Bogleheads Debate ETF Strategies

“QQQM has a heavier tech exposure than VOO which just tracks the S&P. SCHD is there for more exposure in manufacturing and commodities than either QQQM or VOO offer. I set that portfolio up like 4 years ago, and am generally happy with its performance. If I wanted a one and done investment strategy id just pick a target date fund. [re: Started a Roth IRA this year, I feel like it's not doing too great?]”

“Where do people keep getting this portfolio? VOO: Go with VTI, it contains all of VOO, as well as the rest of the market. QQQ: why? You don't invest based on what exchange. It also overlaps with VOO by over 50%. Pointless. SCHD: You don't need dividends till you have enough invested to then turn into useful income. Like in retirement. And even then, dividends are basically just the same as if you sold shares. They're not growth. Just go with VT. Everything, all in 1, done. [re: Start”

“Before I was a Boglehead, I invested heavily in VOO + some other stuff. Since getting into Bogleheading (word?), I've exclusively invested in VTI + VXUS + BND I currently have an almost identical amount of VOO and VTI. Question: Should I continue on VTI only for that category? Or put half into VTI and half into VOO? submitted by /u/-chibcha- [link] [comments]”

“Hi Bogleheads, My wife and I are currently managing two separate TIAA retirement accounts from our respective employers. We are looking to approximate VT (Vanguard Total World Stock ETF) weights (~60% US / ~40% International) across both accounts without rolling over funds between plans. I’d love your thoughts on our proposed plan for each account. Retirement Plan E (Husband) QCGRFX - CREF Growth R4 (0.07%) QCSTFX - CREF Total Global Stock R4 (0.11%) VFIAX - Vanguard 500 Index Fund Admiral (0.04”

“For me, it’s VTI. It makes up about 65% of my portfolio, and it’s also been my biggest source of dividend payments so far. No regrets making it my core holding. What’s your favorite ETF to buy right now? submitted by /u/Fit-Toe-7991 [link] [comments]”

“In theory, the market cap weighted global portfolio is optimal. However, investors face expropriation risk and FX valuation risk. I know that people on r/Bogleheads have often argued that currencies are usually mean reverting, (and therefore FX risk doesn't really exist in the long run) but that has been the case for most major currencies in recent decades (USD, CAD, EUR, GBP, JPY, etc). That does not mean that this trend has to continue. There is no magic financial law that says DXY or JPY”

“I keep seeing people talking about how they think that the SP 500 will underperform both past numbers and international or small cap funds. I trust bogleheads more than any other investors when it comes to large funds, what do you guys think? I have a very long time horizon as a 15m and I'm just curious which fund hold in my retirement accounts submitted by /u/newmoneyknowledge [link] [comments]”

“Why don't I see more AVGE instead of VT? I think it's got the perfect amount of value tilt without compromising the entire portfolio. I'm in my 20s and my portfolio is 70% AVGE / 20% SPMO / 10% IDMO. I allocated 30% for momentum etfs due to my age and how value and momentum work together. submitted by /u/Gloomy-Cactus33 [link] [comments]”

It looks like the composition of VT follows similar trend of sp500 in that mag 7 like stocks followed by others in decreasing order of percent allocation. I understand this worked great…

“I have a new "first-world-problem", my marginal tax rate on dividends for State + Federal is now something like 35% - 50% (NIIT and higher on ordinary dividends vs qualified dividends). Given VOO has 1.5% of dividends or so a year, this means my ~60 bips tax drag on them is substantial, even higher than most bad mutual fund expense ratio fees. Has anyone done rigorous analysis on if VTCLX or other similar managed low expense ratio tax advantage products have acceptable tracking error v”

“https://finance.yahoo.com/markets/stocks/articles/vti-3-000-extra-stocks-223511088.html In the above article, the writer cites that VOO investors would be far better off than VTI investors over the last decade, with VOO returning 322% vs. VTI at 243%. Thoughts on this as a long-term investor? submitted by /u/LowPerspective9040 [link] [comments]”

“I actually live in 1 of those markets. And I have no idea why people in the US want to invest in VT instead of the VTI. From my point of view, VTI is the far superior product to invest in because the US is an outlier itself. Nothing can beat the US. It drives me crazy hearning people suggest investing in a Total World ETF when I am currently living in 1 of those markets and I don't see anything worth investing my money on except the US. I understand Bogle's idea but I still don't und”

submitted by /u/hadriancanuck [link] [comments]

“Bogle once said a good diversified portfolio could hold non-US stocks, but only up to 20%. VT has 40% non-US. I say this as a VT and chiller. submitted by /u/other_dummy_user [link] [comments]”

submitted by /u/NovemberAlpha122 [link] [comments]

