I have a little VUG and SOXQ in my Rollover IRA, a little QQQM & VGT in my Roth and my largest growth holding, SCHG, in my brokerage account. SCHG is my largest growth holding by a significant margin. I love that ETF. SCHG is the one I'm most focused on and the one I feed the most. I plan to buy it indefinitely. Glad to see it beating some of the other big names this year. I'm fully committed to it.
Very nice holdings there. SCHG is really good, and I love the razor thin expense ratio as well. I was going back and forth on it and QQQM for a long time. I may have chosen the wrong one! I may consider making my growth pie a bit more of a mut in the future. SCHG, QQQM, VGT, SMH. Overlap within a category (growth in this case) doesn't matter in the slightest. I think you have a great one in SCHG.
@@JeffTeeples I really went back and forth between QQQM & SCHG, ultimately choosing SCHG as my main ETF. Honestly, I don't think you can go wrong with either. Yes, SCHG is outperforming a bit this year but last year it was the opposite. Both are good and will serve us well.
That's awesome Anand. I think you might have a better mix than me at this point! SCHG has been great compared to QQQM lately. Keep on dollar cost averaging into that beast.
@@danwhite2424so let’s say if I have $3000 available to invest, I invest $1000 each in SCHD/SCHG/VOO. It is true that overall my SCHD allocation is slightly higher than the other two, but my goal is to not need to sell investments to generate my income when time comes. Like you I also have about same time left for the retirement.
New to the channel Jeff! Thank you for the detailed explanation on the topic. My wife and I are ready to start investing into the market. Also, thank you to everyone who comments, your shared experience, and knowledge is welcomed as I am a noob in this field. Cheers everyone, God bless 😊
Thank you for taking the time to watch the video and for leaving the kind words. I appreciate it! This is a great community, and I think it will be a great place for you and your wife to learn about investing. None of us have all of the answers, but together we can learn a ton.
I’m located in Europe. I started investing recently in XLKS, the synthetic version. It is less volatile than SMH but still a volatile beast. I have a long way (20years) investment plan so I can go through the rollercoaster of a growth etf. Slowly trying to reduce the single stocks that I have, but I’ll wait until I have a proper return on these (50%), because I’ve been investing a lot on them during this small bear market period. the plan is to reduce the single stocks only to a 10% of the portfolio, XLKS 60%, FWRA 30%. Then in the last 7 or 5 years, swap the allocation between XLKS and FWRA and wait for the right moment to exit my position with XLKS. Wish me good luck 🍀
Thanks for watching the video and for dropping a comment. I love it. As long as you are prepared for the rollercoaster you are good to go (no panic selling, if anything, buy more when it crashes). I went through a similar process a few years ago on exiting my positions. I spread the gains out over multiple years to control the tax bill. I would sell a few a year (huge gains, bought a while ago) and roll it directly into VGT. I love being in passively managed ETFs now. Still play around with some individual stocks with a small percentage of the portfolio. Good luck!
You mentioned that FTEC is just as good and follows the exact same index as VGT. FTEC is much cheaper and has a lower expense ratio if I’m not mistaken. How about doing an in-depth comparison video on these two ETFs soon?
Hey Carey. They are basically the same (0.10% vs 0.08%) on the expense ratio. The performance is close as well. Zooming out 10 years, this is the total return net of fees: VGT: 506.83% FTEC: 493.86% They will always be within a few % over any duration because they follow the same index at (basically) the same cost. It is just slight timing and rebalancing differences. FTEC is just fine, but I'm not sure where people get the 'much cheaper' from over the years. It has quite the following. I think pick your favorite of the two and roll with it. I like the Vanguard name and the high AUM of VGT, personally. But it isn't 'better' or 'worse'.
Thanks for the kind words Chad. I appreciate you taking the time to watch the videos & for going the extra mile to leave comments. This community is awesome.
Man Jeff, timing is everything. I had been discussing with my buddy the idea of dropping out of growth (once they recover) and going 50 / 50 VOO and SCHD. I currently own SCHG, QQQM, and FTEC and the dips are challenging to watch. You've compiled some compelling data that is changing my mind to stay the course... Thanks!
Hey Nick. That is great that you are sticking to the system. Especially during the downturns. It may continue to plummet or it may bounce right back. But I would keep dollar cost averaging into your most beat up position to get them back to the target allocations (based on your system & goals). Now, if you want to make a 'long-term' change to go SCHD / VOO there is nothing wrong with that. But it shouldn't be based on the current market. Of course if you did want to liquidate the growth into the others, it is based to wait until we get a high growth spike. But my point is we should make these moves only when we are long-term ready for the change. There are so many great ways to invest. Bouncing around is consistently not great. It is one of the main topics in my video coming next Sunday (within the portfolio update).
@@JeffTeeples Thanks Jeff, I appreciate it. My thought is I will eventually go to a VOO / SCHD portfolio just before I retire (heavier SCHD). Though, I may keep some growth around, depending on how things look at the time. But taking what the market gives isnt a bad win either ;)
Interesting with SCHG. That's one of my core holdings, seemed to pair up well with SCHD (+DGRO). Had SMH a while back but was too volatile for my comfort level.
Thank you for watching and commenting. I agree that SCHD & DGRO pair very well with SCHG. It is a great combo to buy & hold. Gives positive results in a variety of markets.
ThanX so much Jeff..... As always, quality presentation and excellent information. I am blessed to hold SMH, XLK, QQQM, VGT & VOO out of this grouping.... As always, looking forward to your next video / lesson.. I am REALLY looking forward to your video on how to balance and maintain said balance on someone's portfolio - across multiple accounts and in my case - 5 accounts (2 Roth, 2 Traditional & 1 taxable/brokerage account) .... SO many presenters do not explain where they hold their positions - Taxable/Brokerage vs Roth or Traditional.... and also the effects of Qualified vs Non Qualified if held in the taxable accounts.... I do not know if there are ETF's that hold Non Qualified stocks or a mixture of both in said ETF and the ramifications at tax time if so.... Thanks again for your quality workmanship each and every time. Always a pleasure..... Be well....
Thanks for watching and commenting Lance. Love the holdings you have. It is a tough time for me to be a week behind on content. My portfolio update is coming soon with more thoughts on 'what to do' (answer is nothing) in these crazy times (: Also, great idea on a more detail approach of how to stay allocated across accounts. In fact, I may make that video for the following week! I have a system that I don't dive into the details of enough that I would like to share for the basics.
@@JeffTeeples I’m all ears and eyes no matter what but trying to keep my balancing act together but I’m probably overthinking it vs doing it every three, six or twelve months. I’ll stay tuned. Next Teeps time Next Teeps channel.
Love the channel, your analytical approach, and as we all need sometimes: those consistent reminders to stay consistent over time :) At the moment I'm structured with: 15%-QQQM 15%-SCHG 10%-VTI 10%-VGT 10%-SCHD 10%-BND+TLT 5%-COWZ 5%-XMMO 20%-Individual Growth + Defensive w/Dividends Mix (Handful of top of the mind names: MSFT, CTAS, KO, JNJ, SPGI, ECL, AVGO, O, XOM, KVUE, PEP, COST, V, MA, ABBV, JPM, PFE, VICI, INTU, and some IBIT, JEPI/Q and FSELX for fun and speculative) Perhaps my structure is a little over done and could be simplified, although its been market beating so far.
I appreciate the positive feedback. That is a real nice and balanced portfolio. It may be a little more work than something lazy like mine, but I think you have quality holdings across the board. If it is something you enjoy keeping up with and spending a little time on (the individual stocks) then I think you'll do great over long periods of time. Those are such quality names that you will likely do great even if you fall asleep for 5 years.
Hi I’m in my early 20s so I really need your perspective about my port. Due to my age, I’m looking for growth more than dividends at this time Now I have SMH 50% VOO 30% SCHD 20% Do you have any suggestions for me? (don’t worry, i just want to know other opinions. I will research before investing for sure)
Hey Yiggy. Thanks for watching the video and for the question. I appreciate you understanding my disclaimers (: I think your 50% growth + 30% cornerstone + 20% dividend portfolio baskets are perfect. It is likely what I would do at your age, or very close to it. I wouldn't change anything about SCHD (20%) and VOO (30%). It is exactly what I would (actually what I do) do in your situation. SMH at a full 50% feels risky. It has performed very well for a long period of time, and I *think* it will do well in the future. It is hard to imagine semiconductors not playing a key role in any form of technology advancements (AI and beyond). It's just too much for my blood for half of my overall portfolio to be in 25 companies from the exact same sub-sector of technology. I would consider changing a chunk of it to something like VGT. It is still 100% technology, and very 'risky' in general compared to a broad market growth ETF like QQQM or SCHG, which are about 50% tech, but it gives you a broader scope of 'picking the next tech winner' without being entirely in the semi-conductor basket. That is the change I would consider. Maybe 30% VGT 20% SMH (or any combo based on your conviction). If you want to make it a little more mild in tech you could mix in SCHG or QQQM as well.
Thanks for the positive feedback. I think an update every 6 months feels like the right balance for these growth ETFs. I'm glad the market pulled back a little bit. Never hurts to add a little value to growth. It's been pretty high lately.
Hey Sean. You nailed it. It's funny because I get a lot of 'bad timing, the market crashed' comments. It's like, no, GREAT timing, actually (: Keep buying to the target allocations, which means we can swoop up some growth at a little better value long-term. Timing the market is a dangerous game. I stick to my system, remain a buyer, and ride it out.
