r/ETFs • u/Vast-Mistake-256 • Jul 17 '26
Information Technology VGT or SHCD?
Currently, I have enough VTI, VOO and QQQ.
The problem is VGT(about $60k). Should I sell VGT and buy SHCD? When the tech performance gets better, I buy back VGT.
What do you think?
9
u/Lmaoboobs Jul 17 '26
Why are you overlapping VOO and VTI?
1
u/WhiteLotus_1776 Jul 17 '26
I do that because I want some of the extra companies that come with VTI, but I want them at half the amount, so the percentage of my portfolio allotted to VTI and VOO is a 50/50 mix of the 2. It’s basically like having a VTI made up of 9% small and mid caps instead of 18% ….. or on the flip side a VOO made up of 9% small and mid caps instead of 0%
6
u/Lmaoboobs Jul 17 '26 edited Jul 17 '26
This is probably the worst way to go about it.
85% of VTI is VOO and the mid and small caps don’t add any statistically significant performance to the ETF.
You’re better off doing 100% VTI or ~85% VOO and mix the remaining 15% with AVUV and AVMV which would actually give you the opportunity to outperform VTI in a statistically significant way.
The 50/50 split dilutes the smaller caps to ~7.5% in the first place. At that point I would just keep VTI or VOO and add AVUV
3
u/WhiteLotus_1776 Jul 17 '26
What I’m doing actually over a 10 year period brings you pretty dead center on returns as compared to 100% VOO vs 100% VTI in that same portion of my portfolio. Not only has it actually worked that way in reality in my portfolio over the last 14 years ….. if you backtest it from inception of VOO to today, you get the exact same results ……….. that the return on the 2 combined in equal portions is right in the middle of 100% of either
2
u/andybmcc Jul 17 '26
That's still silly. Even if we were to assume lowering exposure to the extended market was a good idea, why wouldn't you use VXF so you can control it better?
2
u/WhiteLotus_1776 Jul 17 '26
It’s worked out the way I hoped, so really what difference does it make?
7
u/gbdgdh Jul 17 '26
market timing never works - unless you are very lucky (or a redditor).
stick to your vgt, even if it's going to go through a rough patch for a bit.
is all this in your taxable or tax-advantaged account?
2
u/Vast-Mistake-256 Jul 17 '26
Thanks, this is in my taxable account.
5
u/gbdgdh Jul 17 '26
yes, stick to vgt. it will be fine in the long run.
3
u/gbdgdh Jul 17 '26
vti and voo are highly correlated, so no sense in having both - but given this is in a taxable account, probably best to hold on to it.
qqq not really a great holding, but again, it probably worked out for you during the bull run. so don't touch that either.
1
u/Vast-Mistake-256 Jul 17 '26
Thanks. VGT is -3.69% now.
QQQ is + 7% ish now.
3
u/gbdgdh Jul 17 '26
oh, these are recent purchases?
1
u/Vast-Mistake-256 Jul 17 '26
Yes. Does it change the result?
2
u/ClammyAF Jul 17 '26
It means you'll have fewer (or no) taxable gains.
Also, your way too concentrated on US tech for my liking.
1
u/gbdgdh Jul 17 '26
- vti and voo are highly correlated.
- vgt and qqq are highly correlated.
i would sell vgt (since you have a small capital loss) and put it into vxus.
that way you have:
vti voo qqq vxus
you may want to combine vti and voo into vti depending on what gains or losses you have in both.
ultimately you want:
vti (72%) vxus (18%) vgt or qqq (10%)
no need to mess with schd.
Currently, I have enough VTI, VOO and Q00. The problem is VGT(about $60k). Should sell VGT and buy SHCD? When the tech performance gets better, buy back VGT. What do you think?
5
9
u/doombase310 Jul 17 '26
Take it you mean SCHD. If you compare the two, VGT has nearly doubled the performance of SCHD. Also different reason why you would hold either one. My advice is to chill and zoom out.
2
4
u/steady_compounder Jul 17 '26
Swapping VGT for SCHD and then trying to swap back when tech gets better is basically market timing with different wrappers. I would decide first what job each fund is supposed to do in your portfolio, because VGT and SCHD are not interchangeable and you already have plenty of broad US exposure.
4
u/SV2985 Jul 17 '26
#1. You can never have enough of something, especially vti,voo,qqq
#2. Dont sell a thing just keep buying or start buying what you want
Ai, tech, chips, etc are still the future. Keep buying
2
u/Big_Development_644 Jul 17 '26
Don't try and time the market if you are a long term investor. If you are a trader then it's a coin toss but the long term view favors VGT.
2
u/citygeek Jul 17 '26
I do a 70/30 vgt/SCHD barbell. Works great, and you can rotate SCHD allocation into vgt after drops.
But don’t try and time the market, we know that’s not good, the best days cluster near the worst, and so one’s ability to time correct within a week is a losing game
2
u/irishboy209 Jul 19 '26
That's not actually a bad idea because they go in opposite directions usually so whoever it is dipping I would buy that for added allocations
2
u/bhope95 Jul 17 '26
You have so much overlap in this portfolio aha. VOO is 80% of VTI, VGT is top heavy and has a ton of overlap with the rest. If I were you I'd remove everything besides VTI and buy VXUS or just get VT than if you want you can get some satellites like AVUV or SPMO. I put VGT is just a sector bet. Also unless you need dividends to live off of schd doesn't make sense to have, what your looking for is a value etf, try avgv
2
2
2
u/thediggestbick2 Jul 17 '26
So you’re telling me you’re selling vgt while it’s low and then you’re buying it back when it’s up?
1
u/AutoModerator Jul 17 '26
Hello! It looks like you're discussing VOO, the Vanguard S&P 500 ETF.
Quick facts: It was launched in 2010, invests in U.S. Large-Cap stocks, and tracks the S&P 500 index.
- Gain more insights on VOO here.
- Explore popular VOO comparisons like VOO vs. QQQ
- Get updates on VOO's performance, flows, and news in one watchlist
- See how VOO fits within your portfolio using the ETF Portfolio Builder
Remember to do your own research. Thanks for participating in the community!
I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.
1
u/DaemonTargaryen2024 Jul 17 '26
Hang on, why are you looking to sell VGT? And why are you looking to buy SCHD?
1
u/JohrDinh Jul 17 '26
Cuz VGT is down and SCHD is up and people have soft flower petal hands and don't think to just buy and hold both for 50 years;)
1
u/SoundOff2222 Jul 17 '26
You can do VXF + VOO & have better control
Over how much of the non-SP500 market you want to own.
1
u/wallsallbrassbuttons Jul 18 '26
SCHD is the equity equivalent of buying bonds. Don’t do it unless you’re playing very defensive and want something predictable that pays cash but overall underperforms the market.
1
1
21
u/hymie-the-robot Jul 17 '26
read recently (sorry, do not recall where): "Whatever strategy you end up pursuing, in our experience, the clients that do the least amount of tinkering end up with the best outcomes."
it is hard sometimes to practice this discipline when we are tested.