Please stop recommending overcomplicated combinations of ETFs to new investors.
Here is your Menu:
- US Small/mid cap = Drink ( $Vanguard Extended Market ETF (VXF.US)$ or $Vanguard Small-Cap ETF (VB.US)$ or similar)
- Maximum diversity, level 9000: Burgers/drinks/fries/ketchup, also known as a Target Retirement Date Fund
Mistake 1: You don't need to buy VTI and VOO. VOO is the burger and VTI is the burger/drink; new investors can do with just one.
Mistake 2: You don't need VT and VTI; VT is (roughly speaking) burgers/drink/fries. We're fat enough and don't need another order of burgers/drink.
Mistake 3: You don't need VT and VOO. A burger/drink/fries combo does not need more burgers.
Mistake 4: VT is actually not the same thing as VTI + VXUS; check out the ETF overlap website. VT selects a subset of US stocks, so its really 80% of a burger/drink plus the fries. This is not reflected in Figure 1. The consequences are minimal, though.
Mistake 5: The newbie investor does not need both SPY and VOO. Two burgers is too much!
Mistake 6: The QQQ is the juicy patty inside the burger. We don't need a second burger alongside the isolated juicy patty. So stop recommending QQQ + VTI or QQQ + VOO.
Mistake 7: Ketchup sucks. Throw 'em out. (Okay I'm kidding. Except for anyone under the age of 95.)
What actually does make sense to recommend to the new investor? These are all logical portfolios, albeit some are missing some important parts of the meal.
2. $Vanguard Total Stock Market ETF (VTI.US)$ + $Vanguard Total International Stock ETF (VXUS.US)$ (good healthy meal)
3. $Vanguard S&P 500 ETF (VOO.US)$ + $Vanguard Total International Stock ETF (VXUS.US)$ (Where's your drink!)
4. $SPDR S&P 500 ETF (SPY.US)$ + $Vanguard Total International Stock ETF (VXUS.US)$ (Where's your drink!)
8. $Invesco QQQ Trust (QQQ.US)$ + $Vanguard Total International Stock ETF (VXUS.US)$ (Where's the bread? No drink?)
Bonus: Any good meal comes with some ice cream afterward. This is $American Century Etf Trust Avantis U S Small Cap Value Etf Usd (AVUV.US)$ , or small cap value stocks.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Revelation 6 : Ok, so tell me how you feel about $QQQE. Don’t hold back.
Rann New OP Revelation 6 : Strong.Cheaper and less risky than QQQ![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Revelation 6 Rann New OP : Long term hold? Good returns?
Rann New OP Revelation 6 : Market cap weighted indexes offer a low-cost, convenient, and transparent way of replicating market returns, and are a good option for investors who believe in market efficiency. I think you know more about QQQE than me, do you have any good suggestions![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
Jobertson : Thank you for this much appreciated
Jobertson : @ReidOrtez
Ultratech : i read qqqm is new version of qqq, same thing just slightly lower expense ratio or oneq is same as vti just cheaper...
Old Goat : Thank you , really appreciated this