That combo is so nice Tom. It is very close to mine and I think it will do well when we stick to the target allocations. There is long-term magic in 'comparative-dip buying' with our dollar cost averaging in over long periods of time. It's great to have growth (FTEC and SCHG) + value (SCHD). Then SPLG is always good for any amount of the portfolio as it is a great mix between the two.
@@JeffTeeples Good Job, Now I need you to look at the expense ratio's Effect on Total Return after expenses... for example isn't SMH like 5 times more than MGK and almost 9 times more than VUG? ...how dose that affect over all Gains. and also with SMH and others flying HIGH..how will they Fair in a downturn..will they also fall further than VUG and MGK? What is the Reason SMH is doing much better .do you know? Can you do this Analysis . Thanks
Hey John. SMH does have a lot higher expense ratio at 35 basis points. The total return includes the expense ratio, so it has been a monster over the past decade and change. The outperformance is because SMH is concentrated 100% on semiconductor stocks. Only 25 of them, and they have outperformed most everything else with the advancement of computing. It's crazy, and I think likely sustainable. I'm happy getting a nice chunk of the returns within VGT, personally. For now.
Thanks for watching and for the great comment. That is *exactly* right! We need to do our research and then stay the course with what we have. SCHG has outperformed QQQM since I choose QQQM. But if I jump to SCHG, and then QQQM makes a comeback, I'm falling guilty to the whole timing thing (cycling between buying high and selling low). They are both great. I say go QQQM *or* SCHG *or* both... But stick to the system once we dive in. At least for a while until a core change makes sense again.
SCHX is a solid cornerstone fund (I group it with VOO and VTI). Can never go wrong with something like it over many decades. I do think that rolling some of it to growth is a solid long-term move. I would find a balance for you and stay the course in all markets once you change. I roll with (and I'm not saying this is *right*, just an example) 33% VOO / 33% SCHD / 17% VGT / 17% QQQM as a 42 year old. I buy to my target allocations (new dollars go to the one that is the most beat up to 'default-dip-buy' within the system).
I was extremely disappointed with XLK after the rebalance especially since I hold NVDA stock. I originally bought for the Microsoft and Apple exposure. Your videos have been a great reference in my research to find a replacement to pair with SCHG. Thanks so much for the awesome videos! IRA: SCHD, SCHG, VTI, SOXQ, XLK (pending replacement) Brokerage: DGRO, QQQM, FTEC, VOO, SMH
Love it man. You have very solid holdings across the board. Stay the course with that, never panic sell, and keep dollar cost averaging in and I bet you're looking good in a few years / decades.
I appreciate that! I don't think I'll ever be the most exciting UA-camr, but I'll keep putting out videos that I think will make sense in any market moving forward.
I'm not blowing smoke.. my favorite at this time! I can kinda tell which tubers are good and will be the best. You have that aurora! I watch a lot of videos and tubers! Trust me
I appreciate that man. It is hard for me to 'grade myself' compared to what is out there. I'll keep dropping new videos and I will try to improve as time goes.
Great video, my growth portfolio is 50% QGRW, 25% FBTC and 25% XNTK. I really like the screens employed by Wisdom Tree’s QGRW (not QGRO) but have been thinking of selling out of XNTK once this dip in technology is over and investing that into JEPQ
I like the group of ETFs you have. JEPQ is a nice addition, especially if you need cash-flow now. If it is for the long-term portfolio and you don't need cash flow, I may consider QQQM (same index, but growth ceiling). Either one will be a nice addition.
Love it! Man, I was doing a good job of it. I was away for just over a week and I hit way too many beers without any weights (: I have some work to do!
Thanks Oldrin. I appreciate your support of the channel over the months (soon I'll be able to say years). You've been a great addition to this community. I think I'll drop a growth ETF and dividend ETF update every 6 months (feels right for not too much, but enough to give credit to the recent and long-term winners).
In addition to those you shared I started dabbling in SOXQ for semiconductors. I bought all my growth at the wrong time. It’s been a messy few weeks. That said, I presume what I am buying now is on sale.
Hey Sam. Thanks for watching and for the suggestion. I will add SOXQ on the list to compare to the semi ETFs. Thanks for the extra level of channel support!
I love that mix. I am a couple years older and have a similar mix. You are in 50% growth + ~13% growth from VOO, making it about 63% growth & 37% value overall. I'm using very rough numbers. I think it is important that you stay the course when the market is rocky. Keep dollar cost averaging into that thing and it will likely look very nice when we zoom out many years.
Hey Jeff: I’ve been holding onto FSELX for a few yrs which looks like it’s been edging out SMH for 10 yr run. I also hold some FTEC for a bit less volatility. Cheers.
Hey Tommy. Dang, FSELX has been very nice. Even with the 65 basis points of an expense ratio it has been incredible on the return charts. FTEC is awesome too. Your growth section has been on an incredible run, even with the recent downturn. Thanks for watching, commenting, and for the extra level of support of being a channel member.
Hi Jeff A happy subscriber here. Thanks for another great video. My wife and I are in our late 30s and our current allocation is (thanks to your videos) 40% VOO, 40% VGT, 20% SCHD. DCA-ing every week. We both work in tech and are bullish on tech like you, so picked just VGT for the growth part. Should we add QQQM or a more diversified growth ETF or just leave it as is? Would love to hear your thoughts. Thanks 🙏
Hey there! My situation is quite similar to yours, and I did split the portion of my growth allocation into VGT and QQQM, I guess it is more diversified than having only tech...but boy they both crashed in the same way 😂, and also SCHG has been crushing them both lately...so I look forward to seeing what our professor Jeff has to say about it!
Thanks for watching and for the question. You already received a great response from a channel member below. I think having VGT as the only growth is fine (I did it for years) as long as you have plenty of years left to invest (sounds like you do based on age) and you believe in the future of tech. I did make the switch to add QQQM to the mix. I figure with 50% of VGT and 50% QQQM I'm still 75% tech within my growth section of the portfolio. I love tech, and am just as high as ever on VGT, but I wanted to balance out my exposure just a bit (I'm now about 39% overall portfolio weighted tech). I don't think there is a right or wrong answer to the question as long as you 1) never panic sell 2) remain a consistent dollar cost averaging buyer for many years. You'll be fine if you can ignore the crashes and stay the course through it all. Also, I agree with the response about SCHG being another great option. It is similar to QQQM as far as sector balance and top holdings. I personally have gone with QQQM. because of the long history (40 years for the index, over 20 years for the ETF QQQ) of performing well (much better than SCHG for any 10+ year window). SCHG does have a lower expense ratio and has been better than QQQM by a long shot over the past 1 and 2 years, and better over the last 3 years as well (little closer).
@@JeffTeeples really appreciate you taking the time to provide a detailed answer. With my employer RSUs I'm already tech-heavy and it might make sense to split the growth portion of the portfolio between VGT and QQQM. 50:50. Thanks again.
That is an interesting mix. A lot of the smaller names, but they do the same thing as the popular ones. I was familiar with all except for IXN. Interesting global tech play. The expense ratio is a little high for my taste, but not too bad.
Great video. Thanks for the in-depth look. I like the returns growth provides just can't stomach the roller coaster. Time to go make the donuts! Being a former Boeing worker any thoughts on defense etf? Seems like they're better options for return on investments.
Hey Anthony. Growth stocks/ETFs provide quite the ride of ups and downs and are not for everyone. You may be more comfortable in the VOO or VTI + SCHD or DGRO world. There are many ways to go about it. I think companies like BA and LMT are solid investments and have the benefit of government backing when times get tough. However, I am mainly an ETF guy at this point, and I wouldn't invest in either (for different reasons) in my individual portfolio that holds 25 stocks. I'm not saying they are bad, but they don't check all of the boxes for me. Hutch (HODL Factory Partner) and I have a very strict screener to 'make the cut' for our scoring spreadsheet.
Thank you for watching and commenting. That is a bummer. I wish it was universal everywhere. I don't know the best specific tickers outside of the US market.
Great Video, Jeff! Would you be open to doing a video on Small Cap Value funds in the future? I've been considering adding in AVUV to my portfolio and would love to hear your opinion on small cap value. Thanks!
I add AVUV to Schd to diversify my Value portion in my portfolio. I am not disappointed and see the active vs passive etf as a good option. I don't have any other actively managed etfs.
Hey Jake. Thanks for watching and for leaving a comment. I do plan on making a video about small cap value in the coming weeks. AVUV is definitely a great option there (likely the one I would use for direct exposure).
@@royvillagran638good to hear! Yeah I try to stay away from actively managed funds but this one seems rule based and the fund managers have a great track record. If you don’t mind me asking, what allocation percentage did you put towards AVUV?
Hey Brianna! Thank you. You're the best. Next up is a portfolio update + my thoughts on the current market. I had to get a bit ahead before a vacation, but it will be dropping in a week.
