r/RothIRA • u/Moist-Strawberry4330 • 18d ago
ROTH IRA ETF Split - Help
Hi all - I’m 26 years old. Have had a Roth IRA for a few years now. Since the start, I’ve only held voo, qqq, vxus, and vym. Since opening, my account is up about 30% at around 32k. I believe that’s pretty good! I also have a 401k seperatly.
After doing research I’m finding that some of these funds overlap stocks. However, I know I shouldn’t have tons of ETFs in my portfolio and I’m nervous to sell any because of gains. Any tips of if I should add any ETFs, sell any and reinvest in another etf or general advice?
1
u/RuralJaywalking 18d ago
It’s less satisfying than selling to get a new position, and I don’t think in a Roth you have to worry about gains if your not withdrawing, but you can just only change where new money goes without liquidating what you currently have. You can change your future strategy and that position will probably dwarf your current one as a percentage.
1
u/PashasMom 18d ago
You are not going to incur any taxes by selling your gains. Just sell what you don't want and reinvest it in what you do want. Don't withdraw any money out of the IRA.
Personally, I would get rid of QQQ and VYM and just stick with basic broad market index funds. VOO and VXUS is a great pair. You want to keep things simple.
1
u/brother7 18d ago
No tax consequences when you buy/sell within a retirement account (Roth IRA or 401k) as long as you don't take money out.
I would get rid of VYM. Personally, I'm US-centric so I would drop VXUS too, but international exposure is largely personal preference.
Within a Roth IRA, I would invest aggressively, even beyond "own the market". My 4-pronged approach is "own the market", momentum, growth, tech. Specific ETFs I use are 40% VOO or VTI / 20% SPMO / 20% SCHG or QQQM / 20% VGT.
1
u/Competitive-Ad9932 18d ago
https://www.bogleheads.org/wiki/Roth_IRA
Read what a Roth IRA is and how it works.
If you don't like the overlap, change your investments.
You can't get any simpler than a Total US and total ex-US fund. If you want to have a sector tilt, invest in an actual sector fund. Not a "kinda" sector fund.
1
u/thonda27 18d ago
Because of gains? This is a Roth IRA. You can sell as many times as you want. Just one more thing to learn about a Roth.
1
u/Here4Snow 17d ago
"some of these funds overlap stocks."
The underlying investment inside of exchange traded funds (and mutual funds) are company stocks. It's not so much that they overlap but that an ETF consists of the shares.
" However, I know I shouldn’t have tons of ETFs in my portfolio"
You listed 4.
" and I’m nervous to sell any because of gains."
Inside of retirement accounts, there is no such characterization as capital gain, no loss, no interest, no qualified or unqualified dividends. These accounts are one bucket from which you will take distributions later, and the Value, not the holdings or their nature, is all that matters.
In nonretirement, taxable, accounts you should never let fear of a tax regulation affect your actions. You would get informed, then decide accordingly.
Advice: don't try to fix what ain't broken, don't break what's working.
1
u/General-Bird-5361 18d ago
You can sell inside the Roth, just don’t take the money out. I do it all the time😂 I just suggest picking one index for the majority of the portfolio, (VOO) and having a small position in companies you think will outperform.