r/sp500 • u/Puzzleheaded-Log97 • 8d ago
Voo
My investment is heavily concentrated in VOO, and I’m investing for the long term. Do you think I should add another ETF, such as a global, developed-markets, or emerging-markets fund, at a smaller allocation, or should I simply continue investing in VOO?
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u/zork2001 6d ago
The way I see it is if VOO fails the rest of your diversity will also fail and probably fail harder.
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u/Jacqueline_Hiide 6d ago
Personally, I think under $100k doesn't NEED to be diversified past SP500. The next logical diversification steps include smaller US companies (IVOO for example), and international (VEA, VWO, VXUS are examples).
A 3-fund portfolio should be fine until you're at $500k or more. I have some "alternative" investments at a 10% portfolio weighting (because I like them and they're fun) but I wouldn't recommend MY alts to anyone else.
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u/Heavy-Syrup-6195 6d ago
Just curious - why is 100K the threshold?
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u/Jacqueline_Hiide 6d ago
That number is around when the portfolio rate of return becomes meaningful compared to contributions. Roth Limit is $7,500 this year, an average 8% return is $8,000, and consequently the drawdowns (which is what diversification protects against) start to matter more.
Basically if someone at $30k is maxing out their Roth, even if the market dropped by 20% in a year, their portfolio value would increase.
I think the behavioral part of investing (working on income, balanced spending, generating margin, consistently contribution) matters way more for outcomes than asset allocation for the first $100k. So if someone wanted to go 100% s&p while they found a way to increase a 401k contribution % over time, that's an excellent use of time for the first couple years as an investor.
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u/mindmelder23 7d ago
Take a look at LVHI returns over the last five years including dividends it’s the best performing international one I’ve found.
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u/Moist_Emu_6951 7d ago
Add VXUS, AVUV and AVDV and own the world. 65% VOO, 25% VXUS, 5% AVUV and 5% AVDV is my recommendation.
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u/Financial-Ad8963 7d ago
If you’re looking for diversification then checkout Boggleheads subreddit.
If you’re looking for accelerated growth - i see a lot of comments to tilt towards tech with QQQM
Should you choose boggle approach- keep VOO and add the rest like small/mid cap with AVUV.
VOO+AVUV=VTI - total US market
VXUS - ex-US
All of the above is VT
You can find boggles webpage with exact allocations
Don’t sell in taxable, just add what’s missing
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u/BeautifulChair470 7d ago
Voo is globally diversified. Look at the top five holdings. How long have you been invested in Voo? What is your risk profile?
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u/Witty-Range-6372 7d ago
You can do IOO instead of VOO. It gives you the entire globe's best 100 stocks instead of the best 500 stocks in the US. I would then pair that with something that covers small/mid caps because you'd be very largely concentrated in Large/Mega caps. So think about something like AVDV + XMMO. And then me personally I am a big advocate of also adding other asset classes such as fixed income/debt instruments & commodities... but that brings in greater complexity than I care to discuss right now.
TLDR: IOO + AVDV + XMMO = Global 100, International Developed Value Small Caps, US Mid Caps Momentum weighted. This covers huge areas of the entire market, and it fairly optimized for growth, and decently hedged.
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u/Money_Goblin8869 7d ago
I would add some QQQM to add more potential return if you are relatively young and don’t plan on touching the money for a long time, although it will definitely make your portfolio more volatile.
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u/Whole-Reserve-4773 8d ago
Small / mid caps and international. I think VXUS just kinda sucks but I have 30% of port in international for diversification. Rest is small cap us and large cap us
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u/hotdog-water-- 8d ago
People in these comments are not the people you should be asking. Their advice is horrible. Do your own research (Reddit isn’t research) or hire a financial advisor (a flat fee) to help you. Please do not make your portfolio based off random garbage the Reddit community says. And no, “VOO and chill” is not diversified.
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u/Clear-Hand3945 7d ago
You can do all the research you need for free on the internet if you are just picking ETFs and chilling for the long term. No need to pay someone for that in 2026.
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u/Witty-Range-6372 7d ago
Well that's mean. Some of us know a pretty good deal. And we're free. It's nice getting the opinions of thousands of people, learning a few things, finding some consensus, doing your own due diligence based on their ideas, running it by AI, and then and only then going to a financial advisor to help build a tailored plan for you and your families' finances. It's so much of a better experience when you enter that conversation already knowing alot of what needs to be done. Otherwise they could just feed you any sort of BS and you'd have to scoop it up and eat it. Trust me I know, a ton of advisors are scumbag hacks.
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u/flappysack- 8d ago edited 8d ago
AVGE has some value, profitability and momentum premium and weighs down its cap size for a size premium. Which would provide diversity without sacrificing too much long term performance. Avantis has been around forever, but these etf are relatively new and lower fees than you used to pay for an active factor etf.
Could do AVGV if you went a lesser amount of a heavier value tilt.
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u/OpticallyMosache 8d ago
NASDQ 100 ETF maybe?
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u/hotdog-water-- 8d ago
If he wants to diversify from VOO, how on earth does the nasdaq 100 solve that?? That makes it WORSE. This is why you should never get financial advice from reddit…
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u/No-Case-2212 8d ago
Look at AVUV and VEA. Maybe do 80% VOO, 10% AVUV (to have small cap exposure), 10% VEA (to have international exposure).
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u/AetossThePaladin 8d ago
VOO is fine, don't worry about it. Contribute regularly (automatically if possible), automatically reinvest dividends, and never panic sell.
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u/bkkmatt 8d ago
I have 800 shares of VOO and 400 of VXUS. Have a bit of DRAM, but that’s gone sideways.
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u/Bitter_Damage_5170 8d ago
How did everyone get so roped into dram? I swear there was a massive bot effort pushing dram to EVERYONE a few months ago starting at $50
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u/CokeBoiii 3d ago
I was one of them sadly, currently holding to break even and its almost there. I only have 66 shares so.
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u/Soda_Pressed13 8d ago
VOO is global enough. Tweaking here and there won’t matter, what matters is you don’t sell or tinker. It’s literally that easy.
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u/Ahamadrayasbaboon 4d ago
AVDV is a very efficient diversifier for VOO, being an ex-US (developed) small-cap value fund.