“I know boggle head is a lot of vt but what do you guys think about those ETFs? submitted by /u/Odd_Moment_566 [link] [comments]”

“I currently have vt and want to get more etf's and wondering if adding VOO would be a good idea or would it be too much overlap? submitted by /u/Foreign_Gur7906 [link] [comments]”

“If you look at a broad ex-US ETF like VXUS and compare it to a broad US ETF like VTI or VOO, you’ll see that VXUS is outperforming the US market. But this doesn’t tell the whole story. If we divide VXUS into its component regions, the picture starts to become clearer Region Ticker ex-US Market Cap Weight YTD Europe FLEE 36.0% 11.63% Japan FLJP 15.4% 21.50% Taiwan FLTW 8.1% 74.69% Canada FLCA 7.9% 16.43% China FLCH 7.2% -8.61% South Korea FLKR 5.9% 87.32% India FLIN 4.5% -6.92% Australia FLAU 4.2”

“A three fund portfolio is a strategy, not any specific funds. It doesn’t “literally contain” any specific fund.”

“Hey, are you aware of what the 3-fund portfolio actually is ? It doesn't refer to the actual number of funds. VT literally contains 2 of the 3-fund portfolio! Please tell me you don't do VT + VTI + VXUS + BND when you're not forced to.. that's just redundant.”

“I’m genuinely trying to understand this because I keep seeing VT recommended over and over, and I’m not sure I fully get the reasoning. If you look at the last 10 years, VOO has returned roughly 15.5% annualized vs ~12.3% for VT. QQQ has obviously done even better (19%). I know past performance does not equal future performance, and I’m not expecting 15%+ returns forever. But if I’m talking about saving for a child’s future by putting $50k in and leaving it alone for 40+ years, why would I inten”

“How do you all handle single stock holdings outside of broad market ETFs? For example, VOO is my core holding, but I still hold a ton of NVDA, GOOG, MSFT from previous positions that have run up dramatically in the last few years. VOO accounts for 45% of my portfolio and those three single stocks account for 25%. Seems redundant on the surface but still believe in those companies on their own. Curious how you handle single stock holdings that already have a large exposure in broad market ETFs &#”

“I’m curious to hear how folks lean on this topic. It seems like Voo is the more aggressive / risky position but vti + vxus is more diversified. Anything else people consider with these etfs? The latter has lower performance over the long term but I know historic performance is not indicative of future performance. submitted by /u/Gsw1456 [link] [comments]”

“We see a ton of posts about dividend ETFs and such, I don't see much about people investing in foreign dividend companies. My VYMI has done very well, paying a high dividend and having some solid growth. I also have several tilt ETFS, like oil pipelines, energy, BDCs etc. I was wondering what other dividend ETF flavors people pick up. What sector or thing is that smaller ETF targeting? submitted by /u/bluefootedpig [link] [comments]”

“Under this community, for those who invest in VOO and VTI - I’d be interested to know your percentage splits? I’m currently 50/50 but do consider that perhaps I should swing higher on VTI I know feedback will come of just VTI and chill etc, but for now I would like to back the US companies more heavily, while still having the ability to stop this or lessen at any point in time I’m still new to this, based in NZ so no tax incentives, 401k chat required here. Appreciate everyone who replies - &#32”

“Trying to get my brokerage account built up and was wondering what would be better between the two. Already planning on pairing with VXUS submitted by /u/calculatedmisfortune [link] [comments]”

“Hey guys, pretty new to the sub and I just wanted to get some insight on my current ETFS Im holding in my ROTH IRA. At the moment I only have QQQM and FXAIX. I did have VOO and VTV but sold them to put more money into the other two. Just wanted some advice on my current positions in QQQM and FXAIX. If they’re good for the long game of investing? submitted by /u/Dapper_Look_8265 [link] [comments]”

“So Vanguard FTSA Global All Cap ETF with expense ratio 0,07% launched two days ago (VGLA/VALL in europe). What do you think about it? Is it THE most boglehead ETF to date? Lowest expense ratio, broadest index there is. Only thing that remains to be seen is how will it perform. submitted by /u/mafiohz [link] [comments]”

“My main ETFs right now are SCHD, VTI, VIG, VNQ and VYM. Starting to wonder if there’s too much overlap here, especially between SCHD, VIG and VYM. Would you simplify this, or is the overlap not a big deal? submitted by /u/Green-Prompt8543 [link] [comments]”

“Hypothetical 1.8M 600K in each of these three High Dividend ETF's in a retirement account versus, say, a VOO or VTI? Fund Yield Exp Ratio Net Yield Annual Income VYM 2.2% 0.04% 2.16% $12,960 VYMI 3.5% 0.07% 3.43% $20,580 VIG 1.5% 0.04% 1.46% $8,760 Dividend Total: $42,300/yr → 2.35% blended net yield on $1.8M with combined 10-year annualized return of approximately 11.98% per year. Add to this a yearly drawdown of 6–7%, plus about $55K a year from Social Security and $20K from a pension. The”

“You'll likely do well with either. But easiest approach is VT so you don't have to predict US/Intl outperformance cycles. We're two years into Intl slightly outperforming US. Is that the start of a decade of outperformance or is it going to flip back again? Who knows.”