If I’m 24 and have just got qqqm, voo, and schd. What would be another 2 good growth ETFs to add where there is over lap but not wayyyyy to much? I want some more growth since I’m starting out in my earlier years
Great job getting started early! I'm retroactively jealous! QQQM will have a lot of overlap with VUG, SCHG, and other 'broad growth ETFs'. QQQM and SCHG are my favorites for 'multi-sector growth ETFs', and they have 58% weighted overlap. Overlap isn't a bad thing if it is within a portfolio category (growth in this example). QQQM technically has 100% overlap with itself. So 40% QQQM has more 'overlap' than 20% QQQM and 20% SCHG if you want growth at 40% total. You could add a tech-only ETF like VGT or XLK if you are a tech bull (this is what I have done for many years, I believe tech is the future). Or, you could increase your QQQM compared to the other sections to 'add more growth' that way. For example, if you were a third of each, you could make QQQM 50%, and change SCHD and VOO to 25% (or any mix you like). Or QQQM 20%, SCHG 20%. You can't go wrong as long as you choose quality ETFs (in general) and stick to the plan in all markets. For example, don't get too wild and go 100% SCHD when the market starts to crash. Just keep buying to whatever target allocations you set in all markets.
My wife and I just shortened our retirement horizon to < 5 years, so we are out of pure growth stocks for now. We're going to roll over most of our workplace IRAs into SCHD. But we do plan on selling some cash covered puts on QQQ and SMH. If the entry point comes to us, then great. Otherwise, we'll still have the options premium. My 15-year-olds are all in on SMH though. The Japanese Yen carry trade mini crisis last week was a good buying opportunity.
That is awesome to hear. You clearly understand this stuff very well. I think your timelines (you and wife vs your kids) make perfect sense. They have a lot of time for the rollercoaster to go up and down (mostly up on zoom out). If I knew this stuff at 15 years old. Ohhhhhh man... Thank you for your support of the channel. It means a lot.
@@JeffTeeples Thank you for the cool spreadsheets, Jeff. I've incorporated most of them as tabs into the dashboard for my portfolio. They really help with planning
It has long been my favorite growth ETF. There are clearly many great options we can roll with. But, I'm a tech bull, and I like having a wider net of tech companies. This is why I prefer VGT slightly over XLK. They are basically interchangeable, but I like including a touch of small and mid cap.
@@JeffTeeples I think that in the next 20 years or more, autonomous driving will require more computing power, which is one of the reasons why I am interested in technology.
I think VONG is a solid growth ETF. I put it up there, or close to, my favorites. I personally like SCHG and QQQM a little better, but VONG is solid and has very similar holdings. VONG has more holdings, but it also more top heavy than something like QQQM. All great.
It is tempting. I'll stay the course for a while because I like the Nasdaq-100's 40 year history of dominance. QQQ(M) has outperformed SCHG by a long shot since SCHGs inception. But the last couple years have me questioning myself a little more. I'll continue to watch both. I love this stuff.
Hi Jeff, my portfolio mix is 80% S&P500 & 20% HSBC FTSE All world ETF - i'm conscious that this is a too conservative approach (In my early 30's) and wondering whether to add in QQQM (maybe 40% S&P500, 40% QQQM & 20% FTSE all world), but I would be concerned that all 3 funds have a large amount of overlap. Do you have any videos talking about the positive or negative affects of having too many ETF's with the main 'players' like Apple, Microsoft, Nvidia... etc. I'd love to hear your thoughts on this! I live in the UK and unfortunately we do not have access to a number of the funds you US guys have (Like SCHD).
Thank you for watching the video and for sharing your thoughts. I do think that adding a quality growth ETF (like QQQM for example) is a good long-term move in your 30's. As long as you dollar cost average into your allocations and never panic sell it will very likely do well over 20+ years. I'm going to make a video on ETF overlap. It is usually misunderstood and overrated. What most don't realize is that every ETF has a 100% overlap with itself. It matters at an overall portfolio view, but it doesn't matter a lot within a section of a portfolio (say growth holdings). Split dollar overlap is overrated (for example, $1,000 in QQQM or $500 in QQQM and $500 in SCHG is just fine). I'll go into more detail in the video.
Respectfully, I’m almost as big of a nerd as you, and ell my spreadsheet geekery comes up with SPMO coming out on top of the best overall ETF. Please prove me wrong
Thanks for the feedback Coy. I'll be adding SPMO to my tracking spreadsheet. I had it as a cornerstone holding in my notes (competing with VOO and VTI). But I will also include it to compare to growth ETFs as well. Thank you for your extra support of being a channel member. I appreciate it! Edit: I did just check out the 5 year charts, along with 'as long as possible'. SPMO falls well short of VGT, QQQM, SMH, and some others. But I'm guessing you are referring to the last 1 and 3 years. It's been a beast! Definitely worth tracking for sure.
Jeff I appreciate your videos and I've been motivated to make weekly purchases into VOO and QQQM instead of my usual lump sum every 60 days. However I'm concerned about SCHD. We own a lot of SCHD and its been pretty flatlined for last 3 years. I like the dividend growth but its starting to look like a lost puppy. I've been following another youtuber that has picked his own 90-100 stocks with a screener/filter since 2021 and he's got the same dividends as SCHD but much, much more per year in price growth. I think his price growth has equaled VGT & QQQ but without the big drop in 2022. I will probably copy what he's doing with $50k-60k budget and see how it goes.
Hey Tom. SCHD is had a rough 3 years to say the least. I still think it is a nice counterbalance to my growth holdings (VGT + QQQM), but it is understandable that many are beginning to walk away from it for other options. I think the reversion to the value mean will work in SCHDs favor, long-term, because the 100 companies that it holds focus on clean balance sheets and value (along with dividend growth). I'm saying the course for now, but let me know how the new system works for you. There are so many great ways to invest. I think it's great you're staying open-minded and looking for alternative methods.
@@JeffTeeples We own about 3,500 shares of SCHD that I bought during covid at $48 - $55 and I'll always hold on to those. I'll update you when I have 6 months with the new dividend stock portfolio.
Great video Jeff as always! Thank you so much! Would you say maybe investing some SMH is good? Have you heard about SWLGX? A mutual fund? Do you think that’s a good one? And do you prefer ETF better? Or mutual fund?
Hey Jane. I think SMH is a solid add for the growth section of a portfolio. It is too concentrated for my blood, but it has been so good in the past decade and then some. I am comfortable owning 'tech' with VGT, which includes many of the major semiconductor companies. Balances out the risk a little more. I prefer ETFs to mutual funds, but they are both fine. I like being able to buy and sell at any time, along with seeing what they are doing throughout the day. Most of this is for nerdy curiosity and spreadsheet functionality, and it doesn't make a difference long-term. However, ETFs are technically a little better at 'most things', slightly lower expense ratios generally speaking, and better for tax implications as well. The differences are trivial though, and there is no 'right way' to do it.
SMH covers the entire tech sector because the sector is dependent on semiconductors tsmc, intel, Samsung etc all rely on the companies in smh to be profitable. It’s like investing in the shovels and pickaxes, it doesn’t matter if which mining company wins they all require those tools to mine. So you win regardless.
Hey Will. I think this is a great point & a fantastic example. I mostly agree, but still consider VGT 'broad-tech' by comparison with more eggs in more baskets. But SMH does 'power' most 'tech' in general.
@@JeffTeeples definitely I’m not saying Smh should be someone’s sole tech fund but it does provide a power punch of growth that isn’t as susceptible to the issues of other highly focused funds due to the universal need of semiconductors in most advanced fields.
Hey Michael. You have come to the right place for DIY investing. I quit my ($170,000) job to help as many people as possible. Investing is deceptively simple, but not understood by the masses (we don't teach it in school). And it is sadly full of greedy people that want to 'help' you by stealing your money with massive fees. Helping people reach financial freedom is my one and only 'career goal' at this point. Everything else I do is based around my wonderful friends and family.
SOXQ is cheaper "exp" than SOXX. PortLABS says: "In the year-to-date period, SOXX achieves a 10.54% return, which is significantly lower than SOXQ's 13.33% return." I am digging SOXQ for now. 🙂 I have other reasons, but the above should be enough to make SOXQ interesting to some folks. Still, this kind of narrow ETF is always a low % of my portfolio. A Roth-IRA kind of fund. SCHG, SCHD, and SWPPX are still cornerstones.
Great video! I have VTI, SCHD, FTEC, and QQQM, kinda wanna add a small cap fund cause ive red they can outperform large cap stocks over a long period of time, what do you think about small cap stocks?
Hey Josh, great mix there. I think small stocks are great long-term. They are a bit more volatile than large cap, but have a solid long-term history. I think I'll be making a video about small caps soon.
@@JeffTeeples Ok great! They’re definitely more volatile but they can add like an additional 2% to your average over the long term which can make a big difference!
i just started a Roth IRA and want to focus primarily on Growth ETFs (my SEP and Traditional IRAs already has A LOT of SCHD and VOO). What do you think about VGT 40%, SCHG 40%, and SMH 20% allocation?
Hey Jay. Thanks for watching and for the question. I think you have a great mix there. 3 of my favorite growth ETFs for sure. SMH always scares me because of its concentration on a single industry. But, it has been dominant and perhaps I should have been in all along (:
Thank you for watching and for sharing your holdings. You caught me off guard for not knowing the tickers! lol. Then I realized it is the Canadian equivalents when I looked them up.
Jeff, I'm new to your channel and really like what I see and hear. I'm 63 and recently retired and am trying to dig an my retirement investments to help supplement my SS and really like the spread sheet to help ETF compare returns. How do I get access to it? Thank you
Hey Michael. Thanks for taking the time to watch the videos and for leaving a question. The spreadsheets are part of the channel membership. I provide a link with access to them and some other goodies.
