VGT outperformed SCHD and VOO over 5 and 10 years. Despite having most of my $500k retirement in VGT, I try to beat my Roth with my taxable account but still underperform the S&P 500.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
ETFs are great, but don't rely solely on it for retirement. I retired at 62 with a $1.5M portfolio, starting with $35K, thanks to an adv1sor and dividends. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Julianne Iwersen Niemann" I've worked with her for some time and highly recommend her. Check if she meets your criteria.
This was interesting I wasn't tracking XLK. I opted for FTEC which is basically a clone of VGT but has outperformed it total returns since its inception. Plus FTEC has a slightly lower expense ratio.
Of course. One that shouldn't miss is definitely EQQQ Nasdaq 100. Another one I have is QDVE, the S&P500 information tech ETF. It's quite similar (but not identical - other index) to XLK for the US.
My suggestion for new investors would be to not invest a lump sum in it and not overweight in it. Waiting for a crash or a correction is usually not the best strategy (I even proved it in my recent video about backtesting 50 years or stock market returns), But let's say that you want to start now and have $2,000 to invest, you shouldn't put it all in growth/technology. Right now is a moment where you're better off it you build a balanced portfolio between growth and value, or simply buy the S&P500. If a crash were to happen, and technology would fall to the bottom, than i would be the first to invest everything I find in it :)
i currently have VOO, QQQM, SCHD, and DGRO and am thinking of adding one more growth etf to split with QQQM. which growth etf should I choose? I am thinking of either VGT or SCHG. which one would be better for my portfolio or would another etf be better?
Could be fun to use the 10 point scoring system like boxing or MMA. 10 points to winner, 9 to loser. Extra points dropped for clear winner so you can get some 10-8, 10-7 scores in there 😁
Ahah that's an idea! I like to have the freedom of a higher difference in points, if an etf is really bad in something vs the other, but still it'a an idea to consider!
Hi sir, your videos are so helpful. but i want to know more about the best broker that offers a swap-free account for some religious reasons. thank you.
Hello there, is it because are you interest in forex trading or other leveraged products? If you're not, ETFs are generally considered permissible in Islam as long as the underlying assets are halal (permissible). For example, investing in an ETF that tracks a Sharia-compliant index would be acceptable, while an ETF that holds assets in industries like alcohol, gambling, or conventional finance would not be. So if you intend to invest normally, I believe you don't need such an account even despite religion. Just to be specific: For a Muslim investor, investing in ETFs long-term can be permissible as long as the following conditions are met: 1) Sharia-compliant ETFs: The ETF must invest in halal (permissible) assets. This means avoiding sectors like alcohol, gambling, tobacco, weapons, adult entertainment, and conventional financial services that involve interest (like banks or insurance companies). There are Sharia-compliant ETFs that follow Islamic investment guidelines, and these would be acceptable. 2) Fee Structure: Paying normal management or administrative fees associated with an ETF (e.g., expense ratios) is generally permissible, as these fees are not considered interest-based. The investor is paying for services provided by the fund, not for borrowing or lending money. 3) Returns from the ETF: The gains or profits from the ETF are allowed, provided the underlying assets are Sharia-compliant. If the ETF generates income from permissible business activities (such as dividends from halal companies), then this income is acceptable. However, if the ETF invests in interest-bearing instruments or earns significant income from interest (like bonds), that could make it non-compliant. in addition, here are 2 considerations: 1)Dividend Purification: In some cases, even Sharia-compliant ETFs may invest in companies that earn a small percentage of income from interest or other non-permissible sources. In such cases, Islamic scholars recommend that Muslim investors "purify" the income by calculating the non-permissible portion and donating it to charity. Some Sharia-compliant ETFs automatically handle this process. 2)Reviewing the ETF: It's always a good idea for Muslim investors to review the ETF’s holdings to ensure they meet Islamic guidelines or invest in ETFs that are explicitly labeled as "Sharia-compliant" or "Islamic." Does it help?
@rick.austin Thank you so much for your kind reply. I live in Italy, and i am only focusing on ETFs only, so i want to know which broker is suitable for me to invest in the halal ETFs. Thank you again.
