Your instinct to be aggressive is correct, but don't overcomplicate it. The SP500 gets 25% of revenues overseas and it's only growing. 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. VOO has an expense ratio of 0.03%, while VTI has an expense ratio of 0.03%. For those of us with a long horizon, the plan should always be to keep investing according to the predetermined plan. Does this mean that some ETF's won't be able to sell??? I would say minimum add international holdings (such as VXUS). Have you played QQQ or TQQQ? Same with Health Care and REITs. 2) Important: We have strict political posting guidelines (described here and here). 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. For instance, I didn't want to buy TSLA individual stocks so I got into it via the ETFs I mentioned instead. I recently started a traditional IRA, and am trying to investigate if going 100% VTI would be a wise choice? Invest 100% in something like VTI or any boring Vanguard fund. Only mutual funds and ETFs (exchange-traded funds) with a minimum 10-year history were included in … Anything else is simply an emotional response. keep 10 percent cash. If so, does that mean your money won't be liquid when it comes time to cash out?? Its a great fund. If I buy it at Vanguard, I use VTSAX. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. 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? footnote * For the 10-year period ended June 30, 2020, 9 of 9 Vanguard money market funds outperformed their Lipper peer-group averages. 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.. So you're incorrect to say that VOO is more expensive - they're the same. share. US returns have been great in the 2010s decade but the international market outperformed the American market in the 2000s decade. The fund invests in 7,900 stocks—compared to the 100 or 200 stocks found in most funds. Would like to now if there are any compelling reasons not to be. History suggests that such trends are cyclical. "Growth" may be a misleading classification in some people's minds. 3) This is an open forum but we expect you to conduct yourself like an adult. 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. What do you mean by "some are thinly traded" and "a few have been known to close"? Hi, welcome to r/investing. Being 100% stock and whether or not to invest in international stocks is a topic and comes up a lot lately. I'm going to re-iterate what others already, stay the course and add some VXUS. E.g., coal and oil. This article examines the differences between VOO and VTI and which one is likely to be a better investment. Sometimes value far outperforms "growth" designated. 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. I was bent on myth 3. 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. I like QQQ as a growth fund, but you could also allocate a small percentage to VUG or MGK instead. You are young and have a higher tolerance for risks. 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. In VTI you're more exposed to US politics, culture and socio-demographic factors then someone holding something like VT (Vanguard World). Best Vanguard ETFs: Vanguard Total Stock Market ETF (VTI) Expense Ratio: 0.03%, or $3 per $10,000 invested annually. 13. Additionally, any buy order must equal a minimum of $1.00 per security before a … JL Collins Simple Path to Wealth Portfolio ETF Pie for M1 Finance. I hope that all makes sense? Sure, some overlap. The second is that sector investment might be wiser and carry less downside risk with that time horizon. 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. 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. 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%. Posted by 9 days ago. Check out the side-by-side comparison table of IVV vs. VTI. Expenses for VTI are basically free at just 0.04% or $4 per $10,000 invested. Do everything I could to automatically invest every month and never check the account. But when you are younger you can absorb a lot more risk and that risk can be converted to massive gains. 12. 100% VTI? The US will finally get its Covid shit in order. Agreed. save. 10 comments. Disclosure: I've been 100% VTSAX for 15 years. Free ratings, analyses, holdings, benchmarks, quotes, and news. Cookies help us deliver our Services. Remove the temptation to sell when you shouldn't. I'd say standard for a 30 year old would be 10%-30% bonds. The US may not do as well as it has done in the past. But I want to be fully exposed to each sector. US has been outperforming but you don't know what will happen in 40 years. 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. These funds mentioned have relatively high volatility. How does the overall expense ratio compare? Using Vanguard’s low-cost ETF for the total U.S. stock market, we can construct the JL Collins Simple … more 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. EDIT: OSUBedbugs is correct. Never regretted it. Of course, major changes can happen and I think it is important to re-balance if there are large structural changes. I was 19 in 1999 and invested most of what I had in something similar to QQQ and got wrecked. I confused them. Honestly I think #2 is the most important thing. If you want to play around with trading, have a separate investment account. Could go into it with 150% VTI. 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 … Yeah but you'd make more gains 100% invested rather than 90 10. 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. The prestigious Certified Professional Co-Active Coach (CPCC) designation is the most rigorous and respected in the industry. Since ROTH Ira's snowball, big gains early in the portfolio can change outcomes dramatically. Press J to jump to the feed. Would like to now if there are any compelling reasons not to be. I have most of my money in VTI. 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