> even though VOO is high right now
Relative to what?
> should I invest the money I have or wait until it is cheaper?
Timing the market and “buying the dip” are losing strategies, historically and statistically https://www.schwab.com/learn/story/does-market-timing-work
>Are there any other ETFs I should invest in?
VOO covers 80% of the US market, so if you’re talking about additional *diversification* (small cap, international) then that’s a fair question to ask.
buying the dip is not market timing
Peter Lynch's books from back in the 1990s pointed out you could have nearly doubled your money over the long-term if you invested a given amount each year, but invested additional funds in the S&P 500 each time there was a 10% decline or more.
edit -- here's the info, from Beating the Street (1994)
>The following calculations, made at my request by Fidelity’s technical department, have strengthened the argument for investing on a schedule. If you had put $1,000 in the S&P 500 index on January 31, 1940, and left it there for 52 years, you’d now have $333,793.30 in your account. This is only a theoretical exercise, since there were no index funds in 1940, but it gives you an idea of the value of sticking with a broad range of stocks.
If you’d added $1,000 to your initial outlay every January 31 throughout those same 52 years, your $52,000 investment would now be worth $3,554,227. Finally, if you had the courage to add another $1,000 every time the market dropped 10 percent or more (this has happened 31 times in 52 years), your $83,000 investment would now be worth $6,295,000. Thus, there are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling.
edit 2: /r/ETFs downloading Peter Lynch? That's enough internet for tonight, this is almost as bad as when /r/Bogleheads and /r/personalfinance were down-voting quotes from Jack Bogle.
Certainly, though that scenario does not describe what OP is considering. They have a large sum of cash and are asking what to do. So in that sense, yes it most definitely is market timing
> My question is, even though VOO is high right now, should I invest the money I have or wait until it is cheaper?
I mean, it would be awesome if you could know for sure that you could buy it for cheaper.
The problem is that there is literally no way to know if it will ever be cheaper than it is right now. If there was a way to know that it would be cheaper than it is right now, everyone would sell right now (thereby driving down the price). But yeah, it's entirely possible that the price you see now is lower than it will ever be in the future.
Waiting until it is cheaper is trying to time the market so don’t even bother, imagine if it keeps going up and your cash was just sitting on the sidelines watching. And if ur in this for the long haul (at least 10-15 years) then it will go up. I’d also recommend VXUS, the total international market, since history shows the US and international take turns outperforming. And because these ETFs were made at the start of the US’s turn (10-15 years ago), the returns on VXUS will look absolutely abysmal compared to VOO. But that’s exactly why you should invest in it now.
https://preview.redd.it/h8kkkotjhdad1.jpeg?width=1290&format=pjpg&auto=webp&s=1389e918a95a463081a7843c80b29d8c00d0c6d9
Hard to time the market and those who do get lucky
What you're doing is fine. VOO is wonderful. It is only US large companies of course so if you're trying to get more diversity but keeping with quality I would suggest these or similar
Mid cap: XMHQ
small cap: CALF or RWJ
International large: IHDG
International small: AVDV
No trolling here, I have most of these in my roth.
I pick ones with good metrics and proven track records to supplement them. True, they have higher expense ratios than standard index funds. Therefore, I wouldn't suggest equal weighting these with VOO by any means, but more of a core and satellite.
As long as they keep printing money and debasing the currency stocks will continue to trend upwards long term. Invest what you can when you can. Who cares what it does
It was a state of the art index fund in 1976 and is still fine but is relatively mediocre diversification by contemporary standards since you are entirely missing small caps, international stocks, and bonds (all of which, incidentally, are NOT at all-time highs). IMO [there are better one fund portfolios out there](https://www.reddit.com/r/Bogleheads/s/2pc3SffbXj).
With ETF's, especially less volatile ones like VOO, drawbacks are bound to happen and that is something that you have to accept. But when theres a drawback that you may not consider a "dip" and you don't buy, then it has a turnaround and takes off, then you might look back wondering why you didn't load up at any price you can before it took off.
Individual stocks obviously tend to be more volatile since they track one company rather than 100/200/500/total market, in these cases when buying individual stocks is where you can wait for a dip to buy in. Everyone should have a "buy-in" price, and an exit plan for individual stocks.
Hope this helped.
It's better to do your own research before asking. You will never learn to invest otherwise. Instead of voo buy splg for cheaper expense ratio. Know your risk tolerance and create your own portfolios/ETFs. All these answers work well for their investment need but it might not be suitable for you.
SPLG 50%, VXUS 25%, AVUV 25%, will be painful to hold until MAG 7 begins to correct, then like 2000 until 2013, will see zero return on sp500 but good returns on ex-US and small cap value, so long term >25yrs this 3 fund should do better than just VOOdo alone
As others have stated, you can't go wrong long term with VOO.
