I’m glad you are talking about fund overlap. This is the second channel I have found that mentioned it. It doesn’t seem to get discussed often.
@smittyb9418
6 ай бұрын
That's what I'm worried about if I invest in VTI since I already own 358 shares of fxaix 🤔
@wds3222
6 ай бұрын
Doesnt matter. I can only buy VOO and VTI for the rest of my life and I would probably still beat 99% of any portfolio managers 😂
@Aggnog
5 ай бұрын
If you need a youtube channel to explain investment basics to you then you already failed at managing your money.
@mattderron
5 ай бұрын
Sorry but this is just a dumb take. Plenty ways to learn many things and KZitem is one of them. Every information source needs to be vetted and just because it’s “more traditional” won’t guarantee that it’s better. Where did you learn to manage your money?
@captainnitrousx1331
10 ай бұрын
You had the best explanation in the difference than any other You Tuber presentation I have watched! I am a VTI investor, and I won't switch because I have over 3 years in investing VTI. To me one is not any better than the other and it's like you say just pick 1 and get started! I just like VTI because I like the exposure to Mid and small cap stocks all in one ETF.
@mattderron
10 ай бұрын
Thanks I appreciate it!
@TheIvyLens
10 ай бұрын
VOO automatically balances the top performing companies through the decades. Historically, the market leaders of every decade change. VOO assures you always have the top 500.
@TheSmartLawyer
8 ай бұрын
100%
@nicholasnoriega1205
7 ай бұрын
Doesn’t VTI basically do the same thing only the whole stock market?
@WeAllWeGot333
6 ай бұрын
@@nicholasnoriega1205did you get a answer on this?
@foreverunknown23
6 ай бұрын
Exactly. The whole point of weight based balance is that if Apple drops in valuation then their % in the top 500 will drop as well.
@eldrago19
4 ай бұрын
@@nicholasnoriega1205that's correct. VTI holds all US companies in accordance with their size. If you hold VTI and VOO, you are holding the top 500 companies at a larger percentage than the overall stock index.
@JLchevz
11 ай бұрын
This is why diversification is so important, becasue we simply don't know which companies are going to blow up (in stock price and out of production) in 5 or 10 years. Some will undoubtedly but it's better to guarantee a modest growth by investing in different markets and types of assets than to try to guess what's going to happen.
@mattderron
11 ай бұрын
Personally I like having a blend (a base in a broad market index fund and combine that with individual stocks) because that interests me. But definitely agree it's important to have some exposure to the full market
@Ed-bj5eq
11 ай бұрын
thinking about that exactly, but since I don't have time neither ability to stock pick a realistic next level from "one ETF does it all investor type" would be what you say : a sector ETFs picking type of investor, kind of fund of funds active holder portfolio 🖖
@monicaj3023
6 ай бұрын
This is what Im doing. Im so glad to read that you like doing this too. Thank you @@mattderron
@marinikc8780
11 ай бұрын
30%: VGT, VOO, SCHD, 10%: individual stocks
@mattderron
11 ай бұрын
Interesting blend that covers a lot of ground and gives you some space to try things you like with individual stocks
@ThatGuyOnYoutube2
11 ай бұрын
got a 4 fund: VOO, VDC, SCHD, DGRO. SCHD and DGRO are a combo dividend play. VDC invests in all consumer goods. Most of allocation goes into VOO. These are all in my personal account. Maxing a Roth out with a 4 mutual fund allocation (Dave Ramsey blend). Lets see how it all plays out in 30 years.
@nicholasnoriega1205
7 ай бұрын
Mutual funds to me are a scam. The expense ratio and hidden fees. Actively managed hardly ever beats the passive.
@TheWayoftheSith
5 ай бұрын
What's the advantages is SCHD and Dgro blend being used together like that? And what proportions?
@deboralacreta
4 ай бұрын
You should be in great shape
@jamesmiller1137
11 ай бұрын
You’re the only KZitemr who’s channel I check everyday for a new video.
@mattderron
11 ай бұрын
Thanks, much appreciated! Just FYI I try to post Mon / Wed / Fri, but have only been posting Mon / Wed lately
@jamesmiller1137
11 ай бұрын
@@mattderronAh ok thanks! That’s good to know as your videos genuinely make my day because they’re so high quality and there’s nothing that comes close to it in the finance KZitem niche.
@mattderron
11 ай бұрын
That’s amazing, thank you for your kind words. Means a lot!
@alexandraadams2070
10 ай бұрын
I've invested in VOO and looked at other ETF's and noticed the overlap and couldn't figure out why I should have those too! I know nothing about investing but that didn't make sense to me so I haven't purchased any more. I think I understand better after this video so I appreciate the info.
@mariofigueroa6776
Ай бұрын
Went with VTI 2 years ago and it has worked great for me. Going to stick with it until I retire.
