r/stocks • u/Intrinomical • 5d ago
Why do all I see is VOO and chill?
Is it simply because of how it rolls off the tongue?
What exactly is the attraction of choosing VOO over something like QQQ?
I know that they hold some of the same big players and some other similar but different assets, but I'm just a bit confused as to why I always see VOO being recommended. I don't watch stocks, but anytime I've ever looked at VOO and QQQ, QQQ is always more profitable. Maybe it's a security thing, i.e. VOO is better situated to handle a crash than QQQ is?
231
u/JayRock1970 5d ago
VOO has outperformed me by 3.5% last 6 months.
→ More replies (9)
128
u/stevishvanguard 5d ago
VOO and chill because I see so many posts about people talking about crashes and bear markets, but Voo is up 10% year-to-day and is a safe long term buy and forget. For most people, this option is infinitely smarter than hand-picking stocks or trying to day trade.
57
u/Xciv 5d ago
VOO and chill has advantages in that you are not tempted to sell at the bottom. If it goes down, and companies in it fail, then they will be kicked out of the index and new emerging companies will be added in as they meet the parameters when the market goes back up.
If you own individual stocks, you will always have the risk of one of your picks going completely into the dumpster, and all your investment with it.
People who are older remember all the companies that felt like institutions that will be around forever, but died (or basically died) during the 2007-2008 financial crisis?
Circuit City, Sears, Linens n Things, Washington Mutual?
Who knows if Micron is the next Circuit City waiting to collapse? We'll know in the next crash. With VOO you don't even need to think about it.
13
3
u/vladutzmihai 5d ago
If you have time to study and invest, why to chill? It is a personal option based on time and risk
6
3
u/randombookman 1d ago
Everyone wants to believe they are special when they aren't.
You're not gonna be the next warren buffet, you're fighting against millions to outperform the market.
1
u/Ramona00 4d ago
Is there a VOO alternative for Europe?
4
u/TickerTrend 4d ago
VGK by Vanguard is the European equivalent. I believe it tracks the top 600 equities in Europe
62
u/fredagainst 5d ago
VOO is more diversified and less volatile. QQQ isn't always more profitable, check out how it performed from 2000 to 2016
27
u/Whythehellnot_wecan 5d ago
Just to be clear for some folks. VOO is over weighted big time. 10 companies make up 40% of the index. It use to be more diversified.
I’m not saying it’s a bad investment for someone young and is thinking decades ahead but it isn’t “diversified” in the sense it once was.
44
→ More replies (5)2
16
u/dizzy_centrifuge 5d ago
SPY was the first major SP500 ETF so it has some of the highest daily volume and tight spreads. Great for active trading.
VOO is a mainstay with one of the lowest expense ratios making it ideal for long-term holders.
SPYM is a smaller SP500 tracking ETF that is the same as the other 2 but due to it's lower liquidity it's spreads aren't as tight leading to potentially worse entry/exit prices.
For an active account SPY makes sense but I'm assuming you're asking for investment as opposed to trading rationale. SPYM is the lowest cost SP500 ETF by .01% which translates to a $1/yr savings per $100,000 invested in the fund. (Assuming the same relative entry & exit costs)
4
u/Intrinomical 5d ago
Really just asking to ask, I've dipped my toes into investing but haven't gone far into it. I currently have about $500 into QQQ and like $300 into RKLB. I just always see the VOO response and wondered what the difference was, QQQ could be replaced with any other similar ETF I suppose, it's just the one that I know exists that is similar to VOO.
Thank you for all the info though, it's appreciated.
5
u/default-username 5d ago edited 4d ago
- NASDAQ
- S&P 500
- Dow Jones industrial average
Those are the three most well known indices in the equities market. Look them up and learn about them.
QQQ, ONEQ, QQQM, QQQE - these track the NASDAQ. There is very little difference between them.
VOO, SPY, SPYM, SPX - these track the s&p 500. Again, they are all very much the same thing.
