Vti leaps reddit. Cause VT is about 60% VTI plus 40% VXUS.

Vti leaps reddit Any advice or suggestions would be appreciated. I use both LETFs and deep ITM VTI LEAPS to add a moderate leverage to our portfolio. Go talk with a financial advisor and they can accurately assess your risk tolerance and help you determine a good sector fund for you. I buy a LEAP with a $55 strike price with an 18 month strike date. On the other hand, QQQ tracks the performance of the Nasdaq-100 Index, which is composed of the 100 largest non-financial companies listed on the Nasdaq stock exchange, with a heavy focus on technology. Returns over the last 1 year: VOO = 20. Basically, LEAPS are options with more than a year till expiration. Please direct all simple questions towards the stickied BBUS isn’t an equivalent to VTI. If 10% of my portfolio is bonds, that leaves 90% for equities. For my FD aficionados out there, no a monthly does not qualify as a LEAPS Why LEAPS? Why buy LEAPS? AVUV composes 10% of my portfolio for a small value etf tilt. VOO doesn't include mid and small cap stocks. Sometimes it stays at 0% gain/loss for the day while UPRO or TQQQ dropped considerably Both have total market exposure, same expense ratio, but everyone is all about VTI on reddit. Sounds easy enough, until I compared returns: 5-year returns: VOO 62. I'm contemplating doing this with my VTI in my tax-advantaged retirement account, using deep ITM LEAPS. Generally you can assume a total of 7% averaged over the long term. I had been selling whatever I could get $1 for at above the local high and setting a limit order to buy to close at 50% max profit and then rolling into the next $1. For beginner advice, brokerage info, book recommendations, even advanced topics and more, please read our Wiki here. VXUS CAGR is 3. I want to sell covered calls on my shares with a very low probability of my shares being called away. com find I can mathematically guarantee you that VTI will not give the best future return of any possible investment. VOO and VTI are highly correlated. I personally have mine split between VEA (foreign developed) and VWO (emerging), with a heavier allocation towards VEA. Thinking of selling out of SPY shares in wife’s IRA and doing a 2024 LEAPS on AMZN for a strike that is priced at $46K. Auto investing of partial shares of vti is only available at m1 and maybe robinhood. BRK. The general consensus was that access to leveraged VTI was neat, but not super I’ve looked but I think you are better off using SPY or VTI LEAPS to achieve your desired portfolio leverage. VTI just has a slight exposure to more funds. The parts that do the best Conerning rolling over options, I’d seen some interesting discussions about long-term equity anticipation securities (LEAPS), especially if they are rolled over. 05%. 3% vs. Absolutely splitting hairs, admittedly. I sold some BND to buy some SPY to wheel. Schwab, Fidelity, etc. Total Market Index FZROX - Fidelity U. , VOO) make up such a huge proportion of VTI that the returns are usually the same. Keep in mind before 2009 I believe the opposite was happening with international markets outperforming US markets. You actually profit from volatility when you’re dollar cost averaging because you’re buying more low and less shares high, which counteracts the VTI invests in all the CRSP US Total Market Index stocks, providing broad exposure to various sectors and industries. So whatever the US stock market does, VTI does - no more and no less. However the etfs have an 86% overlap. don’t have that so their mutual funds pay slightly higher taxes. Also, 3500 stocks is more than adquate diversification. 8 and 4, highest leverage when I buy, and leverage goes down as it gets deeper in the money. I'm going to follow the approximate domestic/foreign split in VTWAX, roughly 60/40. If VTI trades flat between now and then, you're out $2k - needs to go up over 10% to break even. By definition, you have to close (even rolling is closing and opening to the irs) options by expiration one way or another vs stocks that you can hold until death and the get step up. So bonds aren’t an ‘inverse’ which is what you might be thinking the hedge portion means but that’s a fair assumption to make. I don’t disagree with any of that, except maybe the taxes. Either way, I don’t own 100 shares of any optionable stock that does not have a CC against it 95% of the time. I know the differences between the two, but is there something else I’m missing? Should I sell my positions in IVV for VTI or would the change be so minute I wouldn’t even notice over the long term. If you are asking which one makes more sense as a single equity investment, I would say VTI. Edit: If one has $2mil in equities and stocks maintain the 57/43 US/International split, they will pay about $1,085 more for VT than VTI/VXUS. 3%. In a Roth IRA, the main difference is going to be that a mutual fund allows putting in/taking out any dollar amount, whereas ETFs can only be traded as whole shares (unless your brokerage offers fractional shares; Schwab is apparently launching this I'm genuinely curious why people often think VT is a better choice over VTI or another S&P 500 type ETF. B is going to beat the overall market (VTI) over the long-term, I would say yes with pretty high confidence. 