I know you are very disciplined and stick to your system that has worked great for you obviously. That being said maybe you should throw a couple thousand into SMH and hold for a couple years for science lol
Haha, I know right!? It's been such a beast over the past decade and then some. I'll probably continue to watch from afar wondering what could have been (: It will always get it's due in videos like this, though!
That is a nice mix! Love it. Stay the course and continue to dollar cost average in all markets and I think you'll be happy when we zoom out a couple decades (even with the rollercoaster rides along the way).
I saw that, sorry for the inaccurate information. In need to update my pitch. It was 20% off for a long time. Bummer. My referrals have gone to almost zero since the change (about a month now). Maybe they will give you a better deal soon!
I'm a huge proponent of net income trends (growth rate) over time. SOUN isn't profitable yet, and I see PLTR did turn a net profit for the first time, so I may start picking up that on some of my screeners. I am not educated on them enough to have a lot else to say. I am a boring investor that likes to see positive financial trends *before* diving in. It makes it to where I'll never hit it big or just at the right time, but... It reduces my losers as well.
@@JeffTeeples PLTR and MSFT have partnered re AI Tech for the military…the SOUN product has been added to more Stellantis vehicles …SOUN has also partnered with NVDA in order to use their voice assistant technology. Just a matter of time my guy.
For sure. I wouldn't be shocked if both went soaring in the near future. In no way am I saying I think they are bad. My process doesn't pick up on potential quite as much.
I project my retirement expenses to be approximately $75000 a year and my ssa and pension will account for about $55000. So I will only need by 1 million portfolio generate the remaining $20000 and Inflation. I agree pre retirement the 3 fund portfolio you suggest is great. But I never her you mention cd treasury as part of your plan to reduce your risk. As Warren buffet would say why would you risk for what you don’t need with an all stock market portfolio. What is in your opinion the right allocation when you have met your needs
Hey Felice. If I had $20,000 to make up with a $1M portfolio, I would likely go something like $750k in SCHD and $250k in VOO. I would put the excess dividends back into the 75/25 mix of the two. Portfolio value wouldn't matter (all about dividend growth), but if I did care about it, I would do 100% SCHD instead.
*Deep breath in thought* I don't think so at this point. It's not that I think they are bad, at all, but I like to roll with broad growth / tech. Too focused for me. Although I've been saying that for a long time as it goes to the moon, lol. *shrug
I like it because you have two amazing growth ETFs paired with some awesome cash flow. Bonus points for having the high dividend ETFs in a Roth for zero taxes! (:
Thanks for watching and for leaving a comment. I think it should be in the upper 30's. Where did you see this? (makes me think one of the data pulls could be screwed up, I don't remember seeing it but I pull in a lot of data).
Hey Gary. It's been fun tracking SOXX on the spreadsheet. I've noticed it has lagged SMH a little, but has still crushed all the other growth ETFs over the long haul.
I think about this from time to time. Well, not replacing directly, but adding a little room in the growth pie for SMH. Sometimes I consider SCHG too, even though it has a lot of overlap with QQQM. I don't care about overlap for split dollars, as it doesn't matter (like having VTI and VOO, for example). SCHG and SMH have been so good. For now, I'll stay the course with VGT (never going anywhere) and QQQM (my new holding that isn't set in stone).
Thanks Michael. I appreciate you pointing that out. I have it on my list to add for next quarter. To be honest neither has ever been on my personal radar, however, I do want to show the best options for some of the popular and solid ETFs.
I have used a couple of these brokerages to test them out and here’s my observation- Robinhood is designed for trading. They make the user experience a lot more engaging and you might be tempted to react to the market conditions. But the general advice is to automate your trades and get advantage of DCA. Investing should be boring. So a platform like Fidelity or E*trade are better brokerages in my opinion. Just set up the automatic transactions and forget about it.
Hey Ike. I think it depends on what type of investor you are. If you're a long-term buy and hold investor with index funds and ETFs, it really doesn't matter that much. I don't use Robinhood, and I'm aware of the controversies surrounding it, but I don't think the noise is as big of a deal as your personal preferences. I personally chose E*Trade because it has been around for a while (security) and I love the interface. I chose M1 for my long-term automation favorite (automatically buys to target allocations). Fidelity has a lot of great features and is one of the more established options. You'll find a lot of opinions out there, good and bad about each online broker, but I would say go with the one that you prefer.
Looks good but this is definitely outdated. Today is Aug 8, 2024 but you say this is from Aug 1, 2024. The market had some pretty big drops. Would like to see all this data again in current time versus the past. BTW, I would have like to have seen SPMO in comparison to QQQ & VGT.
Things are back up again, it's Aug 11, and things will probably go down again in October or whenever people feel like things aren't going well. The market is entirely irrational, self-fulfilling, and stupid. And we should invest tens of thousands of dollars in it 😂 But seriously, all this info is just as up-to-date today as it was yesterday, 3 years ago, 10 years ago, etc.
@@DrMediterranean I have the same thought about the market being irrational with those wild swings with no good reason. What is the solution though? More in fixed income?
This is one I've been watching too (but not for long). I compare it to the S&P 500 so far, however, it does have a make-up that is more growth like at the moment. I will add it to the ETF compare spreadsheet soon so I can compare it to the cornerstones and growth ETFs on a weekly basis. Thanks for watching and for all of your channel support!
I have 2 shares of VYMI, 6 shares of JEPQ, and 3 shares of JEPI in my roth ira. Not the greatest but I'm just starting. What do you think @Jeff Teeples?
Hey David. I think it is great that you are getting started! Reinvesting those dividends will be fun to see over the years. I love seeing the shares increase over time without making new contributions. Add new contributions as well and things get wild.
@@JeffTeeples CHPS came out 13 months ago. The low expense fee for a semiconductor caught my eye as its the lowest in its class. Looks like there base out of Canada. New ETF are always coming out, it gets a bit overwhelming trying to keep up with them all looking for the best ones.
I have a little VUG and SOXQ in my Rollover IRA, a little QQQM & VGT in my Roth and my largest growth holding, SCHG, in my brokerage account. SCHG is my largest growth holding by a significant margin. I love that ETF. SCHG is the one I'm most focused on and the one I feed the most. I plan to buy it indefinitely. Glad to see it beating some of the other big names this year. I'm fully committed to it.
Very nice holdings there. SCHG is really good, and I love the razor thin expense ratio as well. I was going back and forth on it and QQQM for a long time. I may have chosen the wrong one! I may consider making my growth pie a bit more of a mut in the future. SCHG, QQQM, VGT, SMH. Overlap within a category (growth in this case) doesn't matter in the slightest.
I think you have a great one in SCHG.
@@JeffTeeples I really went back and forth between QQQM & SCHG, ultimately choosing SCHG as my main ETF. Honestly, I don't think you can go wrong with either. Yes, SCHG is outperforming a bit this year but last year it was the opposite. Both are good and will serve us well.
3 way split SCHG/VOO/SCHD is KISS for me regardless of taxable or tax advantaged accounts. Inspiration I got from this channel!😊
Nothing wrong with that 3-fund portfolio. So you have the same in a roth IRA?
@@DanielSuarez-zn8iw yes
That's awesome Anand. I think you might have a better mix than me at this point! SCHG has been great compared to QQQM lately. Keep on dollar cost averaging into that beast.
How do you have that split up? Mine is similar. Still have just over 20 years to go and have it nearly 1/3 across all 3 but a bit heavier on SCHG.
@@danwhite2424so let’s say if I have $3000 available to invest, I invest $1000 each in SCHD/SCHG/VOO. It is true that overall my SCHD allocation is slightly higher than the other two, but my goal is to not need to sell investments to generate my income when time comes. Like you I also have about same time left for the retirement.
keep pumping out those financial informational videos Jeff!!!!
Thanks Kevin! Will do.
An alternate to SOXX is SOXQ. Same same but cheaper exp ratio 🤙🏽
Thank you for that pointer. I added it to my watch list. I'll go back to the drawing board and perhaps add it for the future.
New to the channel Jeff! Thank you for the detailed explanation on the topic. My wife and I are ready to start investing into the market. Also, thank you to everyone who comments, your shared experience, and knowledge is welcomed as I am a noob in this field. Cheers everyone, God bless 😊
Thank you for taking the time to watch the video and for leaving the kind words. I appreciate it! This is a great community, and I think it will be a great place for you and your wife to learn about investing. None of us have all of the answers, but together we can learn a ton.
I’m located in Europe. I started investing recently in XLKS, the synthetic version. It is less volatile than SMH but still a volatile beast. I have a long way (20years) investment plan so I can go through the rollercoaster of a growth etf. Slowly trying to reduce the single stocks that I have, but I’ll wait until I have a proper return on these (50%), because I’ve been investing a lot on them during this small bear market period. the plan is to reduce the single stocks only to a 10% of the portfolio, XLKS 60%, FWRA 30%. Then in the last 7 or 5 years, swap the allocation between XLKS and FWRA and wait for the right moment to exit my position with XLKS. Wish me good luck 🍀
Thanks for watching the video and for dropping a comment. I love it. As long as you are prepared for the rollercoaster you are good to go (no panic selling, if anything, buy more when it crashes).
I went through a similar process a few years ago on exiting my positions. I spread the gains out over multiple years to control the tax bill. I would sell a few a year (huge gains, bought a while ago) and roll it directly into VGT.
I love being in passively managed ETFs now. Still play around with some individual stocks with a small percentage of the portfolio.
Good luck!
