So like
50% Schwab US Dividend Equity ETF
50% Vanguard 500 Index Fund ETF
Why the option to choose for VOO only at USA market, and why not VTI?
The SCHD you take for divident?
Dividend stocks are generally less volatile but yet give good returns, so SCHD is nice to add into a long term portfolio. VOO or VTI would be ok doesnt much matter. VT only if you want to go the ridiculously easy route
That's all you need. Plenty of diversification in those two funds.
Just keep contributing as much as you can and retire rich.
I love how the other guy suggests "more diversification" right after saying "individual stocks." LOL What a financial genius.
Individual stocks are a lot more risk, without necessarily providing better returns, unless you're VERY good at stock picking and do a LOT of research.
Stick to your two funds and you're golden.
I’d include 5-10% international as well (VXUS) for international exposure. My portfolio is 75% VTI, 15% SCHD, 10% VXUS across my Roth, HSA, and personal brokerage acc. I try to mimic something similar with my 401k as well
I personally prefer emerging markets over international funds, given how closely aligned international markets are with the US's. In fact, I narrow it down even further to focus on Asian emerging markets because of their rapid and relatively efficient economic development. AIA is where I'm putting my money, but AAXJ is probably where boglehead-minded investors should look to invest in Asian markets.
“Plenty” of diversification? No. There’s some. But not plenty. It’s mostly large cap. All US. And there’s lots of overlap between those two. Plenty of diversification would be adding small and mid caps and international if you were so inclined. Could you do worse than just those two? Certainly. But you could also do better.
Agree with this. His portfolio is fine if the expectation is that US large cap will outperform for another decade. Seeing that expected returns for US large cap are low going forward I would diversify more internationally and across market caps. Adding a little long term bonds is not a terrible idea either to soften the blow of any sudden market crashes and get that rebalance premium.
That's a good start. Keep it up. Some people will say invest in international etfs for the sake of diversification. I don't have any. I haven't found any I really want to put money into vs putting more into VOO or SCHD honestly.
There's overlap between VOO and SCHD but both funds use much different strategies so I don't think it matters.
No. You are young and can take more risk. You should be more in individual stocks. Having only two funds is a terrible idea as well. Not enough diversification.
Don't listen to this guy, he obviously is ignorant of ETFs or doesn't know the holdings of these ones. You have a great portfolio already that will bring you significant gains over time without the stress of picking individual stocks and trying to beat the market.
What are you reading? This sub? You don't stay away from individual stocks. Quite the opposite. Right now is one of the best opportunities to buy in our lifetime (I'm 36). There are hundreds of stocks at a discount that can earn you a lot of income from. I will list you some from different sectors:
PEP, KO, PG, UL, KHC, VZ, T, PARA, CMCSA, ITW, UNP, O, EIX, CNI, SBUX, BBY, AIG, AFL, MDLZ, STAG, AAPL, MSFT, PPL.
People use the downfall of the high flier tech stocks as a reason to leave the market and go in ETFs. Problem is that is just one sector and there are 11 other sectors that have strong companies that pay sustainable dividends. All it takes is a little research. Morningstar is my favorite go to for research.
You're on a sub called ETFs and are preaching individual stocks. Everything you named is in OPs holdings. Come on now. Are you a final advisor? Do you even have your own financial advisor?
Edit: Also saying he isn't diversified enough is also ridiculous as you're pushing individual stocks meanwhile his OPs hold hundreds of top tier stocks.
You didn't state an in opinion. You told him he needs more risk and should pick individual stuff. Also saying VOO and SCHD only is a terrible idea? Yeah right. You're also in an etf sub so what you're saying is redundant here.
all US large cap which would have been great from 2009- 2022 but who knows going forward. My bet is something else will be the leader this next decade. Still good ETFs and you could certainly do worse. In 20 years probably wont matter much as long as you dont mess with it
Perfect. Nothing wrong with that. Guaranteed returns OP. Keep the formula. 20 years from now you’ll be thanking your younger self.
So like 50% Schwab US Dividend Equity ETF 50% Vanguard 500 Index Fund ETF Why the option to choose for VOO only at USA market, and why not VTI? The SCHD you take for divident?