2x. I thought the diversity would be beneficial but im reading that they are composed of essentially the same stocks. If you are asking if BRK. Reply reply I'm going with VTI, VXUS, and BND. Vanguard use to not even offer that. This would result in $1-$1. VXUS offers some diversification effect, correlation with VTI is 76% and VOO is 63%. If you are risk-averse, this is probably a good thing. The trick is to just be rich, negotiate a 2% interest rate and utilize maybe 1/2 of your FME in a bear market, utilize the other 1/4 in index leaps, profit. It's not the only example. VTI has 3% SCV in it, so yes while technically it probably contains everything within VIOV, those stocks aren’t moving VTI much at all with that weighting. I sold all of my VTI for SPY for the increased liquidity to sell covered calls against. I know the discussion is primarily among VTI, SCHD, and VOO. If using this drop for targeting, you'd now be hitting take profits on Article on VTI vs VOO from 24/7 Wall Street, first link under your chart: The choice between VTI and VOO hinges on an investor’s risk tolerance and time horizon. If you’re investing in an Exchange Traded Fund (ETF) like VTI then it really doesn’t matter much which brokerage you choose and there’s no particular reason to go with Vanguard unless you care about the ownership structure (which, to be fair, does guarantee the alignment of interests of the company and the fund holders). This subreddit is designed to be a safe space. VTI contains large, mid and small cap stocks, it basically contains almost every publicly traded company in the US. Does it make sense just to sell the QQQM and put that allocation back into VTI so it's 70% of the portfolio, or are there other ETFs I should be thinking about to allocate that 10% to? The standard answer parroted here is VTI, Total Market diversification instead of growth, but let's look at the statistics: VUG: 34. If you want leverage buy deep itm VTI leaps calls and roll them when remaining dte is less than 9-12 months. X. JEPQ distributes unqualified dividends which means that no matter what, they will be taxed as if its income on PUt what you can into taxable VTI/VXUS with a 75/25 tilt. And VTI is in the middle of those two. 23 of 2008 drop. I would then of course sell . Once interest rate cuts begin, the small caps that make up about 15% of VTI will start to perform well versus the stagnation they faced over the last few years due to lower borrowing costs, better risk appetite, etc. Welcome to r/stocks!. Vti most places you have to buy complete shares exception are vanguard fidelity and m1. Members Online. Nvidia, Apple, Microsoft, Google, Amazon, Salesforce, Meta, VTI) Buy shares with all your LEAPS options for major indices with some tiny portion of your portfolio? You can buy a VTI . LEAPS in roth is no better or worse than LEAPS elsewhere - all about personal risk tolerance. (so please forgive me if I misunderstood this completely) So as I understand it, LEAPS work best to amplify gains in a growth market like we have seen it since 2020. Check the distributions history of VTSAX & VTI. Long term, "small" is an expected compensated risk Right now my equity holdings are split between 60% US and 40% international, roughly in line with current market cap weights (which are around 56/44 I believe, so I only have a small US bias). This will be equivalent to 2% interest on a low cost etf. Is BBUS pretty similar? Yes, any large cap fund is because the market’s weighted allocation is mainly large cap stocks. Going to earn for the very first time. If you want the full market exposure go with VTI, if you don't care about full market go with SPTM. 1x and 1. Please note that as a topic focused subreddit we have higher posting standards than much of Reddit: 1) Please direct all advice requests and general beginner questions to the daily discussion VTI/VTSAX fully includes the S&P 500 (FXAIX) as well as thousands of additional US companies. Of (3) In particular, one reason I would prefer VTI solely over VTI + VXUS is because (a) precedent would suggest, although not guarantee, that VTI returns higher margins over time and (b) the US stock market already has a lot of implicit SCHB and VTI ERs are tied, therefor not lower :D Besides the tax harvest thing, the only other advantage I see is that if you are at a brokerage that does not support fractional shares, then ITOT and SCHB are substantially lower priced than VTI, thus letting you have less leftover cash. 3 VTI $250 Call 1 If you buy LEAPs, you need a directional strategy. 