#Investing #ETFs #TFSA #Wealthsimple
Hey everyone! 👋 So I just started my investing journey and went all-in on VFV ETF in my TFSA through Wealthsimple. But now I’m starting to second guess myself… was this a bad idea? 🤔 I mean, indexes are at record highs and a correction could be looming, right?
Here are a few things to consider:
* Diversification: By putting all your money into one ETF, you’re missing out on the benefits of diversification. It’s important to spread your investments across different asset classes to reduce risk.
* Market Timing: Attempting to time the market is notoriously difficult. Even if there is a correction on the horizon, it’s hard to predict when it will happen.
* Long-Term Perspective: If you have a long investment horizon, short-term market fluctuations may not matter in the grand scheme of things.
* Dollar-Cost Averaging: Consider spreading out your investments over time to mitigate the impact of market volatility.
Ultimately, the decision to go all-in on VFV depends on your individual risk tolerance, investment goals, and time horizon. It may be worth considering adjusting your investment strategy to achieve a more balanced and diversified portfolio. What do you think? 🤓💰 #InvestingTips #FinancialPlanning
As long as your time horizon is long – no issues. But everyone here always says “buy xeqt” which I don’t agree with. So then you get downvoted to hell.
>Going all-in on VFV- bad idea?
As you will see on the hundreds of posts n this, it is not a globally diversified ETF, its just 500 large US listed companies. Diversification is the only free lunch.
[https://www.youtube.com/watch?v=1FXuMs6YRCY](https://www.youtube.com/watch?v=1FXuMs6YRCY)
And the US market isn’t always uotperfomring other markets.
> As I know indexes are at record highs and maybe due for a correction.
Just wanted to nudge you into a different mindset. You cannot predict the future. Saying things are ‘maybe’ due for a correction is the same as saying things are ‘maybe going to continue going for record highs’.
So don’t use that to guide your investment. At your age invest in a diversified ETF, keep on doing that, then come back in 25 years and most likely you’ll be thanking yourself.
Go XEQT instead, way more diversified
>”As I know indexes are at record highs and maybe due for a correction.”
Well yeah, they are counted in inflating currencies. So they’ll always be at record highs over the long term.
Whatever you do, I’d say don’t get VEQT/xeqt like everyone pushes. VEQT is 30% canadian equities. Not very diversified when Canada only makes up 3% of the market cap in the world. VXC has pretty much everything VEQT has, but without the Canadian ones. It outperforms it too.
lol I get downvoted for encouraging diversification. Being 30% invested in Canada isn’t very diversified.
It’s not the worst idea but it’s not a particularly good one. Something like XEQT/VEQT/GEQT (if you want an ESG fund) are going to be safer in the long term. [There is evidence suggesting](https://www.youtube.com/watch?v=jN8mIHve1Ds&ab_channel=BenFelix) that a significant home country bias is a good idea, but if you’re uncomfortable with the amount of Canadian exposure then a mix of something like XEQT and VXC might be wise.
Not a bad idea at all. It’s whatever your personal belief is. I’m 90 percent S&P and then 10 percent international. I like the companies in the S&P and that’s about it. Plus the companies included the S&P500 are always changing.
[https://web.archive.org/web/20200313141413im_/https://www.fidelity.com/bin-public/060_www_fidelity_com/images/Viewpoints/II/int_investing_myths_2019_chart_2.jpg](https://web.archive.org/web/20200313141413im_/https://www.fidelity.com/bin-public/060_www_fidelity_com/images/Viewpoints/II/int_investing_myths_2019_chart_2.jpg)
25, been all in on s&p since 19. I started with XUU but rotated into VFV. I have done quite well
As long as you don’t intend to sell for a long time you can’t go wrong. I’ll probably buy a house eventually, but if prevailing market conditions in any year preclude me from doing so I won’t be too upset.
Some people say it’s not diverse enough, and that “just because it’s outperforming other market indices now doesn’t mean it will continue to do so in the future. Look at the 2000s when it was stagnant! Look at 1972!”
To which I say: 1) it’s not 1972 or the 2000s
2) Even if it eventually does start lagging again, it is still outperforming until it isn’t. If it stops performing, you’ll still be ahead of everything else when you sell and rotate into whatever is doing better because it will have outperformed for all those preceding years. It’s not like the S&P is going to sink while all the other indices stay afloat. They all perform similarly, but right now S&P is performing the most.
Edit: and obviously as you get closer to retirement you want to start rotating into securities/fixed income. Growth and volatility is all fine and dandy in your 20s but when you need to use this money to pay for your living you will not want to have to sell equity during a recession. Generally the rule is your age % of your portfolio should be securities and fixed income that resist market volatility.
Don’t put all your eggs in one basket. Vfv is one basket.
Spread it around a little.
You got a lot of downvotes, but I wish I had just dumped into vfv. VXC and VCN are what I had for a long time.
I’ve kept the positions but everything new into vfv now.
VFV , VXUS , AVUV. 3 fund portfolio gets you basically everything
I thought TEC at $31 was too high, but decided to buy some anyway. It’s now up ~23% since then.
In general, the S&P500 will usually be at an all-time high, though people who bought in 1999 will disagree with me for good reason.
Just keep adding over time, and if there is a correction then you know it’s time to add more
* https://www.pwlcapital.com/should-you-invest-in-the-sp-500-index/
* International Diversification: https://www.youtube.com/watch?v=1FXuMs6YRCY
>indexes are at record highs and maybe due for a correction
1. The S&P 500 has maybe a 5% “correction” 3 times a year, and a 10% “correction” once every 16 months on average. You do not worry about those if you’re putting money into a TFSA.
2. Most things “at record highs” continue to print higher record highs for years on end. Go look at a long-term (10- or 15-year) chart of MSFT, NVDA, AAPL, or AMZN. Or if you don’t believe in technology, look instead at a long-term chart of PEP, MCD, UNP or CAT. You **should** own things that keep printing record highs, because that just means they go up a lot.
3. Nasdaq 100 has outperformed the S&P 500 every year. In fact, the S&P equal-weight index is still 4% below its march high: most outperformance has been in the few tech heavyweights that are now worth over $2 trillion each. I’d put money into HXQ myself, since there has never been post-2009 a period where the broad market has done better than tech, aside from crashes.
It’s the S&P 500
500 companies in the whole world.
Historically it would be a good play, but nobody can predict the future and some spread of risk might be ideal.
Just investing $3000 now at your age is not something to be concerned about. But if you plan is $1000 a month for 30 years you may want to spread the risk.
If you need this money in the short term – you may consider not doing this. Long term – 5+ years probably OK.
If you’re planning on keeping that money in investments for 5+ years, since you’re in your early 20s I don’t see anything wrong with it. People often say go heavy on equities when you’re young.
Look at the 10 year chart for VFV. It’s at an all time high very frequently outside of a few relatively short corrections.
You’re all horrible at investing advice. It’s either “buy XEQT bro” or people trying to pile into NVDA when it’s off its highs and ready to take a tumble. I’m glad you idiots are around to be exit liquidity for big money taking profits. Christ.
Yes, you can absolutely just do 100% VFV. Don’t listen to the clowns in this sub talking about additional diversification. S&P500’s track record speaks for itself.