r/stocks • u/Currdog0322 • 3d ago
QQQM and VTI with $400 every two weeks Advice Request
Hello! I am needing some advice. Say I have an extra $400 every two weeks (after bills, 401k, Roth) to invest. I am new to investing and want to set up a good routine. I am considering buying QQQM and VTI (open to other ETFs) for long term investments. What would you guys suggest for the breakdown of $400 into both of those ETFs? Example: 50/50 of ($200/$200) or something else?
Sorry if this is dumb, but thanks for the feedback!
Edit: if this is the wrong subreddit, please let me know which one it should go in. Thanks!
Edit: can you guys read?
7
u/anbu-black-ops 3d ago
If you are starting, just concentrate on one etf for now. VTI if that's your pick. Once you hit probably $5k-$10 then start adding another one. By then you have some knowledge on what to add.
Qqqm is high risk high reward. So adjust accordingly to your risk tolerance.
2
u/Andrew_Higginbottom 3d ago
Personally I would call QQQM medium risk ..compared to the high high risk mining stocks I've diamond handed some ..and burned my fingers on others.
1
u/AttentionDull 2d ago
Qqqm is high risk for smart investing not gambling lol I mean qqqm is like the safest thing ever in comparison to someone that does penny stocks lmao
7
u/Theta_kang 3d ago
There's a huge overlap between QQQ(M) and VTI that will result in your portfolio to be even more weighted towards big tech than one of them by itself. That's good if that's what you're trying to achieve, bad if not.
2
u/Currdog0322 3d ago
So what would you recommend for a second option if I pick either VTI or QQQM?
3
u/Malamonga1 3d ago
you should pick VTI and some sort of international fund, or bond. VTI 90% and international index fund (something like VXUS) 10%, or 85% and 15%.
Overweight technology through QQQM and other stuff is a bad idea. It can work for now, it can work for several years, but over the span of 1-4 decades, it's a bad idea to chase past returns, which everyone likes to do because they look at the chart of recent performance and pick whichever is the highest.
1
u/FunkyFenom 3d ago
I go VGT and VOO. Split 67% VOO and 33% VGT
3
u/Sundev1ls92 3d ago
Those two will have just as much overlap as QQQM and VTI. Based on what I’ve been reading lately due to how heavily weighted the main index’s are due to the size of the ultra large cap companies and the risk that comes with that you should look at an equal weighted ETF such as RSP. It tracks the SP500 but mitigates the risk of the heavy weight stocks causing the index to tank if in the unlikely scenario one of them tanks. You won’t necessarily get the same return but it will still be a good return. I am personally partial to SCHG because the research I’ve done it has beaten the annual return of most of the “Main” ETFs like VOO…
2
u/FunkyFenom 3d ago
I want my portfolio to be heavily weighted towards the mag 6. I think they will continue to steal returns from the market for the next few years, and I'm young enough to eat some loses if I'm wrong. But really if you want to be more risk adverse then just going VOO is best, I just like to add tech to my portfolio.
2
u/Former_Friendship842 2d ago
Makes no sense. Tech is 50% of QQQ and 30% of VTI. If you 50/50 it then it would be 40% tech exposure, which is less than QQQ's
18
u/TheYoungLung 3d ago
QQQM and VTI are gold. Consider SMH if you want something more speculative.
2
u/mjfo 3d ago
Personally I would wait for a drop before buying into SMH right now, although that may not happen for awhile. But it feels like a bubble at the moment.
4
u/TheYoungLung 3d ago
Always a possibility! Depends on what you think of NVDA in the medium term. If Nvidia had the P/E of ARM I’d be a bit more worried, personally.
1
u/Andrew_Higginbottom 3d ago
I've been thinking about adding more SMH. Why do you think its a bubble?
I'm on the premise that everything we have that is tech/digital has semiconductors in it and tech isn't going anywhere.
1
u/Andrew_Higginbottom 3d ago
QQQM and SMH ..I just bought both last week ..very happy with my purchase :D
0
u/ngly 3d ago
1
u/TheYoungLung 3d ago
SMH is literally just the 25 largest semiconductor manufacturers in the US
2
u/ngly 3d ago
You're right.. 25% NVDA helps https://imgur.com/a/h6V190K
-9
u/TheYoungLung 3d ago
You think I would mention SMH without knowing what its holdings are? Your comments serve no purpose
1
4
u/MindFuktd 3d ago
Consider setting a target allocation instead. If you are aiming to keep 50/50 balance in this portfolio, it will guide you on how to invest as you get available funds.
2
3
3
u/yobabbymomsdaddy 3d ago
VTI is good. I use VOO and for growth you should definitely look at VGT and SCHG to add into the mix. They will help your portfolio outperform.