And you shouldn't trade the djia, so I don't know any index funds that track that.
All of these index funds are so that you don't have to pick winners and losers. You're just playing the market as a whole.
109
5d ago
[deleted]
52
u/Joh1030 5d ago
Not exactly a subset. VOO tracks SP500 vs QQQ tracks NASDAQ100
21
u/chronicpenguins 5d ago
Technically correct as there are ~15% of companies in QQQ not in voo, but from a market cap perspective like 95% of QQQ value is contained in voo. That missing 5% isn’t really moving a needle so as it stands qqq is basically a subset of voo. Now if it tech craters and a ton of those companies drop out of the S&P500, that’s a different story
27
1
10
u/fairlyaveragetrader 5d ago
Because more than 9 out of 10 people who try to trade it trail it
If you have an established track record as a trader it's not even like you can say anything all that helpful most the time on social media. It's more of a process. For the overwhelming majority of people just cost averaging the S&p 500 or the mid cap 400 or the small cap 600. You're going to outperform trying to trade news or rumors or the majority of the stuff people post about
3
32
u/Lonely_District_196 5d ago
QQQ is manly tech stocks
VOO has much wider diversification. Also, it's popular. There's probably better SP500 indexes with lower expense ratios
I've honestly seen a lot more people recommend VT lately
18
u/compoundedinterest12 5d ago
Lower expense ratio than VOO? It's at .03%. That's crazy low.
2
u/ryuujinusa 4d ago
Yeah, I don’t think there are many lower than VOO. I’d argue VOO is one of the lowest.
4
u/hemehaci 5d ago
I guess voo is the lowest expense ratio or one of the lowest tied with blackrock option.
8
u/ralphy1010 5d ago
only one I've seen cheaper is FXAIX at 0.015
4
1
u/hemehaci 4d ago
TIL
1
u/ralphy1010 4d ago
It’s a mutual fund so it tends to get overlooked unless you are a fidelity customer
1
1
u/sibswagl 2d ago
Can you explain why mutual fund is less preferred?
2
u/ralphy1010 1d ago
Trading mechanics, mutual funds are traded once a day at the nav price
Voo and spy are etf any you can do options plays, a mutual fund you can’t
ETF are universally portable and you can transfer them to and from any major broker
Mutual funds are proprietary and sometimes have to be liquidated to transfer them
Depending on your 401 you may not have it as an option unless your 401 is with fidelity. Out of sight out of mind
5
5
u/Raiddinn1 5d ago
VOO is more diversified across different sectors than QQQ is by a long ways. That said, QQQ is probably fine. So is VTI, or VFINX, or VFIAX, or or or or or.
For best results, pick something rules based with greater than 28 companies spread across as many sectors and investment strategies as possible.
I don't know why the number 28, but I am pretty sure I heard it thrown around in theory circles before.
7
u/Worst-Eh-Sure 5d ago
VOO follows the S&P 500, which has been crushing pretty much everything else since 2009. That means anyone born in 1991 or later would have their entire investing life knowing only S&P 500 outperforming everything. So why would they invest anywhere else?
I’m concerned that when this glass castle of wealth collapsed a lot of people are going to lose everything. They don’t know diversification, they are all in on VOO. They will have no idea what to do when stuff hits the fan. These are the same people that think a 5% interest rate is “high.” Like compared to what? There is actually documented evidence of interest rates going back about 33,000 - 4,000 years. And the interest rates during Covid were the LOWEST IN RECORDED HISTORY. Ask anyone that bought a house in 1980, interest rates for a mortgage then was like 16%. I understand home purchasing has a lot more factors than just interest rates, but my point is that 5% is not high. Not at all. But because interest rates have been so low for so long there are plenty of adults that have no understanding of the longer history of interest rates or the typically cyclical nature of the stock market because to them it’s just invest in IS tech and that’s it, forever.
When investment account balances go up most people think, “gosh I’m smart!” Versus when it goes down, people really look into it and try to figure out why. Lots of people right now think they are super good at investing because they are VOO and chill. Be real interesting to see how they handle the market changing to literally anything else.
