JUST OPENED ROTH IRA TODAY
By - cprivette
Lotta overlap in VTI and SCHG, personally would do 100% VTI you’ll be more diversified bro 🤜
Either VTI or VT. Can’t lose either way…unless you sell
Agreed bro 🤜
I really prefer a VTI, and VXUS split. I know VT likely will do the same, idk.
Thank you for the advice. I’ll definitely consider doing that.
Congrats on starting to save so early in your career! As u/STEP1GOD mentioned, there's considerable overlap between VTI and SCHG (43%), but also between VTI and QQQM (35%), and even more [overlap](https://www.etfrc.com/funds/overlap.php?f1=SCHG&f2=QQQM) between SCHG and QQQM (63%).
Also, nearly all of VNQ and VHT's constituents are also found in VTI, so you're just tilting your portfolio towards overweight in Real Estate and Health Care, two defensive sectors. Maybe too conservative for someone so young?
You could probably stand to increase your exposure to foreign equities using VXUS. On a global market cap basis, foreign stocks are \~46%, yet you are only at 5%. Stocks in [VXUS](https://www.etfrc.com/VXUS) are much cheaper (Fwd P/E = 14.5x) than those in VTI (22.3x)-- the widest spread in at least a decade-- so you're getting relative bargains as well.
Okay thank you for the information. This was very helpful. I’ve been doing a lot of research this past week on different etfs and what sectors are best, but I’ve been a bit overwhelmed with all of the options. What do you recommend I do?
Hey, to find forward P/E as you did, do you need to be a premium user of ETFRC? Thank you.
Yes, all fundamentals and valuation metrics are part of paid subscriptions.
I would go 80% VTI and 20% VXUS at your age. Maybe consider adding 10% of higher growth/tech exposure such as QQQ.
Thank you, that’s the route I’m leaning towards atm.
I do only VTI in my Roth and then VXUS in my taxable (for that international tax credit) at a split of 75/25.
That’s smart. I just looked that up and read about it. Thank you
Looks totally fine. Overlap is ok as long as it’s intentional. I wouldn’t be tilting towards real estate or healthcare myself (not that I know anything) because this is a bull growth market. You could do something like VTI 50%, VXUS 30%, 20% QQQM. That’ll give you 70/30 for US/International, with a tilt to tech. Or you could do 10 QQQM, 10 SCHG.
Thank you, this is another option I’ve been considering. I like SCHG and thought it would be nice with VTI. I’m definitely going to invest a small % in QQQM.
VTSAX in the Roth, VTI in the brokerage!
I haven’t looked into that one yet. I definitely will though. Thank you
VTSAX & VTI track the same CRSP US Total Market Index. They have some differences in the way the investment funds trade, slight differences in expense ratio, and minimum initial investment. Read up on it, and see if it’s right for
you. Good on you for starting now, Max out that Roth IRA every year, and you will make it to the promise land my friend.
VTI 50%, SCHG 25%, QQQ 25%. Better growth like that.
Don’t these have high overlap??
I'd look at VGT. Long track record, extremely low fees. It's done me beyond great for well over a decade.
I do a lot of Vanguard funds. For smaller net worth and less sophisticated investors your total stock fund is a safe choice for the anchor investment.
Look into bond mutual funds. Balance out your portfolio since yu want to be diversified and safe
I would highly suggest you utilize a ETF comparison tool like this one. Really helped me out with my decision making on ETF’s. I personally settled on VTI, SPYG, IJR, VXUS, AND ICLN. Starting young is a great idea, your future self will be very glad you did it. Best of luck!
I’ve been using that. It’s very helpful