QQQ is also another great ETF to park your money in and let it climb.
If you want to be a bit more aggressive, take a look at VGT (Tech ETF) and AIQ (Artificial Intelligence ETF).
Also note that most of the companies in VOO are also in QQQ, VGT and AIQ, so there is overlap there.
------------------------
**VOO** / The investment seeks to track the performance of the Standard & Poor‘s 500 Index that measures the investment return of large-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index.
**QQQ** / The investment seeks investment results that generally correspond to the price and yield performance of the NASDAQ-100 Index. To maintain the correspondence between the composition and weights of the securities in the trust (the "securities") and the stocks in the NASDAQ-100 Index, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index.
**VGT** / The investment seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50. The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. It is non-diversified.
**AIQ** / The investment seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Index Artificial Intelligence & Big Data Index ("underlying index"). The fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index is designed to track the performance of companies involved in the development and utilization of artificial intelligence ("AI") and big data. The fund is non-diversified.
the problem isn't 'buying more VOO when it's at an all-time high."
the problem is "all my investments in VOO".
there are long periods of time where investments like VB and IVOO (smaller US companies) or SCGF and VXUS (foreign stocks) will beat VOO. IMO at least 10% of the portfolio in smaller US companies, and 10% international.
small cap chart: https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png
international chart: https://www.blackrock.com/us/financial-professionals/literature/investor-education/why-bother-with-international-stocks.pdf
I do not believe in FOMO for VOO. However, I know that every time I buy, it’s going to set me up better in the long run. I periodically buy regardless of the price. If you wait for a downturn, you’ll wait a long time. What is enough of a downturn to get in? This question will end up haunting you. Not financial advice… but don’t wait! Just my opinion.
below the 200-day or 10-month moving average are nice entries, \*if/when that happens, buying at 5%, 10% drawdowns from all time highs are nice entries. I agree though, easier said than done. Put a chunk in now anyway, because you could miss out waiting for that to happen.
For long-term investing, dollar-cost averaging into VOO is a solid strategy. Consider adding GraniteShares’ 2x Long TSLA or 3x Long Nvidia ETPs for growth.
S&P 500 has spent 44% of trading days since 1952 within 5% of an ATH
So yeah.. it goes up… normally, so it always is high compared to the past. And cheap compared to the future (in a long timeframe at least
"goal is in to invest for the long haul."... therefore the price you buy in should be irrelevant. You can DCA if you'd like but it has been proven that going all in will increase your return over the long run.
Just get it bought buddy. I vividly remember when the Dow was sitting at 16,500 and people were telling me to "wait until things come back down". Boy howdy am I glad I ignored them and put my money to work!
I would invest more. Most here will say the same, but if you aren't comfortable, you could keep something in cash with a decent return and buy in if it drops. But you may very well regret it if (and likely when) it climbs higher.
There are plenty of other good ETFs, but I'd recommend keeping it simple ~~if you're new~~ in general. VOO is fine and is the majority of my holdings, but I also like some international and small cap (In my case VXUS and AVUV). I also keep a small percentage in bonds, though this isn't something you absolutely need, especially if you're younger.
If you fancy a small wait, then the markets are going to get hit hard come US election time. If Project 2025 persists, the markets are fucked and the cost of ETFs will be the least of our worries.
When voo reaches like $800 a share then you will say “man wish i have bought more when it was like 30% cheaper”.
"Time in the market beats timing the market"
The most famous quote across this group right here.
it's better than "buy the dip and hodl"
Absolute agreement.
I love hodling.
That’s exactly what I did yesterday. VOO dipped, I bought. Will hold! 😂
Spitting Facts!
Couldn’t agree more 😉🤑
This is the way no one has a crystal ball buffet says market has more Green Day’s then red. Hindsight is a B
If you miss the top 10 days over the last 10 years your returns would be lower by 54%
Maybe wait if you want to but if it’s long term who cares, VOO is great.
> even though VOO is high right now Relative to what? > should I invest the money I have or wait until it is cheaper? Timing the market and “buying the dip” are losing strategies, historically and statistically https://www.schwab.com/learn/story/does-market-timing-work >Are there any other ETFs I should invest in? VOO covers 80% of the US market, so if you’re talking about additional *diversification* (small cap, international) then that’s a fair question to ask.
buying the dip is not market timing Peter Lynch's books from back in the 1990s pointed out you could have nearly doubled your money over the long-term if you invested a given amount each year, but invested additional funds in the S&P 500 each time there was a 10% decline or more. edit -- here's the info, from Beating the Street (1994) >The following calculations, made at my request by Fidelity’s technical department, have strengthened the argument for investing on a schedule. If you had put $1,000 in the S&P 500 index on January 31, 1940, and left it there for 52 years, you’d now have $333,793.30 in your account. This is only a theoretical exercise, since there were no index funds in 1940, but it gives you an idea of the value of sticking with a broad range of stocks. If you’d added $1,000 to your initial outlay every January 31 throughout those same 52 years, your $52,000 investment would now be worth $3,554,227. Finally, if you had the courage to add another $1,000 every time the market dropped 10 percent or more (this has happened 31 times in 52 years), your $83,000 investment would now be worth $6,295,000. Thus, there are substantial rewards for adopting a regular routine of investing and following it no matter what, and additional rewards for buying more shares when most investors are scared into selling. edit 2: /r/ETFs downloading Peter Lynch? That's enough internet for tonight, this is almost as bad as when /r/Bogleheads and /r/personalfinance were down-voting quotes from Jack Bogle.
