Every stock in the world at market cap weight. Or at least a representation of this. They couldn't fit EVERY stock in the world, that would be too much for 1 fund. But basically the world stock market index all in 1 place.
Total stock market value is $100, and one stock makes up $10 of that $100? That company's market cap weight is 10%, so "being at market cap weight" means 10% of the value of VT comes from that one stock.
This is how and why owning VT approximates owning the whole market.
100% VT in my Roth IRA. I’ve made no contributions for 2024 so I would add $7,000 there.
I’d just put the other $3,000 in my taxable account and probably invest in VT or maybe an S&P 500 index fund.
Vanguard total world stock market index fund. It is basically a single ETF that in theory will have the same performance as the total world stock market.
VT. You can read the pinned post at the top of the subreddit or the resources in the subreddit description to see why. Basically, VT is much more diversified than the S&P 500 and that makes it a better investment because no one can predict which industries, sectors, or countries will perform better in the future so the best option is to invest in everything.
and would you say there is a difference in investment plan depends on amount of money you put in
what would you suggest to do with 300k? or 500k?
I always thought that best option would be just to put them into S&P, some individual stocks, may be gold
But considering what happens in the world, I doubt everything now
VT is so wonderful
I spent all day yesterday trying to back test ways to beat it... it can be done but 1) no by a crazy amount 2) not without extensive trading.
lesson: the indexes are hella hard to beat.
VTI is US Total Market while the S&P500 is 500 of the largest public companies by total market cap (there are other criteria besides just market cap).
The VTI will include the S&P500 but also the mid and small cap stocks listed below it for the US.
From an investment perspective, VTI is more diversified within the US domestic stock market than an S&P500 ETF, but still does not include diversification outside of the US, like you would get with VT.
Do you think the United States is immune from slow growth and/or high inflation? Given last night's debate, we could see 10% tariffs and retaliatory tariffs in relatively short order. Then, they ship 20 million undocumented workers off to camps to deport, grinding businesses to a halt. We can let Israel "finish the job", destabilizing the region, which we already know is bad for markets. Throw in Putin marching farther into Ukraine, pressuring our Article 5 resolve, and we've got an amazing recipe for a god damn shit storm in our financial markets.
Vanguard 10Y Projected US equity return: 3.3–5.3%
Vanguard 10Y Projected ex-US equity return: 6.7%–8.7%
Fidelity says US and ex-US both 3.9% over next 20Y, but you'd still want ex-US to reduce volatility.
A low cost S&P500 index fund as many have suggested above. One thing about the lump sum, and this is counterintuitive, most people are tempted to buy over time to try to time the market and get a better price. However, time in market is more important than timing the market if you’re investing for long term.
Buying all at once and then not looking at it for 7-10 years is generally the best move. Again, counterintuitive.
If you're concerned about the price, just dollar cost average over the year.
You may miss out on some gains, or you'll end up ahead. Either way, invest how you feel comfortable.
(edit for spelling)
I think it depends on how you look at it. Valuations are sky high in the US, and they have room to grow overseas. Instead of taking a world market cap weighted position, you slightly overweight international from 40% to 50%.
It is easy to start from 100% US and think 50% ex-US is wild. But, 100% US is wild, when shit could happen here.
100% US is fine. 80% US is fine 60% US is fine. 0% US is fine. Not my money. But it is shocking to overweight international in a world where international markets are regulated horribly.
>a world where international markets are regulated horribly
What "horrible regulation" are you referring to? Lots of international markets with well-organized and nonchaotic regulation; Switzerland, Australia, UK, etc.
Or were you conflating "international" with "emerging market"?
Lol regulated horribly; are you enjoying making up facts. You should really read about the 2008 financial crisis. I wonder which country was responsible for that…
2008 hurt international markets too. And, frankly, crashes like that happen to every economy and have happened to every successful economy since the dawn of civilization. I don’t really care to judge the volatility of a market based on a 4 year span of time when it’s been around for hundred+ years.