@bpanik5489 then i would suggest you Trade Republic, you can download it from: rick-austin.com/traderepublic50 Here you have all ETFs accessible from Europe and Italy, and by buying normal ETFs you don't have problems! Obviously, always make your own research before buying an ETF, to be sure that you're allowed to buy it ;)
i had to get out of xlk and allocate into vgt the moment they rebalanced and made nvidia their biggest holding. It was so reckless of them to do that because nvidia is still a speculative play.
There's not an exact equivalent, nevertheless if you want to invest in pure information technology you could go for QDVE, the S&P500 inf. Tech. ETF. Mind that it has only 71 holdings, so it's closer to XLK than VGT. Or just take EQQQ, which is equivalent of QQQ. Not only inf. Tech, but a great etf!
@@rick.austin thank you very much. I bought the qdve etf 2 weeks ago and sadly it’s not performing well at the moment . I wanted to get the eqqq but it’s too expensive for me.
@@CindyLenzewski yes unfortunately, as I always said in my last videos, the tech sector is currently too overpriced, so I always suggest to not buy too much tech now. By the way, what do you mean too expensive? Remember that you can buy even fractions of a unit. If EQQQ has a share value of 287€ and QDVE 27€, it doesn't mean that EQQQ is more expensive. You can buy 0.1 of a share of EQQQ and you'll spend 28.7€. By the way it's not performimg well because exactly in the last weeks it's correcting, but i wouldn't suggest you to sell and make a loss... just be patient...
VGT outperformed SCHD and VOO over 5 and 10 years. Despite having most of my $500k retirement in VGT, I try to beat my Roth with my taxable account but still underperform the S&P 500.
I'm taking a hybrid approach with VGT, SCHD, and VOO as my foundation over a 20-year horizon. I still enjoy life, travel, and buy what I love. It's the best combo, plus I enjoy the small victories of dividends, dividend growth, and share price appreciation.
ETFs are great, but don't rely solely on it for retirement. I retired at 62 with a $1.5M portfolio, starting with $35K, thanks to an adv1sor and dividends. Invest wisely, build your nest egg, and don't sell the chicken that lays the egg!
I'm very cautious about giving specific recommendations as everyone's situation varies. Consider independent financial advisors like "Julianne Iwersen Niemann" I've worked with her for some time and highly recommend her. Check if she meets your criteria.
Great information Rick, keep up the great work!
Thanks mate!
Very interesting comparison good job Rick
Thanks Chris
This was interesting I wasn't tracking XLK. I opted for FTEC which is basically a clone of VGT but has outperformed it total returns since its inception. Plus FTEC has a slightly lower expense ratio.
I like FTEC!
I did VGT vs XLK because it was a wish of a subscriber
Very interesting video!
Thanks!
Ótimo vídeo.
Thanks
Can you recommend some growth etfs which we can invest in especially in Germany?
Of course.
One that shouldn't miss is definitely EQQQ Nasdaq 100. Another one I have is QDVE, the S&P500 information tech ETF. It's quite similar (but not identical - other index) to XLK for the US.
Do could you do schd vs divb?
Hey Preston,
I'll put it on my list! ;)
I really like very informative
Thank you very much
Im at the end of the video and so does your prediction mean I am better off not buying VGT right now and holding off until the price crashes?
My suggestion for new investors would be to not invest a lump sum in it and not overweight in it.
Waiting for a crash or a correction is usually not the best strategy (I even proved it in my recent video about backtesting 50 years or stock market returns),
But let's say that you want to start now and have $2,000 to invest, you shouldn't put it all in growth/technology. Right now is a moment where you're better off it you build a balanced portfolio between growth and value, or simply buy the S&P500. If a crash were to happen, and technology would fall to the bottom, than i would be the first to invest everything I find in it :)
SMH, anyone?
I owe it! Bought Schg cheaper shares and fees.
i currently have VOO, QQQM, SCHD, and DGRO and am thinking of adding one more growth etf to split with QQQM. which growth etf should I choose? I am thinking of either VGT or SCHG. which one would be better for my portfolio or would another etf be better?
I love VGT because it embraces large to small cap. That would be my choice.
Could be fun to use the 10 point scoring system like boxing or MMA. 10 points to winner, 9 to loser. Extra points dropped for clear winner so you can get some 10-8, 10-7 scores in there 😁
Ahah that's an idea! I like to have the freedom of a higher difference in points, if an etf is really bad in something vs the other, but still it'a an idea to consider!