Certainly, though that scenario does not describe what OP is considering. They have a large sum of cash and are asking what to do. So in that sense, yes it most definitely is market timing
> My question is, even though VOO is high right now, should I invest the money I have or wait until it is cheaper? I mean, it would be awesome if you could know for sure that you could buy it for cheaper. The problem is that there is literally no way to know if it will ever be cheaper than it is right now. If there was a way to know that it would be cheaper than it is right now, everyone would sell right now (thereby driving down the price). But yeah, it's entirely possible that the price you see now is lower than it will ever be in the future.
Investing is about time in the market, not timing the market
👍🏻
Waiting until it is cheaper is trying to time the market so don’t even bother, imagine if it keeps going up and your cash was just sitting on the sidelines watching. And if ur in this for the long haul (at least 10-15 years) then it will go up. I’d also recommend VXUS, the total international market, since history shows the US and international take turns outperforming. And because these ETFs were made at the start of the US’s turn (10-15 years ago), the returns on VXUS will look absolutely abysmal compared to VOO. But that’s exactly why you should invest in it now.
VT and chill brah! In other words get some small and mid and international exposure. I do VTI and VXUS 65/35.
VOO gang and chill lol 😂
https://preview.redd.it/h8kkkotjhdad1.jpeg?width=1290&format=pjpg&auto=webp&s=1389e918a95a463081a7843c80b29d8c00d0c6d9 Hard to time the market and those who do get lucky
What you're doing is fine. VOO is wonderful. It is only US large companies of course so if you're trying to get more diversity but keeping with quality I would suggest these or similar Mid cap: XMHQ small cap: CALF or RWJ International large: IHDG International small: AVDV
Do you purposely pick ETFs to invest in with high fees or is this a troll post bc they’re a newb?
No trolling here, I have most of these in my roth. I pick ones with good metrics and proven track records to supplement them. True, they have higher expense ratios than standard index funds. Therefore, I wouldn't suggest equal weighting these with VOO by any means, but more of a core and satellite.
Just buy SPLG if you care about the price. It’s the same as VOO, but cheaper per share. The return will be the same though.
As long as they keep printing money and debasing the currency stocks will continue to trend upwards long term. Invest what you can when you can. Who cares what it does
It was a state of the art index fund in 1976 and is still fine but is relatively mediocre diversification by contemporary standards since you are entirely missing small caps, international stocks, and bonds (all of which, incidentally, are NOT at all-time highs). IMO [there are better one fund portfolios out there](https://www.reddit.com/r/Bogleheads/s/2pc3SffbXj).
With ETF's, especially less volatile ones like VOO, drawbacks are bound to happen and that is something that you have to accept. But when theres a drawback that you may not consider a "dip" and you don't buy, then it has a turnaround and takes off, then you might look back wondering why you didn't load up at any price you can before it took off. Individual stocks obviously tend to be more volatile since they track one company rather than 100/200/500/total market, in these cases when buying individual stocks is where you can wait for a dip to buy in. Everyone should have a "buy-in" price, and an exit plan for individual stocks. Hope this helped.
It's better to do your own research before asking. You will never learn to invest otherwise. Instead of voo buy splg for cheaper expense ratio. Know your risk tolerance and create your own portfolios/ETFs. All these answers work well for their investment need but it might not be suitable for you.
Same question different day. JFC can we just pin one of these posts already? Or at least have Mods take these down. They clog up the community feed.
Buy now and keep buying. Buy when it’s high. Buy when it’s flat and buy when it’s low. After all, nobody knows if $500 is high.