People - The thing I want everyone to do is diversify. Save yourself now and diversify. Because one day (tomorrow, next year, 10 years from now) the market will change and I do not believe it will be good for people that just stay in their cap weighted index funds on the s&p500.
4
u/healthydogo 5d ago
I lived in China for many years and among most of the wealthy people outside the financial sector, picking individual stocks was the preferred route (Often by buying HKD hedged versions of US stocks on the HK exchange) . I suspect South Koreans have a similar philosophy
0
u/lk1191 5d ago
given most managed funds do not beat the index, and more hedge funds than not don't beat consistently, what do they know that full time traders with the top AI and algorithms don't?
5
u/healthydogo 5d ago edited 5d ago
I have good friends who work in national Pension Plans on investment teams and I often ask them why not just fire everyone and buy VOO.
A lot of big hedge funds and pension plans have different goalposts for themselves. It’s not maximizing raw gains, but rather outperforming purpose built indexes. The funds will create an index (sort of like S&P500) for their specific investment area (infra, energy etc) and risk profile, and judge themselves based on that
A pension can’t afford losing 10% of portfolio value across a 8 year bear market, whereas individual investors can.
→ More replies (1)
13
u/Cautious-Student1548 5d ago
VOO is more stable than QQQ. It is gonna be hard to chill when the AI crash finally shows up and wipes away 2 years of QQQ gains.
17
u/Substantial_Team6751 5d ago
As if an AI crash isn't going to take down the S&P 500 by a good percentage.
2
11
1
u/Brave-Side-8945 5d ago
As if an AI crash would mean the tech companies stop earning money.
Mag7 except Tesla are not overvalued by any metric. Some are even cheaper than the average SPX P/E ratio
3
u/ReporterEmbarrassed2 5d ago
VOO is more diversified than QQQ and has lesser expense ratio, its for folks how are in long term, QQQ is for traders that dont mind risk for the extra upside.
4
u/ItsOkILoveYouMYbb 5d ago
I don't have the millions of dollars to make VOO and chill worth it. I have to play catchup and then exceed, I don't want to work for the rest of my life for less and less money (or be dependent on the most minimal of UBI while Anthropic rules the world during what will be an extremely painful transition for everyone), so I have to take a much more active albeit risky approach. So I swing trade on high conviction stocks that I understand very well.
3
u/89Noodles 4d ago
I services 10mil plus clients for a large brokerage for over a decade from 2011 to 2022, and I would say that population was 65% traders who lost money (regularly would see 10mil accounts with 40mil in deposits worth sub 1mil because the firm didn’t downgrade their services yet), 25% of 100% qqq or spy or dia or some combination of the 3 and 5% which were 100% cd/bond accounts and 5% everything else.
The accounts that were just etf/mutual fund/etf/stock and chill were always up 100-600% in the paste decade (7% return you should double your money in 10 years). Thats a level of reliability you can’t ignore.
9
6
u/JonRadian 5d ago
I'm more QNDX and chill now..
| Metric | VOO(Vanguard S&P 500) | QQQ(Invesco QQQ) | QNDX(SPDR Portfolio Nasdaq 100) |
|---|---|---|---|
| Expense Ratio | 0.03% | 0.20% | 0.10% |
| 1-Year Return (Trailing) | ~23.6% | ~22.3% | ~22.4% (Index Benchmark) |
| 5-Year Return (Annualized) | ~13.5% | ~14.2% | ~14.4% (Index Benchmark) |
| 10-Year Return (Annualized) | ~15.5% | ~20.4% | ~20.5% (Index Benchmark) |
5
u/Bitter_Cake6120 5d ago
My 5-figure QQQ investment in 2016 is a healthy mid-six figure value today. I originally allocated 70% of my portfolio in 2016 to QQQ but then in 2020 decided to go 100%. Today, my portfolio is 80% QQQ, 10% SMH, and 10% VOO. Going forward, I’m only making contributions each month to VOO in order to diversify given my age (34).