57% 1-year returns: VOO -10. FZROX is a mutual fund, the price changes at market close. I know VT tracks a more global market but if you look at the chart since 2008, the ebbs and flows are directly correlated to how the U. If your money is from working then put it in a Roth IRA. That's the good thing about competition. ) Vanguard uses a patented process that makes VTI VOO is the Vanguard 500 Index fund, and VTI is the Vanguard Total Market Index fund, so VTI includes all of the stocks in the Vanguard 500 and also tries to reflect thousands of much smaller US stocks (through sampling, not by owning all of them. Rest is 70% VTI and 20% VXUS Even considering a more conservative 90 delta LEAP, say the Jan23 280C with today's pricing, would nominally expire with its intrinsic value of ~50; out of the ~138 purchase price, or about a permanent -65% loss as compared to the temporary -35% of the SPY shares. Remember compound interest, where pennies become dollars become whole missed paychecks. VOO and VXF hardly gets you any more stocks than VTI, and bumps up the expense ratio from . I don't think you will find anything significantly better than Schwab. This is what u learned from 3. "SPLG seeks to track the total return performance of the S&P 500, before fees and expenses. Our mission is to crowdsource the leap to AGI by bringing together language model developers and chat AI enthusiasts Welcome to r/stocks!. So far I’ve rolled two VTI calls annually, for a gain of 60-100% on them in my Roth and brokerage. they have a long term mindset when investing in VOO the stock (technically its called an ETF) . 41% VT VTI is immensely diversified as it covers the entirety of the NYSE and is basically set up like a set it and forget it kind of ETF. VTI, being an ETF, changes price throughout the day as a stock would. But this difference is mostly academic. Reply reply I took the leap! Bought my first shares of VTI today! The face of Black Women on Reddit. Now all of that aside if you just want US market exposure and aren't particularly bothered by I am thinking about converting some of my IWM etf into deep itm LEAPS to free up some capital, since there is no real disadvantage (few theta decay, but nearly the same anticipation up/downwards). The main component missing from the ETF are international stocks which is why VXUS which only covers international stocks is often recommended to compliment VTI should you want to diversify further. VTI is us total market, VOO is the S&P 500, VXF is everything outside of the S&P. After a very long timeframe VTI should outpace VOO but not by a significant amount. VXUS is everything outside the US. A) International Exposure VTI/VXUS B) Dividend Growth VTI/SCHD C) Small-Cap Value Tilt VTI/AVUV or VBR These are just some ideas, imho id go with VTI/VXUS since your new as it let's you choose your allocations to International. Does any of this matter long-term? For example, longevity of the product or expected changes to expense ratio? Invest either in VTI or Vanguard all world (think it is 60% US and 40% world right now or something close to that) with as much money as you can. 02 on a price of $240, or about 0. VTI is a bigger fund ($276B AUM vs $40B for ITOT) but Blackrock is a bigger company ($9. if those big companies stumble, it drags down the entire index. Nothing wrong with buying and holding Vanguard (or any other non-Fidelity) ETFs in your Fidelity accounts. VTI was dead flat for a decade preceding this time. The future value of your retirement fund is more dependent on the total money you invest, much less than the choice between VTI, VOO and IVV. This past year growth was around 30% - which is amazingly good but also rare. The place to trade, sell, collect, and discuss Reddit VTI is the total US market. 02% lifetime NAV Both rock nearly identical expense ratios. VTI has essentially the entire US market, weighted by market cap. $10,000 invested in FSKAX and VTI in October 2011 would be worth the following today, with dividends reinvested: FSKAX $42,186 VTI $42,267 Hopefully this shows you that it doesn't matter. My other portfolio is 30% VTI , 5% VXUS, 15% SCHD , VUG, VGT , QQQ, 5% cash. So it shouldn’t make a huge difference. If yoy daytrade, put 50% of daily profit into VTI. The only difference, in principle, is that VTI is an ETF, and VTSAX is a mutual fund. I also hold some other “leveraged” assets (deep ITM VTI LEAPS) and NTSX etf in taxable. 5 years off reddit. 2% lifetime NAV VTI: 25. But, more risk could lead to more reward. LEAPs are almost useless if you don't have a grasp on fundamentals of the company. The average cost per share is about 200$. Or check it out in the app stores I wanna ask your opinions that is it time now to just buy the shares or go for 2 year leaps on some blue chips such as Nvda, appl, googl, and wmt. I've been reading up on options and especially LEAPS for the last few weeks now. Currently for both my Taxable and ROTH, I'm all in VTI and possibly considering SCHD now but I like to play around with individual stocks sometimes and I wonder if COST (Costco It’s because VTI is far more skewed towards large caps. Some here would even argue VT is a smarter choice. A Pepe Silvia sleuth/discussion of Bill Ackman's Pershing Square Tontine/SPARC Holdings Put VTI in taxable and/or Roth, it can spill over into other accounts like 401k and traditional. Choose wisely for your total index fund for SnP500. Please direct all simple questions towards the stickied Example) XYZ is trading for $50. Reply reply Whats the sentiment of the bogleheads? on reddit everything that iant 2/3fund portfolio gets shut down with past performance not indicating future returns. FSKAX hasn't paid a cap gain distribution since April of 2019. What happens if you lock your money in for a year and VTI price goes up? You've Intro. do VTI leaps (risk I have about 150 shares of VTI which I've accumulated through DCA over the past couple of years. 