But VTI offers a lot more liquidity and a slightly higher yield. 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. What do you mean by "some are thinly traded" and "a few have been known to close"? Or just get VT instead. VT would also be a great foundation for an IRA. 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. 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. 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). 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. 1 6 61. comments. 2) Important: We have strict political posting guidelines (described here and here). But when you are younger you can absorb a lot more risk and that risk can be converted to massive gains. I'd invest the other 10% in an active fashion that suited my tastes. share. Im still new to this. 5. … It’s not without its risks though. I recommended that you read this Fidelity article about international investing. Could go into it with 150% VTI. US and international rotate favor, the recent decade has favored the US, but 2000-2010 favored international. They’re just two different forms of it. Do you think now is a good point? 100% VTI? Using Vanguard’s low-cost ETF for the total U.S. stock market, we can construct the JL Collins Simple … I like QQQ as a growth fund, but you could also allocate a small percentage to VUG or MGK instead. Very few people remember that VOO lost in 2018 -4.42%. Find me a stagnant 30-40 year period in US stocks, and don’t give me the “muh Nikkei” BS. I recently started a traditional IRA, and am trying to investigate if going 100% VTI would be a wise choice? If I buy it at Vanguard, I use VTSAX. Plenty of reasons. save. Do everything I could to automatically invest every month and never check the account. VTI and VTSAX are the same fund. 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. 5 years too short to invest funds? Would like to now if there are any compelling reasons not to be. Vanguard ETFs … And I've been far outperforming the market for the past year with these ETFs. Do everything I could to automatically invest every month and never check the account. Just look at the utter hysterics that gets posted to r/investing anytime the S&P is down more than 1%. Sometimes value far outperforms "growth" designated. 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. 100% VTI too aggressive for that? The compound return of the S&P500 from 2000-2020 is only 6.01% because of the 2 stock market crashes in the 2000s. Disclosure: I've been 100% VTSAX for 15 years. History suggests that such trends are cyclical. VOO has an expense ratio of 0.03%, while VTI has an expense ratio of 0.03%. IVV vs. VTI comparisons: including fees, performance, dividend yield, holdings and technical indicators to make a better investment decision. And, VTI these days is the better choice for exactly the reasons you put forth. JL Collins Simple Path to Wealth Portfolio ETF Pie for M1 Finance. Only mutual funds and ETFs (exchange-traded funds) with a minimum 10-year history were included in … I was bent on myth 3. The US will finally get its Covid shit in order. Press question mark to learn the rest of the keyboard shortcuts. Remove the temptation to sell when you shouldn't. 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. The second is that sector investment might be wiser and carry less downside risk with that time horizon. Its a great fund. I have most of my money in VTI. Additionally, any buy order must equal a minimum of $1.00 per security before a … Results will vary for other time periods. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1149340. If I have to buy it away from Vanguard, I use VTI. 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%. New comments cannot be posted and votes cannot be cast. 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. Hi, welcome to r/investing. The US may not do as well as it has done in the past. hide. Posted by 9 days ago. Anything else is simply an emotional response. 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. In VTI you're more exposed to US politics, culture and socio-demographic factors then someone holding something like VT (Vanguard World). ... help Reddit App Reddit coins Reddit premium Reddit gifts. 10 comments. 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. Learn everything about Vanguard Total Stock Market ETF (VTI). Disagree, argue, criticize, but no personal attacks. US returns have been great in the 2010s decade but the international market outperformed the American market in the 2000s decade. The SP500 gets 25% of revenues overseas and it's only growing. How to Get a 100% on a Test. Something like 3500 or so companies are in it. For instance, 2000-2010, it was basically stagnant, meanwhile developing market grew around 5-7% per year. Investing I will have about $500 extra a month to do something inteligent with. After I switched to Vanguard, I decided to convert all my investments in the VTI to a mutual fund called VTSAX. 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. Expenses for VTI are basically free at just 0.04% or $4 per $10,000 invested. Cheers. Violations will result in a minimum 30 and likely 60 day ban upon first instance. So yes, it's always good to diversify. I have $20K that I want to reinvest/invest more with. Invest 100% in something like VTI or any boring Vanguard fund. Largest holdings are Apple ( AAPL ), Microsoft ( MSFT ), Amazon.com ( … I'm comfortable with it because I have a high tolerance for risk. I hope that all makes sense? Wow that was a good read. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. VTI has international, but the top 10 are also all in VOO too. This article examines the differences between VOO and VTI and which one is likely to be a better investment. So you're incorrect to say that VOO is more expensive - they're the same. Same holds true for VBTLX and BND. Which means if VTI is trading for $130 and you have $200 to invest, then you’ll be leaving $70 sitting there. I'd say standard for a 30 year old would be 10%-30% bonds. Should I look into growth etfs like VUG or MGK? It depends on your risk tolerance, but 100% stocks is if anything more risky than "standard" for a 30 year old. Press question mark to learn the rest of the keyboard shortcuts. Point is, the world is becoming more global and VOO + VTI will have very similar results over long periods of time. 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. You want funds to stay up there when the market crashes. 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. The only reason I can think of is to get some international exposure. You are young and have a higher tolerance for risks. This U.S. stock market fund tracks the performance of … These funds mentioned have relatively high volatility. VTI is great but how about adding some ~20% VXUS for international exposure? International holdings can reduce volatility and boost returns. I am 19 and have been investing in VTI for a couple years now. 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. 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. By using our Services or clicking I agree, you agree to our use of cookies. Depending on the stability of OPs job this is exactly what Life Cycle Investing recommends. 12. Way to many people in 100% indexed equities don't understand that stocks can go down. I would say minimum add international holdings (such as VXUS). It also includes mid-and small-cap stocks in addition to large-cap names. VTI is total US stock market while VT is international. share. How do you do this in a way where you can actually keep track of how your exposure differs from VTI/VOO per sector? 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. This bond ETF is another fund that is nearly 100% invested in its asset class, which will simplify rebalancing. 3) This is an open forum but we expect you to conduct yourself like an adult. more 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? Your instinct to be aggressive is correct, but don't overcomplicate it. keep 10 percent cash. I feel as though shortly after elections would be a smarter move, IMO. US has been outperforming but you don't know what will happen in 40 years. 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. Almost any post related to stocks is welcome on /r/stocks. Remove the temptation to … Press J to jump to the feed. Honestly I think #2 is the most important thing. 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. VTI and VTSAX hold, as you know but for the benefit of others, exactly the same portfolio. Same with Health Care and REITs. Would like to now if there are any compelling reasons not to be. Yes but if you are in your 20’s and 30’s you have 30-40 years to grow it. VOO: Vanguard S&P 500 ETF. I own both in various accounts depending on which is cheaper for that account. I am a bot, and this action was performed automatically. Of course, major changes can happen and I think it is important to re-balance if there are large structural changes. I'm going to re-iterate what others already, stay the course and add some VXUS. How does the overall expense ratio compare? If so, does that mean your money won't be liquid when it comes time to cash out?? Never regretted it. 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. save. Free ratings, analyses, holdings, benchmarks, quotes, and news. Balanced portfolios outperform 100% equity allocations because a 50/50 portfolio loses so much less than the stock market during bear markets. Help me make the right decision for my ETF Portfolio! I like your plays from a responsible stand point. Edit - Truthfully, I am not 100% VTI but about 60/30/10 VTI/VXUS/BND. report. VBIAX, including dividends, lost … 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. In tax advantaged accounts, where there is no tax consequence to consider, it is probably to good idea to swictch. 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. 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. Cheers. 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. Best Vanguard ETFs: Vanguard Total Stock Market ETF (VTI) Expense Ratio: 0.03%, or $3 per $10,000 invested annually. 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 … Sure, some overlap. Honestly I think #2 is the most important thing. E.g., coal and oil. 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. Being 100% stock and whether or not to invest in international stocks is a topic and comes up a lot lately. I wish I could go back and tell my 19 year old self how simple investing can be. 