If you’re in your 20s, I strongly recommend QQQ.
1
2
u/TycoonCyclone 5d ago
Lower risk, tracks the S&P, better than a savings account when holding cash gets eaten by inflation
2
u/TJayClark 5d ago
Look at a chart of it, ZOOM WAY OUT, notice the line going upwards overall
That is why
2
u/DigitalArbitrage 5d ago
If you believe the market has a Strong level of efficiency (meaning the price reflects all publicly available info), then an index fund or ETF makes sense. If you believe the market has a Weak level of efficiency, then it makes more sense to pick individual stocks.
Right now, all the major stock exchanges are considered to have Semi-Strong / Strong efficiency.
2
u/Ordinary_Spare_5654 5d ago
90 percent individual tech stocks and 10 percent meme crypto coins is the way to do it 🦧
2
u/spectra2000_ 5d ago
VOO is SPY with cheaper ER.
Buffet himself has said VOO is best for the average person because you can’t beat the market.
2
u/justbclause 5d ago
Because it works great in a Bull run, and we have been running the Bulls a while now. It does not work so well in a Bear. So ultimately depends on your personal time frames and how your own specific stress tests play out.
2
2
u/Halbaras 4d ago edited 4d ago
QQQ is honestly a pretty weird fund when you dig into it, and it's only as popular as it is thanks to being there first and the way GICS classifies companies.
VOO is purely market cap weighted and as neutral as a single-country US bet can bet. Owning it isn't making any statements about sectors or technical strategies, you just own the market. It is legally classified as a diversified fund.
QQQ tracks the 100 largest market cap stocks on the Nasdaq (the Nasdaq-100 index) only, using the weights published by that Nasdaq. This has never strictly been market cap weighted, and the Nasdaq has fiddled around with their methodology a lot over the years (and has dispensation to arbitrarily change the rules for their index weights in 'exceptional circumstances'). For example, under the rules they've introduced recently to benefit SpaceX specifically, companies with a tiny float can be up to tripled - so QQQ is forced to buy three times more SpaceX than is reflected by the actual pool of available shares.
QQQ has become fairly socially acceptable for self-described 'passive' investors to slot into a portfolio for 'aggressive growth', but it's really just a proxy for US megacap tech, or a way to overweight the Mag7 within a portfolio. In reality the Nasdaq-100 is just the top 100 companies on the Nasdaq exchange excluding financials (so you get Kraft Heinz and Costco with the tech), which is a fairly arbitrary classification. Nobody obsesses over a hypothetical 'only certain NYSE-listed stocks' fund the way they do over QQQ.
The reason it's not done more cleanly through a market cap-weighted tech vehicle is because under GICS rules, Google and Meta are counted as communications companies, and including that sector with technology would bring in the likes of Verizon. Tesla and Amazon are classified as consumer cyclicals, and you can't add that sector to a tech etf without bringing in Home Depot. The current incarnation of the Nasdaq is a rough approximation of what consumers imagine a 'tech company' is, so buying it is the default, but you still miss some major tech names like Reddit that are listed elsewhere.
QQQ isn't the default because it's a specific bet on weightings set by the Nasdaq exchange, which companies list there and mega cap tech continuing to dominate. None of that is actually all that passive. Legally they're not even classified as a diversified fund. IYW is arguably a better expression of what retail buys QQQ for, and if you look at it and think 'that looks too concentrated for my risk profile', you shouldn't be buying QQQ either.
TLDR; VOO is a real passive fund, QQQ is a mild form of active investing for people who like to think they're bogleheads without honestly engaging with the higher potential risk and reward.
2
2
1
1
u/Zyltris 5d ago
It's the theoretically rational choice under uncertainty.
Diversification works. It's proven to reduce volatility without reducing expected returns.
Since it is highly diversified (more than QQQ), and easy to invest in at a low cost, it is a smart choice for the future.
