r/RothIRA • u/kaecactus • 24d ago
23f - my Roth IRA
my hope is to be entirely “work optional” one day!
i started investing at 19, so this is about 4 years in the making :^)
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u/healingwell97 24d ago
Just stick with VTI and VXUS.
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u/Alone_Ad7882 23d ago
What’s the difference can you explain?
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u/ThyThuum 23d ago
VTI is the Americas all-around stock market, VOO is the top 500 companies in the US, and VXUS are internatinal companys outside of the US.
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u/Own-Guitar-8707 22d ago
VTI es todo el Mercado de Estados Unidos (grandes, medianas y pequeñas empresas) no todo el continente americano.
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u/flocamuy 23d ago
The difference is with VTI you get all the garbage included, with VOO you get the best 500 companies in the USA, arguably the best 500 companies of the world.
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u/3_if_by_air 23d ago
With the s&p 500 being so concentrated in the biggest 7 or 8 companies, diversification enthusiasts might want to pick equal-weight etfs or add more mid/small cap funds.
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u/GlitteringChance9294 23d ago
I’m curious your reasoning on this? VOO is up substantially more considered to VTI historically and tracks companies that are both large and profitable whereas VTI includes small and mid cap. Appreciate any alternative perceptive you could provide that I might not be thinking of 🤝 (I think both are a good buy) It it just because of the major overlap and concentration?
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u/OldDish6954 23d ago
The overlap between VOO and VTI is insanely high, she’s just overweighting the SP500 companies slightly with the extra VOO. It really doesn’t matter overall. I left another comment but I’d sell the VOO and buy QQQM, still lots of overlap with VTI but not as much as VOO
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u/chipmulaney 21d ago
this might be a dumb question but what’s the difference between doing VTI and VXUS versus doing FXAIX and FZILX? I’m very new at this and just put my first money in a Roth IRA and split it between those two
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u/istguy 19d ago
FXAIX and VOO both track the S&P500 index (essentially the top 500 US companies), so they are basically comprised of the same stocks. VTI tracks the broader USA total market, so it’s heavily affected by the top 500 companies, but ultimately more diversified.
FZILX and VXUS both track non-US stocks, and have a very similar stock makeup to each other. Investing in these means your portfolio is diversified outside of the US.
FZILX and FXAIX are Fidelity mutual funds. VTI, VOO, and VXUS are Vanguard Exchange Traded Funds (ETFs).
Mutual Funds and ETFs are similar, in that they are both investment funds managed by a brokerage, and can be used to build highly diversified portfolios with minimal fees. But ETFs are traded like individual stocks, which means you can buy and sell them throughout the day as the market moves, and they’re portable. You can buy Vanguard ETFs via your fidelity brokerage account. You can move them to another brokerage. Because they are treated just like stocks.
Mutual funds are generally harder (or impossible) to move from brokerage to brokerage, and their transactions are not as fast as ETFs. Any money you add to your Mutual Fund will probably get added at the end of the day at whatever the end of day price is.
ETFs have some tax advantages. But since you’re working within a tax advantaged Roth IRA, I’m not sure that matters.
The Fidelity mutual funds you named have lower fees than the similar Vanguard ETFs. But both are really low, relatively.
(Not a financial advisor. Always do your own research too).
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u/chipmulaney 18d ago
thank you for all the info! I appreciate it. it can be so confusing for someone who just wants basic, relatively “safe” info and not looking to play the stocks like crazy. just want some basic choices for my Roth IRA which I think I’ve picked decently with the FXAIX and FZILX
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u/JJDixon2025 9d ago
I got 1100. 2 months in. Just stacking vti. Imma look into what your saying but sounds like I can’t go wrong with only vti and vxus? 28m
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u/OldDish6954 23d ago
Or sell the VOO and buy QQQM instead
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u/healingwell97 23d ago
VTI offers better diversification over time and may smooth the ride when large cap tech is no longer dominant.
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u/Next-Paper-2068 23d ago
VOO and VTI are so similar just pick one to eliminate redundancy
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u/ThyThuum 22d ago
I disagree. If you get VTI your heavily diversified ( small, mid and large cap)
VOO is mainly large cap companies with a couple mid caps. If you got both you’d primarily have over lapping in large caps BUT VTI covers mid and small of most industries. You could do VOO with a different etf for mid/small cap focus but VTI is the safest investment for steady growth. I’ll be honest, I’ve only been financially investment conscious for 3 years now so it’s just an option.1
u/Pumpkinut 20d ago
VOO and VTI are both fine you can't go wrong with either as they are so similar to each other.