Hi sir, your videos are so helpful. but i want to know more about the best broker that offers a swap-free account for some religious reasons. thank you.
Hello there, is it because are you interest in forex trading or other leveraged products?
If you're not, ETFs are generally considered permissible in Islam as long as the underlying assets are halal (permissible). For example, investing in an ETF that tracks a Sharia-compliant index would be acceptable, while an ETF that holds assets in industries like alcohol, gambling, or conventional finance would not be.
So if you intend to invest normally, I believe you don't need such an account even despite religion.
Just to be specific: For a Muslim investor, investing in ETFs long-term can be permissible as long as the following conditions are met:
1) Sharia-compliant ETFs: The ETF must invest in halal (permissible) assets. This means avoiding sectors like alcohol, gambling, tobacco, weapons, adult entertainment, and conventional financial services that involve interest (like banks or insurance companies). There are Sharia-compliant ETFs that follow Islamic investment guidelines, and these would be acceptable.
2) Fee Structure: Paying normal management or administrative fees associated with an ETF (e.g., expense ratios) is generally permissible, as these fees are not considered interest-based. The investor is paying for services provided by the fund, not for borrowing or lending money.
3) Returns from the ETF: The gains or profits from the ETF are allowed, provided the underlying assets are Sharia-compliant. If the ETF generates income from permissible business activities (such as dividends from halal companies), then this income is acceptable. However, if the ETF invests in interest-bearing instruments or earns significant income from interest (like bonds), that could make it non-compliant.
in addition, here are 2 considerations:
1)Dividend Purification: In some cases, even Sharia-compliant ETFs may invest in companies that earn a small percentage of income from interest or other non-permissible sources. In such cases, Islamic scholars recommend that Muslim investors "purify" the income by calculating the non-permissible portion and donating it to charity. Some Sharia-compliant ETFs automatically handle this process.
2)Reviewing the ETF: It's always a good idea for Muslim investors to review the ETF’s holdings to ensure they meet Islamic guidelines or invest in ETFs that are explicitly labeled as "Sharia-compliant" or "Islamic."
Does it help?
@rick.austin Thank you so much for your kind reply. I live in Italy, and i am only focusing on ETFs only, so i want to know which broker is suitable for me to invest in the halal ETFs. Thank you again.
@bpanik5489 then i would suggest you Trade Republic, you can download it from: rick-austin.com/traderepublic50
Here you have all ETFs accessible from Europe and Italy, and by buying normal ETFs you don't have problems! Obviously, always make your own research before buying an ETF, to be sure that you're allowed to buy it ;)
Thanks, man, you are the best. Keep it up💯💯💯
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i had to get out of xlk and allocate into vgt the moment they rebalanced and made nvidia their biggest holding. It was so reckless of them to do that because nvidia is still a speculative play.
True!!
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Hey thanks for your informative video. A European equivalent
There's not an exact equivalent, nevertheless if you want to invest in pure information technology you could go for QDVE, the S&P500 inf. Tech. ETF. Mind that it has only 71 holdings, so it's closer to XLK than VGT.
Or just take EQQQ, which is equivalent of QQQ. Not only inf. Tech, but a great etf!
@@rick.austin thank you very much. I bought the qdve etf 2 weeks ago and sadly it’s not performing well at the moment . I wanted to get the eqqq but it’s too expensive for me.
@@CindyLenzewski yes unfortunately, as I always said in my last videos, the tech sector is currently too overpriced, so I always suggest to not buy too much tech now.
By the way, what do you mean too expensive? Remember that you can buy even fractions of a unit. If EQQQ has a share value of 287€ and QDVE 27€, it doesn't mean that EQQQ is more expensive. You can buy 0.1 of a share of EQQQ and you'll spend 28.7€.
By the way it's not performimg well because exactly in the last weeks it's correcting, but i wouldn't suggest you to sell and make a loss... just be patient...
@@rick.austin but if you were to personally choose btwn qdve and eqqq.. what would be your eft of choice?
@@CindyLenzewski EQQQ would be my first choice. More diversified, overall more balanced
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