@mattderron
Ай бұрын
That’s awesome!
@journeyman_15
11 ай бұрын
Fund overlap is a real concern. i do watch out for it a lot and make the necessary adjustments for my portfolio
@tstouff65
9 ай бұрын
@journeyman_15 have you found an easy method to quantify the overlap? Meaning having the ability to see how much of your total portfolio is invested in any one stock?
@Bluztaken
10 ай бұрын
Thank you for the video and information. I once did own VOO, VYM, VNQ, VTI & SPY I owned them for almost two years, then realized the only real difference between VOO & SPY was there payout dates. Actually, SPY held it's value better and VOO paid better dividends. A medical emergency had me liquidating stocks to raise quick cash without having to barrow any funds. Now I only own VNQ & VYM
@HaoTran-zu2of
10 ай бұрын
Awesome video, Matt. I own all 3 and enjoy the growth in the past years. These are the foundations of growing a 6 digit portfolio to a 7 digit portfolio in only a few years. Personally, very hard to go wrong with any of them. I view investment as a marathon - one step at a time and keep buying every two weeks (does not matter if the market is up or down). Please keep posting and thanks again for the great content.
@mattderron
10 ай бұрын
Thank you, I appreciate it!
@fmxmyway
9 ай бұрын
Whats the downside of fund overlap?
@ChopOn414
9 ай бұрын
@@fmxmyway , there is nothing per se; you are just not as diversified. You own the same stocks just in multiple places with different weighting.
@philipdamask2279
8 ай бұрын
SCHD go clobbered with the rapid rise in FED interest rates. I did not see this coming. Bonds were paying up to 5 %.
@chrismd00
7 ай бұрын
I’m almost All in for VGT plus VOO: that’s all you need!
@barneycasting8331
4 ай бұрын
With AI VGT will go down, because of the large layoffs that are coming...
@mattderron
4 ай бұрын
@barneycasting8331 but it has NVDA in it??
@chrismd00
4 ай бұрын
@@barneycasting8331 layoffs are helping
@nokapboby3861
3 ай бұрын
Was thinking the same thing man. Did you ever get into it? I’m honestly thinking VOO, VGT, and BTC , BTC will just be something to mess with, invest my pocket change nothing all that serious.
@RB-je3yj
11 ай бұрын
VGT/SCHD is all you will ever need!! I currently own 5k shares of schd and 500 shares of vgt! Drop the mic!!! All done!!! No need to add or subtract! Game over!
@dt6750
11 ай бұрын
impressive # on SCHD! im at 1k shares and working toward 5k in 20 yrs.
@RB-je3yj
11 ай бұрын
@@dt6750 it takes time, focus and dedication! You'll get there! Don't forget to buy at least 1 income property for taxes and cash flow! Ideally you want 4 but 1 is plenty! I have 6..
@malikbeluga7545
11 ай бұрын
Any concern SCHD is drastically underperforming the market this year?
@RB-je3yj
11 ай бұрын
@@malikbeluga7545 absolutely not! If anything I might get another 1k if it goes to $65 bucks and another 2k if it goes to $60 bucks I'm all in when it comes to SCHD!
@Ed-bj5eq
11 ай бұрын
yeah, looks good if you r thinking on starting a dividend growth portfolio for retirement in the long run, or DGRO + SCHD (low weighted funds overlap)
@rob.taylor
6 ай бұрын
The interest rate chart you put up was very telling. Great video breaking down holdings within these ETFs!
@mattderron
6 ай бұрын
Thanks!
@shroud4269
7 ай бұрын
VGT AND VOO IS A KILLER COMBO. it’s in my own personal Roth. But to make it the perfect triforce add VXF which is the Vanguard Extended Market etf, which is I believe all medium cap stocks in the Total market. No small cap companies in VXF that’s a different etf. IMO VOO + VXF >> VTI bc you can allocate more towards VOO large caps and get more gains than VTI which is the entire large medium and small cap companies. VOO is pure blue chip and VXF adds diversification to medium caps as well, and u can tailor it to your liking to offset VOO nicely. Pair that with VGT for the rising TECH markets(cybersec/cloud/ai etc) Microsoft and Apple etc gains will be insane. I’m up 16% 1YR as of last week
@Floyd_Steel
4 ай бұрын
Why VGT over QQQM?
@lags34
22 күн бұрын
Buddy vxf is DOMINANTLY SMALL CAP. It litterally tracks the crsp small cap index. Definitely pay a little more attention to what you invest in, not hating, just wanna point out that's a huge oversight! With that being said, Voo + vxf is basically identical to just VTI. Vti holds 99.9 percent of the holdings in voo, as well as small and mid. Although, having just vti will lower fees and make things simpler !