You mentioned that FTEC is just as good and follows the exact same index as VGT. FTEC is much cheaper and has a lower expense ratio if I’m not mistaken. How about doing an in-depth comparison video on these two ETFs soon?
Hey Carey. They are basically the same (0.10% vs 0.08%) on the expense ratio. The performance is close as well. Zooming out 10 years, this is the total return net of fees:
VGT: 506.83%
FTEC: 493.86%
They will always be within a few % over any duration because they follow the same index at (basically) the same cost. It is just slight timing and rebalancing differences. FTEC is just fine, but I'm not sure where people get the 'much cheaper' from over the years. It has quite the following. I think pick your favorite of the two and roll with it. I like the Vanguard name and the high AUM of VGT, personally. But it isn't 'better' or 'worse'.
@@JeffTeeples Thanks for the quick and in-depth response! Appreciate your content!
Spmo
FTEC has a lower dividend
Great job once again! Thoroughly enjoy your content!
Thanks for the kind words Chad. I appreciate you taking the time to watch the videos & for going the extra mile to leave comments. This community is awesome.
Man Jeff, timing is everything. I had been discussing with my buddy the idea of dropping out of growth (once they recover) and going 50 / 50 VOO and SCHD. I currently own SCHG, QQQM, and FTEC and the dips are challenging to watch. You've compiled some compelling data that is changing my mind to stay the course... Thanks!
Hey Nick. That is great that you are sticking to the system. Especially during the downturns. It may continue to plummet or it may bounce right back. But I would keep dollar cost averaging into your most beat up position to get them back to the target allocations (based on your system & goals).
Now, if you want to make a 'long-term' change to go SCHD / VOO there is nothing wrong with that. But it shouldn't be based on the current market. Of course if you did want to liquidate the growth into the others, it is based to wait until we get a high growth spike. But my point is we should make these moves only when we are long-term ready for the change.
There are so many great ways to invest. Bouncing around is consistently not great. It is one of the main topics in my video coming next Sunday (within the portfolio update).
Thats mainly what im in + JEPI & JEPQ sinply for the monthly dividend drug 😂😂
@@JeffTeeples Thanks Jeff, I appreciate it. My thought is I will eventually go to a VOO / SCHD portfolio just before I retire (heavier SCHD). Though, I may keep some growth around, depending on how things look at the time. But taking what the market gives isnt a bad win either ;)
Interesting with SCHG. That's one of my core holdings, seemed to pair up well with SCHD (+DGRO). Had SMH a while back but was too volatile for my comfort level.
I’m wit u…I’m dropping back from SMH.
Grab some SOXQ 💪🏾
Thank you for watching and commenting. I agree that SCHD & DGRO pair very well with SCHG. It is a great combo to buy & hold. Gives positive results in a variety of markets.
Quality job done! Thanks. Fish.
Thanks for watching and for leaving a comment Ron. I appreciate it.
ThanX so much Jeff..... As always, quality presentation and excellent information. I am blessed to hold SMH, XLK, QQQM, VGT & VOO out of this grouping.... As always, looking forward to your next video / lesson.. I am REALLY looking forward to your video on how to balance and maintain said balance on someone's portfolio - across multiple accounts and in my case - 5 accounts (2 Roth, 2 Traditional & 1 taxable/brokerage account) .... SO many presenters do not explain where they hold their positions - Taxable/Brokerage vs Roth or Traditional.... and also the effects of Qualified vs Non Qualified if held in the taxable accounts.... I do not know if there are ETF's that hold Non Qualified stocks or a mixture of both in said ETF and the ramifications at tax time if so.... Thanks again for your quality workmanship each and every time. Always a pleasure..... Be well....
Thanks for watching and commenting Lance. Love the holdings you have. It is a tough time for me to be a week behind on content. My portfolio update is coming soon with more thoughts on 'what to do' (answer is nothing) in these crazy times (:
Also, great idea on a more detail approach of how to stay allocated across accounts. In fact, I may make that video for the following week! I have a system that I don't dive into the details of enough that I would like to share for the basics.
@@JeffTeeples I’m all ears and eyes no matter what but trying to keep my balancing act together but I’m probably overthinking it vs doing it every three, six or twelve months. I’ll stay tuned. Next Teeps time Next Teeps channel.
Love the channel, your analytical approach, and as we all need sometimes: those consistent reminders to stay consistent over time :)
At the moment I'm structured with:
15%-QQQM
15%-SCHG
10%-VTI
10%-VGT
10%-SCHD
10%-BND+TLT
5%-COWZ
5%-XMMO
20%-Individual Growth + Defensive w/Dividends Mix (Handful of top of the mind names: MSFT, CTAS, KO, JNJ, SPGI, ECL, AVGO, O, XOM, KVUE, PEP, COST, V, MA, ABBV, JPM, PFE, VICI, INTU, and some IBIT, JEPI/Q and FSELX for fun and speculative)
Perhaps my structure is a little over done and could be simplified, although its been market beating so far.
I appreciate the positive feedback. That is a real nice and balanced portfolio. It may be a little more work than something lazy like mine, but I think you have quality holdings across the board. If it is something you enjoy keeping up with and spending a little time on (the individual stocks) then I think you'll do great over long periods of time. Those are such quality names that you will likely do great even if you fall asleep for 5 years.
Hi I’m in my early 20s so I really need your perspective about my port. Due to my age, I’m looking for growth more than dividends at this time
Now I have SMH 50% VOO 30% SCHD 20%
Do you have any suggestions for me?
(don’t worry, i just want to know other opinions. I will research before investing for sure)
Hey Yiggy. Thanks for watching the video and for the question. I appreciate you understanding my disclaimers (:
I think your 50% growth + 30% cornerstone + 20% dividend portfolio baskets are perfect. It is likely what I would do at your age, or very close to it.
I wouldn't change anything about SCHD (20%) and VOO (30%). It is exactly what I would (actually what I do) do in your situation.
SMH at a full 50% feels risky. It has performed very well for a long period of time, and I *think* it will do well in the future. It is hard to imagine semiconductors not playing a key role in any form of technology advancements (AI and beyond). It's just too much for my blood for half of my overall portfolio to be in 25 companies from the exact same sub-sector of technology.
I would consider changing a chunk of it to something like VGT. It is still 100% technology, and very 'risky' in general compared to a broad market growth ETF like QQQM or SCHG, which are about 50% tech, but it gives you a broader scope of 'picking the next tech winner' without being entirely in the semi-conductor basket.
That is the change I would consider. Maybe 30% VGT 20% SMH (or any combo based on your conviction). If you want to make it a little more mild in tech you could mix in SCHG or QQQM as well.
Perfectly explained!
Thanks for the positive feedback. I think an update every 6 months feels like the right balance for these growth ETFs. I'm glad the market pulled back a little bit. Never hurts to add a little value to growth. It's been pretty high lately.
Thank you. Great video.
Thank you for watching & for leaving a comment. I appreciate the support.
Very timely video Jeff given this latest tech dip in the market. The Chips act of 2022 makes SMH an even more attractive holding, long term.
Hey Sean. You nailed it. It's funny because I get a lot of 'bad timing, the market crashed' comments. It's like, no, GREAT timing, actually (: Keep buying to the target allocations, which means we can swoop up some growth at a little better value long-term. Timing the market is a dangerous game. I stick to my system, remain a buyer, and ride it out.
Fantastic video Jeff!
I personally have the following
40%- Splg (Voo)
30% - Schd
20% - Schg
10%- Ftec
That combo is so nice Tom. It is very close to mine and I think it will do well when we stick to the target allocations. There is long-term magic in 'comparative-dip buying' with our dollar cost averaging in over long periods of time. It's great to have growth (FTEC and SCHG) + value (SCHD). Then SPLG is always good for any amount of the portfolio as it is a great mix between the two.
@@JeffTeeples Good Job, Now I need you to look at the expense ratio's Effect on Total Return after expenses... for example isn't SMH like 5 times more than MGK and almost 9 times more than VUG? ...how dose that affect over all Gains. and also with SMH and others flying HIGH..how will they Fair in a downturn..will they also fall further than VUG and MGK?
What is the Reason SMH is doing much better .do you know?
Can you do this Analysis . Thanks
@JeffTeeples I wasn't able to reply under my thread. I got the pe from yahoo finance.
Hey John. SMH does have a lot higher expense ratio at 35 basis points. The total return includes the expense ratio, so it has been a monster over the past decade and change. The outperformance is because SMH is concentrated 100% on semiconductor stocks. Only 25 of them, and they have outperformed most everything else with the advancement of computing. It's crazy, and I think likely sustainable. I'm happy getting a nice chunk of the returns within VGT, personally. For now.
Great video. Choices choices. I'm ok sticking with SCHG as my growth for the long term. If i start chasing the winner every year... Not good.
Thanks for watching and for the great comment. That is *exactly* right! We need to do our research and then stay the course with what we have. SCHG has outperformed QQQM since I choose QQQM. But if I jump to SCHG, and then QQQM makes a comeback, I'm falling guilty to the whole timing thing (cycling between buying high and selling low). They are both great. I say go QQQM *or* SCHG *or* both... But stick to the system once we dive in. At least for a while until a core change makes sense again.
I've been thinking about replacing my position in SCHX with a higher growth etf, so this video is timely for me.
SCHX is a solid cornerstone fund (I group it with VOO and VTI). Can never go wrong with something like it over many decades. I do think that rolling some of it to growth is a solid long-term move. I would find a balance for you and stay the course in all markets once you change.
