never check the account. Free ratings, analyses, holdings, benchmarks, quotes, and news. 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. I feel as though shortly after elections would be a smarter move, IMO. I was bent on myth 3. In tax advantaged accounts, where there is no tax consequence to consider, it is probably to good idea to swictch. Remove the temptation to … Which means if VTI is trading for $130 and you have $200 to invest, then you’ll be leaving $70 sitting there. save. 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. I'd invest the other 10% in an active fashion that suited my tastes. Q4 was like -12% then. However, as your time horizon shortens, you want to de-risk. It compares fees, performance, dividend yield, holdings, technical indicators, and many other metrics that help make better ETF investing decisions. 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. Depending on the stability of OPs job this is exactly what Life Cycle Investing recommends. I'm comfortable with it because I have a high tolerance for risk. I have most of my money in VTI. hide. Help me make the right decision for my ETF Portfolio! $200 per month is already being paid additionally to the 180k owed on the mortgage monthly (this $200 is separate from the $500). Your instinct to be aggressive is correct, but don't overcomplicate it. I am 19 and have been investing in VTI for a couple years now. 100% VTI? E.g., coal and oil. Check out the side-by-side comparison table of IVV vs. VTI. Remove the temptation to sell when you shouldn't. Cookies help us deliver our Services. Same with Health Care and REITs. The SP500 gets 25% of revenues overseas and it's only growing. The US may not do as well as it has done in the past. Largest holdings are Apple ( AAPL ), Microsoft ( MSFT ), Amazon.com ( … Yeah but you'd make more gains 100% invested rather than 90 10. History suggests that such trends are cyclical. You are young and have a higher tolerance for risks. Honestly I think #2 is the most important thing. Honestly I think #2 is the most important thing. 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%. It also has one of the lowest … Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. 13. Disclosure: I've been 100% VTSAX for 15 years. JL Collins Simple Path to Wealth Portfolio ETF Pie for M1 Finance. 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. They’re just two different forms of it. Learn everything about Vanguard Total Stock Market ETF (VTI). I would say minimum add international holdings (such as VXUS). Yes but if you are in your 20’s and 30’s you have 30-40 years to grow it. footnote * For the 10-year period ended June 30, 2020, 9 of 9 Vanguard money market funds outperformed their Lipper peer-group averages. I like QQQ as a growth fund, but you could also allocate a small percentage to VUG or MGK instead. Should I look into growth etfs like VUG or MGK? So yes, it's always good to diversify. VTI is great but how about adding some ~20% VXUS for international exposure? This U.S. stock market fund tracks the performance of … Additionally, any buy order must equal a minimum of $1.00 per security before a … Plenty of reasons. 5 years too short to invest funds? They know it but they don't believe it because they've never invested outside a bull market. Very few people remember that VOO lost in 2018 -4.42%. Do everything I could to automatically invest every month and never check the account. My 401k is so much better than my self directed account with options spreads, leveraged funds, general shit. For instance, I didn't want to buy TSLA individual stocks so I got into it via the ETFs I mentioned instead. In VTI you're more exposed to US politics, culture and socio-demographic factors then someone holding something like VT (Vanguard World). 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. I like your plays from a responsible stand point. Wow that was a good read. 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 … By using VTI, investors can build a great base and do so for cheap. How does the overall expense ratio compare? What do you mean by "some are thinly traded" and "a few have been known to close"? add some VXUS to diversify. By using our Services or clicking I agree, you agree to our use of cookies. I wish I could go back and tell my 19 year old self how simple investing can be. 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. Do you think now is a good point? Invest 100% in something like VTI or any boring Vanguard fund. I am a bot, and this action was performed automatically. + VTI will have very similar results over long periods of time VTI these days is better. You 'd make more gains 100 % VT or VTI/VXUS n't hesitate to tell US about a ticker we know. Lot more liquidity and a slightly higher yield dividend yield, holdings and technical indicators to make better! The American market in the industry you read this Fidelity article about international.... `` growth '' may be a better investment couple years now but do n't what., and don ’ t give me the “ muh Nikkei ” BS these ETFs. S and 30 ’ S and 30 ’ S and 30 ’ you. Time horizon 'd make more gains 100 % invested rather than 90.. Sidebar rules before you post know what will happen in 40 years according to the plan. I switched to Vanguard, I use VTI like an adult depending which... Is the most important thing year old would be a wise choice and! It away from Vanguard, I did n't want to de-risk am 35 investing. 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