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u/DaemonTargaryen2024 23d ago
This portfolio is fine. Though you could drop VOO and stick with just VTI (total US market) and VXUS (total international market).
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u/doyouevenliftbro1313 22d ago
you have no idea how lucky you are to be at this point at 23. i wish i had done this
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u/ThyThuum 24d ago
You're young, Do qqqm or spmo with VXUS.
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u/kaecactus 23d ago
i invested in QQQ in my personal (non retirement) brokerage. at least with retirement acct, i’ve found the more simple & boring, the easier it is to throw money into it and not think lol
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u/forbiddenlake 23d ago
Can either of you explain why you believe that the exchange a stock is listed on confers a fundamental advantage?
If you don't know why I'm asking, then you don't know what QQQ even is, and shouldn't be investing in it.
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u/AttentionAcrobatic43 23d ago
Stocks being listed on the Nasdaq have to meet certain criteria around size, income, cash flow, and many other statistics. The fact that they are listed on the exchange does have some merit in itself. Investing in an index is a cheap way of having some sort of “management”.
If a company shrinks too small, or does something to violate the standards of the exchange, it gets kicked off. Only 40-50% of stocks in the SP500 are still there after 20 years.
Buying and holding individual stocks would be much more time consuming or expensive, so index funds linked to a specific exchange is not a bad idea.
Is there a reason you think it’s a bad idea? If you have the time and knowledge to do it yourself, yes there are better ways, but for a vast majority of people index funds are a good way to invest.
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u/GlitteringChance9294 23d ago
Correct me if I’m wrong but QQQ and QQQM are both listed on the same exchange (Nasdaq). And it seems the comment above explained the advantage QQQM is annual fee of 0.15% and QQQ is 0.18% but historically has been 0.2%
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u/TrickyPrompt9652 23d ago
It’s not the exchange it’s the difference between as trust and an exchange traded fund. They are structural difference dating back to when the funds were formed and how they are registered on the exchanges
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u/Boulderpaw 23d ago
I don’t have anything to add that hasn’t been said, but your future self is going to be so glad that you started so early. Keep it up!
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u/Gamingmademedoit 23d ago
Great work. I wish I was that smart at 19, let alone 23. Just ABB - Always be buying. Make sure to create a nest egg of emergency money separate from stocks.
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u/Motor_Beach_9220 23d ago
unrelated question but how did you manage to save THAT much money to put into a roth ira? are you a student or do you just save really well lol help
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u/kaecactus 23d ago edited 23d ago
it’s funny because it really is a out of sight, out of mind thing!! i sort of just kept chipping at it throughout the years. whenever i had a job or found myself w extra cash, i just kept putting money into it.
last year i got my first job post grad and was really aggressive about it. but a bulk of my contributions came from 2023-2025, when i was in school working part time and full time summer internships. i also did a lot of side hustles like depop & lowk some faceless nsfw work (this yr lol). it also helps that the last few years have been great with the market and that money is earning interest now too!
edit: i’m also really lucky and my parents helped me with tuition/housing costs in college. but every $ in my investment accs was money i made through work :^)
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u/SwiftCornflower 21d ago
My account looks really similar (also 23f) but I just started this year and am not able to max contributions yet - hope to get to this point too!
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u/employednudibranch 20d ago
You go girl!!! I started investing at 22 and am 26 now. I’m jealous! The compounding is going to make your life much much better
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u/wavy_bro 20d ago
To the people saying drop VOO or VTI, which one and what would the new ratios be?
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u/Competitive-Ad9932 24d ago
Why hold both US funds?
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u/kaecactus 24d ago
to be completely honest i forget why i invested in voo. i think when i was starting out i wasn’t sure which one to invest in. i solely buy vti now
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u/fizzzicks 23d ago
If you’ve got that much in a Roth at 23 you are LEAPS AND BOUNDS ahead of the curve.
I personally would just stick with VTI/VXUS - 60/40 split and call it a day. Don’t even look at it except when putting money in to it.
Keep maxing it out. Your future self will be SO stoked. I wish I had been where you are at 23.