4% may seem small as a percentage, but it’s by no means an insignificant chunk of change in dollars. Our goal is to help Redditors get answers to questions This means that the mid cap/small exposure in VTI is crammed into 3000 stocks or so with the remaining 14% of weight in the fund. 1% | VTI = 18. Playing in options to keep my interest up and make some money while the market sucks for my long term holds. SPTM is a 1500 stock index, VTI holds around 4000 That aside I don't see either as being radically different. 6% 52-week performance, 9. Behold, boring ass options! AKA LEAPS, Long-term Equity Anticipation Securities. I’ll start drawing on it at some point to keep total leverage in check. You can tax loss harvest more precisely because you don’t have to guess the price at market close. That’s right, yes. That it correct - and for VTI and VOO the growth is usually much more than the dividend. VTI tracks the Most people do 50 on SWPPX or VOO and 50 on SCHD on Reddit. (QQQ=0. The only reason I'll use VT over VTI + VXUS is if I want to keep it simple. VTI is a better fit for long-term, diversified growth due to its broad market coverage of all US stocks, including large, mid, small and micro-cap stocks. Reply reply PharaohKhonsu Options have very different risk profiles compared to the underlying securities. Second point: LEAPS have a lot of extrinsic (time) value compared to shorter DTE options, which erodes down to zero at expiry (that's the time decay you hear about). VTI-60% VXUS-15% QQQM-10% BND-5% AVUV-10% Looking closer now, though, it looks like QQQM and VTI have so much overlap it's not really the best use of my funds. you can buy an actual stock which generally you can only get at the current price, or you can buy an option, which gives Bogleheads are passive investors who follow Jack Bogle's simple but powerful message to diversify with low-cost index funds and let compounding grow wealth. However, there is a large disparity in CAGR (VXUS 3. Leverage ratio on those leaps is between 2. Their performances are tightly correlated and their expense ratios are the same. Just replace the VTI with SCHD. There is no free lunch and product from Manulife probably have 2 But every single response here for everything is VTI, VTI, VTI. AVUV composes 10% of my portfolio for a small value etf tilt. When you own VTI, you own all the stocks in the US weighted by market capitalization. VTI and VTSAX have the same expense ratio. It seems like VTI is the preferred route to go for the majority of you. Because it'll basically allow me to experience the same gains (or losses) of You can absolutely buy LEAPS on ETFs, but the safer it is, the reward will be less lucrative. Buying calls has some big "time value of money" costs tied to it. If you've already maxed out your retirement contributions, its slightly more beneficial to hold VXUS in your taxable account because the dividend for international ETFs are partially deductible on your tax return since foreign government taxes has already been paid. 5/2 years out deep itm LEAPS (especially regarding Theta, I don’t want to overpay the LEAPS). I believe the worst case in this scenario is that in late 2023 or Jan 2024 I end up losing $5200, which if it’s ~10% of my portfolio, I am fine with losing. Levered ETFs vs LEAP . INTL was 9. View community ranking In the Top 5% of largest communities on Reddit. 52% VTI 58. So you'll be getting your VOO plus everything else. VOO yields better returns, but at a higher level of risk. 5% VTSAX is at 35. I cannot complain about Vanguard and their funds, but I am just browsing other ETFs as well. VTI holds 4,112. Anything else is gambling. A mature "healthy" portfolio has 90-95% in market wide index funds like VOO or VTI (or SSO, UPRO), so buying LEAPs on these is a bit redonkulous Either way VTI isn't GME so I wouldn't worry too much about it personally. Or check it out in the app stores Voo and VTI specifically have darn near identical performance (when they move up and down, and how extreme) and returns. At expiration, the P/L of the LEAP gets "locked in" in a way that long shares do not. As you noted the last 6 months indicate that VTI has outperformed QQQ. Would it be a wise move to move these funds over to the VTI ETF? If so, what are the benefits of it over what I currently have and what makes VTI so attractive? Thanks all. I say keep going with VTI/VXUS cause you have more control over the allocation. VTI runs the total American market heavily weighted in the S&P 500, VXUS does the world market excluding US stocks, and QQQ is leveraged on the NASDAQ. It becomes VERY likely that this LEAP will exercise. Add a bit more fee for currency conversion. Market performs, while the performance of VT severely under performs VTI. It doesn’t matter really, you can’t go wrong. is VTI the absolute surefire best I can mathematically guarantee you that VTI will not give the best future return of any possible investment. VTI and VOO overlap 85% so your really only getting 15% benefit of owning VTI essentially getting double the expense ration for them sharing majority same. With the VEA/VWO split, it is enlightening to view them separately, as VEA and VTI are typically more strongly-correlated than VWO and VEA. If you don’t know VTI is the same as VTSAX but is an ETF and not a mutual fund. For I was thinking of loading up on LEAPS on reliable companies which we know will be here the next 10 years. 