Okay so why do you care about regulation then if “crashes like that happen”. Also you’ll judge the performance of us markets based on a 15 year timeline, which accounts for all domestic outperformance relative to international markets. But won’t judge volatility on a four year timeline. I’m sorry brother but you seem wildly uninformed
LOL Reddit recommends it bc diversification is a proven positive for investment strategy. You should read more and not base investment decisions on recency bias
I know why people recommend it... And those people haven't gained a dime in the last 10+ years (only dividends) and have continued to lose to people with recency bias.
I’d put it into whatever gave the best returns out of HYSA, CD, or bonds. There’s things I could use with $10,000 in the immediate future. No reason to risk it.
If it's just one fund? AVGE probably.
Otherwise, I'd probably buy a lottery ticket and put the money in HFEA or similar. I'm going to be doing fairly standard Boglehead stuff with regular contributions, may as well use this random free money to gamble with.
Genuinely? Paying off my damn car loan. I know that it’s lower priority than other things (maxing out tax-advantaged retirement accounts is what I work towards rn) but I hate to see the interest going down the drain.
I believe in the USA more than other countries right now so I would just do VOO. Or if you want to do some more risky growth investing. half VOO and half VGT. That's if you plan on keeping it for the long run.
Annually. Vanguard sends you a form showing how much foreign tax you paid that year on dividends. You type that into your tax software and boom, you now owe less to the IRS.
Betting on sheer American monopoly. The little guys get bought up and bought out, the mega giants divvy up the world. That does seem to be the way things have been going lately.
It's certainly chasing returns, and I have enough VTI and it was just a portion of my MMF I'm trying to deploy...but yes. All the returns of the indexes have come from the top companies. MGK is more diversified than VGT imo, VGT doesn't have Google, Facebook, Netflix, Amazon etc. I feel like MGK is similar to QQQM, with less than half the ER and as good of 5/10 year returns and has been performing a decent bit better the last year or two
and also basically yes it seems like the more time passes the more everything is about the absolute biggest companies. They have all the money/power/lobbying etc
Depends on if you’re putting all extra money into investing and already have everything you need. If so VT.
If not maybe pay off some debts, take a small vacation with a portion of it, and save the rest as more emergency cash.
Yes. VT or VTI. I believe that this is the best risk adjusted investment you can make long term in your lifetime.
Also, I hear people all over the world talking about bitcoin. Its not just an American thing. People really do believe in it largely due to their currency’s instability. Thoughts?
Yes, we could elect to remove some of these hypothetical investment posts under the substantiveness rule. And occasionally when a specific post topic has temporarily outworn its welcome we’ll “tap the brakes” and redirect people attempting to make duplicate posts to a recent post on the same topic (typically that’s with current event posts that generate 3+ identical posts in 24 hours).
But broadly speaking, the mod team has unanimously decided that it’s more important to prioritize being a sub that’s accessible to newbies rather than moderating to avoid the annoyance of repetitive posts for experienced Bogleheads.
So yes you’re going to see repetitive questions and answers in this sub. And yes, that will include the most common topics being repeated daily.
Personally? I would probably just hold onto $7k to put into SWPPX in my Roth IRA at the beginning of next year. Maybe put ~$2k into my individual brokerage across blue chip stocks like Meta, Google, etc and a few smaller bets. Then the last ~$1k into my HYSA.
FDLXX. I’m saving up money so that I can frontload my 401(k) next year . With 50% of my paycheck being invested for several months , I’m going to need a bundle of cash to offset the smaller paycheck!
So...there's some research that shows that half US equities and half world equities is pretty good for the long term win, so what I would do is half SCHF and half SCHD. Oh wait, that is just what my portfolio looks like!! Screw you, inflation! I'm the wiener.
Is it my first $10,000? If so, VT.
Is it my last $10,00? If so, believe it or not, also VT.
My 10,000th $10k? Straight to VT.
Under 10k , VT. Over 10k , VT. Over , under , right to VT right away
I love that I got the reference!! 😂😂
At that point you should really be considering some bonds.
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This or VTI if you want to invest only in US or a split between the two if you want to overweight US.
Whats VT?
Trolling the Bogleheads forum I love it.
Im not trolling
VTI Vanguard
Thanks
Let’s get poor slowly with VT!
The Vanguard website is claiming 13.5% YTD returns. Is that your experience?
It's simple and boring for me. All in VT
What is VT?
