$10,000 where to put it?
By - Party-Capital
>Where do I begin though? I hear good things about SPY and VTI, but could anyone provide some insight as to why these are good?
These are good because it's basically the benchmark. By investing in the benchmark, you are guaranteed benchmark performance (aka \~10% per year) without any effort on your part. What's more, this is good enough to outperform something like 90% of fund managers.
By doing something else, you are gambling that you are part of the 10% rather than the 90%. Maybe you are, maybe you aren't. The only way to find out is if you try if you are so inclined. If you are, I would recommend leaving 80-90% of your portfolio in the benchmark. This gives you 10-20% to do buy whatever you want that you think will outperform. If you are able to consistently outperform, increase the %. If not, then you should go back to investing in the benchmark like the majority of people should.
Vti is good because it tracks the entire us stock market. Removes all the bias, illusion of knowledge, blah blah blah and just tracks the whole market which over time earns a stable solid good return. Very few active investors end up even beating the market, Even professional ones. So it’s a great core holding. As you accumulate more wealth and knowledge you can add to it by making more specific small bets on top of it, like for example you want to hold a little extra in this sector or that, or in value stocks or in small cap, etc. but vti takes the pain of the decisions away and earns you the return of the total market which is hard to beat in terms of risk adjusted returns.
Spy is similar but instead of whole market it only tracks the top 500 stocks. So it’s all large companies. Historically the returns of spy and vti are very similar though because the performance of the top 500 stocks is a good predictor of the performance of the whole stock market.
Many favor vti long term because small cap tends to outperform over the long hall and people don’t see a reason to be in 100% large cap. It’s also just more diverse since you have exposure to literally every publicly traded company.
Just buy VOO. It will go up and down with the S&P 500. If want to take higher risk, go for VUG or SCHG. Both are excellent growth ETFs.
maybe a touch both of mgk and vtv as well.
I have 100k i have to diversify so will be looking at more voo and either qqq/vgt and some mgk / vtv....still trying to formulate a plan to avoid redundancy
GBTC nuff said
Just so you know, VOO and SPY are the same thing. They both track the S&P 500, but SPY has a little bit higher fees being more liquid and having a more active option chain. Can’t go wrong with VTI, it’s the total US stock market, so that’s about as diversified as it gets. The S&P 500 makes up about 80% of the us stock market, so VTI gives you that plus small cap exposure. If it were me, I would do a mix of VTI and VXUS, which is total world stock market excluding the US. International exposure is good to have.
How do you feel about vti w some vt
No point having both - VT is total work stock market and VTI is total US, thus all of VTI is included in VT. You’d just be double dipping on the whole US stock market. If you go with VT that’s really all you need, but some people believe it is weighted too heavily internationally. That’s why VTI + VXUS to your desired US/international weighting is a favorite around here.
Yes vt is world va vti that's us
Why is it bad to have both. You're getting all us exposure big Market usa w vti. Vt is world wide has small and medium cap as well as the big top 50 stocks.
Isn't vxus same a vt a world stock per say
I was thinking 80 20 10 in vti vt qqq
From my readings vti beats vt on roi.
Qqq is more risky and tech but bigger gains bigger loses as well
Vti is equal to spy from mu understanding and 80% our top stocks. Vt from mu understanding is 8500 stocks vs 3500 and a mix of small medium cap international and our top stocks
VXUS isn’t the same as VT. VT is the total world stock market, including the US stock market. VXUS is the world stock market excluding the US. If you hold VT, you’re holding the total US stock market already because the US stock market makes up over half of the world stock market. If you buy VTI in addition to VT, you’re doubling up on the US stock market exposure. That’s why it’s redundant to hold both.
In regards to the point about VTI beating VT in ROI - yes, the United States has experienced a historic decade long bull run and US stocks have outperformed the rest of the world during that timeframe. Past performance is not an indicator of future performance. There are inevitably periods where the US underperforms the rest of the world, and ETFs with heavy international exposures would beat the US ETFs. That’s why it’s important to weight your US exposure vs international exposure in a way that aligns with your future global performance outlook.
OK so you like vt over vti. Big price difference between the two. Long term
100% voo or vti, don't be stoooopid
No Veesucks (VXUS)?
To me, it really depends on age and risk tolerance. 100% voo/vti will make 10k grow exponentially with (IMO) lower risk than QQQ. If you are a little older, 30+ perhaps consider a 3 fund.
I dislike vxus. I exited it recently at the same price i paid for it. The dividend is nice but i dont like the exposure to china stocks
Despite this, globally diversified investment always the safest compared to US only.
Great info here. Thanks for the help I just learned info myself
Thank you to everyone for your advice, I've learn't a shit ton from this. It seems VTI will be the way to go for the immediate future and then diversify?
I'll keep an eye on this thread for the next few days :)
VTI nothing else to be said 🤷♂️
Send it to me. Pretend your bag holder for Meme stocks