@jameszeng2666
11 ай бұрын
I totally agree with you, with interest rate this high and not falling ... those mage cap growth stock is going to have a hard time (and VGT, QQQ will also under perform as a result)
@mattderron
11 ай бұрын
I don't know exactly what's going to happen obviously, but I feel like too many people are taking the last 20 years as "this is how markets always are"
@jameszeng2666
11 ай бұрын
@@mattderronYes, and that's called recency bias
@ricardoromero7247
11 ай бұрын
Great video once again Matt...I am longtime Vanguard client and I am very active with my Self Directed IRA so this was a great video for me to watch.great insight..I have holdings in the mutual fund VTSAX...and VIGI ETF..thanks..
@mattderron
11 ай бұрын
Thank you!
@athomas9661
10 ай бұрын
Thank you. One of the best informational videos I've watched all year. I've been concerned about overlap for sometime and determining the difference between funds. This is extremely helpful.
@mindfulJK
11 ай бұрын
I currently hold VOO only, but holding both VTI and VOO is, I think is OK because it forces people to deviate from investing individual stocks. I am not saying we shouldn't invest in the individual stocks, but if buying ETFs and chill out is a person's goal, then it won't matter to hold both in my rookie opinion.
@mattderron
11 ай бұрын
You're right, I thought about that as I was editing the video. They are essentially the same so having both is like having more of one than the other. I think the main point I was trying to get across is if you have both because you think they're different or doing something different for you - then it's good to know that it's not really.
@mindfulJK
11 ай бұрын
@@mattderron Yes, I agree. You made a good point.
@travistarr9433
10 ай бұрын
This channel is the NVIDIA of KZitem finance content creators. Outstanding growth and bright future. Well done Matt.
@mattderron
10 ай бұрын
Much appreciated, thank you!
@lucass.1295
11 ай бұрын
My core is QQQM & VGT. I really believe that tech is and will continue to be the driving force in the market for the rest of my life. I have a 20+ year horizon so market fluctuations don’t worry me too much.
@mattderron
11 ай бұрын
That's awesome I love it. The main thing is that you know what you've invested in and why
@ljrockstar69
11 ай бұрын
Great mix! A lot of growth power! I love QQQM and VGT, I have them on separate accounts.
@miggy858
10 ай бұрын
You probably know this but if you’re looking at a pure play in tech, you’re better off going with just VGT. QQQ/QQQM aren’t strictly speaking pure tech. There’s others strictly focused on tech but VGT is probably at the top.
@lags34
22 күн бұрын
How has this been going for you? Do you plan to continue
@MeltingRubberZ28
11 ай бұрын
I knew a lot of what you covered here, but this is solid info (not fluff like most channels). Earned a subscriber. Will see me commenting occasionally. Appreciate the content!
@mattderron
11 ай бұрын
Awesome, thanks!
@Chiphikes
Ай бұрын
Matt, this was my first viewing of your Channel. I like your perspectives, especially that of not "automatically" pouring money into the frequently recommended "three-fund" portfolio of popular ETFs. You said this is your money and to carefully consider factors, such as current 5% interest rates and what happened in the past with 5% rates. Great advice. Thanks, Matt.
@mattderron
Ай бұрын
Awesome, thank you!
@ckennedy1973
9 ай бұрын
VOO and VTI like best friends in my portfolio
@lags34
22 күн бұрын
Isn't voo like 99.99 percent inside VTI already ?
@IsaacGonzalez-ku2pj
11 ай бұрын
Love your content brother! You introduced me to that etf overlap website and now I am addicted to it! Great tool!
@mattderron
11 ай бұрын
Thank you! It’s an awesome website, very helpful!
@tdaveniii
10 ай бұрын
I have about 60% in S&P 500, 10% mid cap index fund, 10% small cap index fund, 10% foreign index fund, 10% bonds/cash.
@mattderron
10 ай бұрын
That's a great example of what I was talking about in terms of being able to dial in your allocations
@markjou9799
10 ай бұрын
VGT is up too much for me in the past 10 years for me to invest into it. In the 10 years before that they ran each other pretty much even. I’m 100% into VTI and 100% in VFTNX in my 401k.
@theprogressivemichigander6588
5 ай бұрын
I hold VTI and am gradually adding VXUS for International exposure. The whole point of buying VTI is that I am exposed to everything by weight. If I wanted to bet that the big companies would perform better on average, I'd have bought the S&P 500 instead of VTI. I didn't want to bet that any one set of companies would outperform expectations so I bought the whole thing by weight.
@roseymalino9855
9 ай бұрын
Good analysis. Note: this isn't exclusive with Vanguard. Generally investing in ETFs and mutual funds will have the same overlap just by the nature of the investment offerings. It's up to the individual to be cognizant of their holdings.
@mattderron
9 ай бұрын
Yup absolutely correct, this isn't Vanguard specific - it's something to look at for everyone. I chose Vanguard to highlight this issue because they are some of the most popular and well known ETFs out there - especially VTI and VOO.
