[HN Gopher] Ask HN: What are your favorite index ETFs for Invest...
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       Ask HN: What are your favorite index ETFs for Investing?
        
       There are many people that recommend the straight forward full-
       index ETFs such as Vanguard's VOO for the S&P 500. I have also run
       across QQQ (Nasdaq / Tech heavy) and XLG (Curated set of S&P 500).
       What index style ETFs have you uncovered in your research that you
       might recommend?  Has anyone had any success or warnings with some
       of the more exotic leveraged holding ETFs?
        
       Author : caprock
       Score  : 37 points
       Date   : 2024-07-12 17:20 UTC (5 hours ago)
        
       | gmays wrote:
       | These days a Nasdaq ETF is likely the best bet (it's what I use
       | in my IRA) since it has been conistently outperforming the S&P
       | 500.
       | 
       | I'd be cautious with the more exotic leveraged ETF. Instead, for
       | my non-investment accounts I've been mostly holding the Mag 7
       | since last year (after rotating out of pandemic stocks following
       | the rebound). I shared my results over the last couple of years
       | on by blog where I document my thinking for future
       | reference/improvement (https://gmays.com/2-year-follow-up-on-
       | buying-the-dip-on-pand...). My current IRR from that portfolio is
       | 83.70% over the last couple years for context.
        
         | Tempest1981 wrote:
         | Comparison charts: https://portfolioslab.com/tools/stock-
         | comparison/SPY/QQQ
        
         | commandersaki wrote:
         | Love QQQ and the Australian version NDQ.
        
       | iamtherealjohn wrote:
       | I have been investing for 5 years and I would say my favorites
       | were: TQQQ & SQQQ to make short to medium term trades.
       | 
       | Otherwise, I stick with the classic QQQ for long term holdings
       | and have some fun with the VIX when I want to gamble a bit more.
        
       | harryquach wrote:
       | VTSAX and chill
        
         | LUmBULtERA wrote:
         | Second this... or VTI is the ETF equivalent. It's all I do now.
        
           | hirvi74 wrote:
           | No VXUS/VTIAX? I am looking to debate its merits in one's
           | portfolio, since it's such a hotly contested topic in some
           | communities e.g., Bogleheads.
           | 
           | I try to maintain some arbitrary split between the two, but I
           | do not have a ton of faith in Int. overtaking the US market
           | anytime soon, but I am often wrong about most things, so
           | that's why I ignore my gut feelings.
        
             | harryquach wrote:
             | I am bullish on the US long term. Other developed countries
             | have a population problem which is going to start causing
             | issues. Sub 1.0 birth rates are a catastrophe for
             | capitalism. The US has enough immigration to keep the
             | population somewhat level.
        
       | JLCarveth wrote:
       | I am Canadian so I invest in XEQT, a globally-diverse index fund
       | from Blackrock.
        
       | godzillafarts wrote:
       | VTI for the majority of post-tax investments, VUG for a smaller
       | percent that I'm more aggressive with.
        
       | time0ut wrote:
       | I keep it simple: VT (tax advantaged) VTI+VXUS (regular
       | brokerage) BND (a bit)
        
         | toomuchtodo wrote:
         | 70/30 VTI VXUS?
        
       | quickthrowman wrote:
       | VTI in my IRA, FXAIX (S&P 500) in my 401k.
        
       | ilrwbwrkhv wrote:
       | I earn $4m profits per year through my software business. I put
       | all of it in VTI.
        
         | joshbochu wrote:
         | Could you please share a bit more on your business and how you
         | got started?
        
           | ilrwbwrkhv wrote:
           | I build, host, manage custom software for mid sized
           | businesses.
           | 
           | I got started by following YC startup school videos.
           | 
           | The first one I did was creating an app for a high society
           | maid service in the UK.
        
       | nasdaq-txn wrote:
       | Main positions are FSKAX (Total US) and FXAIX (S&P 500). SOXX
       | (Semiconductors) is the only sector specific ETF I have(~10% of
       | my portfolio).
        
       | ksherlock wrote:
       | QQQM is QQQ with a lower fee (.15% vs .20%). For historical
       | reasons QQQ has more mindshare and more volume. Stick to QQQM
       | unless you're day trading.
        
       | reducesuffering wrote:
       | VEA and VWO are also good for low-expense international
       | diversification.
       | 
       | More aggressively, VIOV and VBR target "Small Cap" "Value",
       | stocks, 1 - 2% of the total market that are smaller companies
       | with more low-growth prospects. There is academic research to
       | suggest that there may be some higher-risk but even-more-high-
       | reward for these type of stocks that is consistently underpriced
       | by the so-called "efficient market hypothesis."
       | 
       | This is a backtest from 1972 where $10k in Total Market (~VTI)
       | and Small Cap Value stocks were bought and Small Cap Value ended
       | with $7.5m against Total Market $2m, while retaining better
       | Sharpe and Sortino ratios.
       | 
       | https://www.portfoliovisualizer.com/backtest-asset-class-all...
       | 
       | That is only for those who could commit long term with conviction
       | of their research and understanding, as there are periods of
       | 10-15 years you could underperform Total Market:
       | https://www.portfoliovisualizer.com/backtest-portfolio?s=y&s...
        
         | atombender wrote:
         | I would throw in Avantis Small Cap Value (AVUV) as a contender.
         | 
         | Avantis' funds are index-like in that they pick stocks by
         | screening the universe of market-cap-weighted stocks using
         | factor-based screens, rather than active management. Their
         | algorithms use profitability, volatility, size, and value as
         | factors, and mix in the momentum factor (basically, stocks that
         | go in one direction tend to move that way for a bit) to time
         | trades.
         | 
         | The international counterpart is AVDV, and they have a whole
         | range of funds for emerging markets and so on.
         | 
         | Avantis was founded by ex-Dimensional (DFA) people and their
         | methodology is similar to that of the famous high-end mutual
         | funds run by DFA. (Of course, DFA also has ETFs now.)
        
           | reducesuffering wrote:
           | AVUV may perform similarly, but it is actively managed to the
           | whims of Avantis' decisions and does not track an index. Thus
           | it is also a 0.25% expense ratio compared to VBR and VIOV at
           | 0.07% and 0.15% respectively.
           | 
           | Avantis: "this fund is an actively managed ETF that does not
           | seek to replicate the performance of a specified index."
        
       | hirvi74 wrote:
       | VTI and VXUS. Nothing more and nothing less, like the good Lord
       | intended.
        
         | medmunds wrote:
         | Yep, and mix in some BND and BNDX as you get older. Bogleheads
         | ftw.
        
       | ralala wrote:
       | I'm sticking with iShares MSCI World SRI + a small amount stock
       | picks
        
       | robot wrote:
       | FCNTX
        
       | NiekvdMaas wrote:
       | 50% VOO 25% VWCE 25% bonds
       | 
       | That's the way I've been doing it since years.
        
       | till2 wrote:
       | FTSE all-world
        
       | anonfordays wrote:
       | SCHB if you're on Charles Schwab. It's a broad US market ETF.
        
       | wintorez wrote:
       | SCHG
        
       | greatpostman wrote:
       | TQQQ
        
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       (page generated 2024-07-12 23:01 UTC)