25-30% of your cash goes to Apple, Microsoft, Nvidia, Tesla, etc. It sounds like you are thinking of VTI as a product when it is really more of a strategy. Those were essentially a part one and part two leading up to this post. . You can find dozens of panic posts in this sub when people start losing 30% on their LEAPS calls, let alone 100%. I'm a hypothetical purchase of $1,000 would I allocate $540 VTI and $360 VXUS to maintain the approximate 3:2 ratio in VTWAX? Leaving $100 for BND. As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity – directly from Fidelity Associates Smaller stocks are expected to grow more than large stocks over the long term. Not a pro, experimenting here. If you are going to let it sit for 20+ years, I'd also up your VOO to 60% 60% VOO 20% SCHD 20% VGT EDIT: You could also look into VUG, SCHG, or QQQM to replace VGT as your growth play. The only way a deep in-the-money call expires worthless is if they market drops below the strike price, which is just the nature of leverage. Reddit. SPY has a 0. 96% returns over last decade and US was 4. 94% VT 27. Fidelity price improvement will often be several percent of the spread, but still very tiny. Put another way, you buy a deep in the money LEAP with a strike price at 2/3s of the current price. VTI to me is just the SP500 with some bland salt and pepper sprinkled in. Need help in securing future. What Does Everyone's 401k Look Like . I would also add that the ETF likely has better trading liquidity and commissions if that’s of concern for you. Instagram. S. ) But that makes them sound more different than they really are. BTW, its "LEAPS call" or "LEAPS put", not just "leaps". The general consensus has always seemed to be Fidelity is a great choice for holding Vanguard funds such as VTI, VXUS, VT, etc. " To explain quickly, VTI = VOO + VXF with a certain weighting breakdown. BBUS is basically a US large cap fund, currently holding 632 stocks. You can look up VTI on Morningstar and under Stock Style choose weight see the style box. Fidelity and Vanguard are also good, but it's not like they are leaps and bounds away from each other--doesn't really matter much which you use. You hold VTI and for some reason you decide to invest half of it in QQQ. Secondly, VTI is already a majority large cap -- adding another large cap ETF would still significantly overweight US large cap growth. (There have been dividend distributions on both, as you noted. VTI has 11. VTI has more correlation with a large index fund than anything else, hence Schwab recommending you manually sleeve in something like small cap No, I don’t. 3% The knock on Warren was that he can't make gains in a bull market but the last five years was very bullish and he is still on top after one drawdown. 5. After 3000 min balance for vtsax you can buy any dollar amount you want. Consider international as well. Now say 3 months in it is now trading at $53. So, you should only ever buy deep who told you VTI was safe? or did you assume it was safe? some of us have been warning that VTI/VOO are over-valued, and dominated by a handful of companies. ETA: I prefer VTSAX when at Vanguard for the ease of dollar denominated future contributions and not having to worry about if the market is open, spreads, etc. The Japanese stock market was about 45% of the total world stock market and everyone thought if you weren't in Japanese stocks you were going to miss out because that's where all the movement is going. 03. This is especially the case with OTM and ATM LEAPS, because you are paying for 100% extrinsic value, all of which will decay to zero at expiry. it is hard for me to find evidence that 80/20 was due to recency bias towards US Seeing that VT is roughly 60% VTI and 40% VXUS, this allows me to calculate a certain percentage of roughly how much VXUS or international exposure I will have with each purchase of VT. But, assuming you go with SPY or another underlying with LEAPs that'll get you out in the range of years, it's stupid because most options expire worthless and there are less expensive ways to go about hedging most accounts, depending on holdings. In practical terms though, there is very little difference between VTI and VOO bc the largest 500 stocks (i. Back to diving in! So it seems to me that even if you are VTI, your exposure to the world economy is adequate. My total VTI then is around $5000 and VXUS around VTI is more complete US stock market. Vanguard has a special patent that gives