Thanks for the feedback! It definitely is more volatile, but will likely be worth the risk if you plan on keeping it for a long time. Definitely not something to be invested in if you're very near or in retirement.
Nice! VTI is a good alternative to the S&P 500 index tracking funds - giving you even more market coverage. I've also looked at JEPI although it has trailed SCHD since its inception in 2020.
I am not a fan of SMH long term. It is cyclical and we are currently in the highs, so it is easy to favor it now forgetting that it might not as hot later on.
If you're dead set on a semiconductor-only ETF, I'd consider SOXQ as well. It has a lower expense ratio than SMH(0.19% vs 0.35%). SMH is also VERY top-heavy in NVDA(>23%), while SOXQ holds
Thanks for the feedback and taking the time to provide your take! SOXQ is a good option as well for a semiconductor-only ETF, but I'd still lean towards SMH over SOXQ. Even before the massive rise of NVIDIA in 2024, SMH outperformed SOXQ through the end of 2023 since the inception of SOXQ in June 2021. Over that 2.5 years SMH had a return of 43% while SOXQ had a return of 34%. You're likely correct in that if NVIDIA were to fall hard SMH would take a bigger hit than SOXQ. Interestingly enough SMH has a lower beta (1.35) than SOXQ (1.56) suggesting it's less volatile than SOXQ.
Replacing SMH with SCHG would offer you less volatility, but it would likely sacrifice returns. Over the last 10 years SMH has a total return over 900% compared to 375% for SCHG.
@@Know_Your_Money I have the Fidelity US Quality Income UCITS ETF and i search for 1 or 2 more ETF´s. What would add to the Fidelity US Quality Income UCITS ETF? Thank you
Great question! It really depends on your financial goals and tax situation. Each account has its benefits, so it might be helpful to consult a financial advisor for personalized advice. In general, 403b's (and 401k's) don't have access to ETFs in them and mainly offer a selection mutual funds. With IRAs and taxable investment accounts you won't have a limited selection like 403b's.
The only semiconductor specific ETF that has a lower expense ratio would be SOXQ at 0.19%, but since SOXQ's inception in June of 2021, SMH has outperformed it with a total return of 104% compared to 66% for SOXQ.
I think that really is a personal preference, but for most monthly or quarterly withdrawals will probably be easier to manage. Here's an article that goes into more discussion about that topic - smartasset.com/retirement/is-it-better-to-take-rmd-monthly-or-annually. Hope that helps!
It's a great question! SCHD has gained popularity due to its focus on high dividend yield and strong fundamentals, but there are definitely other options to consider. It's always good to explore different funds and see which aligns best with your investment goals!
I'll have to respectfully disagree on the performance being the same. If you invested $10k in SCHD, SPLG & SMH 10 years ago it would be worth around $170k while $30k invested in SCHG would be worth around $148k. And if you change that ratio to be more than a third invested in SMH as I recommend for those in their 20s or 30s, then that gap only grows. And I also disagree that this portfolio can't make you rich; If you focus on SMH alone and had $10k invested in it 20 years ago and invested $200 in it per month over those 20 years that would now be worth over $830k. Add more years to that and you quickly get over a million dollars just considering SMH.
@@Know_Your_Money a million dollars is not rich. Maybe in the 80's but today that's basically a bit more than a median home price here in California. And why would anyone pick SMH twenty years ago as a sole investment? I certainly wouldn't be investing into a single sector, otherwise why stop there, why not just buy Bitcoin in 2009 for half a dollar a piece and be a billionaire today? As far as comparison between SCHG and the portfolio here is concerned, I have the ratios you suggested for my age group (50) and the performance is basically the same. My main point is that this portfolio picks two ETF's that would be logical choices for ETF investors (SCHD and SPLG) but that together perform worse than the market, and then to compensate, picks a risky single sector ETF that has performed well retrospectively. What if the semiconductors didn't perform as well? It's easy to cherry pick in retrospect.
XLK is a great ETF with a broader exposure to IT related companies, but it doesn't beat SMH in regards to Total Return at any point (YTD, 1YR, 3YR, 5YR, 10YR, 15YR) over the last 15 years. For reference - www.financecharts.com/compare/XLK,SMH/performance
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Thanks for watching! Are you invested in any of these ETFs? And do you think SMH will keep outperforming QQQ as AI continues to advance?
How should it be set up this 3 ETF Portfolio accumulating or distributing? Thank you
Even though it's more volatile, SMH is worth the risks, imo. You really made this understandable. 👍
Thanks for the feedback! It definitely is more volatile, but will likely be worth the risk if you plan on keeping it for a long time. Definitely not something to be invested in if you're very near or in retirement.
Professor G called you out for stealing his work 😂 come on bro, at least give the man credit.
I'll have to take a look at his video. I was unaware he did a video proposing the same 3 ETF portfolio.
Acc or Dist or this Portfolio?
I roll with VTI, SMH, and SCHD. Only thing I've ever considered swapping SCHD with is JEPI.
Nice! VTI is a good alternative to the S&P 500 index tracking funds - giving you even more market coverage. I've also looked at JEPI although it has trailed SCHD since its inception in 2020.
@Know_Your_Money Yes it has, that's why I ultimately decided to stick with SCHD.