“VOO or VT? I like VOO because of potential higher returns based off past numbers, Have you ever heard the phrase "past performance does not guarantee future results?" There have been times where the US outperformed the rest of the world, and there have been times when the reverse was true. The fact that the US was better on average over the past couple decades doesn't tell you anything about the next couple decades. DCA or Lump Sum? Seeing how VT/VOO are at pretty much all-time hig”

“Agree, I’m not suggesting it replace VTI, just some of the portfolio can go towards dividend ETFs.. that’s pretty common.”

“total-worldI’m considering combining the S&P 500 with a total-world index such as VT — for example, 70% VT and 30% VOO. submitted by /u/Puzzleheaded-Log97 [link] [comments]”

“I want to invest in a globally diversified ETF, currently have VT, GLD, etc. but the problem with VT is it's static, investing in all, i think we need an etf that's adaptable, investing in high quality companies only globally. especially now when everything is at an All time high, the risk for stocks to perpetually go up is not possible, so the likelyhood of having some kind of correction in the near future increases over time.. I did some research and found this ETF which looks promisin”

“Hi everyone, I’ve been a consistent VTI buyer for my core portfolio, but lately, I’m hearing a lot more buzz around VOO. I’m wondering if it makes sense to start directing future contributions to VOO, or if I should just ignore the noise and stick with VTI? I also recently heard about Fidelity’s FZROX with its 0% expense ratio. Would this be a better core holding than VTI/VOO? I realize it’s a mutual fund and not an ETF, so I'm curious why it isn't mentioned more often—is it purely a por”

“All my ETFs are with Schwab. Would you do 70% schb/22% schf/8%sche or 60% schb/30% schf/10% sche? submitted by /u/justpyro_ [link] [comments]”

“If you are holding both QQQ (Nasdaq-100) and an S&P 500 fund (like VOO or SPY) thinking you are diversifying, you might want to look at the actual overlap. Here is the exact breakdown of how much of QQQ is already sitting inside the S&P 500: 1. The Stock Count Overlap Total Tickers in QQQ: ~105 ( due to dual-share classes like Google). Stocks also in S&P 500: 86 positions. The Math: ~83% of the individual companies in QQQ are already inside the S&P 500. 2. The Weight Overlap (Whe”

“VT is great. But it has a flaw. It's 1 fund with a majority US stake, so you miss out on the foreign tax credit. Some modern "all market" ETFs use a fund-of-funds approach. Where 1 ETF is a wrapper over multiple ETFs. So you can hold 1 all-market ETF but still recieveve the foreign tax credit. For example Avantis's AVGV is composed of several US and international ETFs. Avantis is nice, but their ETFs are factor tilt themed, and have a higher ER than pure cap weighted indexes. I”

“I get the idea for diversification. With a gain of just over 70% all time VXUS extremely lags VTI or VOO. Would it not be better to add maybe a value tilt like SCHD or VTV? SCHD has outperformed VXUS 4x over all-time. submitted by /u/StockMarketinator [link] [comments]”

“Not necessarily advocating for it but Vanguard does have the U.S. Minimum Volatility ETF (VFMV). Vanguard has a number of factor-based ETFs that generally piqued my interest. As others have said though, VTI and VOO are so highly correlated that I don't believe exchanging between them significantly changes your exposure.”

“I would be more concerned about the AI bubble largely encapsulated by the big guns in the S&P500. If anything you are missing international exposure.”

“Why many in this sub insist that VT is the best choice, with nearly 40% international holdings boggles my mind. No pun intended. Bogle literally advised zero allocation in non-US stocks. submitted by /u/Prometheus305954 [link] [comments]”

“I’m personally invested in 72% VTI; 20% VGT; 8% NBIS/ASTS/RKLB/VOYG/VELO. I know it’s not a Boglehead portfolio strictly speaking but that’s not really important to my question. I feel as though an equal weighted fund like RSP is actually quite in line with the Boglehead portfolio philosophy. submitted by /u/Interesting_Week_917 [link] [comments]”

“I started buying SPY because its got huge liquidity and I wanted exposure to the S and P 500, but I didn't really compare it to VOO and it seems all the Bogleheads are buying VOO. I also have SCHD and SCHF for some balance, but now I am wondering if I should start switching my SPY for VOO or another ETF. What is the reasoning and are there any other good ETFs I should consider that will give me US market exposure but not too tech heavy. I also really want to avoid Tesla and Spacex if I can.”

