ETFs are an effective way to help you build your wealth. They allow you to get diversification with one purchase and can remove the uncertainty and extensive research from investing. đ° For beginners and experts alike, ETFs are a fantastic backbone to your portfolio. I personally invest in the first of each type of ETF listed but felt that providing at least one other option was necessary. đ An ETF is a basket of stocks. Instead of purchasing an individual stock, you could purchase an ETF and buy a little bit of a large number of companies. đ§ș My question is which major ETFs are your favorite and whyâ S&P 500 ETF - $VOO / $SPY Total Market ETF - $SCHB / $VTI Nasdaq 100 ETF - $QQQ / $QQQM Dividend ETF - $SCHD / $VYM #indexfund #ETF #growth
S&P 500 Tracking58.95%
Total Market Tracking10.17%
Nasdaq 100 Tracking11.11%
Dividend Focused19.77%
531 votes âą Ended 09/18/21
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https://www.businessinsider.com/personal-finance/average-stock-market-return
Just found this article and I think my money is on $VOO over $VTI but I do like the diversification that $VTI brings to the game!
@ctsshah I am going to give that a read right now. I personally prefer an S&P 500 ETF over a Total Market one as well, but the additional diversification is nice.
Post read: I like how the article says the S&P did "slightly better"
The difference was 13.6% to 9.2%... I would say that is pretty significant
Jason G đŽââ ïžđșđž@jmag77
Great post Brendan. You know me, I'm all about the divs and there are a ton of dividend paying ETFs out there. I own quite a few and they can be a great way to diversify a portfolio without taking the direct risk of a single stock.
One sector I want exposure to but feel is too volatile for me to buy individual stocks is the cannabis industry. I bought $MJ so I don't have to take the risk of gamblâŠSee more
@jmag77 That is awesome. I think certain industries are tricky to pick winners in. The sector-specific ETFs are a great way to track those sectors. Airlines is another one that can be tricky to navigate and the $JETS ETF helps to track that.
One specific sector I track with an ETF is audio and video streaming. I use $SUBZ to track it. I am very long-term focused with this one.
personally Iâm
1. $VOO
2. $QQQM
https://www.google.com/amp/s/www.fool.com/amp/investing/2021/03/29/better-buy-qqq-vs-voo/
$VOO âŠSee more
@sydward You make a good point! Over diversification is not always good. But with that being said, it does invest in more small-cap companies with lots of room to grow. The investments in these companies are small but a $VOO / $VTI portfolio gives you everything you need.
I like $QQQ / $QQQM a lot as well! Just wish I started out with $QQQM instead... I might have to switch over.
My favorite ETF is FNILX on fidelity, no fee index fund!
Ya I just discovered that @Xander882214 ⊠it seems too good to be true. Iâm slowly moving over my FXAIX to this
Yeah FNILX is the đ sorry $VOO . I have it in my Roth IRA and itâs my biggest position. But itâs only available at fidelity.
Itâs *technically* a mutual fund so it trades at the end of the day instead of real time but itâs no expense ratio and mimics $SPY exactly so itâs not too good to be true
https://www.fidelity.com/mutual-funds/investing-ideas/index-funds
They also have a zero expense ratio total market fund and international fund. You could invest in only these and probably do better than the hedgies đ
@sydward I have been thinking about getting my Roth IRA over to Fidelity⊠this might do it.
@sydward @Xander882214 @ctsshah Maybe it is to get people in the door? This is attractive and probably gets people to move over to their platform⊠sorta of like Samâs Club $5 rotisserie chickens đđJust get people in the door and they will spend đžđž
@ctsshah @brendanschema that article is easy to misread. The 10 year 9.2% is over a 140 year period. The 10 year S&P return of 13.6% is from 2010-2020.
The 10 year performance of $VOO and $VTI are almost identical ($VOO = 14.8%, $VTI = 14.7%). So, long term either works just fine.
If you look at the 1-year, 3-year, and 5-year performance, $VTI actually outperforms $VOO.
$VTI 1 year = 44.42%, $VOO 1âŠSee more
Okay MONEYque this is why I â„ïž u
@sydward lol thank you đ. I also own FNILX, FXAIX, QQQ, and QQQM⊠just over here, trying to make my portfolio as complicated and unnecessary as possible.
But yeah @brendanschema I agree I think itâs to get some newbies in the door. The funds are new⊠only been around for a couple years which is why not a bunch of people talk about them but it was definitely the reason that sold me on fidelity
Looks like my objective this weekend is finding a fund to invest in. Iâm thinking a S&P, total market and that zero expense fund (FNILX) will do but Iâll do some more research.
The amount of knowledge in these comments are amazing đ€©
I should mention I have all my holdings with fidelity. I have no complaints here, I think they are great đ
You can check out every stock I own under my watch list.
@financepillowtalk Totally misread it!!! Thank you so much for clarifying đ
$SPY is my favorite as a beginner just because it was the first one introduced. However I can see the value in each and hope to hold all some day
Dividend ETFs are kind of lame. I've never seen one with a yield over 4%. If you want diversified dividends, I think you're better off buying several individual stocks. There are plenty that are 8% or more
Jason G đŽââ ïžđșđž@jmag77
@HolisticInvesting there are plenty of ETFs with higher yields. Here are a few currently in my portfolio.
$QYLD . 11.37%
$JNK 4.43%
$DIVO 4.99%
$RYLD âŠSee more
@jmag77 I never realized the YLD stocks were ETFs lol. You got me
Then thereâs $SMHB leveraged monthly dividend yield of 11% ⊠curious to hear your thoughts on that đ
@HolisticInvesting
@sydward that's scary lol. Clearly I was wrong about dividend ETFs lmao.
But yeah I don't know how I feel about that. I've noticed a lot of dividend stocks struggle with recovery. I'd need to look into it more because I'd imagine leverage would make that even worse.
Thank you for sending that information . It will Probably I will invest After I read some more information And plot out what I want to do for October