@LuKiSCraft
2 ай бұрын
I own VGT precisely because it is overweight AAPL and MSFT. Good explanation. People need to consider the WEIGHTS of each stock and the OVERLAP. Just subscribed.
@mattderron
2 ай бұрын
Awesome that's great! To your point, the overlap and being overweighted in some stocks is perfectly fine...as long as you know that you're doing it!
@phd_angel4192
Ай бұрын
I admit I have some redundancies across ETFs plus stocks, but I use a stock intersection tool, so I know exactly how much of each stock I own!
@mattderron
Ай бұрын
The whole point of this video is to know what you're invested in, overlap in itself isn't a bad thing as long as it's what you intend, so you got it!
@peaceforall
5 ай бұрын
As I am a novice investor, I found this video very helpful. Thank you, sir.
@mattderron
5 ай бұрын
You’re welcome! Glad it was helpful
@MydNitQ
9 ай бұрын
Thank you so much Andy and yuki! These are fantastic learning devices and they’re free for us ❤
@obugabriel5794
9 ай бұрын
Thank you, algorithm, for bringing me to this channel. Just subscribed and time to binge watch. Nice work 👍
@MrDboydeluxe
11 ай бұрын
Thanks for the video! I sold out of a couple laggard large cap mutual funds in the last few months and looking to redeploy that money in lower cost ETF’s, virtually every etf I look at…the exact same top 5 holdings. Apple, Microsoft, Nvidia, Google, Amazon, it’s impossible to escape. Vanguard actually had a couple lesser known ETF’s I found but they trade 7k shares a day and the bid/ask spreads are crazy.
@mattderron
11 ай бұрын
Yeah that's tough, unless you go with a sector or style specific ETF there's going to be overlap
@stickofbutter9733
6 ай бұрын
I'm sticking with VGT long term. Ten + years.
@davidwan685
11 ай бұрын
I am retired so planning on 60% JEPQ and 40% JEPI. Their cover call strategy will cap the upside but I am more interested in current income to supplement my social security.
@mattderron
11 ай бұрын
For sure, I didn't really dive into combos but you're absolutely right. Being in retirement or close to retirement is a different animal in terms of goals and approach
@ChromeForDays
6 ай бұрын
I went with VGT and SCHD as the core in my Roth IRA, and SCHD, VGT, QQQM in my taxable acct. Overlap is low to medium, SCHD raises the floor and there's some good growth. My timeframe is about 15 years, maybe 20.
@mattderron
6 ай бұрын
Sounds like a great plan!
@robyn_southafrica
9 ай бұрын
This was such an informative video, thanks for that Matt!! I'm only just a baby-baby investor lol, but for the past three'ish months I've put the minimal extra income i get into voo, schd and vgt, and one stock which is Realty Income. Its not much but that's how i dipped my pinkie into the offshore market 😊😊
@mattderron
9 ай бұрын
No worries, glad it was helpful!
@tylermills8419
10 ай бұрын
Thanks for this video. Just now making big pay checks and wanting to invest. Thanks for pointing out specific examples and especially the last section on why this should matter. Those parts helped the most.
@mattderron
10 ай бұрын
Awesome, glad it helped. Congrats on making big paychecks and wanting to invest!
@guardianlion8914
9 ай бұрын
Thanks Matt! Appreciate the candid breakdown and pitfalls to look out for. Found ETFRC through your video, so again, glad I clicked to watch it!
@mattderron
9 ай бұрын
Awesome, thanks!
@ljrockstar69
11 ай бұрын
Yes the overlap is between VTI and VOO, but I have it separate retirement accounts....VOO in my Roth and VTI in my traditional IRA account.
@ThatGuyOnYoutube2
11 ай бұрын
nice play. you will be able to track it in real time. I like it!
@chixofnix
8 ай бұрын
Overlap between ETFs with similarly low expenses are nothing to lose sleep over... It's like wearing a pair of slightly mismatched socks: annoying when you notice it but a waste of time to worry about when they're both doing the same job. Overlap is however good to be aware of, both for your sock drawer and your portfolio, for those moments you are ready to buy something new but want to sell/purge something you already have to make room and fund that investment. Don't let the overlap drive that activity (the "annoyance" isn't costing you taxes or trading fees), but allow overlap to inform/guide your decisions, to simplify when that makes sense.
@shemphoward5867
5 ай бұрын
Don’t know if you’ve done videos on tax loss harvesting or wash sales before, but you’ve got a huge following - that would be an excellent topic, I’m sure some of the newbies are just buying and selling whatever they want without realizing the consequences of how it’s going to effect them come tax time.
@mattderron
5 ай бұрын
I haven't done a video on that. It definitely is good to know, will put it on the list for the future
@joshuadickmann992
Ай бұрын
I'm just dollar cost averaging into the market. I just allocate 75% Vanguard S&P 500 and 25% Vangaurd Long-Term Bond.