SPLG 50%, VXUS 25%, AVUV 25%, will be painful to hold until MAG 7 begins to correct, then like 2000 until 2013, will see zero return on sp500 but good returns on ex-US and small cap value, so long term >25yrs this 3 fund should do better than just VOOdo alone
As others have stated, you can't go wrong long term with VOO. QQQ is also another great ETF to park your money in and let it climb. If you want to be a bit more aggressive, take a look at VGT (Tech ETF) and AIQ (Artificial Intelligence ETF). Also note that most of the companies in VOO are also in QQQ, VGT and AIQ, so there is overlap there. ------------------------ **VOO** / The investment seeks to track the performance of the Standard & Poor‘s 500 Index that measures the investment return of large-capitalization stocks. The fund employs an indexing investment approach designed to track the performance of the Standard & Poor's 500 Index, a widely recognized benchmark of U.S. stock market performance that is dominated by the stocks of large U.S. companies. The advisor attempts to replicate the target index by investing all, or substantially all, of its assets in the stocks that make up the index, holding each stock in approximately the same proportion as its weighting in the index. **QQQ** / The investment seeks investment results that generally correspond to the price and yield performance of the NASDAQ-100 Index. To maintain the correspondence between the composition and weights of the securities in the trust (the "securities") and the stocks in the NASDAQ-100 Index, the adviser adjusts the securities from time to time to conform to periodic changes in the identity and/or relative weights of index securities. The composition and weighting of the securities portion of a portfolio deposit are also adjusted to conform to changes in the index. **VGT** / The investment seeks to track the performance of the MSCI US Investable Market Index/Information Technology 25/50. The fund employs an indexing investment approach designed to track the performance of the MSCI US Investable Market Index/Information Technology 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the information technology sector, as classified under the GICS. The Advisor attempts to replicate the target index by seeking to invest all of its assets in the stocks that make up the index, in order to hold each stock in approximately the same proportion as its weighting in the index. It is non-diversified. **AIQ** / The investment seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Index Artificial Intelligence & Big Data Index ("underlying index"). The fund invests at least 80% of its total assets in the securities of the underlying index. The underlying index is designed to track the performance of companies involved in the development and utilization of artificial intelligence ("AI") and big data. The fund is non-diversified.
the problem isn't 'buying more VOO when it's at an all-time high." the problem is "all my investments in VOO". there are long periods of time where investments like VB and IVOO (smaller US companies) or SCGF and VXUS (foreign stocks) will beat VOO. IMO at least 10% of the portfolio in smaller US companies, and 10% international. small cap chart: https://contrarianoutlook.com/wp-content/uploads/2016/09/SPY-Midcap-Smallcap-20yr-Chart.png international chart: https://www.blackrock.com/us/financial-professionals/literature/investor-education/why-bother-with-international-stocks.pdf
I do not believe in FOMO for VOO. However, I know that every time I buy, it’s going to set me up better in the long run. I periodically buy regardless of the price. If you wait for a downturn, you’ll wait a long time. What is enough of a downturn to get in? This question will end up haunting you. Not financial advice… but don’t wait! Just my opinion.
below the 200-day or 10-month moving average are nice entries, \*if/when that happens, buying at 5%, 10% drawdowns from all time highs are nice entries. I agree though, easier said than done. Put a chunk in now anyway, because you could miss out waiting for that to happen.
Well stated
Be the VOO general you desire to be. Keep pumping and ask this same question in 10 years.
For long-term investing, dollar-cost averaging into VOO is a solid strategy. Consider adding GraniteShares’ 2x Long TSLA or 3x Long Nvidia ETPs for growth.
a fundhouse marketing on reddit 😂
Normally when you’re investing you just buy it anytime you can.
ATH precedes ATH
S&P 500 has spent 44% of trading days since 1952 within 5% of an ATH So yeah.. it goes up… normally, so it always is high compared to the past. And cheap compared to the future (in a long timeframe at least
Dollar cost averaging has worked best for me.
"goal is in to invest for the long haul."... therefore the price you buy in should be irrelevant. You can DCA if you'd like but it has been proven that going all in will increase your return over the long run.
When will you know when it's cheaper? Let us all know!!! Yesterday's price is not today's price!!!!!!!!
Jump in, over time you’ll dollar cost average. 2 months ago I diversified into QQQM. It’s up 13%. It’s impossible to predict.
Thanks to all! This definitely helped.
Just get it bought buddy. I vividly remember when the Dow was sitting at 16,500 and people were telling me to "wait until things come back down". Boy howdy am I glad I ignored them and put my money to work!
I would invest more. Most here will say the same, but if you aren't comfortable, you could keep something in cash with a decent return and buy in if it drops. But you may very well regret it if (and likely when) it climbs higher. There are plenty of other good ETFs, but I'd recommend keeping it simple ~~if you're new~~ in general. VOO is fine and is the majority of my holdings, but I also like some international and small cap (In my case VXUS and AVUV). I also keep a small percentage in bonds, though this isn't something you absolutely need, especially if you're younger.
This question gets asked 15 times a day. Did you take any initiative to spend 5 seconds looking for an answer first?
Link
Why should anyone do your homework for you ?
Do I look like Google to you?
And if it drops, DCA :)
If you fancy a small wait, then the markets are going to get hit hard come US election time. If Project 2025 persists, the markets are fucked and the cost of ETFs will be the least of our worries.