VOO and Chill | Is An S&P 500 Index Fund Portfolio a Smart Idea?

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  • Опубликовано: 2 янв 2022
  • You'll often hear the phrase VOO and chill or sometimes VTI and chill. VOO is the ticker to Vanguard's S&P 500 index ETF (VTI is Vanguards total U.S. market ETF). The idea is to invest all of your money in the S&P 500 (or perhaps the total U.S. market) and just relax.
    After my video showing my 2021 portfolio tracked the performance of the S&P 500 (more or less), many asked why I bothered with multiple asset classes and individual stocks. Why not just VOO and chill?
    This video explains why, and more importantly, walks through some concepts that might help you decide what's best for your portfolio.
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Комментарии • 420

  • @Curbalnk
    @Curbalnk Месяц назад +229

    Hi, I started my 140k portfolio last year with SCHD, VOO, and VUG after watching one of your videos. In terms of share price, VOO is way up (22.25%) and VUG is waaaaay up (39.62%). Thanks for the education! Hoping this is a valid thought process?

    • @gagnepaingilly
      @gagnepaingilly Месяц назад +1

      Wasn't a great April but if you step back and actually look you will see the S&P 500 was up for the first Quarter. In the last 30 days, my IRA saw a gain of $30k.

    • @sommersalt88
      @sommersalt88 Месяц назад

      The market's instability makes DIY risky. You don't need to find the next NVDA to succeed in investing. Opt for top-notch ETFs, dividend aristocrats, and a trusted advisor. I've turned 130k into $17k in quarterly dividends, a major milestone.

    • @sommersalt88
      @sommersalt88 Месяц назад +3

      *Jennifer Leigh Hickman* has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend her if you want excellent collaboration.

  • @seanroger6954
    @seanroger6954 Месяц назад +64

    Thank you for the video, you can never say never to opportunity like S&P 500 ETFs, SPY which is up. I’m being instructed by an intelligent investor to buy more anytime it drops, cashing up along the way on every moves, also incorporating new stocks.

    • @mondimlotshwa3958
      @mondimlotshwa3958 Месяц назад +2

      SPY, IVV, VOO hitting the scene so far. These ETF's doing just fine.

    • @andyosman8375
      @andyosman8375 Месяц назад

      There’s much uncertainty now, my question is what stocks can be the next wave in terms of growth for the next decade?

    • @seanroger6954
      @seanroger6954 Месяц назад +2

      Stocks is not only about anticipating moves based off trends but anticipating through participating behind real top performers and attain how they execute perfectly.
      coach Frost hilda take good care of my holdings giving me an edge to successful interest.

    • @jessicamegan5850
      @jessicamegan5850 Месяц назад

      I’m trying to figure out your selected holding at the moment

    • @seanroger6954
      @seanroger6954 Месяц назад +2

      I've had majority of my holdings in ETFs, tech stocks and I've had 65% increase in my portfolio, especially with Nvidia P/E (price to earnings ratio) adding few others, Feel free to use my steps.

  • @cechzc1u
    @cechzc1u 2 года назад +253

    VOO is actually a very clever name for the S&P500 fund.
    V: Roman numeral for 5
    OO: Zeros
    Hence, VOO = 500

    • @ffnightranger
      @ffnightranger 2 года назад +11

      Woah

    • @EpicFinance
      @EpicFinance 2 года назад +3

      mind blowing

    • @JTH43
      @JTH43 2 года назад +8

      Yea but VOO isn’t 500 in Roman numerals. D is.. so really is it that clever?

    • @KaamilNaicker
      @KaamilNaicker 2 года назад +12

      The V is also there for Vanguard. Double meaning

    • @jakejake7289
      @jakejake7289 2 года назад +4

      @@JTH43 It is because D is already taken by Dominion Energy.

  • @jgg204
    @jgg204 3 месяца назад +4

    The top 500 US companies have significant international exposure, more so today than ever before. We can't look back to the 80's and use performance then to dictate future performance behavior, b/c we behaved differently back then too.

  • @imdoc7872
    @imdoc7872 Год назад +6

    My financial advisor had my 401k distributed among large cap, mid, and small. I opened a deferred comp account and allocated a Warren Buffett 90/10 style portfolio and have been outperforming him for the past two years.

  • @marshallhosel1247
    @marshallhosel1247 2 года назад +3

    I must say, I really enjoyed how you approached this. Very well done. I learned a lot…and I’m not an investing rookie.