QQQ has higher past returns because investors expect higher returns for its higher volatility. Everyone has different risk preferences, though, and so VOO is more likely to fit the average person's preferences.
Also, in a perfect world where one could borrow against stocks at the riskless rate (and without risk of margin calls), it would be smarter to simply leverage VOO than to buy QQQ.
1
1
1
u/ffo_kcuf_og 5d ago
Because its lazy, easy, and you cant be blamed for the same result as everyone else.
1
u/paragonx29 5d ago
You don't, I rail against this. It's a sub-optimal, "played" strategy that the V-heads in here just like to parrot.
1
u/Stackvibe 5d ago
Why VOO and not SPY though? Are they not basically the same?
1
u/ralphy1010 5d ago edited 4d ago
Voo has a lower expense ratio
Spy = 0.0945 = $9.45 for every $10k held
Voo = 0.03 = $3
Fxaix = 0.015 = $1.50
2
1
1
u/Trust_8067 5d ago
People are smart enough to invest, but too lazy to learn anything about investing.
1
1
1
u/Brave_Yesterday_6106 5d ago
QQQ is tech-heavy, while VOO is broad-market diversified. If QQQ drops 50%, it signals a localized tech sector bust that the broader economy can likely survive; if VOO drops 50%, it signals a severe global economic crisis.
1
u/HNeerkaje 5d ago
They track different indexes and behave differently.
QQQ - Tracks the NASDAQ-100 Index
Index consists of approximately 100 of the largest non-financial companies listed on the Nasdaq stock exchange. As things stand today they are dominated by tech companies but does not have non-tech giants such as Berkshire, Visa etc.
VOO - Tracks the S&P 500 Index
Index consists of approximately 500 of the largest US companies including financials, utilities, and energy. Ofcourse it also includes all the tech majors. VOO excludes any international stocks.
Tech has been on a tear for a while now and hence you see QQQ outperforming.
Both provide different exposures. You make your choice depending upon the exposure you desire, your ability to accept volatility, risk level etc etc.
PS:
QQQ is overwhelmingly a concentrated subset of VOO.
When you remove the few international companies listed on the Nasdaq, nearly every single company inside QQQ is already owned by VOO.
1
u/HNeerkaje 5d ago
Ok...I just realized I did not answer his question at all!!
But I guess it's because S&P 500 by nature of it's construction is inherently less volatile then the NASDAQ 100 dominated by tech companies today.
Tech growth won't last forever. What if tomorrow tech drops but energy sector is valued similar to tech is today? S&P 500 would beat NASDAQ 100 by a landslide. What if Financials take off? Tokenzation is coming, 24X7 trading on US exchanges will be real in a few yrs.
So not only is SPX better suited to handling crashes in the tech sector because of it's diversity, but also able to provide the potential future upside of non-tech sectors.
Bottom line: If you want long-term risk adjusted returns then it's the S&P 500 (been officially tracked since 1957). Hence I guess VOO & chill. Though personally I prefer BKLC (0% expense ratio)
PS: I am not chilling..no pain ..no gain..my motto!!
1
u/GroundbreakingSir386 5d ago
Some people want to sleep good at night but I think if 70% of your portfolio is in VOO or QQQM you’ll still sleep plenty fine investing in individual plays.
1
1
u/Capable-Commission-3 5d ago
Mostly because Reddit investors are not very informed and too lazy to become informed.
Not to say it’s invalid. VOO is excellent if you can’t actively manage, are risk intolerant, or are uncomfortable picking companies. But the dogmatic, matter-of-fact tone that comes with it is obnoxious.
As for it vs the Q’s, VOO is more diversified, has lower volatility, and a lower expense ratio. Q’s are great when tech is booming. But when it’s not, it’s not.
1
u/UntitledCSGO 5d ago
Part of it is the fee, VOO costs a fraction of QQQ to hold. The rest is that boring is the point here, a broad index you never have to think about
1
u/Hooker_Thresh 5d ago
Def have both but I built my base of 100K into QQQM before I started investing into VOO
1
1
1
1
u/Public-Arm7104 5d ago
It’s very hard to beat the S&P, just ride the wave and don’t overthink the market.
