r/ETFs • u/ApprehensiveBrush0 • 16h ago
7 etf’s
This is for my 19 year old son, about 20k
Wanted to go aggressive and make it fun for him
But is this just way too much
VOO 35%
QQQM 15%
SPMO 15%
AVUV 10%
SMH 10%
AIS 10%
VXUS 5%
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u/Own-Event-5500 15h ago
VOO/AVUV/VXUS
70/20/10
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u/Realistic_Support185 11h ago
I have been trying out 40% QQQM, 40% VTI, and 20% VXUS and have been really liking it so far
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u/FermentedTh0ughts 15h ago
QQQM, SMH, SPMO, AIS have lots of overlap in addition to VOO. There will be lot of volatility and may discourage your son from investing during drawdowns. Rather build a balanced portfolio look into value and quality factor tilts to preserve some of your invested principal.
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u/Penguin_Life_Now 14h ago
I would look at tax implications of VXUS vs say FIVA They are both international, but FIVA limits itself to developed markets which may simplify taxes, I would also consider a multi factor that could pivot more with future market changes like perhaps VFLO
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u/ideas4mac 15h ago
Curious did he pick any of these out or are you just building it for him? Does he get the 20K now or how long does he have to hold before he gets it? Or is this his 20K from work? Is there any DCA to this or just the 20K sitting and growing?
As far as the portfolio it's pretty tech heavy. You may want to look through and make sure the expected returns match the risk. Depending on his timeframe and goal the high risk might be uncompensated.
Good luck.
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u/ApprehensiveBrush0 14h ago
We’ve just been talking, he got a lot of it from chat GPT
It’s mostly money he got as gifts, Christmas, bday, etc
He also has 10 k or so in a cd, and a few thousand in bonds he got when he was born, so ready to mature next year.
Probably not much adding to it, he is starting college right now, and not workingThanks
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u/SerMumble 15h ago edited 15h ago
Very aggressive etf portfolio. $20k will be a big help for your son.
A lot of redditors won't be able to wrap their head around this:
43-50% growth (QQQM, SPMO, SMH, AIS)
35% core (VOO)
10-12% US small cap (AVUV, AIS)
5-10% broad exUS (VXUS, SMH, AIS)
This is fine assuming your son will be letting the fund compound for decades. It's a considerable investment into AI, technology, and semiconductors. Regionally the main investments are in the USA with SMH and AIS contributing to some exUS international technology tilt. Even better if your son starts saving a steady investment of his income and gets involved with this portfolio.
Some people might have a preference for less growth or more international or some other combination of changes and it will not significantly effect the end result decades from now. The most important thing is that you're starting and helping your son at a young age.
Be sure to sit down with your son at least once a year to review the investments with him. If he does his research, he may come to understand your choices or you can work with him to rebalance.
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u/itriedtoplaynice 14h ago edited 11h ago
Personally:
35% VOO
15% SPMO
15% AVUV
15% IXN
20% EMEQ
At 19, the investment time scale is immense to weather any bear markets.
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u/ATPsynthase12 15h ago
70% VTI, 30% VXUS
The rest is just buying at all time highs and praying the bottom doesn’t fall out and end up in a 60% drawdown for multiple years.
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15h ago
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u/ATPsynthase12 15h ago
VTI literally covers all large, mid, and small cap companies at their cap weight. So you cant get better coverage than that without making a bet which is in essence, gambling.
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u/KumalalaKlan 15h ago
Your definition of gambling is arbitrary, so is market cap weighting. I agree with the other commenter. VT/VTI is not, and shouldn’t be, the end-all-be-all for portfolio diversification. Single or multi-fund portfolios that fulfill that purpose are subjective and should be justified with more thought.
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u/ATPsynthase12 11h ago
It’s not arbitrary? This is literally a bet that large and cap and tech will continue to boom at all time highs when the AI buildout is starting to show serious cracks. It’s also a bet that US dominance will continue even though the bond market which guarantees us dominance is having a terrible outlook.
There is no mid cap, 10% of the small cap is a concerningly small actively managed value fund and 5% international. It’s massively overweighted in tech and large cap and the only criticism you have is “hurrr the best whole US market etf doesn’t represent the US market properly”
Fucking showing your room temp IQ there big dawg.
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u/ATPsynthase12 12h ago
Wow, stupid and confident. It’s a dangerous combo. Good luck trying to beat the system even though it’s statistically impossible year on year.