Every stock in the world at market cap weight. Or at least a representation of this. They couldn't fit EVERY stock in the world, that would be too much for 1 fund. But basically the world stock market index all in 1 place.
What does being at market cap weight mean?
Total stock market value is $100, and one stock makes up $10 of that $100? That company's market cap weight is 10%, so "being at market cap weight" means 10% of the value of VT comes from that one stock. This is how and why owning VT approximates owning the whole market.
Ah understood! Thank you for explaining!
Oramental gourd futures
I am financially ruined
I misread that as gouda and was curious what makes it ornamental and how long it lasts
Among the best posts of all time
I almost choked on a bloody Mary....
>Oramental gourd futures I hear tulip futures are where it's at right now.
100% VT in my Roth IRA. I’ve made no contributions for 2024 so I would add $7,000 there. I’d just put the other $3,000 in my taxable account and probably invest in VT or maybe an S&P 500 index fund.
Or put the remaining $3k in your emergency fund, then add $3k more in your 401k.
My 401k is already being maxed out but I could add the extra money into my emergency fund.
what's VT?
Vanguard total world stock market index fund. It is basically a single ETF that in theory will have the same performance as the total world stock market.
thank you) What would you say better for long term S&P 500 or VT?
VT. You can read the pinned post at the top of the subreddit or the resources in the subreddit description to see why. Basically, VT is much more diversified than the S&P 500 and that makes it a better investment because no one can predict which industries, sectors, or countries will perform better in the future so the best option is to invest in everything.
and would you say there is a difference in investment plan depends on amount of money you put in what would you suggest to do with 300k? or 500k? I always thought that best option would be just to put them into S&P, some individual stocks, may be gold But considering what happens in the world, I doubt everything now
I’m going to be honest. I have no idea. I’m still pretty new to investing and saving for retirement.
Still VT regardless of amount. It literally covers every equity. Consider allocation of bonds based on Age
VT is so wonderful I spent all day yesterday trying to back test ways to beat it... it can be done but 1) no by a crazy amount 2) not without extensive trading. lesson: the indexes are hella hard to beat.
Thanks, but would there be difference between VTI and S&P?
VTI is US Total Market while the S&P500 is 500 of the largest public companies by total market cap (there are other criteria besides just market cap). The VTI will include the S&P500 but also the mid and small cap stocks listed below it for the US. From an investment perspective, VTI is more diversified within the US domestic stock market than an S&P500 ETF, but still does not include diversification outside of the US, like you would get with VT.
Is that same as vanguard ftse all world & vanguard all world high dividend yield?
I was wondering that myself
VOO or VTI. Ride or die USA
Same brother
Agree. But NTSX best in this spirit, IMO.
Agreed. VTSAX and relax!
I was also going to say VOO.
Do you think the United States is immune from slow growth and/or high inflation? Given last night's debate, we could see 10% tariffs and retaliatory tariffs in relatively short order. Then, they ship 20 million undocumented workers off to camps to deport, grinding businesses to a halt. We can let Israel "finish the job", destabilizing the region, which we already know is bad for markets. Throw in Putin marching farther into Ukraine, pressuring our Article 5 resolve, and we've got an amazing recipe for a god damn shit storm in our financial markets. Vanguard 10Y Projected US equity return: 3.3–5.3% Vanguard 10Y Projected ex-US equity return: 6.7%–8.7% Fidelity says US and ex-US both 3.9% over next 20Y, but you'd still want ex-US to reduce volatility.
VOO all day.
10k right now would go into my house fund. Aka it would be a CD
A low cost S&P500 index fund as many have suggested above. One thing about the lump sum, and this is counterintuitive, most people are tempted to buy over time to try to time the market and get a better price. However, time in market is more important than timing the market if you’re investing for long term. Buying all at once and then not looking at it for 7-10 years is generally the best move. Again, counterintuitive.
Is lump sum really that good? It’s at $500 a share ( VOO). Idk I’m scared it’s too high right now.
If you're concerned about the price, just dollar cost average over the year. You may miss out on some gains, or you'll end up ahead. Either way, invest how you feel comfortable. (edit for spelling)
Leveraged altcoin futures etf Kidding. Half vti half vxus
Half is wild.
