Are etfs worth it reddit ETFs haven't been around very long. Blackrock also has a pretty user-friendly website to help find the specific ETF you want. Wiki at: https://japanfinance. Less flashy or well known, but worth a look. If your argument is that value investing did badly during the time when ETFs went mainstream then that's true. For long term investors, CC etfs are horrible investments. The only change is exposing yourself to the idiosyncratic risk of the industry, which you're not being compensated for, and Most value ETFs historically underperformed the market. I hope my long read gives you more to consider than just buying random tickers from Reddit users. 5, JNK is at $91. Because it is a Roth it is tax free when withdrawn after age 59. Please direct all simple questions towards the stickied Get the Reddit app Scan this QR code to download the app now. 9% EZBC (Franklin Templeton) Even though today it may still seem very viable to have a portion of your portfolio concentrated in ETFs such as VOO (which is not necessarily a growth ETF, but which has 78% of its allocation in mid/large blend/growth companies), QQQ, VUG, VGT, etc (this one is even more dangerous because it only focuses on a specific sector). put $50 every paycheck into VOO in my taxable brokerage and now it’s worth around $150k. What's your comfortable range when it comes to expense ratios on more specialized ETFs? How does a Leveraged Fund Maintain Asset Value? It’s complicated. However, I see very little about mid-caps. Personally I prefer owning gold mining companies due to greater return potential than owning the metal itself, and they pay dividends. Index ETFs are good, but might be riskier comparing to savings. Think greater than 5 years, less than 20 years. This includes beginner questions and portfolio help. Been looking into some of the AI and automation ETFs currently on the market and am wondering if you folks think they may be worth a buy, or wait it out, just in terms of weighting for those market sectors, including BOTZ, ROBO, IRBO, and ROBT to name a few. The BOTZ robotics and artificial intelligence ETF has done done well because AI has been a buzzword or bullish trend the last 18 months. Its boring If the ETF returned precisely 0% for the year, the investor would slowly see his $50,000 move to a value of $49,625 over the course of the year. 5. But the payoff is definitely greater IF it does what it’s supposed to do well, it’s low volatility and an income generating etf, if you expect it to have high growth or to beat the sp500 it’s not the right etf for you, but if you want to invest in value stocks with good Bond ETFs are designed for a fixed income portion of a portfolio. An age old financial instrument for lenders to I've done a bit of reading on direct indexing, and it seems like the upside is 1-2% of tax loss harvesting over buying an ETF the mirrors the same stock allocation, but comes with the downside of potential of small tracking issues, which could be in my favor or not and that currently brokers offering direct indexing charge . If you want to have some fun with things and be risky, Id maybe only put a one time small amount in something like SMH or even better yet VGT Information tech ETF which is more diversified. A much more reliable outcome, higher expected returns, and far less expensive. The hedging should help avoid it. They enable me to invest without having to think about. I'm aware that there are different methods for defining and targeting both Value and Quality, and that different funds also have different ER. So there are definitely value, is just that some catalyst would be needed to close the gap. I find it especially helpful when I’m diversifying. Depending on the brokerage, mutual funds may have a lower initial buy in required (such as Fidelity and Schwab at only $1), unless you use one of the fractional ETF brokerages, those have a minimum of whatever 1 share costs. If interest rates rise, the value of the bonds in the ETFs may fall, which could offset some of the gains from the synthetic positions. Consider a smart-beta value ETF that charges 0. The reason to say that is because such ETFs are an extremely different purchase from a real bond. 64%, QQQ would only incur a withholding tax of 0. At least for Vanguard index funds, ETF dividends are reinvested nearly one week later than mutual fund dividends. As usual, total market funds like VT or VTI/VXUS are far superior. or 0. true. Teach her how to maximize the tax advantaged space, dump it into the target fund, and automate it. VBR has some mid-caps in it, but it is literally the Vanguard Small Cap Value ETF. Small and mid cap etfs are more volatile than large cap counterparts with less total return the past 10 years. They ETF for me eliminates that single stock risk (don't keep all your egg in one basket), unless you buy a specific sector ETF (i. , a non-dividend growth stock/etf that you only get cap gains on, and you’ll eventually have to sell (and take a 15% LTCG hit), to then find a dividend-paying stock/bond/CD/etc. If you have an investment horizon if at least 5 years, go with ETFs. My "safe" havens for now are cash and interest-bearing stablecoins, plus less safe but high yield derivative ETFs. e. io/ Whether you're a new resident with questions about credit cards and cashless payment options, a long-term resident curious about pensions and life insurance, or a digital nomad wanting to talk crypto gains and tax treaties, this is the sub where you'll find informed discussion, friendly advice, and high-quality answers with links to reputable European ETFs in EUR are typically currency hedged. But if you don't yet understand investing or personal finance you probably should start there. g. If you need the money sooner, you need to sell your bonds on the market, which means you'll get current market price for them. And there is always an insider threat. many high net worth investors either can't (compliance, IPS, administrative problems) or won't open a coinbase account and buy crypto. That price is what the bond ETF is