VTSAX the same tax treatment as VTI. Check out this comparison of S&P500 vs a portfolio of 50/50 SSO/VTI for a leverage of 1. my opinion and 2 cents between the two its better to sell VTI and use those funds and buy more VOO. VTI 11. they also have a long term mindset when investing in SPY the stock (technically its called an ETF) . Actually vti/vxus will be cheaper due to having more of VTI at 0. market though, hence VTI. There is no trading fee for any ETF, including VTI, at Fidelity. For example: if I invest $3500 into VTI and $2500 into VT, the VT breaks down into $1500 VTI and $1000 VXUS. VTI is easier for tax loss harvesting with specific ID turned on. With VTI it looks like most of the volume is done on calls that are way in the future expiry dates. If you're wondering why a stock moved a certain way, check out Finviz which aggregates the most news for almost every stock, but also see Reuters, and even Yahoo Finance. e waiting to realize gains until you have a year with lower income, etc) I’ve got some deep ITM VTI leaps in my Roth, along with HFEA and NTSX. 3%). Always have Also, if I invest at least $200-300 in VTI, would I have to pay taxes (Im a college student with no income) since its considered a dividend stock Yes, you have to pay taxes on the dividends. LEAPs you can better toggle your leverage multiplier by picking what strike you want to play. At the end of the day, what you consider safe Why might it be a bad idea to buy long-dated calls or LEAPs on an index fund like VTI? There is the obvious risk that the market may not rise above Could people share what their suggested mix is (including which to put the most money in/what ratio you use or would suggest)? Currently it looks like: 36% VOO, 12% VT, If the price is right, buy enough 2-year, moderately deep in-the-money call options on VTI to cover most of the taxable investments I plan to make two years from now. It seems like the consensus is that short term go for leveraged ETF, long term do LEAPS. (I. When buying LEAPS you want to buy deep ITM to increase your odds. 4%, at the time i started investing. If you want to save a few pennies, 60% VTI, 30% VEA, and 10% VWO is the best/cheapest combination of index funds available currently to replicate the total global market. It is super fun at first, but after a few years you might want to experiment with a new car. Finding a new ETF feels like finding a new car. If you are not planning on using money in your portfolio anytime soon, then go with more VTI or other low risk ETFs like VOO or maybe QQQ if you want more tech. I do believe though that a lot of reddit skews male and reasonably young Today I’ll be giving you a guide on how to play the long game, the right (boring) way. VXUS appears to be newer, price series data is only available for the last 2 years. I specialize in an 80% cash, 20% LEAPs portfolio and made 800% returns since last year. 2K a month in premiums. LEAPS can expire worthless if you don't exercise them, but you control that. VTI - Center for Research in Security Prices (CRSP) U. VTI can be purchased at fractional share rate on Fidelity. Definitely avoid holding Fidelity's "Zero" funds in a taxable brokerage account, because if you ever want to move from Fidelity to another broker you'll have to liquidate to cash and incur tax liability. Total portfolio leverage target is between 1. Now your portfolio is hugely tilted towards in large-cap growth stocks, simply because the biggest stocks in the NASDAQ 100 Index are also the biggest stocks on the US stock market, such as Apple, Amazon, and Microsoft; VTI is already about 23% large-cap growth. The idea is that you can’t predict what companies or sectors will do best for specific timespans so you should invest in all of them, and the assumption is that over the long term the winners do much better than the losers and the economy as a whole goes up. VTI tracks the CRSP US Total Market Index, which includes all publicly traded companies in the United States, regardless of their size. Buy VTI, VEA, and VWO in a Robinhood IRA and get the 3% match. What I currently have with them is called RFITX (23% yearly return). 01% spread. You actually profit from volatility when you’re dollar cost averaging because you’re buying more low and less shares high, which counteracts the It seems like the consensus is that short term go for leveraged ETF, long term do LEAPS. For index investors, I would actually strongly suggest not to buy SPY or VOO or any of the S&P500 trackers if possible and switch to VTI, which has similar profile but better performance. Please note that as a topic focused subreddit we have higher posting standards than much of Reddit: 1) Please direct all advice requests and beginner questions to the stickied daily threads. they have a short(er) term mindset when investing in SPY options. Everyone on Reddit will say VTI but returns are almost identical with VOO having slightly better returns over the past 10 years. I believe people are buying those calls to sell poor man’s covered calls with. During the last run up the VTI has finally breached the 4. Adding any other narrower ETF means