  • @ChloeBensonBeautyBoxes
    @ChloeBensonBeautyBoxes 11 месяцев назад +11

    I have used the VOO or S&P 500 most of my life. I will be able to retire at 55. I plan to keep it there but add a cash/CD bucket of 20%.

    • @SunofYork
      @SunofYork 2 месяца назад

      Don't tie you CD for too long.... You might want the cash quickly... mIne is Feb 2025 at 5.1% ..Treasury ETFs are instant cash and same interest ...but with capital risk if cashed in.. Moderation in all things

  • @Dr.Dumpnpump
    @Dr.Dumpnpump Год назад +3

    Direct, clear and valuable insight. Thank you. Subscribed.

  • @WEABRNC
    @WEABRNC 2 года назад +6

    Great channel
    Great advice
    You stay in your lane and do a great job - Thank You!!!

  • @rjlane3475
    @rjlane3475 2 года назад +12

    It would be interesting to see the benefits of having only 1 fund (like VOO) where there was never a tax from rebalancing

  • @auricgoldfinger8478
    @auricgoldfinger8478 2 года назад +13

    You are an absolute machine. Almost an 8 hour workday for you. I hold 15% individual stocks 65% VFIAX for equity exposure. I wish that I never had the individual stocks, most with very large CG

  • @pappabear8291
    @pappabear8291 2 года назад

    Agree. I got both large and small caps. My goal is growth, Good video! Thanks.

  • @wd3574
    @wd3574 2 года назад +28

    The more scenarios I see of what to invest in, the more I think that I should consider VTSAX for my equity portion and be done with it. I like to think I can do better (with regards to overall returns), but I just don't know. I haven't done better so far.

  • @agrawalamitkumar
    @agrawalamitkumar 2 года назад

    Thanks for putting out good content. Over the years I have found that the more diversified my Portfolio is the more cash i have sitting on the sidelines. Fine tuning asset allocation across multiple accounts takes work. Therefore a simple asset strategy is working for me, where i can have more cash working for me and not worry about fine tuning.

    • @sanekabc
      @sanekabc 2 года назад

      One basic question I have as I am not in the market, which I would appreciate your opinion on. If you knew you were going to die in 10 years and had a lump sum of cash, would you still put it in a market portfolio or keep it in a savings account in a bank?

    • @agrawalamitkumar
      @agrawalamitkumar 2 года назад

      @@sanekabc depends on how much cash you have and the amount of expenses you estimate in the next 10 years. Also note the buying power of cash decrease over time due to inflation.

  • @JamieTownson
    @JamieTownson 3 месяца назад +10

    I'm a father of two who bought a house last year. For me, it was a major turning point! In addition to feeling the effects of the economic downturn, I'm lucky enough to enjoy a respectable monthly income from wise investments that I've made. I have therefore meticulously prepared for my retirement following my children's graduation from college.

    • @JanePalmer-bg8tb
      @JanePalmer-bg8tb 3 месяца назад

      Wow, interesting indeed! Currently I'm in need of investment ideas or tips. Last year I hesitated and failed to take any action until now. However, I'm determined to try something new as I am very open to various investment ideas . I want to be retired in my forties or fifties. I really wish I can achieve what you have achieved and I believe it will happen. How did you go about it? Please share.

    • @JamieTownson
      @JamieTownson 3 месяца назад

      It's essential to comprehend the complexities of investing. Having a trustworthy support system, such as a financial adviser, who can advise you is crucial, especially when choosing assets.

    • @JanePalmer-bg8tb
      @JanePalmer-bg8tb 3 месяца назад

      Thank you for your advice, it's challenging to find a reliable investment advisor here. Seeing the success you have achieved through investing I would love to have access to your investment advisor.

    • @JamieTownson
      @JamieTownson 3 месяца назад

      general, investing requires higher knowledge. For this reason, it's important to have a solid support structure to guide you through especially in asset picking. I operate with (Alex martin tarlor) an investment specialist who partners with a licensed wealth management firm.

  • @davidmyre965
    @davidmyre965 2 года назад +6

    VTWAX - 63% is equivalent to VTSAX but you get some additional global exposure

  • @charlesprice8399
    @charlesprice8399 2 года назад +13

    Good explanation Rob! You do an excellent job with your rationale for what you are comfortable with. Love your content. Keep up the good work. Happy New Year!

  • @Raymondjohn2
    @Raymondjohn2 7 месяцев назад +95

    I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

    • @bob.weaver72
      @bob.weaver72 7 месяцев назад +2

      There are many other interesting stocks in many industries that you might follow. You don't have to act on every forecast, so I'll suggest that you work with a financial advisor who can help you choose the best times to purchase and sell the shares or ETFs you want to acquire.

