I am in the process of finalizing exactly what i want me portfolio to look like i want it to be simple, diversified, safe and efficient.
VTI is my main holding at 70%. That will not change. I allocated 10% to stocks (my play/ fun/ risk), 5% to SCHD for dividends/ mostly value stocks, 5% to SMH (semi conductors), and 5% to VIS (Vanguard industrials) due to VTIs lack if industrials plus i believe infrastructure will be a big thing year over year. So that leaves me with 5% to go.
I am debating on whether that is better allocated to tech heavy QQQM and QQQJ or VOO.
QQQM This is the alternative to QQQ but has a lower daily volume and expenses ratio. They are identical, however, QQQ does hold one more stock than QQQM according to a few tools I've seen and this does result in a higher performance for QQQ (less than 1%)
Tracks nadaq top 100 stocks Tech weight- 63% ER- 0.15% YTD- (-)0.47% 1 year- 71% 5 year- 24% 10 year- 20%
QQQJ
Tracks nasdaq 100-200 stocks. ER- 0.15% YTD- 1.67% 1 year- 18% Unfortunately this ETF is new and doesnt have any more performance data.
Average YTD return- 0.59% Average 1 year return- 45%
VOO
Tracks the top 500 of the S&P.
Tech weight= 34%. ER- 0.03% YTD- 4% 1 year- 62% 5 year- 16% 10 year- 14%
Performances wise Voo best QQQM/J over the last year however QQQ has best VOO year over year.
7 of the top 10 holds of VOO (~23%)/ QQQ (~44%) are the same however hold they hold a much heavier weight in QQQ.
79 of QQQMs 103 holdings and 42 of QQQJs holdings are in VOO for a total of 121 holdings for abouts a 60% find overlap.
This is where im not really sure which is best for me.
On one had QQQM/QQQJ have consistently out performed VTI while VOO has fallen just short or been withing <1%.
QQQM/J is much heavier into tech than VOO. which i believe to be a downside in the long 15-20 year hold (6 months ago I wouldn't have thought that but this correction we are in has humbled me). VOO does provide a much better diversification than QQQM/J while still being overweight in tech.
The lower ER of VOO is a nice bonus.
VOO does also have about 0.5% higher dividend pay out than QQQM/J put together.
VOO is 98% large cap stocks while QQQM is 100% large cap but QQQJ is primarily Mid/ small (no actual weight available when i researched).
Note- due to VOOs S&p weighting it has survived this dip we are in much better than QQQM/J, however, has the S&P rises to new highs will we see a pull back thatll wash that fact out...?
In the end which is better is the question.
Someone who believes in tech and or believes in up and coming tech could be easily persuaded to QQQM/QQQJ.
While someone looking for diversification and less risk while still toting a nice return would be interested in the 500 holding VOO.
Which will out perform the other over the next 20 years? Well that is a good question.
Right now after this DD.... I am leaning towards QQQM/J. but i also am very tempted by VOO due to its wider holdings, lower ER and performance.
Submitted March 27, 2021 at 05:01AM by DaddyDersch https://ift.tt/3dfcEGY