I roll with (and I'm not saying this is *right*, just an example) 33% VOO / 33% SCHD / 17% VGT / 17% QQQM as a 42 year old. I buy to my target allocations (new dollars go to the one that is the most beat up to 'default-dip-buy' within the system).
I was extremely disappointed with XLK after the rebalance especially since I hold NVDA stock. I originally bought for the Microsoft and Apple exposure. Your videos have been a great reference in my research to find a replacement to pair with SCHG. Thanks so much for the awesome videos!
IRA: SCHD, SCHG, VTI, SOXQ, XLK (pending replacement)
Brokerage: DGRO, QQQM, FTEC, VOO, SMH
Love it man. You have very solid holdings across the board. Stay the course with that, never panic sell, and keep dollar cost averaging in and I bet you're looking good in a few years / decades.
Favorite tuber at this time!
I appreciate that! I don't think I'll ever be the most exciting UA-camr, but I'll keep putting out videos that I think will make sense in any market moving forward.
I'm not blowing smoke.. my favorite at this time! I can kinda tell which tubers are good and will be the best. You have that aurora! I watch a lot of videos and tubers! Trust me
I appreciate that man. It is hard for me to 'grade myself' compared to what is out there. I'll keep dropping new videos and I will try to improve as time goes.
Great video, my growth portfolio is 50% QGRW, 25% FBTC and 25% XNTK. I really like the screens employed by Wisdom Tree’s QGRW (not QGRO) but have been thinking of selling out of XNTK once this dip in technology is over and investing that into JEPQ
I like the group of ETFs you have. JEPQ is a nice addition, especially if you need cash-flow now. If it is for the long-term portfolio and you don't need cash flow, I may consider QQQM (same index, but growth ceiling). Either one will be a nice addition.
Speaking of growth, we see you hitting those weights in the gym brother. Keep up the great content as well.
Love it! Man, I was doing a good job of it. I was away for just over a week and I hit way too many beers without any weights (: I have some work to do!
Great video loved it!
Thanks Oldrin. I appreciate your support of the channel over the months (soon I'll be able to say years). You've been a great addition to this community. I think I'll drop a growth ETF and dividend ETF update every 6 months (feels right for not too much, but enough to give credit to the recent and long-term winners).
@@JeffTeeples Great plan!
In addition to those you shared I started dabbling in SOXQ for semiconductors. I bought all my growth at the wrong time. It’s been a messy few weeks. That said, I presume what I am buying now is on sale.
Hey Sam. Thanks for watching and for the suggestion. I will add SOXQ on the list to compare to the semi ETFs. Thanks for the extra level of channel support!
I am 40. What do you think of my portfolio? VOO 25%, VGT 25%, QQQM 25%, SCHD 25%
I love that mix. I am a couple years older and have a similar mix. You are in 50% growth + ~13% growth from VOO, making it about 63% growth & 37% value overall. I'm using very rough numbers. I think it is important that you stay the course when the market is rocky. Keep dollar cost averaging into that thing and it will likely look very nice when we zoom out many years.
Hey Jeff: I’ve been holding onto FSELX for a few yrs which looks like it’s been edging out SMH for 10 yr run. I also hold some FTEC for a bit less volatility. Cheers.
Hey Tommy. Dang, FSELX has been very nice. Even with the 65 basis points of an expense ratio it has been incredible on the return charts. FTEC is awesome too. Your growth section has been on an incredible run, even with the recent downturn. Thanks for watching, commenting, and for the extra level of support of being a channel member.
I currently own VUG and VOO mainly in my brokerage and a smaller allocation to VIG
Very nice group of Vanguard growth, core, and dividends. Like the combo.
Hi Jeff
A happy subscriber here. Thanks for another great video.
My wife and I are in our late 30s and our current allocation is (thanks to your videos) 40% VOO, 40% VGT, 20% SCHD.
DCA-ing every week. We both work in tech and are bullish on tech like you, so picked just VGT for the growth part.
Should we add QQQM or a more diversified growth ETF or just leave it as is? Would love to hear your thoughts. Thanks 🙏
Hey there! My situation is quite similar to yours, and I did split the portion of my growth allocation into VGT and QQQM, I guess it is more diversified than having only tech...but boy they both crashed in the same way 😂, and also SCHG has been crushing them both lately...so I look forward to seeing what our professor Jeff has to say about it!
@@fernandezfran thanks for your response. Didn’t care much about SCHG until now 😄 looks like they’re on a roll
Thanks for watching and for the question. You already received a great response from a channel member below. I think having VGT as the only growth is fine (I did it for years) as long as you have plenty of years left to invest (sounds like you do based on age) and you believe in the future of tech.
I did make the switch to add QQQM to the mix. I figure with 50% of VGT and 50% QQQM I'm still 75% tech within my growth section of the portfolio. I love tech, and am just as high as ever on VGT, but I wanted to balance out my exposure just a bit (I'm now about 39% overall portfolio weighted tech).
I don't think there is a right or wrong answer to the question as long as you 1) never panic sell 2) remain a consistent dollar cost averaging buyer for many years. You'll be fine if you can ignore the crashes and stay the course through it all.
Also, I agree with the response about SCHG being another great option. It is similar to QQQM as far as sector balance and top holdings. I personally have gone with QQQM. because of the long history (40 years for the index, over 20 years for the ETF QQQ) of performing well (much better than SCHG for any 10+ year window). SCHG does have a lower expense ratio and has been better than QQQM by a long shot over the past 1 and 2 years, and better over the last 3 years as well (little closer).
@@JeffTeeples really appreciate you taking the time to provide a detailed answer. With my employer RSUs I'm already tech-heavy and it might make sense to split the growth portion of the portfolio between VGT and QQQM. 50:50. Thanks again.
MGC, IXN, VHT, Moat make up 80 percent of my 280k portfolio. 40, 20, 20 20 in weight.
That is an interesting mix. A lot of the smaller names, but they do the same thing as the popular ones. I was familiar with all except for IXN. Interesting global tech play. The expense ratio is a little high for my taste, but not too bad.
Great video. Thanks for the in-depth look. I like the returns growth provides just can't stomach the roller coaster. Time to go make the donuts! Being a former Boeing worker any thoughts on defense etf? Seems like they're better options for return on investments.
Hey Anthony. Growth stocks/ETFs provide quite the ride of ups and downs and are not for everyone. You may be more comfortable in the VOO or VTI + SCHD or DGRO world. There are many ways to go about it.
I think companies like BA and LMT are solid investments and have the benefit of government backing when times get tough. However, I am mainly an ETF guy at this point, and I wouldn't invest in either (for different reasons) in my individual portfolio that holds 25 stocks. I'm not saying they are bad, but they don't check all of the boxes for me.
Hutch (HODL Factory Partner) and I have a very strict screener to 'make the cut' for our scoring spreadsheet.
Interesting video's Jeff. Unfortunate I'm in the EU, so not all ETF's are available through the brokers.
Thank you for watching and commenting. That is a bummer. I wish it was universal everywhere. I don't know the best specific tickers outside of the US market.
Great Video, Jeff! Would you be open to doing a video on Small Cap Value funds in the future? I've been considering adding in AVUV to my portfolio and would love to hear your opinion on small cap value. Thanks!
I add AVUV to Schd to diversify my Value portion in my portfolio. I am not disappointed and see the active vs passive etf as a good option. I don't have any other actively managed etfs.
Hey Jake. Thanks for watching and for leaving a comment. I do plan on making a video about small cap value in the coming weeks. AVUV is definitely a great option there (likely the one I would use for direct exposure).
AVUV is a quality small cap value play. I think it is the one I would add for direct exposure as well.
@@JeffTeeples Awesome, thank you!
@@royvillagran638good to hear! Yeah I try to stay away from actively managed funds but this one seems rule based and the fund managers have a great track record. If you don’t mind me asking, what allocation percentage did you put towards AVUV?
Thanks!
Hey Brianna! Thank you. You're the best. Next up is a portfolio update + my thoughts on the current market. I had to get a bit ahead before a vacation, but it will be dropping in a week.
If I’m 24 and have just got qqqm, voo, and schd. What would be another 2 good growth ETFs to add where there is over lap but not wayyyyy to much? I want some more growth since I’m starting out in my earlier years
Great job getting started early! I'm retroactively jealous!
QQQM will have a lot of overlap with VUG, SCHG, and other 'broad growth ETFs'.
QQQM and SCHG are my favorites for 'multi-sector growth ETFs', and they have 58% weighted overlap. Overlap isn't a bad thing if it is within a portfolio category (growth in this example). QQQM technically has 100% overlap with itself. So 40% QQQM has more 'overlap' than 20% QQQM and 20% SCHG if you want growth at 40% total.
You could add a tech-only ETF like VGT or XLK if you are a tech bull (this is what I have done for many years, I believe tech is the future).
Or, you could increase your QQQM compared to the other sections to 'add more growth' that way.
For example, if you were a third of each, you could make QQQM 50%, and change SCHD and VOO to 25% (or any mix you like).
Or QQQM 20%, SCHG 20%.
You can't go wrong as long as you choose quality ETFs (in general) and stick to the plan in all markets. For example, don't get too wild and go 100% SCHD when the market starts to crash. Just keep buying to whatever target allocations you set in all markets.