    • @martingiavarini
      @martingiavarini 7 месяцев назад +1

      I agree, that's the more reason I prefer my day to day investment decisions being guided by an advisor seeing that their entire skillset is built around going long and short at the same time both employing risk for its asymmetrical upside and laying off risk as a hedge against the inevitable downward turns, coupled with the exclusive information/analysis they have, it's near impossible to not out-perform, been using my advisor for over 2years+ and I've netted over 2.8million.

    • @hermanramos7092
      @hermanramos7092 7 месяцев назад +1

      Please can you leave the info of your investment advisor here? I’m in dire need for one.

    • @martingiavarini
      @martingiavarini 7 месяцев назад +1

      No doubt, the stock market is definitely the most awkward teenager with the wildest mood swings! I began with a pundit by name "Natalie Lynn Fisk’’ Her approach is transparent allowing total ownership and control over my position and fees are very reasonable in comparison with my ROI.

  • @billtraylor7373
    @billtraylor7373 Год назад +1

    I'm hoping you have a new video with recommendations or options of index investing in light of how dismal the markets have been since early 2022

  • @shun2240
    @shun2240 2 года назад

    small cap value tilt with total market index fund is the way to go

  • @freebird0147
    @freebird0147 2 года назад +2

    Great video. The thumbnail is much better too. 🤣
    Edit: I forgot to mention that I got a notification in Spotify that The Dough roller money podcast was back. Good to see that going again.

  • @tedtyler9336
    @tedtyler9336 2 года назад +137

    VTI and chill

    • @themadhatter312
      @themadhatter312 2 года назад +31

      VTSAX and relax

    • @pankitorama
      @pankitorama 2 года назад +14

      VT and chill own everything

    • @bohdan.vorona
      @bohdan.vorona 2 года назад +4

      VTI+VXUS and chill

    • @tedtyler9336
      @tedtyler9336 2 года назад +7

      @@pankitorama ,buy everything and hold it forever.

    • @pankitorama
      @pankitorama 2 года назад

      @@tedtyler9336 yep bogelhead motto

  • @atdower
    @atdower 2 года назад +3

    The stock market, where shooting for average is okay :). As long as I get 10% long term I am okay.

  • @mbank3832
    @mbank3832 2 месяца назад

    Insightful. I was thinking adding three types of fund. ETF for S&P 500, for total US stock market, and bonds

  • @sweethomechicago
    @sweethomechicago 2 года назад

    Great video! You've gained a new subscriber. 😇

  • @mikejackson5920
    @mikejackson5920 2 года назад +6

    Hello Rob, Thank you so much for your videos! I was hoping you could comment on Vanguard’s Lifestrategy funds (Specifically VSMGX Vanguard’s 60:40 Fund) and the use of Target Date retirement funds for Retirement accounts. My portfolio currently consists mainly of VSMGX in my Vanguard brokerage account and all my retirement accounts (TSP, IRA and Roth IRA) are in Target Date Retirement accounts. Could you please share your opinion about these funds. Thanks so much and I really enjoy your videos!

  • @jamesodell3064
    @jamesodell3064 2 года назад +1

    How can you compare earnings growth of international funds to US funds?

  • @SlickNickster
    @SlickNickster 2 года назад

    Thank you!

  • @osu122975
    @osu122975 Год назад +2

    I watched this again and used VSIAX specifically against VTSAX instead of the generic small cap value and large cap. The period was restricted to a 10yr period of 2012 to 2022. VTSAX outperformed the VSIAX in return by $16k and CAGR by a percent or so.

  • @davidtodd1037
    @davidtodd1037 2 года назад +8

    If I were as educated and had the background of Rob I would diversify more. Since I'm not though, VFIAX and VTSAX are my core and only holdings in my Roth and 401K. Excellent video for thought though.

    • @Brian-ro7st
      @Brian-ro7st 4 месяца назад +1

      Even then, you’d be hard pressed to outperform VFIAX or VTSAX in the longer term, let alone making back your time investment.

  • @erikdunkelberger4850
    @erikdunkelberger4850 Год назад +4

    On the chart, the Small Cap separated heavily from the Large cap back in the first years of the chart. They both continue to grow at seemingly the same rate. Can someone explain that? Edit: What I’m getting at is it seems the major difference in portfolio value is due to the separation in the 70s. If you did a lump sum from 1985-present it would be about the same growth. So the way to get these results would be to predict a separation of huge proportions between the Small Caps and the Large Caps.