I am not a fan of SMH long term. It is cyclical and we are currently in the highs, so it is easy to favor it now forgetting that it might not as hot later on.
Thank you for sharing your thoughts! It's always good to have a balanced view, especially in the world of investing.
Great Class, tx for sharing your toughts
Thanks for the feedback!
If you're dead set on a semiconductor-only ETF, I'd consider SOXQ as well. It has a lower expense ratio than SMH(0.19% vs 0.35%). SMH is also VERY top-heavy in NVDA(>23%), while SOXQ holds
Thanks for the feedback and taking the time to provide your take! SOXQ is a good option as well for a semiconductor-only ETF, but I'd still lean towards SMH over SOXQ. Even before the massive rise of NVIDIA in 2024, SMH outperformed SOXQ through the end of 2023 since the inception of SOXQ in June 2021. Over that 2.5 years SMH had a return of 43% while SOXQ had a return of 34%. You're likely correct in that if NVIDIA were to fall hard SMH would take a bigger hit than SOXQ. Interestingly enough SMH has a lower beta (1.35) than SOXQ (1.56) suggesting it's less volatile than SOXQ.
What about SCHD + SPLG + SCHG?
Replacing SMH with SCHG would offer you less volatility, but it would likely sacrifice returns. Over the last 10 years SMH has a total return over 900% compared to 375% for SCHG.
@@Know_Your_Money I have the Fidelity US Quality Income UCITS ETF and i search for 1 or 2 more ETF´s. What would add to the Fidelity US Quality Income UCITS ETF? Thank you
I'd like to know where do I put these funds with regards to 403b, Roth IRA, and Taxable accounts.
Great question! It really depends on your financial goals and tax situation. Each account has its benefits, so it might be helpful to consult a financial advisor for personalized advice. In general, 403b's (and 401k's) don't have access to ETFs in them and mainly offer a selection mutual funds. With IRAs and taxable investment accounts you won't have a limited selection like 403b's.
SMH's expense rate is .38%. Is there an alternative ETF with a lower expense rate than SMH?
The only semiconductor specific ETF that has a lower expense ratio would be SOXQ at 0.19%, but since SOXQ's inception in June of 2021, SMH has outperformed it with a total return of 104% compared to 66% for SOXQ.
Is its best to withdraw monthly or yearly in retirement?
I think that really is a personal preference, but for most monthly or quarterly withdrawals will probably be easier to manage. Here's an article that goes into more discussion about that topic - smartasset.com/retirement/is-it-better-to-take-rmd-monthly-or-annually. Hope that helps!
@@Know_Your_Money thanks ill take a look
i would add PPA or Shld etfs
Thanks for the feedback! Those would be great additions to make it a 4 ETF Portfolio. Very minor overlap with the existing 3 ETFs of SHCD, SPLG & SMH.
There are better large cap value funds…Why so much talk about SCHD? What am I missing?
It's a great question! SCHD has gained popularity due to its focus on high dividend yield and strong fundamentals, but there are definitely other options to consider. It's always good to explore different funds and see which aligns best with your investment goals!
This portfolio's performance is effectively the same as SCHG's. And also, no one is getting rich with any of these ETFs.
Could you elaborate on this statement?
I'll have to respectfully disagree on the performance being the same. If you invested $10k in SCHD, SPLG & SMH 10 years ago it would be worth around $170k while $30k invested in SCHG would be worth around $148k. And if you change that ratio to be more than a third invested in SMH as I recommend for those in their 20s or 30s, then that gap only grows. And I also disagree that this portfolio can't make you rich; If you focus on SMH alone and had $10k invested in it 20 years ago and invested $200 in it per month over those 20 years that would now be worth over $830k. Add more years to that and you quickly get over a million dollars just considering SMH.
@@Know_Your_Money a million dollars is not rich. Maybe in the 80's but today that's basically a bit more than a median home price here in California. And why would anyone pick SMH twenty years ago as a sole investment? I certainly wouldn't be investing into a single sector, otherwise why stop there, why not just buy Bitcoin in 2009 for half a dollar a piece and be a billionaire today? As far as comparison between SCHG and the portfolio here is concerned, I have the ratios you suggested for my age group (50) and the performance is basically the same. My main point is that this portfolio picks two ETF's that would be logical choices for ETF investors (SCHD and SPLG) but that together perform worse than the market, and then to compensate, picks a risky single sector ETF that has performed well retrospectively. What if the semiconductors didn't perform as well? It's easy to cherry pick in retrospect.
@@AbcDino843Imagine what you would have if you didn’t live in Commiefornia!
Diversification via a thematic ETF ....is NOT diversification
You are totally correct that SMH is a thematic ETF, but we're get the broader diversification in the portfolio from SHCD & SPLG.
@Know_Your_Money 80% of SMH is in SpLG.
50/50 SCHD and SCHG have almost no overlap this better diversification, IMO. Do our/your own research.
XLK beats SMH
XLK is a great ETF with a broader exposure to IT related companies, but it doesn't beat SMH in regards to Total Return at any point (YTD, 1YR, 3YR, 5YR, 10YR, 15YR) over the last 15 years. For reference - www.financecharts.com/compare/XLK,SMH/performance