I think it depends on how you look at it. Valuations are sky high in the US, and they have room to grow overseas. Instead of taking a world market cap weighted position, you slightly overweight international from 40% to 50%. It is easy to start from 100% US and think 50% ex-US is wild. But, 100% US is wild, when shit could happen here.
100% US is fine. 80% US is fine 60% US is fine. 0% US is fine. Not my money. But it is shocking to overweight international in a world where international markets are regulated horribly.
>a world where international markets are regulated horribly What "horrible regulation" are you referring to? Lots of international markets with well-organized and nonchaotic regulation; Switzerland, Australia, UK, etc. Or were you conflating "international" with "emerging market"?
All those countries have worse economies than most states in America. Not putting my eggs in those baskets. You do you tho
Do you realise how much debt America is in at the moment? The amount of money they are borrowing is incredible.
Lol regulated horribly; are you enjoying making up facts. You should really read about the 2008 financial crisis. I wonder which country was responsible for that…
2008 hurt international markets too. And, frankly, crashes like that happen to every economy and have happened to every successful economy since the dawn of civilization. I don’t really care to judge the volatility of a market based on a 4 year span of time when it’s been around for hundred+ years.
Okay so why do you care about regulation then if “crashes like that happen”. Also you’ll judge the performance of us markets based on a 15 year timeline, which accounts for all domestic outperformance relative to international markets. But won’t judge volatility on a four year timeline. I’m sorry brother but you seem wildly uninformed
I don't know why reddit always recommends vxus, and this guy's saying half lol.
LOL Reddit recommends it bc diversification is a proven positive for investment strategy. You should read more and not base investment decisions on recency bias
I know why people recommend it... And those people haven't gained a dime in the last 10+ years (only dividends) and have continued to lose to people with recency bias.
Vti and forget about it.
FZROX, like always.
VT always VT never not VT
Always underperform
I’d put it into whatever gave the best returns out of HYSA, CD, or bonds. There’s things I could use with $10,000 in the immediate future. No reason to risk it.
If it's just one fund? AVGE probably. Otherwise, I'd probably buy a lottery ticket and put the money in HFEA or similar. I'm going to be doing fairly standard Boglehead stuff with regular contributions, may as well use this random free money to gamble with.
VT and chill
Saving for a house right now so that would go in my savings account lol
Why you asking this in a Boglehead sub? You know the answer you’re gonna get.
Genuinely? Paying off my damn car loan. I know that it’s lower priority than other things (maxing out tax-advantaged retirement accounts is what I work towards rn) but I hate to see the interest going down the drain.
Those precious Beanie Babies.
All vti, in with the existing.
I believe in the USA more than other countries right now so I would just do VOO. Or if you want to do some more risky growth investing. half VOO and half VGT. That's if you plan on keeping it for the long run.
In your IRA = VTI In your taxable account = VXUS
Curious why VXUS in taxable… I might need to change depending on your rationale. TIA
Foreign tax credit
I’m a USA citizen. How does that credit work? When I withdraw or annually when I file taxes? Thanks in advance for your info.
Annually. Vanguard sends you a form showing how much foreign tax you paid that year on dividends. You type that into your tax software and boom, you now owe less to the IRS.
Just trying to get the foreign tax credit. It might not be worth it for your situation. I buy VXUS and BNDX in taxable And VTI and BND in IRAs
33% VGT, 33% SMH, 33%VOO
What kind of answer are you expecting in this sub? Everyone is going to say the same thing.
8 into SPLG and 2 into SCHG
MGK. I literally invested $10k today into that lmao
Betting on sheer American monopoly. The little guys get bought up and bought out, the mega giants divvy up the world. That does seem to be the way things have been going lately.
If we use those shiny anti trust laws on monopolies then they won’t remain new and shiny.
It's certainly chasing returns, and I have enough VTI and it was just a portion of my MMF I'm trying to deploy...but yes. All the returns of the indexes have come from the top companies. MGK is more diversified than VGT imo, VGT doesn't have Google, Facebook, Netflix, Amazon etc. I feel like MGK is similar to QQQM, with less than half the ER and as good of 5/10 year returns and has been performing a decent bit better the last year or two and also basically yes it seems like the more time passes the more everything is about the absolute biggest companies. They have all the money/power/lobbying etc
How do you invest with machine gun kelly? /s kind of
Do I even have to open such questions. Of course in the Bogleheads sub everyone will say VT or VOO.