  • @michaelngo7738
    @michaelngo7738 2 года назад +15

    I appreciate the discussion, but I was unable to replicate your findings. In portfolio analyzer, VOO vs NAESX and VSIAX, I am seeing VOO beat out both funds since 1985

    • @johngill2853
      @johngill2853 2 года назад

      Since 1985? Why that date specifically? Small caps historically outperform large cap stocks the last 10 years has been different, don't cherry pick a date and think it means something

  • @davidbundesen5867
    @davidbundesen5867 2 года назад

    Good illustration

  • @XRP999
    @XRP999 2 года назад +6

    VTI all day long !! Best vanguard fund for long term horizon.

  • @RyanAguiar3
    @RyanAguiar3 2 года назад

    what 6 or 7 funds would you choose?

  • @jhonmacraimbanajokora8657
    @jhonmacraimbanajokora8657 2 года назад +6

    I call my approach "orbiting the mother ship" Note: this is only one portfolio
    The s&p500 will be the largest stake orbited by a few select companies in diversified sectors.

  • @timdog1863
    @timdog1863 2 года назад +2

    Great episode Rob! Thank you!

  • @trave7644
    @trave7644 2 года назад

    Bob, is it not wise to invest in the total stock market index fund (fidelity)? I hear the total market index fund is bombarded with IOPs and this spells trouble for future returns? In short which is better, SNP 500 or the total market? thanks

  • @kona6451
    @kona6451 7 месяцев назад +1

    Im 52 with a 91% equity portfolio. 90% of that is VFIAX. I feel pretty good about it.

  • @DanTheMentor
    @DanTheMentor 2 года назад +10

    I’ve been slowly adjusting out of international and adding more small/mid cap. I’m probably allocated at 60% large, 30 mid/small, and 10 international, but this video has me rethinking maybe adding more international.

    • @grigorirasputin425
      @grigorirasputin425 2 года назад +5

      Putting money in International is the best way to underperform the market, should totally go for it, don't forget to buy some CDs and bonds as well

    • @johngill2853
      @johngill2853 2 года назад +4

      @@grigorirasputin425 really? Do you really believe that. A portfolio that is diversified with both us and international has proven to outperform and all us portfolio in the long term. Don't let the last 10 years fool you simply look at the 10 years before that

  • @flip931
    @flip931 2 года назад +6

    Great video as always! I think as humans we're always attracted to shiny objects. S&P 500 up 27% this year, wohoo, put all your money in there.... BUT as sophisticated investors we always have to think of our downside protection & especially CAPITAL PRESERVATION. I haven't worked this hard in life to just gamble away my life savings. I rather take a smaller overall return knowing that my money is relatively safe so that I can sleep like a baby. Cheers all!

    • @johngill2853
      @johngill2853 2 года назад +1

      Every bull market people must relearn

    • @flip931
      @flip931 2 года назад +1

      @@johngill2853 well put!

  • @diydarth
    @diydarth 6 месяцев назад +2

    S&P companies are themselves international. They also buy small cap companies to extract their value. Which is why s&p provides best risk vs reward ratio.

  • @ph5915
    @ph5915 2 года назад +19

    A professional markets expert I saw on an interview recently had a comment that I hadn't heard before when was asked some question related to the past x number of years about the market performance...He said something to the effect that the markets have ZERO memory of anything that happened in the past, they focus on what is the future...Made sense. Yeah, Bogle and Buffett have said the easiest thing to do is invest over time in the index funds of the S&P or total US stock market and you'll be fine at the end of the day, and for most people that's best. But, like you said, it's up to each individual's preferences, opinions, and risk tolerances...Good video, Rob! Happy New Year to you.

  • @drmitofit2673
    @drmitofit2673 2 года назад +26

    The traditional calculation is that one can expect the S&P to gain 10% per year on average, but for the last 10 years it's been 15%. I went 100% S&P with my 401k and employer matching in 1995, kept contributing during the 2009 financial crisis since I didn't have a large amount accumulated by then, rode out every dip, and by staying in for decades, I have long term exponential growth that is outperforming all of my coworkers. Another reason why I like it is that the S&P is analyzed and closely tracked on Fox Business News. I also feel that the large cap companies are better equipped at riding out volatility and supply chain disruptions than small companies that have fewer resources and fewer options. A negative is that the big tech companies have bigger and bigger representation in the S&P so it's becoming the NASDAQ. Not terrible though since the future is in Tech.