@mattderron
Ай бұрын
That's awesome, DCA into index funds works extremely well
@julioquintana10
10 ай бұрын
Great insights! I wasn’t as aware of these overlaps so great to know! Thank you!
@mattderron
10 ай бұрын
No worries, glad it helped!
@skyBearish
4 ай бұрын
That is like condensed wisdom. That was so valuable. Especially last part. Thank you! More like this please.
@mattderron
4 ай бұрын
Thanks, glad it was helpful!
@skyBearish
4 ай бұрын
@@mattderron it's just one of the things you take as granted about the market, that funds are effective and diversified and almost guarantee impactful ROI. and you shattered this blind belief that I had and now I see things that I couldn't before. I'm so grateful for you sharing your opinion and analysis so generously.
@asdasddas100
9 ай бұрын
I watch another channel and they brought up fund overlap. It's been something I look at ever since
@JeredtheShy
2 ай бұрын
Right now I'm rocking VOO (SP 500) and VWO, which is the rest of the world, excluding the SP500, so I'm getting action from the EU, and especially China, as well as the developing world, while the Magnificent 7 also float my boat higher, and as of today, 6/24/2024, both of them are up for me, so if you want to avoid overlap, keep that in mind.
@TheLightningSt0rm
10 ай бұрын
My core is VTI and SCHD. I do hold VGT and SPYG (500 Growth focused ETF), I think I am just going to sell these two off and reallocate those funds into my core into some other individuals.
@mattderron
10 ай бұрын
Is there a reason why you want to sell those? I don't know what's in SPYG but I'm guessing VGT gives you extra exposure to the tech sector to go along with your total stock market and dividend fund? Not questioning it, just curious about the thought process
@1Mannco
10 ай бұрын
@@mattderron I also have $100k of VTI in my taxable brok. acct and $100k of SCHD in my Roth. I also have $350k in my TSP mostly in the C fund. I'm now thinking of from now on adding VGT into my ROTH for exposure to the tech sector or should I maybe go into JEPQ since I have 4-5 yrs to retirement while still adding monthly to VTI...I'm a bit aggressive b/c I'll get a small/med pension, will probably wait to 70 y.o to collect S.S., have 2 years of emergency money saved and live within my means..Do you think going into VGT or JEPQ is a good idea or something else?....Thanks!!
@Sun_Wukong666
10 күн бұрын
I like VYM since its NOT heavily focused on technology. For Semiconductors, I have FSELX!
@michaelswami
11 ай бұрын
valuable info and I thank you for doing this. I invest in multiple dividend growth stocks, but I have my grandson in 25% each VB, VO, VOO and VXUS. He’s 10. Who knows what will outperform over his lifetime.
@mattderron
11 ай бұрын
That's awesome, you have a very lucky grandson!
@John1925T
10 ай бұрын
Some stocks experts are saying best stocks for 2024 are MRNA. UPST. PARA. DIS. TGT. BBY TDOC ROKU sqqq.
@brienh63
5 ай бұрын
I really enjoyed the information you presented in this video. I am new to the market. Thank you!!!! You have yourself a new Subscriber!!!! Woot Woot!!!!
@mattderron
5 ай бұрын
Awesome, glad it helped!
@earlwilliams5473
7 ай бұрын
I've had 1 share of voo & 1 vtx for about 1-1/2 years. Vti only grew 50% of voo. Voo is the winner. However I like splg because the experience ratio is 0.02% and all s&p500's are about the same. I like that it's under $60.00 a share as well... I like schg for growth.
@iankamau222
11 ай бұрын
this is great info.. never thought about this in any detail.. thx
@mattderron
11 ай бұрын
No worries, glad it's helpful!
@georgeroesser974
9 ай бұрын
First, Thanks! BUT, I've had above average returns for many years by analyzing Vanguard's funds (mutual and ETF's). Yes, they are weighted - and, "screened" by experts who are either part of an investment "committee" or utilyze the advice of such a committee. My success was to invest in the top holdings of these funds, designing my own ETF. I did NOT put money (OK, sometimes a "bet" as Jack Bogle might say, on a long shot, always looking for the next Amazon - which hasn't come). When we "overlap", we semi-automatically put most of our investments in the best companies, while also investing in those dark horse bets that sometimes become winners! Good Luck!
@Choraimy
11 ай бұрын
Great video, really opened my eyes to some flaws in my current strategy!
@mattderron
11 ай бұрын
Nice, glad it was helpful!
@WilliMar36
8 ай бұрын
Thanks for an informative presentation. Having pivoted from single shares, single countries and thematic to global and trackers one of my greatest concerns apart from the disruption to trade wrought by wars, which is out of my hands, is overlap and concentration. I also don’t like investing in China which is problematic in the global environment. As you say research then research some more. You can’t simply buy and forget.