you are overweighted or concentrated in that area. Within the US portion I used to be 100% VTI, but have recently started tilting towards value and small cap value, so now it's about 60/20/20 VTI/IUSV/AVUV. If you want to buy LEAPS wait for a dip and by dip I mean on the weekly bars 4 weeks of downward movement. As an official Fidelity customer care channel, our community is the best way to get help on Reddit with your questions about investing with Fidelity – directly from Fidelity Associates. The best move is to go with a total global market weight fund like VT. In my head, I thought the market diving seemed like a good time to take a longer term investment but was greedy thinking if I can just long during a market downturn with stock, why not long with options to make more money with the same initial investment. 6% VTWAX is at a putrid 22. You can definitely make money, but buy LEAPs on good companies that are undervalued. B is now at +56% past 5 years. While allies are appreciated, r/blackladies is for Black women. First, obviously VTI over VOO, as VTI is more diversified and we would expect small and mid caps to outperform large caps due to the Size premium, and VTI is very similar to SPY and VOO and also tilt large cap because it is market cap weighted, but contains many stocks that are not in the S&P500. so sector picking investors will lose to total market investors on average. Total Investable Market Universe Index Also, these prices change at different times. Recently I've made two posts, one talking about how to simulate the US total market with currently available LETFs and one talking about why the new VT3 and 5QQQ funds from London are not nearly as good as they seem. You still pay long term capital gains after 366, and LEAPS have a lot less control of capital gains tax than LEFT or even margin. If you are in the options thread you should really know what they are. 14K subscribers in the PSTH community. Content and moderation are curated to center Black women, prioritize community safety, and promote respectful on-topic discussions. There is more diversification that comes with investing into VTI. This means that VTI is more diversified than VOO, with a Have 1000 shares of VTI, goes on Reddit to ask advice if anything you should be giving Reddit advice on how they should be investing. Volume across the options chain for VTI is quite low. My question is if/how strong VIX at 30 affects a 1. Vti can be almost everywhere. VOO and VTI are great for my long term positions, which is my primary way of investing. 3% CAGR. 16% difference is not huge, The mechanics are outside the scope of a Reddit post but you should be able to find some good information on the bogleheads forums along with some cautionary tales. However as you all know we are entering a phase of (supposed) rate hikes and tapering/QT. It starts in 2006 with 1000$ investment and then a 500$ contribution per month, investing quarterly. I’ve recently started automatically investing about $250 each week split between VTI and VOO. Get the Reddit app Scan this QR code to download the app now. in to there selections. It counts as income. Yes, if VOO outperforms VTI, then VOO would have been a better investment than VTI. VTI/QQQ full breakdown So even though VTI has all of the stocks that SCHD has, the AMOUNT of those stocks that the etfs respectively have is so different, that there actually isn’t much overlap in terms of potential gains/losses. The idea is, I recommend you put it in VTI and let it grind away, reinvesting the dividends along the way. VOO & VTI are the same thing basically. Our goal is to help Redditors get answers to questions about Fidelity products and services, money movement, transfers, trading and more. Closing positions (any kind) is better in ROTH. YouTube. You'll see that there have been none for a long time (20+ years, if I remember correctly). Reply reply I currently hold a few thousand dollars worth of VTI + VXUS in a tax sheltered account and VT in a taxable account. 036 at market cap weight. 03 to . Your small cap and mid cap exposure is pretty insignificant in a modern day cap weighted total market index fund. 0. VOO has outperformed VTI slightly over the past 10 years. B may be an amazing company, but a portfolio with one well-diversified company is way under-diversified. I charted VTI against VT for 5 years and other shorter periods, seems VTI is fine. 17 votes, 16 comments. It is a blend - some parts of it will do better than others. Say it’s a blue chip stock with a good track record, making it very likely this LEAP will exercise, which would assume the premium is costly. 56% 52-week performance, 7. 