    • @akin242002
      @akin242002 2 года назад +1

      I back tested via portfolio visualizer. From January 1993 to December 2021, VFINX produced 10.64%. The MWRR was 10.68%.
      The Schwab 1000 in the same time period produced an average return of 10.54%. The MWRR was 10.67%.

    • @theotherview1716
      @theotherview1716 Год назад

      But my uncle told me he was ruined by invested mostly in s&p right before the Dotcom bust. He said he never really recovered.

    • @MeltingRubberZ28
      @MeltingRubberZ28 5 месяцев назад

      ​@theotherview1716 because he sold, guaranteed. If he woulda held he would have been just fine.

  • @vitorschroederdosanjos6539
    @vitorschroederdosanjos6539 2 года назад

    I like vgstx, is there a passively maneged version???

  • @joshlawless7496
    @joshlawless7496 Год назад +1

    What do think when it comes to SCHD VS SWPPX VS the VOO?

  • @tomhirz
    @tomhirz 6 месяцев назад

    Hi Rob, thank you for all of the good advise! I agree with almost everything you are talking about except the allocation to Vanguards BND fund, as part of the 3 fund portfolio. It looks to me as though BND has been performing poorly over the past 5 years or so. There must be something better?
    Thank you, Tom

  • @jeffreyphillips4182
    @jeffreyphillips4182 2 года назад

    I can't sell my stocks right now because they're down, but when I get back to even I'll put most of it in voo and vti

  • @kyle7574
    @kyle7574 2 года назад

    Great video

  • @vtphan2012
    @vtphan2012 2 года назад +9

    Great video to think about things. Here're a few things to think about. First, your analysis is based strictly on historical performance. What I find interesting is that often if an idea doesn't suit, people will say the past does not tell about the future. But if the idea suits, they'll use past performance to imply future performance. Something to think about. Another very important aspect of your analysis/reasoning is that it is based on "lump sum". (I think). By and large, we DCA. This is important because small caps are much more volatile than large caps. When you DCA into volatility, it depends on luck a lot.

  • @polymath5119
    @polymath5119 2 года назад +2

    Thanks Rob. I agree with your approach, although many of the S&P500 companies are multinationals with large portions of revenues from operations outside the US. From yesterday's video, why do you hold VFWAX as opposed to it's twin, VTIAX? Did you do a TLH switch away from VTIAX in the past and are still with it? Or do you see some advantage to VFWAX?

    • @rob_berger
      @rob_berger  2 года назад +1

      Exactly. TLH.

    • @anascoinquest1121
      @anascoinquest1121 2 года назад +2

      You still have single county exposure by being exclusively in US equities regardless of who else they do business with. A lot of foreign corporations also do business in the US & Canada. Samsung, Toyota, BMW, etc. That doesn’t make them American companies anymore than international operations make US companies foreign orgs.

  • @bingoknows
    @bingoknows 2 года назад +2

    Instead of VOO, I do IVV and chill, but in my regular brokerage account, i.e. taxable account
    I do apply the core-satellite investing method in my ROTH
    I'm curious as to your thoughts on the core-satellite method on constructing a portfolio

    • @rob_berger
      @rob_berger  2 года назад +2

      That's effectively what I do. I have index funds for the core and individual stocks for the satellite.

  • @ericsolorio1431
    @ericsolorio1431 2 года назад +1

    Rob in your opinion if mid caps and small caps are so much better than large caps then why do you not increase your exposure? In reality you have very low exposure compared to large caps.

  • @jarrod499
    @jarrod499 2 года назад

    Great video,
    A few thoughts long term the thing would worry me about VOO and chill is that the next great economic growth engine: whatever comes after this tech iteration has a big exUS composition. I own international, and have paid recently for doing so. I hold it at under the cap weight because of currency risk. I figure the increased diversification is worth the recent underperformance.

    • @boomn216
      @boomn216 2 года назад

      I do VOO and VTI just to diversify and BND for the bond part of my portfolio.

  • @raybp7512
    @raybp7512 2 года назад +2

    Is the idea that most World indexes are so heavy leaning on USA large caps that it doesnt matter too much if you invest in an SP500 index vs world/total market index

  • @fundip43
    @fundip43 2 года назад

    What’s the math on success rate on long term(10-40 years) margin usage for a 1 million dollar portfolio in a low interest rate environment ( less the 4%) with a ~+20total leverage?

  • @beauhouse5987
    @beauhouse5987 2 года назад

    Rob, Do you offer a average Joe like myself any consultation ?? just to see if my allocation and my age are appropriate in your opinion. thank you

  • @mrderek800
    @mrderek800 2 года назад +19

    I would love to see the same style video but just with VTI.