@marc-antoinemelancon-gaude7664
5 ай бұрын
That is my portfolio, what do you think about it 25% voo 25% schd 25% xic 15% soxx 10% veu
@DallinBunnell
10 ай бұрын
I have the S&P500, midcap, small cap, and international funds. I have some SCHD too, but not a core holding. I actually do think it's important to have the smaller cap stocks, and if rather have control over how much % of invested in them, which is why I dont just have VTI. However, this is in my retorement accounts. in a taxable brokerage, i may do VTI for simplicity and not creating too many tax events. We'll see.
@2legit2011
10 ай бұрын
I completely agree with having mid cap and small cap exposure. I like the Russell 2000 etf for small caps and I am holding it long.
@raheenb
6 ай бұрын
Great explanation, thank you.... Need to figure out what to do with my VTI since i already have VOO
@mattderron
6 ай бұрын
Thanks! One option is to do nothing and just contribute to the one you like most going forward. There’s no “issue” with holding both as long as you understand the overlap is there
@anthonyonfire917
11 ай бұрын
Great video Matt. I always enjoy your input and research. People most definitely need to do there due diligence and understand what they’re buying. Kinda like ordering food, you wouldn’t eat it if you didn’t know what was in it. Why would you not do the same with your hard earned money
@mattderron
11 ай бұрын
I know it's crazy how we'll scrutinize a $10 charge on our card, but then be willing to put hundreds or thousands of dollars into something we heard about on the internet in 5 minutes lol
@nelliemillan4627
4 ай бұрын
Great new info for me , I agree w/ u , I've had voo for while & I like it . But w/ this video I'm really understanding the 3 . Thank you
@mattderron
4 ай бұрын
Awesome, glad it was helpful!
@Odysseus38
9 ай бұрын
This is why i make my own index and dollar cost average it, i did it with defence etfs, i took the top 3 or 4 etfs and took their top 10 holdings and averaged them out over 100% and started buying and my performance is beating the indexes which i also buy but in much smaller amounts
@johnmcquaid7524
6 ай бұрын
VGT looks like a good fit for me; I might add a few shares in the near future & hold long-term. I have never bought an ETF before. Usually enjoy picking individual stocks. I’d rather own Brk.b than an S&P 500 ETF; but, that’s mixing bias (for legendary Berkshire investors) with business & I wouldn’t recommend anyone following my path. Perfect video.. thank-you!
@mattderron
6 ай бұрын
ETFs work great at what they're designed to do, and they make it easy for a lot of folks to get invested and do well
@nicolashromyk5397
8 ай бұрын
As I look into starting a portfolio that I invest into with every paycheck (cutting it a bit close at 25 years old) this is the kind of info I like to see. Emerging markets and small market cap stocks are cool, but I do think that the safest option is investing in the big 3 (apple, google, and meta) and their smaller allies. Those companies are so massive and funded that I really don't think they'll ever be replaced. And if the market collapses to the point where they are replaced, everyone's going to be in trouble, whether or not you invested in them lol
@mattderron
8 ай бұрын
History shows that anybody can be replaced, but I agree with you that these type of companies have ecosystems and cash flow like we've never seen before. They have a very long runway IMO
@christymilton6829
7 ай бұрын
Ty and you for sharing. I’m starting late at 51 yrs young and made a few bad choices but now I’m at a short end of investing at my age but the annual income in Louisiana is hard to meet that mark. From 23,000 annual vs a 63,000 annual. I invest in robinhood only bc I don’t know better or I don’t understand which platform to use. But thank you for clarifying a lot on vanguard. Especially exoense ratio.
@mattderron
7 ай бұрын
No worries, we've all made bad choices in the beginning don't worry about it!
@axolotl5
7 ай бұрын
I'm keen on diversification by way of categories rather than just random diverse stocks which may, and as you rightly point out, carry massive overlap.
@OctagonalSquare
5 ай бұрын
Remember that there are equal weight funds. They invest an equal percentage in all the companies. These grow slower as a whole since they get less advantage from the big players, but also don’t drop like crazy if one of those big companies or a single major sector dives. But that also means if you’re invested equally in a list of all companies on the exchange, then you’re also invested in a bunch of shitty stocks equally with some of the best in history. So it’s all about what type of risk you want
@redsun5826
5 ай бұрын
Thanks for the video. I’m new to investing and I realized that I have 4 overlapping ETF’s, so I got rid of 2 and left with 2. After watching this video, I realized again that I am still overlapping with my remaining 2: VOO and VTI. I think will keep VOO and get rid of VTI since I have VTSAX in my other brokerage account; they are essentially the same thing except one is an ETF and other is an Index Fund. D’oh! I don’t know what I’m doing. 😅
@mattderron
5 ай бұрын
No worries. Just to be clear - overlap itself isn’t always bad as long as you’re aware of it and it’s what you intend to do. For example - if you have VOO but you want higher allocation to tech and so you buy VGT - that’s ok. The main point is just to know what you’re invested in so you can make the best decisions for yourself. Hope that helps
@garrettw5143
11 ай бұрын
Great video! I admittedly clicked for the title, but the video is much more. At the start, investing is very confusing, but this broke a lot of things down in a way that I wish I was aware of on the outset. This is a good introduction to investing, keep it up.