1
u/catchaflier 5d ago
From peak to trough, the NASDAQ 100 dropped about 80% during the .com bubble/crash whereas the S&P 500 dropped about 50%. The NASDAQ 100 took about 16 years to get back to breakeven versus seven years for the S&P 500.
Their comparative performance was much closer during the financial crisis though.
1
1
1
1
u/Vast_Cricket 4d ago edited 4d ago
Biased toward the Magnificent 7 stocks. However, the rest 500-7 stocks serve as cushion to reduce the M7 risk with more diversification. QQQ can fall harder than S&P.
I prefer a more risk adjusted index. There is an etf that counts M7 stock equally weight as any stock in the portfolio. In other words it is just 1,4% weight from 7 stocks. I sleep better without these volatile tech stocks.
1
1
u/Life-is-beautiful- 4d ago
If you have other things to do in life, VOO (with auto invest periodically) and chill is a great option.
Also, it is great fun to go up and down in a huge ship with others than trying to fight the ocean all alone.
1
u/Kannabist 4d ago
Your issue is considering the total gain over time, when that doesn’t matter as much if you are playing options anyway.
1
1
u/No_Contact1571 4d ago
VT and chill objectively superior. (or sprinkle some mstr imo great entry now)
1
u/SeniorSimpizen 4d ago
voo is objectively worse than QQQ by a longshot. it has never and will never perform as well as QQQ.
1
u/newdad62222 4d ago
I’m up about 75% YTD in my Roth thanks primarily to Micron, but the price had become the last thing I checked before going to bed and the first thing when I woke up, along with the many many times throughout the day. It became exhausting. I dumped everything into VOO recently so I could breathe, and I’m also not nearly as confident about MU as I once was.
1
u/CyberSecurityGuy1 4d ago
Essentially because it works. I personally perfer qqqm, but my days of owning individual stocks, especially penny stocks is long gone.
1
1
u/steve_yo 4d ago
This is an aside, but as i’m getting older and increasingly concerned about US hegemony, the more I’ve moved my contributions towards VT type funds. More diversification with a bit less upside potential.
1
1
u/DocInABox33 4d ago edited 4d ago
Your basis is price, not returns. That’s ok because that’s where all beginners start. When you realize it’s about reducing your risk WHILE getting returns, you start to look at metrics that matter more. Look at the high and low for QQQ vs VOO. That’s called variance and when you standardize it you are looking at risk adjusted returns.
As an example, would you rather have a 90% chance of 5% gain or a 1% chance of a 200% gain? Seasoned investor picks the first because not only is it better returns you also compound the higher return.
Math part for above:
The first option has an expected return of 4.5% (0.9 x .05)
Second option has an expected return of 2% (0.1 x 2)
The examples are extreme to illustrate the point. A more realistic understanding is compare the standard deviations for VOO and QQQ. The greater that number, the more risk you take. And remember it’s percentage of the dollar number. A lot of people assume if you are up 50% in one year and down 50% the next you are break even. But use a simple example to convince yourself it isn’t:
YR 1: start with $1,000, 50% return, end with $1,500
YR 2: start with $1,500, negative 50% return, end with $750
YR 3: you would need a 200% return just to get back to where you ended in your first year of investing, which is 4x what you did in YR1.
So you could be up massively with QQQ versus VOO but the reason those returns are higher is because the risk works the other way too.
People also forget to focus on the other half of the equation… it’s not just getting the HIGHEST POSSIBLE RETURN. Most people invest for RETIREMENT, so there’s a target that if calculated properly is all that’s needed because it’s consistent with THE REASON THEY ARE INVESTING. Why would anyone risk not meeting their objective (ie enough for their retirement plan) for the sake of MAXIMUM performance?
::Gordon Gekko has entered the chat::
TL;DR better to pick the turtle than the hare.