    • @willg1315
      @willg1315 2 года назад +2

      They're essentially the same thing. You can copy and paste a lot of what he's saying here to VTI, and it will almost exactly apply.

    • @MajorRingo
      @MajorRingo 2 года назад

      @@willg1315 which one is better for long term 50+ years

    • @willg1315
      @willg1315 2 года назад

      @@MajorRingo nobody knows. Professional analysts often can't even accurately predict these things just 10 years into the future, let alone 50.

    • @anthonyqcolosimo5374
      @anthonyqcolosimo5374 Год назад

      VTSAX beats S&P500 by 30% since 2000

    • @jackbernardi7791
      @jackbernardi7791 7 месяцев назад

      @@anthonyqcolosimo5374no it hasn’t 😂😂 S&P500 has beat VTI

  • @learnspanishwithfelipe111
    @learnspanishwithfelipe111 2 года назад +2

    Thanks for the knowledge, my best regards!

  • @janethunt4037
    @janethunt4037 Год назад

    Thank you for this. It makes me feel better that we gave a wedding gift into a Vanguard Target fund instead of VOO to our son and his wife which I was second guessing.

    • @darrellq6954
      @darrellq6954 5 месяцев назад +2

      They secretly wanted cash for a down payment on a house…..🎉

  • @anantgarg7839
    @anantgarg7839 2 года назад

    Hi Rob,
    Can u suggested some bond investment books for beginners and matured investor?

  • @smilesurway
    @smilesurway 2 года назад +1

    Combo II : BND / IJR / MVV / TQQQ

  • @blackpeterose
    @blackpeterose 2 года назад +2

    Do what you want with your money. Long as you are investing its better than not. If you allocate some in the US that's cool. If u don't that is cool too. Remember it your money.

  • @robn.5932
    @robn.5932 2 года назад +1

    Rob, how about VT and chill? You have the added benefit of international with VT.

    • @rob_berger
      @rob_berger  2 года назад +2

      Certainly a reasonable approach. And I love the simplicity. For me, a bit too much international exposure, but who knows, it may turn out to be the best approach.

  • @oaklandsportnewscom
    @oaklandsportnewscom Год назад

    Sir, how about VTWAX. That's total diversification. I can combine that with t bills, savings or CDs at this point too.

  • @joemeyer2726
    @joemeyer2726 2 года назад +1

    VOO good, UPRO great chill

  • @lcmlcm2460
    @lcmlcm2460 2 года назад +1

    I’m a business owner that is new to investing and so far voo, vt, and a few individual stocks is what I have. I plan to diversify more but my problem will be where to I stop. Not a bad video thanks

    • @jonk1370
      @jonk1370 2 года назад +1

      Voo and vt is already enough diversification

    • @lcmlcm2460
      @lcmlcm2460 2 года назад

      @@jonk1370 thanks

    • @davidbrooks8809
      @davidbrooks8809 2 года назад

      Add Berkshire Hathaway set it and forget it ..thank me later!!

    • @mucusofwanderhome6945
      @mucusofwanderhome6945 Год назад

      Set up a small account to play with to satisfy that itch of “when is enough”. After a while that account will grow in holding and dollar amount, and you will wish you had more invested into it 😂

  • @MikeRepluk
    @MikeRepluk Месяц назад +1

    in my opinion, the top 500 US companies have also gone international thanks to globalization. Companies such as google, apple, Johnson etc are well beyond just the US market

  • @harrisbaig4506
    @harrisbaig4506 2 года назад

    What's your take on target funds like: life path 2030.

  • @BryanColliver
    @BryanColliver 2 года назад +14

    with all the biggest company's in the USA now getting a bigger and bigger % of there profits from international growth I have no problem with just holding VTI with 4160 holdings gives you a bit of everything micro small mid and large all in one place. thank you for the video

    • @XRP999
      @XRP999 2 года назад +2

      I’m half vti half qqq , love it !

    • @akin242002
      @akin242002 2 года назад

      VTSAX/VTI are the best performing Total USA funds in their class.
      Close 2nd is Schwab's SCHB by 0.02% short on a 12 year average. 16% vs VTI's 16.02%

  • @claytonrehmus2500
    @claytonrehmus2500 2 года назад +2

    This is comforting because I slice and dice too

  • @michaelk2928
    @michaelk2928 2 года назад +1

    So would you suggest a target date fund?