@mattderron
11 ай бұрын
Thanks glad it was helpful!
@JAMGAR369
11 ай бұрын
I’m just starting to buy ETFS I’m going with VOO and SCHD after my research . I also have 13 Canadian stocks and 9 US stocks after I sold some others off .
@mattderron
11 ай бұрын
VOO and SCHD together is a great combo
@user-ep7el6vt7o
11 ай бұрын
Please make a video about SPDR sector funds
@dextersimon4629
10 ай бұрын
Plus what about QQQ?@@mattderron
@Ed-bj5eq
11 ай бұрын
great video Matt ! So for long term investors sector ETFs diversification seems to be a key factor in a portfolios risk management but also important seems to be timing the percentages of each sector according to the economic cycle we are in. Like right now 20+ years bonds, REITs and Utilities are being hammered by high interests therefore a good opportunity to DCA or get into those ? If you could release a video on that topic would be very helpful 😊 Thanks for you calm and easy to follow videos 👏🏻
@mattderron
11 ай бұрын
I think you bring up really good points - ultimately I think it mostly depends on how active people want to be in terms of asset allocation. in some cases people may not want to be active at all (ie, just put money into VTI or VOO forever and ignore market cycles). But I do think there's an opportunity to do what you're talking about to take advantage of them. I'll think about this in terms of a video. Maybe I'll focus it around REITs / Real Estate since that seems to be a really popular question right now and probably easier to put together something coherent. I will get out of my element very quickly trying to explain and dive into bonds lol
@Ed-bj5eq
11 ай бұрын
@@mattderron will wait for you video on that 👍 About bonds I was thinking on ETFs, such as TLT+IEF combo, VNQ or XLRE for REITs and XLU for utilities. Also, with those ETFs now could be a good opportunity to lock good dividend yields for the long run ?
@tylermcconnell2222
10 ай бұрын
I wanted to hear an experts opinion on this as well. Currently I have most of my 401k contributions going into small cap and utility funds, because these seem to be at a "discount" right now. I'm hoping this is a valid thought process
@darryl7464
9 ай бұрын
Depending on your age, Put one in a brokerage account, another in a Roth IRA and the third in a HSA Account.
@chriss3625
11 ай бұрын
I was trying to get the mid cap exposure with VTI, but it’s good info… I may need to make some minor adjustments…
@mattderron
11 ай бұрын
I actually think the mid/small cap exposure can be good, but could we dial in the allocations better probably with some combo of VOO, VO, and VB? Probably
@MrPicklesAndTea
6 ай бұрын
Either go VT/VTI&VXUS only, or start wrangling fund overlap as you attempt to outperform the market by tilting.
@weho_brian
9 ай бұрын
QQQ > VGT, basically you get better diversification amongst the big tech companies. Yes they are all technology companies (Amazon, Tesla, Google, Meta). NVDA is a company valued at 1.2T with 20bln dollars in sales, the competition will catch up. Apple is a device company with slowing sales, decent growth in services, BUT they don't have any position in the AI space. So why would you bet on 3 companies when you can get bet on 7 ? I don't think this is really a question about performance as much as it is about investment strategy looking out 10, 20, 50 years from now.
@mattderron
9 ай бұрын
I agree with a lot of what you said. I did a whole video on QQQ actually: kzitem.info/news/bejne/taytq2yCfoiLYKQ In terms of Apple and AI I disagree that they have no position. To me they have one of the more interesting possible AI futures with their own silicon, software ecosystem, and hardware. I've talked about that in other videos as well. Time will tell.
@luisoncpp
10 ай бұрын
Something missing from the video: it doesn't matter if you think that companies will keep being successful, what determines the outperformance to the index is if they are mire successful to the forecast, so betting in VGT is actively betting that the forecasts underestimated those companies.
@Lars-gv8ud
2 ай бұрын
Thankfully, stocks that overlap are generally those that are most profitable. For this reason most ETFs hold a higher percentage of such funds.
@anahansen8909
6 ай бұрын
Thank you for explaining this in a clear, kind, and concise way.
@mattderron
6 ай бұрын
No worries, glad it’s helpful!
@drumsmith215
10 ай бұрын
Informative, thank you!
