Afraid to buy at the top of the market? I did... and this is how it's going so far #SOFIexperimentET

• 04/07/22

Afraid to buy at the top of the market? I did... and this is how it's going so far 😰 #SOFIexperimentETF ✨ March Update ✨ So I have officially hit my 3 month checkpoint on my ETF portfolio on SOFI, where I invest into index funds, small/mid cap ETFs, and sector ETFs and see how it performs vs individual stocks. As you know, the market has been VERY volatile this year. On January 4th, I accidentally bought at the top of the market. I have been in the red ever since, with my portfolio dropping as much as 8.46%, with certain sectors dropping over 12%. Which compared to historic corrections... is not that bad. But, with all the outside factors such as inflation, geo-political tensions, supply chain issues, etc... it's enough to freak some people out. And I'm going to show you just how a little bit of time can make a huge difference. At the end of February, my overall performance was down -5.24%. But just a month later... and my portfolio has climbed back up to -0.92%, and even dipped positive for a couple days on March 29th. Not to mention, on March 31st I received $20.04 in dividends from my different ETFs. ————— 💰 Here is how much has changed since last month: Total Return as of February 28th $VOO : -8.59% $VTI : -8.79% my SOFI etf: -5.24% Biggest Winner: $VDE +18.24% Biggest Loser: $VTI -8.79% Total Return January 4th - April 4th (3 Months) $VOO : -2.41% $VTI : -2.82% My SOFI ETF: -0.92% Biggest Winner: $VDE : +25.47% Biggest Loser: $VFH : -5.39% As you can see, $VTI and $VOO made a huge comeback and energy has continued to climb. Time makes such a huge difference, and removing emotions from investing makes things much easier. Sometimes when things go red you panic... I have to remind myself I'm not here to make quick money, but I'm investing for my future and my retirement. If you zoom out, you'll realize that no matter how bad things get, the market has historically recovered eventually... and sometimes way faster than you expect. ————— 🤗 Now let's talk about market sectors: As a recap here are the sector ETFs I am invested in: $VDE - Energy ETF $VHT - Healthcare ETF $VAW - Materials ETF $VPU - Utilities ETF $VFH - Financials ETF $VIS - Industrials ETF I chose these 6 because I knew energy was going to be major concern, materials and financials had low P/E ratios, I thought financials would see an increase with interest rate hikes, and Healthcare and Utilities to do well in a market correction or recession. I thought about including Consumer Staples instead of Industrials... and looking back on it I should have trusted my gut. But, I was afraid that consumer staples had climbed too high (it had a recent run up as tech was selling off... and I was afraid the P/E was running too high). After 3 months into this year, 4/6 of those sectors have gained a positive return, the only negative were financials and industrials. With a fear of a recession around the corner, my gut on healthcare and utilities happened to be right. But I missed the mark with two sectors. But those two combined with my mid cap value funds helped me beat the market for 3 straight months. Now with the fear of a recession brewing, we may just be in store for some more red... so my portfolio isn't out of the woods just yet. But, I'm not worried. In a couple of years, the past few months will be a blur. ————— ⏰ Timing the market ⏰ When you try to time the market, you have to be right twice. You have to time it right when you buy, and time it right when you sell. It can be done sure… but timing it correctly over and over is difficult. it takes a TON of research, and even then you can’t always predict the future. For example who could have predicted covid? Or russia invading Ukraine? And the implantation of severe sanctions that would effect the global economy? You might be able to beat the market in the short term but can you do it consistently for 10-15 years? Multiple years of research say no. When you DCA (dollar cost average) you add a little bit more every paycheck or every month, and if it dips you buy. If it rises you buy. If you accidentally buy at the top, you keep buying on the way down, and keep buying on the way back up. Eventually everything's going to be okay. "Time in the market beats timing the market" ————— To see my January and February updates as well as each individual holding in my SOFI portfolio check the hashtag #sofiexperimentetf

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