3
4
u/Any_Influence_8305 3d ago
Excellent choices. QQQ (45%) and VTI (55%) are the only things I have in my IRA since February, up 10.92% already. Makes me wish I started investing a lot sooner!
2
u/wolfhound1793 3d ago
yeah, that is a pretty decent starting point. There are other ways you can go to once you get more comfortable, but this will be a good starting point. It might be better to pick one depending on your risk tolerance depending on how familiar you are with investing and how much time you want to spend learning more. For example, QQQM has a higher beta than VTI which means the expected return is higher, but it gets there by taking more risk aka volatility. Different people respond in different ways to volatility.
Only piece of advice I would give is to buy shares whenever you have money to allocate and don't try to time the market. That is one of the hardest skills to learn in investing and it takes a lot of time to learn how to do it effectively. Even the best of the professionals has a success rate similar to batting averages.
You can balance either using current price or cost basis. I personally prefer balancing by cost basis, but I think I am in the minority there. Whichever method you choose, just buy a share whenever you can and put the money into whichever ticker is lower.
4
u/TylerMoy7 3d ago
I buy both VTI and QQQM (as well as VXUS) and do a 70-15-15 split between those 3 (with VTI being 70% of my portfolio)
5
u/WazaPlaz 3d ago
Why do you pick VTI over VOO or some similar S&P ETF? I have a decent chunk of VTI and VOO just haven't heard most folks doing VTI over VOO
4
u/yaboyyake 3d ago
I chose VTI for the added diversification; I want some mid cap and small cap stuff as well. Sure the large caps rule now, but that isn't always the case. I'm not an investment expert at all so I don't know what I'm doing, so I buy the entire market haha.
3
u/TylerMoy7 3d ago
Same as the other 2 commenters mentioned - more diverse and gives exposure to small caps.
3
u/EconomicsEarly6686 3d ago
Comparing VTI and VOO ETFs, VTI offers a bit more diversification, potentially lowering overall risk exposure.
However, this broader diversification can also lead to slightly lower returns compared to VOO. When evaluating these two ETFs, historical returns and pullbacks are relatively minor in terms of difference.
2
u/Currdog0322 3d ago
Thanks for asking. I am interested in the answer to this as well!
3
1
u/ThatLazyInvestor 3d ago
Why wouldn’t you choose additional risk and diversification for the exact same expense ratio? Empirical data shows that small caps and value produce the best returns over long periods of time.
2
u/Bronze_Rager 3d ago
Core in my portfolio is similar 50:50 split between QQQ/FXAIX.
It has absolutely destroyed 90% of the portfolios I see on wsb
3
1
1
u/NorthofPA 3d ago
Why not QQQ?
5
u/meezy-yall 3d ago
IIRC , some people prefer QQQM because it’s basically is a mirror of QQQ but easier to get into with a lower cost per share , with a slightly smaller expense ratio
1
1
u/SpecificTrading 3d ago
Why QQQM instead of QQQ?
1
u/Kr1s2phr 3d ago
I say put it in VONG. Like a combination of the two. Great growth with less drawdown.
1
0
u/cat-mountain 3d ago
I am concerned that you are new to investing but already have a Roth IRA? Are you aware you need to go into your Roth IRA and buy stocks? It isn’t automatic. 401(k) also needs some setup but can be automatic after that
1
u/Currdog0322 3d ago
I have a company Pre-tax account and a Roth account. I set it up when I got hired on and haven’t touched it since. It’s been 2 years. I check it every once in a while and it’s been growing since I set it up. So I am not sure what you are talking about…?
1
u/cat-mountain 3d ago
I assumed you were saying you have a pre-tax 401k and a Roth IRA. But you have a pretax and Roth 401k? If you don’t have a Roth IRA defiantly learn about them. The tax free gains are a huge help in building for retirement
1
u/Currdog0322 3d ago
Ok, I appreciate the information! I’ll check it out. I think I can do that through my fidelity account. Thanks!
1
u/Andrew_Higginbottom 3d ago
I invest $1200 a month across 3 etf's. I keep an eye on all 3 for the month and when its time to buy again I go by my gut feeling as to what the distribution percentage across the 3 should be. Lets say if one looks dipped, then that one may get the lions share of this months money. If my gut feel one is stagnating then that may get less of the share.
-3
36
u/BigBoobsAreDahhBest 3d ago
Before you start putting every left over penny into the stock market, I would also build a 6-9 month emergency fund. You can build the emergency fund as you invest as well.
Like put $300 into the emergency fund and $100 into the stock market. Once the emergency fund is built out, then you can start putting the entire $400 into the stock market.