@Excal123
4 ай бұрын
Honestly believe that these companies, apple, micro, google, and amazon, wont be going anywhere so im all into VOO baby!
@funnyriverred2501
8 ай бұрын
i think a little overlap is ok when its solid companies like AAPL MSFT NVDA etc... I like VOO with SCHD and QQQM or SCHG with some DGRO to give some solid growth ETF exposure... its simple and effective with not too much overlap
@mattderron
8 ай бұрын
Agree, overlap itself is a not a problem as long as you're aware of it and it's what you intended to do. The main issue is that most folks don't even know it's happening
@funnyriverred2501
8 ай бұрын
@@mattderron this is so true, i also find myself getting FOMO and every couple of months i go back and see where my exposures are to things like semiconductors and pharmaceuticals when i hear news about one stock doing well... it can be tough deciding on adding more to an ETF position or opening a position on SMCI or NVO... which one benefits you more... usually its adding to an existing ETF that is consistently giving dividends and returns...
@rfrancoi
Ай бұрын
Great info Sir. Thank you. What are "acceptable" overalap and expense index?
@mattderron
Ай бұрын
No worries, glad it was helpful!
@mattderron
Ай бұрын
Overlap in itself is not bad, for example if you have VOO and VGT because you really think tech companies like MSFT, AAPL, and NVDA will do well and you want a higher weight on those companies...that's perfectly fine. The main point of the video was to show why it's important that we know what we're actually invested in. Overlap is fine as long as it's what you expect and you know it's there. Hopefully that makes sense.
@rfrancoi
Ай бұрын
@@mattderron It does.. Thank you.
@aleksa99se
10 ай бұрын
It is scary thought that almost 50% of VGT fund holdings are in only 3 companies (AAPL, MSFT and NVDA). Out of which, for me, the AAPL is the most problematic one. It has handful of products and it takes just several IPhone generations to under-perform to ruin the company. If you think it is not possible, just study the NOKIA case.
@mattderron
10 ай бұрын
Obviously I’m long AAPL but I think comparing their situation to NOKIA is a stretch. NOKIA made mobile phones. Apple makes a computer for your pocket that people spend a bulk of their day on. They also have built an ecosystem across all aspects of your life that a) builds brand loyalty and b) provide subscription based service revenue. Not the same ballpark, IMO
@NgeeKey
5 ай бұрын
This is super useful Matt, thank you so much. I was about to do research on the ETFs before investing. And I'm from Singapore :)
@mattderron
5 ай бұрын
Awesome, glad it helped!
@raymagr
3 ай бұрын
I really appreciate your explanation. I am new to investing, when I went to Vanguard I was overwhelmed for the amount of product you can pick but I didn’t understand. Thank you for contributing greatly to my knowledge.
@mattderron
2 ай бұрын
No worries, you're welcome!
@paulngo4631
9 ай бұрын
nice video, I always held all three and never thought anything of it
@TheOriginalCameron
5 ай бұрын
I prefer XLK>VGT. Less expense fee, higher gains, higher dividend yield.
@konpanze155
11 ай бұрын
Not a US citizen. So I invest in FTSE All world and FTEC (same like VGT also tracks the MSCI information technology index) but lower expense ratio. Since FTEC dividend is so low, I don’t really care about the 30% dividend withholding tax.
@fdllicks
6 ай бұрын
We do VUG and VOOG and they are great, but similiar issue. VUG has a lot of apple. Voog, does not.
@sawwaa
7 ай бұрын
VOO seems like the perfect one
@mattderron
7 ай бұрын
No perfect investment but VOO is great
@sawwaa
7 ай бұрын
@@mattderron hmm
@cyncity6873
3 ай бұрын
Really enjoyed this video and your delivery. SUBSCRIBED!!
@MarcP207
4 ай бұрын
Great content! Thank you for this. I've been investing in both VTI and VOO thinking that this gave me a good mix of large to small cap exposure and not realizing the extent of the overlap. What ETFs should I be looking at for small and mid cap exposure to complement VOO?
@mattderron
4 ай бұрын
I think Vanguard's mid and small cap ETFs are VO and VB, so you could simply add those in whatever allocation makes sense for you
@Sevkingblade
9 ай бұрын
I just realized how clever the ticker symbol for VOO is lol. 😅
@mattderron
9 ай бұрын
I never actually noticed it until you mentioned it just now lol
@QvsTheWorld
10 ай бұрын
No love for VQT? It combine American stock + exposure to Canadian and emerging market stock. Or would multiple dedicated ETF be better?
@TheCRAS99
5 ай бұрын
Amazing information, overlap is something that many people don't pay attention.
@mattderron
5 ай бұрын
Thanks!
@intersuccessive
7 ай бұрын
Very long video with lots of information, but, everything is organized well to easily digest. Nice job, Matt Derron. Now I know where to invest my money. And you have earned a like and a subscriber! 👍
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