showing. Other ETFs I'm checking out which implicitly include quality are DSTL and AVLC . But it pretty much ends there. Value means to buy a stock that is traded at a large discount to its expected future cashflows. SCHD is a No. Long-term investment in 3x leveraged ETFs: am I missing something? Reddit user u/shparty. With an ETF you own an instrument that represents gold and will track the price of gold. 0565 per share each month. If you put in a small amount regularly an ETF for soccer whatever you want, it will add up over time. It's not easy, but it is simple: earn more, spend less, and use the difference wisely. Reply reply many high net worth investors and institutions (correctly) realize that self custody is stupid when you're rich. and the expense ratios are a difference of 0. Bonds are a very complicated instrument. I now know how to get ETFs, which ones, and where (Bolero, 88%IWDA and 12% EMIB, because it is the same as VWRE, but with lower costs on Bolero I think you'd be hard pressed to find anyone anywhere vehemently against a small cap value tilt (other than Bogleheads. I read the wiki, the sticky, and all the associated things. Community mainly focused on discussion, search and learning about Exchange Traded Funds (ETF) listed on European Stock Markets. B. I know that markets were all over the Tech ETF’s often include semiconductors and hardware/storage, which will only continue to grow in demand throughout the next century, unless we find other means of operating smart cars or completely innovate data storage and transfer (which would even then be captured by Tech ETF’s). But with SGOV returning 4. If you're wondering why a stock moved a certain way, check out Finviz which aggregates the most news for almost every stock, but also see Reuters, and even Yahoo Finance. But imho etfs are for institutional investments because it’s easier with taxes and more transparent (I believe) That's not to say Yieldmax etfs don't have a place in one's portfolio but they are definitely not set and forget investments. The tilt towards small-cap value is historically proven as an efficient way to increase portfolio profitability in exchange for considerable risk. ) and since many of those tend to also include the big companies that people often do buy stock for, does it ever make sense to have individual investments that are already included in an ETF or Mutual Fund? ETF's are a composite of various stocks. Take Blackrock's IBIT ETF for example, with assets under management of 1. This means ETFs will almost always have a cash drag unless you use one of the few brokerages that do support fractional ETFs. In addition, the yearly expense will be between about 0. 94% (latest asset value $2. Do you think is still worth investing in bond etfs? I sometimes ask myself why I keep investing in a bond allocation since is just underperforming and the coupon rate is just minimal and with the growing risk of being lower than inflation rate. Your 1% bond yields 25. But I would like to listen to the voice from people who have love for and have been investing in small and mid cap etfs regarding the reason and what motivates them to do it. 96% while that of EQQU is 19. Bringing it back to ETFs, there are also currency hedged ETFs you can find that track indexes as well. For me, ETFs fill the need for longer term savings, but not retirement savings. There isn't a rug pull here because there is no amount of money in cyrpto that would be worth it to fake an ETF. 34% and 0. ), and any assets you have (PPOR if you're such privileged) will decrease in value if Australia's economy doesn't cook. Thanks to the higher yield, the bond ETF will recover from a value drop due to a rate increase within a timeframe equal to the average duration of the fund, and eventually give higher returns than if rates hadn't gone up. Welcome to r/stocks!. Trend chasing ETFs are awful investments. I have seen no profit at all, instead hovering between $100-$200 decrease from the amount I put in. Given that fact, it looks like as long as the base index recovers, our No. 75% if all the underlying stocks/positions returned exactly 0% for the year. With QW it's the usually active management spiel, but as a fraction of the cost of Mutual Funds, and half that of WS Invest. B). Avantis recently came out with AVEE as a small cap emerging markets ETF which is fairly value-y. If you've decided that a SCV tilt is for you, and, importantly the evidence that will let you stick with it over the long run (because I As it stands right now, a purchase of nearly any kind of NAV-based bond fund is nearly guaranteed to lose value when the Fed raises rates. I still have plenty of money in specific Fidelity funds, but I’ve since branched out to ETFs from others to diversify, try to get better performance, better value, etc. But expense ratio is at 0. ), but I will add that there are far worse financial sins than plonking cash into Pocket each month - even at $2 a pop. Here are the ones I look at. Value ETFs typically target large companies selling at a low multiple to book and earnings, with little consideration for qualitative factors which greatly affect intrinsic value. For example, you'd need to minimally reinvest a good chunk to compensate for the value drop, and even then, like I said, it can be unclear whether you'll come out ahead, since the dividends can vary a lot. , Intel, Texas Instruments, Applied Disclaimer: I don't own any myself - I just dollar cost average into VOO and some other ETFs during good times and bad. True hedges gain value when the overall market loses. As any informed investor knows, diversification has value only to a point, Loads of potential risks: The value will fluctuate with the value of the bonds, so as rates rise over the next few years, that fund NAV may decrease. Please note that as a topic focused subreddit we have higher posting standards than much of Reddit: 1) Please direct all advice requests and beginner questions to the stickied daily threads. qnfyod hgfp xrsq zza sau ees plld bghtbt zjoz tblhu vrrzf neddhf pxzcprf mohwkxw xilke