2021-11-23 11:52
A good way for retail investors to survive in U.S. stocks is to buy index funds. This has been said badly, such as Buffett, who advises retail investors to buy the S&P 500 instead of their own BRK. However, when it comes to individuals, it is impossible to understand this truth if you don’t personally toss around for a few years and lose money in person. This year, the S&P 500 is up 27%, the Nasdaq 100 is up 28%, and it is easy to buy at the beginning of the year. But if you buy individual stocks, many of last year’s bull stocks are miserable this year, and others like Hong Kong stocks are even more miserable, and I don’t want to mention them. The tragedy of “an operation is as fierce as a tiger, and it can’t beat the S&P at a glance” has been staged one after another.
However, index ETFs are not bought blindly with their eyes closed, and it is advisable to stay away from garbage markets such as poor corporate qualifications, poor market liquidity, and poor policy support, such as ramming kang, Brazil, and Turkey, and long-term holding is simply a disaster. The most worthwhile ETF to buy and has a high probability of achieving better long-term returns is of course none other than the US imperialism. The most classic of them are various broad-based ETFs, and it is recommended to allocate at least part of the assets here to achieve average market returns.
U.S. stock broad-based ETF (best-in-class selected)
1. Wiskiest VTI. VTI tracks the market-wide index, and about 80% of the thousands of stocks in it are S&P 500 constituents and 20% are small and medium-cap. VTI is produced by Pioneer, with the lowest rate (13,000) and the lowest turnover rate, making it the best choice for buying the entire US stock market with one click. Long-term returns are a little higher than the S&P 500, more volatile, and the actual performance is not much different. If you only want to buy an ETF and pursue extreme diversification, you can buy this as the core configuration. However, I recommend buying the S&P 500, and if you are exposed to small-cap stocks, leave some positions and toss and play by yourself.
2. The most classic S&P 500, SPY and VOO. Not much to say, a reasonably compiled and industry-balanced index (actually with some market quality style factors) is recommended as the core configuration. If you simply hold VOO for a long time, the rate is 13,000. If you pursue liquidity (pre-market and after-market options) and choose SPY, the rate is nineteen. Compared with individual stocks, the downside and volatility are limited, but the long-term upside is certain, so you can also use financing or leveraged ETFs, which have a much better risk-return ratio than individual stocks. Twice leverage SSO, triple leverage upro, 2x is recommended.
3. The most awesome Nasdaq 100: QQQ. Technology giants are the biggest difference between U.S. stocks and other countries’ stock markets, and they are also the cornerstone of a bull market for more than a decade. It’s a pity that there is only such a high-rate option, Invesco is really unkind. In addition, QQQ accounts for more than 40% of the weight of the S&P 500, and buying SPY is actually equivalent to nearly half of it being QQQ, so consider the proportion of your position. QQQ is more volatile than SPY, and the loss of leveraged ETFs is also greater, but because the rise has skyrocketed through bulls and bears, the leverage effect is leveraged. 2x leverage QLD, triple leverage TQQQ. Long-term holding is still recommended to double leverage QLD.
4. Growth stock: SCHG. If you want to buy core assets in U.S. stocks, but feel that QQQ fees are high, or want to increase a little diversification, you can consider the SCHG Large-Cap Growth ETF produced by Schwab. Although the content of technology stocks is a little lower than QQQ, there are many rate bottoms (10,000 to 14,000), and it also includes technology stocks such as V and CRM that Nasdaq does not have, so it can be used as a substitute for QQQ, and the volatility and income are between QQQ and SPY.
These ETFs can be used as core asset allocation, which is very worry-free. For technical masters, if they use leverage well, the benefits are very considerable. Other well-known indices such as the Dow and Russell 2000 have problems in balance, index compilation and company quality, and are not suitable for long-term holding. In addition to the core configuration, you can also divide some positions to configure different styles and industry ETFs, which are inconvenient to share next time when typing on mobile phones.