    • @johngill2853
      @johngill2853 2 года назад

      You better be a little more specific, not all target date funds are created equal. Even vanguard which I consider the best is very high international

  • @totalreturnnetwork9357
    @totalreturnnetwork9357 2 года назад +1

    Nice video

  • @roburb73
    @roburb73 2 года назад +6

    Interested in how far you have fallen behind with International stocks? Research says they have lagged the US market for 10+ years. If you fall behind 5% or more for 10 years, how long are you will to continue losing ground? I only ask because if you lose that much over a 10 year period, which most have, you now need to more than double that to make up. Are you just comfortable with losing the potential increase?

    • @1pwNz0mb13Z
      @1pwNz0mb13Z 2 года назад

      That's like asking if you feel bad for buying health insurance because you didn't get sick yet.

  • @jmotoid3661
    @jmotoid3661 2 года назад +6

    VFIAX and chill for the last ten years.

    • @mescetacy
      @mescetacy 2 месяца назад

      Why the mutual fund over the etf?

  • @moonphish
    @moonphish 11 месяцев назад +1

    Would you compare VOO to VTI?

  • @diydarth
    @diydarth 6 месяцев назад

    I wonder the comparison if you dollar cost average instead of picking one point in time

  • @RiskOonTrading
    @RiskOonTrading 2 года назад +5

    10% return and I am happy. VTI & chill for me

    • @TETrading
      @TETrading 2 года назад +2

      That's the one. Why panic when investing.

  • @TETrading
    @TETrading 2 года назад +7

    I really rate VOO and will always be investing in it!

    • @XRP999
      @XRP999 2 года назад +1

      Consider vti for long term

    • @raymondho8497
      @raymondho8497 Год назад

      Regarding pricing, 1 share VOO equivalent to 1share VTI & 2 shares SPLG. I prefer to buy 3 shares latter to expose both US whole market & S&P index.

  • @PiGum
    @PiGum 2 года назад +4

    What about foreign taxes and fees? I noticed that investing in TSM, I lose money to foreign taxes on dividends, even in a tax deferred account. It makes me wonder how disadvantaged this makes foreign long-term returns.

  • @royking7298
    @royking7298 2 года назад

    I am, soon, imigrating to Portugal. How does this immigration affect how I should invest? How would you negotiate this change in your investment portfolio?

    • @rob_berger
      @rob_berger  2 года назад +1

      In theory where we live shouldn't affect our portfolios, IMO. The one issue will be what types of accounts/investments you'll have access to, and that's something I have no experience with.

  • @osu122975
    @osu122975 2 года назад

    Its the difference between those who like to play and try to beat the market and those who are satisfied with market value. The average joe will do great with VFIAX or VTSAX as their equities.

  • @larryb131
    @larryb131 2 года назад

    Interesting video! Ok Rob, so what's in Your portfolio?

    • @rob_berger
      @rob_berger  2 года назад +1

      Check out my previous video. I walk through my portfolio and 2021 returns.

  • @PoliticalEconomy101
    @PoliticalEconomy101 2 года назад

    My advisor is rebalancing my portfolio and cashing out some investments. The proceeds are going into my checking account. Should I get an non-taxable account to avoid paying capital gains taxes? Do you have to pay taxes on a 401k account?

    • @thawrath9306
      @thawrath9306 2 года назад +1

      Depending on your income, a Roth IRA is the best way to avoid the taxes. You fund with post-tax dollars and there is no tax when you withdraw after age 58 or 59, can't quite remember. Check into it! Good luck! Great if no 401k is available and I'm pretty sure you can have both. You also don't need a financial advisor to do a Roth. Fidelity is a great site. Hope these tidbits tasted good lol

  • @MatthewFling
    @MatthewFling 2 года назад +7

    I’m all in on VTSAX. Problem solved.

  • @davidbrooks8809
    @davidbrooks8809 2 года назад +1

    What about VTI??

  • @wolffofcinema3448
    @wolffofcinema3448 6 месяцев назад +1

    Counter point is that US based companies operate internationally, so you get the international diversification without having to sacrifice the strict accounting practices that US based companies offer.

  • @cbarkerphoto
    @cbarkerphoto 2 года назад +4

    Thanks Rob, I'm learning so much by you sharing your approach to these types of scenarios! 2 questions: 1. What do you think about a low fee target date retirement and chill? Within my employer plan there are limited options and I feel like this gets me international and bond exposure in a way that allows me to be completely hands off. 2. My employer's target date fund is called Blackrock Lifepath Index 2050 target date Fund N ...i cant find that as a ticker and have no clue what the "N" at the end means...wondering if you know? Thanks so much for all the great content you provide!