“Is there any reason for a U.S. investor to go 70% VTI / 30% VXUS instead of simply following the market cap weights in VT? Does currency risk justify a tilt, or anything else? submitted by /u/Suitable_Ad_6455 [link] [comments]”

“SPYI + VOO overlap: 36.3% — 10 shared holdings JEPQ + QQQ overlap: 34.7% — NVDA, AAPL, MU showing up again SPYI + VTI: 31.9% VTI + VOO: 31.9% And the hidden concentration section is what actually got me…. NVDA is 7.1% of my total portfolio when you add up the direct shares plus what’s inside every ETF. GOOGL is 6.4%. I thought I was diversified lol, but I was just buying the same 10 companies with different expense ratios. Anyone else actually run this on their portfolio? Curious how bad others”

“Hey y’all, wanted to see what folks here thought of RSP vs other broad market etfs that track the S&P 500 I think my main concern with the S&P 500 is: it no longer seems diversified when tech makes up +40%(particularly if you combine technology + communication services). A lot of AI, even at large/established companies, can be speculative. Moreover the top 10 companies dominate 30% of the S&P So it’s made consider an equally weighted S&P 500 like RSP but idk. Especially in the lo”

“hey everyone! i'm new to the Bogleheads community. i'm 20 years old and currently investing in VT for my retirement. i plan to keep VT as the core of my portfolio for the long term, but i'd also like to add one small, more aggressive position for a little extra growth potential. right now i'm deciding between SMH and SPMO, but i'm open to other suggestions if you think there's a better option. if you were building an aggressive satellite position around a VT core, which w”

“Why not 100% voo? the international looks like only 80% return in 20 year? submitted by /u/MindlessNothing3790 [link] [comments]”

“I am currently investing in VTI/VXUS and Im weighted towards VTI. I am thinking of now purchasing VT because studies have shown that (100% diversified (domestic + international) equities even throughout retirement is safer then adding bonds in retirement. I can't think of a better ETF for this than VT. If I plan on adding VT closer towards retirement I am kind of thinking of purchasing it now. I can't really think of a good reason why I am tilted towards vti other than past preformance.”

“If you have 20 years, I would do 75% VOO and 25% VGT. Maybe more VGT - one of the best performing ETFs over the long run.”

“It’s crazy you have this many downvotes when you’re 100% correct. Goes to show you the majority of this sub doesn’t understand / care for basic investment finance.”

“As an investor from Europe, I don't have access to invest in VOO and all those stuff. So then, I kind of settled in a dilemma between the VWCE and SPYL. What would you choose and why? VWCE with possibly higher returns and more risk (due to minimal history the ETF has), or SPYL which is replica of S&P 500 and lower returns with lower risk? Things to keep in mind: money's in the growth and dividend stocks already as well, as well as real estate, but the biggest piece would be the ETF.”

“Currently doing a 80% VT and 20% FMTM allocation in a taxable acc. Is anyone doing something similar and thoughts on long term growth vs 100% VT? submitted by /u/Wonderful-Rush-9660 [link] [comments]”

“Curious to hear why you personally have the slight home country bias and if there’s any logic behind it instead of doing the global weight? All kinds of responses are welcomed! submitted by /u/EstimateWest4370 [link] [comments]”

“I was looking to invest into VTI then I compared it to VTG yes cheaper and less divs payout but in the long how is this compared? It looks like VTG will be worth more money in the long run? Or am I missing something? Yes I know they are 2 different ETF... submitted by /u/Dry_Report_3494 [link] [comments]”

“If you're focused on VTSAX vs. VTI you're probably not focused on something much more important. What matters most is exposure to diverse asset classes, then low expenses. The fund can be from Vanguard, Fidelity, Schwab, etc. The format can be mutual fund or ETF, those things matter very little. You might be used to ordering VTSAX by an exact dollar amount, that's a good enough reason to stick with VTSAX.”

“Not gonna name drop, but someone close to me only invests in VTI. His reasoning: US has a better work culture (aka very capitalistic and there is a focus on maximizing shareholder value above all here) and that international economies aren’t as diversified. To me, this doesn’t pass the sniff test as a valid reason against diversification. I even brought up all the arguments supporting why international diversification makes sense. Still doesn’t think I’m right in the slightest… I haven’t travele”