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Please stop recommending overcomplicated combinations of ETFs to new investors.

Here is your Menu:

- US Large cap = Burgers ( $Vanguard S&P 500 ETF (VOO.US)$ )

- All US Stocks: Burgers/Drink ( $Vanguard Total Stock Market ETF (VTI.US)$ )

- The whole globe of stocks = Burgers + fries + drinks ( $Vanguard Total World Stock ETF (VT.US)$ )

- Bonds = Ketchup Sauce ( $Vanguard Total Bond Market ETF (BND.US)$ )

- Top 100 US Large Cap = just the juicy patty ( $Invesco QQQ Trust (QQQ.US)$ )

- 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.

5. $SPDR S&P 500 ETF (SPY.US)$ (Bro, fries??)

7. $Invesco QQQ Trust (QQQ.US)$ (No bread? Fries? Just the patty? No drink?)

9. Any combination of these with ketchup ( $Vanguard Total Bond Market ETF (BND.US)$ )

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. Read more
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