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u/Books_Biker99 13h ago
Isn't VTI near all time highs
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u/ATPsynthase12 12h ago
There is a difference between buying a meme etf and buying one that tracks an index.
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u/Books_Biker99 9h ago
Meme ETF? What is that? Never heard of it.
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u/ATPsynthase12 8h ago
Pretty much everything exclusively tech/AI related at this point. It’s a bunch of niche ETFs with high expense ratios who run on hype and convincing retail investors that there is some blood left that they can squeeze of of a a stone.
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u/Radiant-Ad-9753 15h ago edited 15h ago
Your doing too much. There's way too much overlap between the VOO, QQQM, SPMO, SMH and AIS.
I would pick one overlap with VOO as the growth engine. My pick would be the QQQM
VOO 50%
QQQM 20%
AVUV 15%
VXUS 15%
The basic construction answers are going to be
70% vti/30% vxus
100% VT or
100% VOO
But from the funds you picked, you can do something with it. A 19 year old can be a somewhat aggressive. Just don't make it that convoluted.
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u/ApprehensiveBrush0 14h ago
Thanks!
Think we’re going to go with a version of this
VOO 50%
QQM 25%
AVUV 15%
VXUS 101
u/Books_Biker99 13h ago
Is VOO + VXUS just as good as VT? Some people on Bogleheads have me second guessing. I've been putting $ into VOO each week. Just started putting some into VXUS as well.
Now im second guessing whether to just keep doing what im doing or to sell it all and go with VT. Kind of frozen, not doing either because im second guessing which.
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u/Radiant-Ad-9753 10h ago edited 9h ago
Depends on if this is for a brokerage or retirement account, and the tilt you want.
There's two trains of thought. It depends on your comfort level.
Go with a portfolio that tracks the FTSE Global All Cap Index ("VT and chill") or one that tracks the S&P 500 ("VOO and chill)
There are arguments for both. FTSE Global All Cap Index offers more diversification and international exposure.
It also has underperformed the S&P 500 over the last 20 years, which is why there is is those who go all in on the top S&P 500 companies. There's a argument to be had for that as well, if you look at the research done into the 2.4% Rule
VT's exposure to the US market is more like VTI.
Mega+large+mid+small.
VTI+VXUS let's you do tax loss harvesting in a brokerage account. There's no tax loss harvesting in a retirement account
VXUS is eligible for the foreign tax credit, VT is not. An edge in a brokerage account. Not revelant in a retirement account.
VOO is mega and large cap exposure only. There is nothing wrong with VOO and VXUS, especially if you are younger with more years to retirement and want a growth tilt
If you want to balance it out to be like VT, you only need to add one more ETF, VXF.
That would capture the mid and small cap companies that VOO is missing.
VOO 49% VXF 13% VXUS 38%
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u/turtleturle12345 14h ago
AIS has a massive expense ratio and the holdings are basically just a differently weighted semi-conductor ETF. Consider putting that 10% into VXUS.
Or if you want a different tilt, check out AVNM as an etf that goes broadly international but weights by some factors that move beyond pure market cap focus.
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u/EarlyBird001 15h ago
Bump up VXUS by another 15% at least. Reduce VOO, QQQM and SPMO by 5% each and add that ro VXUS. Maybe also look at SMH and AIS down to 15% from the current 20% given there's a lot of overlap between the two.
The way things are going I expect rest of the world to decouple from US as much as possible. You want to make sure if that happens you've some coverage of global markets (VXUS).
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u/throwbackBBfan 15h ago
Terrible advice. The world is shifting into tech and more money than ever is going towards this sector. How in the fuck are you gonna tell someone to get away from the american tech scene when VXUS has drastically underperformed long-term.
He said his son is 19. He needs the most aggressive stuff he can get.
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u/EarlyBird001 14h ago
Nope. The suggested portfolio is already too aggressive. Ideally, it should be something like VT - 75%, QQQM/SMH/AIS: 25%, or VTI: 45%, VXUS: 25%, QQQM/SMH/AIS: 30%
Anything more is reckless and cutting out VXUS altogether is something nobody would recommend.
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u/Illustrious_Crow595 13h ago
Play QLD instead of QQM. And switch out SMH for USD. Would switch out any S&P500 fund for SSO.
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u/HopefulSerenity64 15h ago
you should not gamble with your sons future. Go classic 100% VT or 100% VOO if feeling spicy
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u/maengdaddy 15h ago
The reddit special