My wife and I just shortened our retirement horizon to < 5 years, so we are out of pure growth stocks for now. We're going to roll over most of our workplace IRAs into SCHD. But we do plan on selling some cash covered puts on QQQ and SMH. If the entry point comes to us, then great. Otherwise, we'll still have the options premium.
My 15-year-olds are all in on SMH though. The Japanese Yen carry trade mini crisis last week was a good buying opportunity.
That is awesome to hear. You clearly understand this stuff very well. I think your timelines (you and wife vs your kids) make perfect sense. They have a lot of time for the rollercoaster to go up and down (mostly up on zoom out).
If I knew this stuff at 15 years old. Ohhhhhh man...
Thank you for your support of the channel. It means a lot.
@@JeffTeeples Thank you for the cool spreadsheets, Jeff. I've incorporated most of them as tabs into the dashboard for my portfolio. They really help with planning
That is awesome to hear! I do plan to add more in the future as well. I'm glad you're enjoying what is already there.
I like VGT
It has long been my favorite growth ETF. There are clearly many great options we can roll with. But, I'm a tech bull, and I like having a wider net of tech companies. This is why I prefer VGT slightly over XLK. They are basically interchangeable, but I like including a touch of small and mid cap.
@@JeffTeeples I think that in the next 20 years or more, autonomous driving will require more computing power, which is one of the reasons why I am interested in technology.
Any thoughts on VONG? Morningstar has it rated as a 5-star Gold fund.
I think VONG is a solid growth ETF. I put it up there, or close to, my favorites. I personally like SCHG and QQQM a little better, but VONG is solid and has very similar holdings. VONG has more holdings, but it also more top heavy than something like QQQM. All great.
Schg crushing Qqqm plus better expense ratio make the switch
It is tempting. I'll stay the course for a while because I like the Nasdaq-100's 40 year history of dominance. QQQ(M) has outperformed SCHG by a long shot since SCHGs inception. But the last couple years have me questioning myself a little more. I'll continue to watch both. I love this stuff.
Hi Jeff, my portfolio mix is 80% S&P500 & 20% HSBC FTSE All world ETF - i'm conscious that this is a too conservative approach (In my early 30's) and wondering whether to add in QQQM (maybe 40% S&P500, 40% QQQM & 20% FTSE all world), but I would be concerned that all 3 funds have a large amount of overlap. Do you have any videos talking about the positive or negative affects of having too many ETF's with the main 'players' like Apple, Microsoft, Nvidia... etc. I'd love to hear your thoughts on this! I live in the UK and unfortunately we do not have access to a number of the funds you US guys have (Like SCHD).
Thank you for watching the video and for sharing your thoughts. I do think that adding a quality growth ETF (like QQQM for example) is a good long-term move in your 30's. As long as you dollar cost average into your allocations and never panic sell it will very likely do well over 20+ years.
I'm going to make a video on ETF overlap. It is usually misunderstood and overrated. What most don't realize is that every ETF has a 100% overlap with itself. It matters at an overall portfolio view, but it doesn't matter a lot within a section of a portfolio (say growth holdings). Split dollar overlap is overrated (for example, $1,000 in QQQM or $500 in QQQM and $500 in SCHG is just fine). I'll go into more detail in the video.
@@JeffTeeples that's great, thanks Jeff. I look forward to that video! Thanks
Also could you consider doing a video of other good newer growth etfs like FELG, QGRW, SOXQ, and SPMO?
Definitely. Added these to my watch list as potential additions to the growth ETF tracker.
Respectfully, I’m almost as big of a nerd as you, and ell my spreadsheet geekery comes up with SPMO coming out on top of the best overall ETF. Please prove me wrong
Thanks for the feedback Coy. I'll be adding SPMO to my tracking spreadsheet. I had it as a cornerstone holding in my notes (competing with VOO and VTI). But I will also include it to compare to growth ETFs as well. Thank you for your extra support of being a channel member. I appreciate it!
Edit: I did just check out the 5 year charts, along with 'as long as possible'. SPMO falls well short of VGT, QQQM, SMH, and some others.
But I'm guessing you are referring to the last 1 and 3 years. It's been a beast! Definitely worth tracking for sure.
Jeff I appreciate your videos and I've been motivated to make weekly purchases into VOO and QQQM instead of my usual lump sum every 60 days. However I'm concerned about SCHD. We own a lot of SCHD and its been pretty flatlined for last 3 years. I like the dividend growth but its starting to look like a lost puppy. I've been following another youtuber that has picked his own 90-100 stocks with a screener/filter since 2021 and he's got the same dividends as SCHD but much, much more per year in price growth. I think his price growth has equaled VGT & QQQ but without the big drop in 2022. I will probably copy what he's doing with $50k-60k budget and see how it goes.
Hey Tom. SCHD is had a rough 3 years to say the least. I still think it is a nice counterbalance to my growth holdings (VGT + QQQM), but it is understandable that many are beginning to walk away from it for other options. I think the reversion to the value mean will work in SCHDs favor, long-term, because the 100 companies that it holds focus on clean balance sheets and value (along with dividend growth). I'm saying the course for now, but let me know how the new system works for you. There are so many great ways to invest. I think it's great you're staying open-minded and looking for alternative methods.
@@JeffTeeples We own about 3,500 shares of SCHD that I bought during covid at $48 - $55 and I'll always hold on to those. I'll update you when I have 6 months with the new dividend stock portfolio.
Great video Jeff as always! Thank you so much! Would you say maybe investing some SMH is good?
Have you heard about SWLGX? A mutual fund? Do you think that’s a good one? And do you prefer ETF better? Or mutual fund?
Hey Jane. I think SMH is a solid add for the growth section of a portfolio. It is too concentrated for my blood, but it has been so good in the past decade and then some. I am comfortable owning 'tech' with VGT, which includes many of the major semiconductor companies. Balances out the risk a little more.
I prefer ETFs to mutual funds, but they are both fine. I like being able to buy and sell at any time, along with seeing what they are doing throughout the day. Most of this is for nerdy curiosity and spreadsheet functionality, and it doesn't make a difference long-term.
However, ETFs are technically a little better at 'most things', slightly lower expense ratios generally speaking, and better for tax implications as well. The differences are trivial though, and there is no 'right way' to do it.
@@JeffTeeples Thank you so much Jeff! Really appreciate your advice and sharing your thoughts. They are always so helpful!
I'm splitting my growth between vgt and qqqm.
I love that combo. It is what I go with too. It was between that or VGT + SCHG for me. I rolled with QQQM based on the long-term results.
SMH covers the entire tech sector because the sector is dependent on semiconductors tsmc, intel, Samsung etc all rely on the companies in smh to be profitable. It’s like investing in the shovels and pickaxes, it doesn’t matter if which mining company wins they all require those tools to mine. So you win regardless.
Hey Will. I think this is a great point & a fantastic example. I mostly agree, but still consider VGT 'broad-tech' by comparison with more eggs in more baskets. But SMH does 'power' most 'tech' in general.
@@JeffTeeples definitely I’m not saying Smh should be someone’s sole tech fund but it does provide a power punch of growth that isn’t as susceptible to the issues of other highly focused funds due to the universal need of semiconductors in most advanced fields.
Great video. I like FELG for growth though. SOXQ too instead of SMH.
Was just asking if we could see a video with newer etfs such as SOXQ, QGRW, FELG, SPMO?
55% SPLG
15% FELG
15% SOXQ
15% FSPGX (all in my 4O3B at work
Hey Rigo. I'll put FELG on my watch list. I'm not familiar with that one. Added SOXQ as well.
These have been noted for my watchlist. Thank you.
@@bossballheaddawg2588this looks good to me. Nice job 👍🏼
Tring to do it DYI!
Hey Michael. You have come to the right place for DIY investing. I quit my ($170,000) job to help as many people as possible. Investing is deceptively simple, but not understood by the masses (we don't teach it in school). And it is sadly full of greedy people that want to 'help' you by stealing your money with massive fees. Helping people reach financial freedom is my one and only 'career goal' at this point. Everything else I do is based around my wonderful friends and family.
SOXQ is cheaper "exp" than SOXX. PortLABS says: "In the year-to-date period, SOXX achieves a 10.54% return, which is significantly lower than SOXQ's 13.33% return." I am digging SOXQ for now. 🙂 I have other reasons, but the above should be enough to make SOXQ interesting to some folks. Still, this kind of narrow ETF is always a low % of my portfolio. A Roth-IRA kind of fund. SCHG, SCHD, and SWPPX are still cornerstones.
Hey Ray. You have an awesome mix. I added SOXQ to my watchlist. I'll be looking more into that one for sure.
Great video! I have VTI, SCHD, FTEC, and QQQM, kinda wanna add a small cap fund cause ive red they can outperform large cap stocks over a long period of time, what do you think about small cap stocks?
Hey Josh, great mix there. I think small stocks are great long-term. They are a bit more volatile than large cap, but have a solid long-term history. I think I'll be making a video about small caps soon.
@@JeffTeeples Ok great! They’re definitely more volatile but they can add like an additional 2% to your average over the long term which can make a big difference!
i just started a Roth IRA and want to focus primarily on Growth ETFs (my SEP and Traditional IRAs already has A LOT of SCHD and VOO). What do you think about VGT 40%, SCHG 40%, and SMH 20% allocation?