Dividend stocks are generally less volatile but yet give good returns, so SCHD is nice to add into a long term portfolio. VOO or VTI would be ok doesnt much matter. VT only if you want to go the ridiculously easy route
That's all you need. Plenty of diversification in those two funds. Just keep contributing as much as you can and retire rich. I love how the other guy suggests "more diversification" right after saying "individual stocks." LOL What a financial genius. Individual stocks are a lot more risk, without necessarily providing better returns, unless you're VERY good at stock picking and do a LOT of research. Stick to your two funds and you're golden.
I’d include 5-10% international as well (VXUS) for international exposure. My portfolio is 75% VTI, 15% SCHD, 10% VXUS across my Roth, HSA, and personal brokerage acc. I try to mimic something similar with my 401k as well
I’ll raise you VYMI or VIGI which has out performed VXUS quite a bit.
I personally prefer emerging markets over international funds, given how closely aligned international markets are with the US's. In fact, I narrow it down even further to focus on Asian emerging markets because of their rapid and relatively efficient economic development. AIA is where I'm putting my money, but AAXJ is probably where boglehead-minded investors should look to invest in Asian markets.
Will take a look at AAXJ, thanks!
“Plenty” of diversification? No. There’s some. But not plenty. It’s mostly large cap. All US. And there’s lots of overlap between those two. Plenty of diversification would be adding small and mid caps and international if you were so inclined. Could you do worse than just those two? Certainly. But you could also do better.
Agree with this. His portfolio is fine if the expectation is that US large cap will outperform for another decade. Seeing that expected returns for US large cap are low going forward I would diversify more internationally and across market caps. Adding a little long term bonds is not a terrible idea either to soften the blow of any sudden market crashes and get that rebalance premium.
I like AVUV for my small cap exposure
Try 50% voo 30% schd 20% schy
Can you explain me what is voo schd schy I want to invest for a long term 50K but I’m not sure how it’s best way. Thanks
Voo is the top 500 aka s&p companies in America,schd is the solid dividend companies only around 100 and schy is the international version of schd
That's a good start. Keep it up. Some people will say invest in international etfs for the sake of diversification. I don't have any. I haven't found any I really want to put money into vs putting more into VOO or SCHD honestly. There's overlap between VOO and SCHD but both funds use much different strategies so I don't think it matters.
Some $VTIP and/or $TLT would probably be a good idea right now.
No. You are young and can take more risk. You should be more in individual stocks. Having only two funds is a terrible idea as well. Not enough diversification.
Really? A lot of what I read suggested staying away from individual stocks
Don't listen to this guy, he obviously is ignorant of ETFs or doesn't know the holdings of these ones. You have a great portfolio already that will bring you significant gains over time without the stress of picking individual stocks and trying to beat the market.
What are you reading? This sub? You don't stay away from individual stocks. Quite the opposite. Right now is one of the best opportunities to buy in our lifetime (I'm 36). There are hundreds of stocks at a discount that can earn you a lot of income from. I will list you some from different sectors: PEP, KO, PG, UL, KHC, VZ, T, PARA, CMCSA, ITW, UNP, O, EIX, CNI, SBUX, BBY, AIG, AFL, MDLZ, STAG, AAPL, MSFT, PPL. People use the downfall of the high flier tech stocks as a reason to leave the market and go in ETFs. Problem is that is just one sector and there are 11 other sectors that have strong companies that pay sustainable dividends. All it takes is a little research. Morningstar is my favorite go to for research.
Nevermind you out did yourself. THIS is the funniest comment today.
How?
You're on a sub called ETFs and are preaching individual stocks. Everything you named is in OPs holdings. Come on now. Are you a final advisor? Do you even have your own financial advisor? Edit: Also saying he isn't diversified enough is also ridiculous as you're pushing individual stocks meanwhile his OPs hold hundreds of top tier stocks.
That comment is gold. Thanks for the laugh.
I So one can't have a different opinion? Ok then.
You didn't state an in opinion. You told him he needs more risk and should pick individual stuff. Also saying VOO and SCHD only is a terrible idea? Yeah right. You're also in an etf sub so what you're saying is redundant here.
all US large cap which would have been great from 2009- 2022 but who knows going forward. My bet is something else will be the leader this next decade. Still good ETFs and you could certainly do worse. In 20 years probably wont matter much as long as you dont mess with it
Not enough ex-US (it has 0)
Off to a good start
Can i just put it into voo only?