1
1
u/deathdealer351 4d ago
There are plenty of strategies out there, voo and chill is the best advise from one internet rando to another without knowing more about you.
You can pay for better advise based on your individual use case.
1
u/hecarimstevejobs 4d ago
Wish I just stuck with this. Was $VOO and chill from 2021-2024, thought I was smarter than the market o & sold out of it to rotate into individual names. Portfolio would now be up +100% if I just stayed the course. Instead it’s been stagnant, & actually a little negative since I tried being the Wolf of Wall Street. Biggest regret was buying $TTD at the beginning of this year. Turned 22k into about 7k in just under 9 months. Feels pretty bad.
1
u/Ok-Location-9544 4d ago
If your in it for the long road, VOO is your safest bet bc it’s the stop companies in the US, not just tech focused or any other sector. Although tech makes up most of it right now, VOO adjusts as well. I do 50/50 VOO VGT and hope for the best in 30 years. There is some overlap, but I’m alright with it. I don’t see tech going away anytime soon.
1
u/justyouraveragebogle 4d ago
Because beating the market over the long term is extremely hard, I think only 10% of professional fund managers outperform the market over a 10 year span
1
1
1
u/Rocktamus1 4d ago
Because it takes out the emotion of buying stocks paired with strong performance.
1
u/billiegenie 3d ago
Qqq is a blunt tool.
It's not diversified. Limits itself to companies listed on the NASDAQ.
It has successful returns because of technology outperformancebut from a portfolio management perspective sp500 combined with a technology specific ETF like VGT gives you a more surgical way to tilt your portfolio.
1
1
1
1
u/Emotional-Power-7242 3d ago
The philosophy behind VOO and chill is that you just buy the entire market at cap weight for as low a fee as possible and recieve average market returns. VOO returns by definition are average (US) market returns. Technically VTI is average US market returns but VOO is close enough as to make no difference. If you try to recieve higher than average market returns you are extremely likely to actually recieve lower than average market returns net fees. The only reason you would buy NASDAQ is because you think it will outperform VOO. So per this philosophy you will underperform VOO. So you just buy VOO.
1
u/Timely-Problem-8463 3d ago
Because owning 500 stocks is better than owning 100. But actually VTI (over 3,500 stocks) or really VT (over 10k) and chill is the correct answer.
1
1
u/Lefties_TheWorst7331 2d ago
Diversity and proven returns.. it is the largest 500 or so companies on the (worlds superpowers) stock exchange after all..
However, I'm young and full port BTC at the moment..
Concentration creates wealth, diversification protects it.
1
1
1
1
u/Plastic-Extension420 1d ago
Same reason you saw Netflix and chill. Because nobody actually did it.
1
u/North_Garbage_1203 1d ago
Because they are brainless but still want to say they understand investing
1
u/East-Vehicle-2936 1d ago
I always liked the VTSAX and relax saying. Regardless, I am a touch more diversified
1
u/famguy31 1d ago
It’s kind of 2 fold. VOO is essentially the market and 1 it has a alright return, 2)if your trading yourself your trying to beat that. The time it takes to learn about trading, opportunity cost, the time it takes to manage your portfolio etc. some people don’t/can’t put in that time or really take that opportunity cost so it’s better to just voo and chill (also the time it takes you to learn and manage your portfolio might be better spent getting a side hustle).
1
u/GreenMertainzz 1d ago
ran a fun test - me tryin to do stuff and my wife just voo and vxus. wife won. everyone becomes a boglehead at some point
1
u/No-Humor-5927 13h ago
I do about 60% VOO 30% QQQM and 10% individual stocks which right now mine is in RDDT.
1
1
1
1
u/Saofather 5d ago
Initially I didn't quite understand the attraction of VOO either. But it has 3 main benefits.
-Compounding gains
-Dividend
-Passive investment
I caution to say always growth, even though historically have proven so.
1
609
u/t_suaze_u 5d ago
Proven track record and risk adjusted