    • @anascoinquest1121
      @anascoinquest1121 2 года назад +3

      Obviously not Rob, but… I believe the ticker for the fund you described is LIPIX. Target date retirement funds are fine for a hands off strategy. Personally I don’t like them because I can recreate the same allocation for a lower fee. I like to be more involved with my finances so it doesn’t work for me. Also, depending on your risk tolerance there may be more bonds than you care for. When I did used to buy index funds, I would go to a more distant date than my actual retirement date to keep my investments from being too conservative.

    • @cbarkerphoto
      @cbarkerphoto 2 года назад +1

      @@anascoinquest1121 Thanks, great points!

  • @mr.j2776
    @mr.j2776 2 года назад

    I've been adding to my Equity Index 500 fund for two reasons: lower expenses and lower turnover. I got hit with a LOT of capital gains last month (which affects my ACA healthcare costs).

  • @CaptainBenjamins
    @CaptainBenjamins 2 года назад +11

    Hey rob, love the video but when you use portfolio visualizer to compare funds would you please create a recurring investment setup (monthly) rather than just compare two funds on a $10k investment from a particular time in the past.
    Correct me if I’m wrong but I think the everyday investor would be investing say $500 per month into these types of funds and not just drop a chunk of change 30 years ago.
    It would be cool to see how two portfolios favor throughout ones career of investing during the highs and lows and see how it would compare

    • @bassdojo3925
      @bassdojo3925 2 года назад +2

      Excellent point! Agree, my son at 18 I told him to start with $50/mo and strive for $100/mo. He doesn't have $10K to start a nest egg.

    • @thawrath9306
      @thawrath9306 2 года назад +1

      Go ahead and jump on the site and run numbers, man. It's fun, you can get a damn good idea of what to do. I tried it after seeing it here.

    • @CaptainBenjamins
      @CaptainBenjamins 2 года назад +2

      @@thawrath9306 I love using portfolio visualizer

  • @analyticsx3
    @analyticsx3 Год назад +1

    You can’t argue data but there’s a lot of factors at play. Before the 90s no one had the internet. Manufacturing was still in the US. Today we have technology. Not many technology companies are small cap. Time in the market is the most important takeaway I see from that analysis

  • @Rew123
    @Rew123 2 месяца назад +1

    This + a 3-yr cash fund to weather dips should work, no?

  • @EnterTainment-vv1qs
    @EnterTainment-vv1qs 2 года назад

    What are your 6 or 7 funds of choice??

  • @ckangas5674
    @ckangas5674 2 года назад +16

    Nice video. I'm piling on but it never made sense to me to use back testing to support having 100% US stocks, but then to reject back testing beyond which US indexes to hold.
    To me, VT and chill always made a lot of sense.
    VOO is increasingly becoming concentrated in US mega cap growth. I have no idea whether this concentration will cause it to over or under perform. But the concentration does bring additional risk, since many events (rates, political, etc.) will impact most US mega cap growth stocks similarly.

    • @nwffdiver
      @nwffdiver 2 года назад

      history is always 20/20 ! great point

    • @snehaluict
      @snehaluict 2 года назад +1

      You mean VTI and chill instead of VOO?

    • @ckangas5674
      @ckangas5674 2 года назад +1

      @@snehaluict
      No, I meant VT (Total World).
      Due to cap weights, VTI is more diversified than VOO. But the top 10 of VTI is still 25% (VOO is 30% for reference).

  • @pawelvideo
    @pawelvideo 2 года назад +6

    What about Total US market VTSAX, you can’t be more diversified then this? It covers 95% of US companies including small mid and large.

  • @alanduff2205
    @alanduff2205 2 года назад

    Wouldn't a Total Stock Market Index take the place of the small and mid cap index funds?

    • @rob_berger
      @rob_berger  2 года назад +1

      It certainly includes both, but at relatively small amounts.

  • @larrysplace0016
    @larrysplace0016 Год назад +1

    One argument for VOO is that they are multinational companies that own assets and sell products internationally. The percent of foreign assets or sales who knows.

  • @gautamvishwanatham7512
    @gautamvishwanatham7512 Год назад

    So target date fund is the way to go

  • @elizabethli6758
    @elizabethli6758 2 года назад

    very interesting video and excellently demonstrated

  • @earlwilliams5473
    @earlwilliams5473 4 месяца назад

    50%splg 50%schg
    It is great for those who can set it and forget it. For the rest of us who love investments, not so easy.