09% expense ratio, versus VTI with 0. Then you could try different combos of those three funds to match the weights in the VTI style box using their X-ray tool. There is no free lunch and product from Manulife probably have 2 VTI basically invests in thousands of US companies across sectors. Sure you are. What it does is it hedges against steep declines and although is might go down sometimes with the SP500, it doesn’t go down as much which is important. Edit: some people are confused on LEAPS. This is how VTI and VXUS stack up in a returns analysis. I love how Reddit hive mind just start throwing portfolio visualizer around and justify for all kind of dubious investment decisions LOL. The big value in HFEA is that rebalance mechanism, so you want to get it right VTI would be for your long term growth, JEPQ would be for cash generation and limited tech exposure. My guess is that though VTI has all of those stocks, the vast majority of their total investment isn’t in them. It will perform similar to VOO because they are both weighted by market cap. the S&P 500 crashed 40% during the 2008 meltdown. This is nowhere near enough to be meaningful in my opinion, and it’s why VOO and VTI are so correlated if you put them on a chart together. I don’t think LEAPS are all that great for HFEA because rebalancing is coarse and transaction losses from spreads are brutal. For starters, it's simply not possible: The options menu for VTI only goes out to this December. VT yields lower returns but at a lower level of risk. I still like VT for the simplicity. Really? VTI was recommended at 80%/20% ratio to international when I began investing in 2007. That should give you ballpark ratio of value/growth and large/small. I have had the VTIVX mutual fund for quite some time. VTI will include large, mid & small cap stocks By having exposure to small cap stocks you are taking on more risk. Rest is 70% VTI and 20% VXUS Posted by u/Delicious_Reporter21 - 435 votes and 159 comments I remember learning about options and LEAPS back in 2021 and 2022. VTI tracks the US Total Stock Market. This way with the funds seperated you can do 80/20 or 90/10 or whichever you please and can customize better. Apple is about 6% of VTI and 7% of VOO for example. About 80% of VTI is VOO. This is good advice. 2% fee, VTI=0. Even considering a more conservative 90 delta LEAP, say the Jan23 280C with today's pricing, would nominally expire with its intrinsic value of ~50; out of the ~138 purchase price, or about a permanent -65% loss as compared to the temporary -35% of the SPY shares. Can someone explain me why UPRO is better than a 2 year SPY call option at 2/3 the current price. Cause VT is about 60% VTI plus 40% VXUS. VTI outperformed VT as the last decade the US Markets outperformed international markets, which is what makes up a good chunk of VT. As a bonus you have companies complying with US accounting/reporting standards and other rules/regulations. But dividends are basically nothing- if you buy $200 of VTI, you'll get about $3/yr in dividends you'll have to pay taxes on. 04% fee). 5T vs $8T). Before that it was Japan that was making new highs. For instance, suppose you buy the Jan 2023 leaps at the money - you're paying $20ish for them ($2000). 99% VTI -13. They like to keep simple and pressure-free. e. Guessing it’s going to be something like 50% VUG, 40% VTV, and 10% VB. And maybe even some SPY and VTI leaps but those didn’t actually dip too much use the following search parameters to narrow your results: subreddit:subreddit find submissions in "subreddit" author:username find submissions by "username" site:example. It's just the most recent example. 10 delta 30 DTE calls over it. If you look back earlier, say from 1999 to the present, you'll find a completely different picture: one which would indicate that VTI was much stronger performer than QQQ, with QQQ just barely recovering in relation to VTI within the last year or so. Large, mid, small, growth, value, balanced, whatever. VTI will outperform VOO by about 1-3% per year for the next few years. If 50 or over add 10% bonds to the Roth and 90% VT. Yes, and right now is a bad time to buy LEAPS. You already have an amazing baseline foundation with 1000 shares of VTI. The parts that do the best will do better than VTI overall. Boglehead philosophy would traditionally point towards buying the whole U. VIOV has virtually no meaningful overlap with VTI - if you believe in small cap value I’d keep it (I personally prefer AVUV but VIOV is fine, cheap, and indexed). VB small cap and IVOO mid cap EtF's VTI now has a spread of $0. SP500 is at 40. Please note that as a topic focused subreddit we have higher posting standards than much of Reddit: 1) Please direct all advice requests and beginner questions to VOT is 33% (compared to VUG at 46%). 61 delta $230 strike in the money call dated Jan 19, 2024 for about $2900 in premium (will likely be different by the time you read this). VTI is the most comprehensive total US market fund, with FSKAX close behind and ITOT in third. I have been investing for about a year. LEAPS options for major indices with some tiny portion of your portfolio? You can buy a VTI . The fund is a part of the low-cost SPDR Portfolio ETF line up, a collection of core-exposure funds that track S&P indexes. Definitely, pick accumulating ETFs ! (I myself am French but I'll keep it in English for the sub) Please correct me if I'm wrong, but in a CTO, using accumulating ETFs would imply you would pay the 30 % flat-tax on the profit only if you sell a share. vyhwi fkuv zrqofd zfuko wyx rnbtql ptrkisx glpgg blltop ylns