Hey Jay. Thanks for watching and for the question. I think you have a great mix there. 3 of my favorite growth ETFs for sure. SMH always scares me because of its concentration on a single industry. But, it has been dominant and perhaps I should have been in all along (:
@@JeffTeeples thank you so much! Glad I decided not to go 100% on SCHG. $7k on these three will look nicer 36 years from now
VFV, SCHD, SCHG, XAW in my RRSP
Thank you for watching and for sharing your holdings. You caught me off guard for not knowing the tickers! lol. Then I realized it is the Canadian equivalents when I looked them up.
Jeff, I'm new to your channel and really like what I see and hear. I'm 63 and recently retired and am trying to dig an my retirement investments to help supplement my SS and really like the spread sheet to help ETF compare returns. How do I get access to it? Thank you
Hey Michael. Thanks for taking the time to watch the videos and for leaving a question. The spreadsheets are part of the channel membership. I provide a link with access to them and some other goodies.
XLG S&P top 50!!!!
Hey Aaron. Interesting play. The biggest of the big boys. I'll keep an eye on this one.
I love money
Well Leo, you're at the right place to make it! (:
I think money is a great tool, but a horrible master.
I know you are very disciplined and stick to your system that has worked great for you obviously. That being said maybe you should throw a couple thousand into SMH and hold for a couple years for science lol
Haha, I know right!? It's been such a beast over the past decade and then some. I'll probably continue to watch from afar wondering what could have been (: It will always get it's due in videos like this, though!
60% FXAIX (SP500)
30% FTEC (GVT)
10% SMH
That is a nice mix! Love it. Stay the course and continue to dollar cost average in all markets and I think you'll be happy when we zoom out a couple decades (even with the rollercoaster rides along the way).
50/25/25, SCHD SPLG SCHG
Hey Tyler. Can't go wrong with that combo long-term. Very nice.
Smh and psi. Yes theyre concentrated in a particular section but the 10 year returns are insane
For sure. Nobody can say anything valid against semiconductors in the past decade. I don't see it changing anytime soon moving forward either.
Seeking Alpha only offered me $25 off on your link. I guess they have enough subscribers.
I saw that, sorry for the inaccurate information. In need to update my pitch. It was 20% off for a long time. Bummer. My referrals have gone to almost zero since the change (about a month now).
Maybe they will give you a better deal soon!
QQQM & DGRO for the win
Love that 1-2 punch, Mike. Thanks for watching and commenting.
@@JeffTeeples thoughts on PLTR or SOUN?
I'm a huge proponent of net income trends (growth rate) over time. SOUN isn't profitable yet, and I see PLTR did turn a net profit for the first time, so I may start picking up that on some of my screeners. I am not educated on them enough to have a lot else to say.
I am a boring investor that likes to see positive financial trends *before* diving in. It makes it to where I'll never hit it big or just at the right time, but... It reduces my losers as well.
@@JeffTeeples PLTR and MSFT have partnered re AI Tech for the military…the SOUN product has been added to more Stellantis vehicles …SOUN has also partnered with NVDA in order to use their voice assistant technology.
Just a matter of time my guy.
For sure. I wouldn't be shocked if both went soaring in the near future. In no way am I saying I think they are bad. My process doesn't pick up on potential quite as much.
I project my retirement expenses to be approximately $75000 a year and my ssa and pension will account for about $55000. So I will only need by 1 million portfolio generate the remaining $20000 and Inflation. I agree pre retirement the 3 fund portfolio you suggest is great. But I never her you mention cd treasury as part of your plan to reduce your risk. As Warren buffet would say why would you risk for what you don’t need with an all stock market portfolio. What is in your opinion the right allocation when you have met your needs
Hey Felice. If I had $20,000 to make up with a $1M portfolio, I would likely go something like $750k in SCHD and $250k in VOO. I would put the excess dividends back into the 75/25 mix of the two. Portfolio value wouldn't matter (all about dividend growth), but if I did care about it, I would do 100% SCHD instead.
Jeff if you rebalance are you adding semi conductor etf? I'm 25 percent semiconductor plus 100 shares of nvda. About 90 000.
*Deep breath in thought* I don't think so at this point. It's not that I think they are bad, at all, but I like to roll with broad growth / tech. Too focused for me. Although I've been saying that for a long time as it goes to the moon, lol. *shrug
I have VGT QQQM JEPI JEPQ QYLD and SVOL in my Roth. What do you think about this mix
I like it because you have two amazing growth ETFs paired with some awesome cash flow. Bonus points for having the high dividend ETFs in a Roth for zero taxes! (:
I'm surprised to see smh ttm pe ratio to be 19.44 after such a run.
Thanks for watching and for leaving a comment. I think it should be in the upper 30's. Where did you see this? (makes me think one of the data pulls could be screwed up, I don't remember seeing it but I pull in a lot of data).
What about spyg and soxq?
I will add these to my list to potentially put on the tracker. Thank you for watching and for dropping a comment.
SOXX. It is way less top heavy on NVDA than SMH.
Hey Gary. It's been fun tracking SOXX on the spreadsheet. I've noticed it has lagged SMH a little, but has still crushed all the other growth ETFs over the long haul.
Cheaper to just do Soxq pretty much same as soxx
Lets replace QQQM with SMH 🙂
I think about this from time to time. Well, not replacing directly, but adding a little room in the growth pie for SMH. Sometimes I consider SCHG too, even though it has a lot of overlap with QQQM. I don't care about overlap for split dollars, as it doesn't matter (like having VTI and VOO, for example). SCHG and SMH have been so good.
For now, I'll stay the course with VGT (never going anywhere) and QQQM (my new holding that isn't set in stone).
FFLC!
This is a new one for me. I added it to my watchlist. Thanks for watching and commenting.
If your going to buy VOOG your better off buying SPYG there almost the exact same but instead of a .10 fee its only .04
Thanks Michael. I appreciate you pointing that out. I have it on my list to add for next quarter. To be honest neither has ever been on my personal radar, however, I do want to show the best options for some of the popular and solid ETFs.
Dumb question should I be using Robinhood or open another account?
I have used a couple of these brokerages to test them out and here’s my observation- Robinhood is designed for trading. They make the user experience a lot more engaging and you might be tempted to react to the market conditions.
But the general advice is to automate your trades and get advantage of DCA. Investing should be boring. So a platform like Fidelity or E*trade are better brokerages in my opinion. Just set up the automatic transactions and forget about it.
Hey Ike. I think it depends on what type of investor you are. If you're a long-term buy and hold investor with index funds and ETFs, it really doesn't matter that much.
I don't use Robinhood, and I'm aware of the controversies surrounding it, but I don't think the noise is as big of a deal as your personal preferences.
I personally chose E*Trade because it has been around for a while (security) and I love the interface. I chose M1 for my long-term automation favorite (automatically buys to target allocations). Fidelity has a lot of great features and is one of the more established options.
You'll find a lot of opinions out there, good and bad about each online broker, but I would say go with the one that you prefer.
Looks good but this is definitely outdated. Today is Aug 8, 2024 but you say this is from Aug 1, 2024. The market had some pretty big drops. Would like to see all this data again in current time versus the past. BTW, I would have like to have seen SPMO in comparison to QQQ & VGT.
My research shows SPMO as having lower returns compared to QQQ, SCHG and VGT. Not a bad growth option but apples to apples, it falls short.
It one week...
Things are back up again, it's Aug 11, and things will probably go down again in October or whenever people feel like things aren't going well. The market is entirely irrational, self-fulfilling, and stupid. And we should invest tens of thousands of dollars in it 😂
But seriously, all this info is just as up-to-date today as it was yesterday, 3 years ago, 10 years ago, etc.
@@DrMediterranean I have the same thought about the market being irrational with those wild swings with no good reason. What is the solution though? More in fixed income?
This is one I've been watching too (but not for long). I compare it to the S&P 500 so far, however, it does have a make-up that is more growth like at the moment. I will add it to the ETF compare spreadsheet soon so I can compare it to the cornerstones and growth ETFs on a weekly basis.
Thanks for watching and for all of your channel support!
I have 2 shares of VYMI, 6 shares of JEPQ, and 3 shares of JEPI in my roth ira. Not the greatest but I'm just starting. What do you think @Jeff Teeples?
Hey David. I think it is great that you are getting started! Reinvesting those dividends will be fun to see over the years. I love seeing the shares increase over time without making new contributions. Add new contributions as well and things get wild.
Nothing wrong with holding the market! 😅
QQQM - brokerage growth
VGT - Roth growth
Even caught a few shares on sale last week. Thanks Jeff!
Very nice Lane. Thank you for watching and leaving a comment. I think you have some great growth ETFs there.
I love MGK and VONG, these ETF don't get too much exposure. Also, a good semiconductor ETF is SOXQ.
Thank you for watching and commenting. I threw SOXQ on my watchlist. It may find its way to this list for future videos.
I am buying SPYG which has a better YTD total return and a low expense ratio.
Thank you for watching and for the idea. I'm going to add SPYG to my watchlist. I'll put it on the spreadsheet for next time as well.
Check out these 2 semiconductor ETFS SOXQ 30 holdings a fee of .19 and CHPS 50 holdings a fee of .15. Where SOXX and SMH have a much higher fee.
Hey Michael. Thanks for the ideas here. I have added SOXQ to the future list, and I will check out CHPS as well.
@@JeffTeeples CHPS came out 13 months ago. The low expense fee for a semiconductor caught my eye as its the lowest in its class. Looks like there base out of Canada. New ETF are always coming out, it gets a bit overwhelming trying to keep up with them all looking for the best ones.