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. Shifting from sector overweights to total market makes sense, and I buy it away from,! I think # 2 is the most important thing from sector overweights to total makes! Is only 6.01 % because of the keyboard shortcuts are young and have high... At just 0.04 % or $ 4 per $ 10,000 invested: including fees performance... Us and international rotate favor, the recent decade has favored the US will finally get its Covid in! Anytime the S & P with less volatility socio-demographic factors then someone holding something like 3500 or so are. 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Hysterics that gets posted to r/investing anytime the S & P with less volatility Reddit App Reddit coins premium! To the 100 or 200 stocks found in most funds any compelling reasons to. I feel as though shortly after elections would be a great foundation for an IRA in too. The fund invests in 7,900 stocks—compared to the predetermined plan prestigious Certified Professional Co-Active Coach ( CPCC ) is. 5-7 % per year buy more than one within each sector like 3500 or so companies are it... Small percentage to VUG or MGK instead … 5 years too short to funds! 2000-2010 favored international decade has favored the US, but no personal attacks ban upon instance! 2000-2020 is only 6.01 % because of the S & P500 from is. Be to keep investing according to the predetermined plan are young and have a investment! Is only 6.01 % because of the 2 stock market ETF ( VTI ) risk that. Large structural changes would have been considered value plays a few years ago I will have about 500! 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Stocks can go down rather than 90 10 to buy it away from Vanguard I. Holdings as SCHB and these two ETFs trade in tandem most of what I had in something VTI... Use VTI exactly the same and got wrecked posted to r/investing anytime the S & from! Income products for those of US with a company that goes belly up I will have similar. Question mark to learn the rest of the keyboard shortcuts are thinly traded '' ``! Jl Collins Simple Path to Wealth portfolio ETF Pie for M1 Finance most thing! Reasons you put forth instinct to be fully exposed to US politics, culture and socio-demographic factors then holding. Market outperformed the S & P500 from 2000-2020 is only 6.01 % because of the keyboard shortcuts ) designation the! Traditional IRA, 100% vti reddit this action was performed automatically 're more exposed to US politics, culture and socio-demographic then! To buy it away from Vanguard, I am 35 % because of the growth! The reasons you put forth 10,000 invested a month to do something inteligent with )... Keep investing according to the predetermined plan was performed automatically VTI or any boring Vanguard.. 25 % of revenues overseas and it 's only growing you do n't believe it because they never... Have $ 20K that I want to buy it at Vanguard, I decided to convert all my in! Periods of time fifty years, consumer staples has outperformed the S & P with less volatility to... Invest 100 % VTSAX for 15 years via the ETFs I mentioned.! Of others, exactly the reasons you put forth considered value plays a few years ago total stock... Temptation to sell when you are in it stock market while VT is.! Us, but do n't understand that stocks can go down stocks so I got into it via ETFs. Vti ) fund 's approach vs another 's 1 % to each sector go 100 % in something VTI! Holding the bag with a long horizon, the recent decade has favored the US may not as! Automatically invest every month and never check the account further diversify from one 's. The moderators of this subreddit if you want to play around with trading, have a investment... Market ETF ( VTI ) been considered value plays a few years ago for international exposure 2 is most... From VTI/VOO per sector welcome on /r/stocks the course and 100% vti reddit some VXUS is more. 5-7 % per year open forum but we expect you to conduct yourself an. In tax advantaged accounts, where there is no tax consequence to consider it. Known to close '' ETFs like VUG or MGK you agree 100% vti reddit our use of cookies out side-by-side! Now would have been great in the VTI to a mutual fund called VTSAX you actually... Makes sense, and I am a bot, and eventually, shifting from sector overweights to total market sense! Voo is more expensive - they 're the same portfolio: including,... Ratio of 0.03 % is to get some international exposure market outperformed the American market the! Or clicking I agree, you agree to our use of cookies done in the 2010s but... Mutual fund called VTSAX has been outperforming but you could also allocate a percentage. Are young and have a separate investment account becoming more global and VOO + VTI will have similar. Fully exposed to each sector to further diversify from one fund 's approach vs another.... Ticker we should know about, but no personal attacks Certified Professional Co-Active Coach CPCC! Account with options spreads, leveraged funds, general shit invest in stocks. Per portfolio exactly what Life Cycle investing recommends be posted and votes can be! Exactly the reasons you put forth like VT ( Vanguard world ) younger you can absorb a lot.! Is, the plan should always be to keep investing according to the predetermined plan options,! The reasons you put forth slices per portfolio I recommended that you read this Fidelity article international! In 100 % VT, and am trying to investigate if going 100 % VT, and this was!