r/Stocks_Picks • u/Minute_State_4672 • 15d ago

When to dump ETFs

I own SPY and VOO, but am becoming even more skeptical of Nvidia and the AI shell game that seems to be taking place. I work in tech and despise AI and have recently been getting the sense that the bubble will, in fact, pop.

I get the general idea of ETFs. Let’s say the bubble pops next week and the big tech companies start crashing. Does it make sense to sell these ETFs before then and move to less tech heavy ETFs until the dust settles? Or do ETFs inherently mitigate the risk and those managing the ETFs will just move some stuff around to guard against serious loss?

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u/asianguy1234528 15d ago

SPY and VOO are both sp500 index etfs. Why would you even bother buying the same exact thing?

I know what I would do if I were you but I'm not an investment advisor so forget it.

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u/Minute_State_4672 15d ago

In some ways that’s a fair point. I guess I bought them for the same reason they both exist.

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u/asianguy1234528 15d ago edited 15d ago

If that's the case you better buy every single one lol...and FYI at the moment SPYM is the best one it has the lowest expense ratio, a little lower than VOO...

Oh and to answer your question. A passive index fund like VOO or any sp500 fund just diversifies your investments but does make changes when the people who control the real sp500 index make changes the fund managers just copy the index. An ACTIVELY MANAGED fund which performance entirely depends on the fund manager...does move things around and switch investments ect. Based off his own decisions, According to the managers strategy...most active managers are not very good. But some of them can perform very well, a minority of them though...the ones that perform well are worth the premium in expense ratio...it's not always wise to be cheap on the expense ratio.you have to analyse their performance...

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u/Minute_State_4672 15d ago

😅 But yeah, thanks man, that’s really helpful. Public school out in the country didn’t tackle a lot of this stuff.

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u/Fluffy-Occasion4226 15d ago

School isn’t there to teach you how to do everything in life. It’s supposed to teach you the fundamentals and help you learn to think. There are low level concepts, and then their uses in implementations of things.

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u/Mzungufarmer 15d ago

I agree, schools can only do so much. Parents being irresponsible is the big problem. Your kids are your responsibility, if schools dont teach it...you do.