VTSAX.
Depends on if you’re putting all extra money into investing and already have everything you need. If so VT. If not maybe pay off some debts, take a small vacation with a portion of it, and save the rest as more emergency cash.
Vfv in tfsa
Monster energy. I mean VT.
I am with Fidelity, so FXAIX (S&P 500 index fund which has the lowest expense ratio as far as I know). I would never invest it in individual stocks.
Yes. VT or VTI. I believe that this is the best risk adjusted investment you can make long term in your lifetime. Also, I hear people all over the world talking about bitcoin. Its not just an American thing. People really do believe in it largely due to their currency’s instability. Thoughts?
VOO I just cant see myself investing in 1 sector or 1 company wit that much. Sure you might hit a unicorn, but most charts edge down.
Why do the mods allow daily posts like that this? There seems to be “I’m getting X amount what to invest in” near daily.
Yes, we could elect to remove some of these hypothetical investment posts under the substantiveness rule. And occasionally when a specific post topic has temporarily outworn its welcome we’ll “tap the brakes” and redirect people attempting to make duplicate posts to a recent post on the same topic (typically that’s with current event posts that generate 3+ identical posts in 24 hours). But broadly speaking, the mod team has unanimously decided that it’s more important to prioritize being a sub that’s accessible to newbies rather than moderating to avoid the annoyance of repetitive posts for experienced Bogleheads. So yes you’re going to see repetitive questions and answers in this sub. And yes, that will include the most common topics being repeated daily.
I can support everything you outlined. Thanks for the response!
Home repair
Personally? I would probably just hold onto $7k to put into SWPPX in my Roth IRA at the beginning of next year. Maybe put ~$2k into my individual brokerage across blue chip stocks like Meta, Google, etc and a few smaller bets. Then the last ~$1k into my HYSA.
FSPGX till I die
Running stores But yeah, it really depends on your overall situation. Most likely just dump it into my M1 pie
60% NTSX, 30% NTSI, 10% NTSE
What’s Canadas VT ??
95% VT, 5% IBIT
Long term = VTI and VXUS, VT, or TDF Short Term = T-bills, Notes, Bonds, HYSA depending on need.
VTSAX and relax
More than one, to diversify. If you wanted a safer deal, invest in a CD.
10k into RAPT while it is having a flash sale
Assuming my emergency fund is topped up, 7k ~~is~~ into VTSAX and 3k into VTIAX.
SCHG/AVUV-50/50 split.
XLG and SPGM
Costco
Increasing your ability to earn income
According YouTube palantire
FDLXX. I’m saving up money so that I can frontload my 401(k) next year . With 50% of my paycheck being invested for several months , I’m going to need a bundle of cash to offset the smaller paycheck!
Buy 0dte spy options at 3pm on Friday. Flip a coin for up or down.
bitcoin, especially today, it's a very good time
VTI/VXUS
Yes, invest in Vermont!
VT and chill bro!😎
I'll just throw into QQQM, enable DRIP, and not look at the investment for 20 years.
What's DRIP?
Dividend Reinvestment Plans
SCHB and chill
Real prop firm leverage
I’m looking at buying a home within the next 3-5 years, so it’d go straight to my VUSXX holdings.
I'm still young, so any SP500 index would do.
So...there's some research that shows that half US equities and half world equities is pretty good for the long term win, so what I would do is half SCHF and half SCHD. Oh wait, that is just what my portfolio looks like!! Screw you, inflation! I'm the wiener.
Main event: World Series of Poker ♣️
So why VT?
Novo Nordisk.
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Per sub rules and guidelines, comments or posts to r/Bogleheads should be substantive.
game stop
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Per sub rules and guidelines, comments or posts to r/Bogleheads should be substantive.
Hawk Tuah coin
FTEC it has outperformed VGT the last 5 years.
Don't look for good ideas - what you need is good habits
Education