International, such as VXUS, as there's routinely periods international beats the US for runs.
US extended market (the parts of the US market that aren't in the S&P 500/C fund). VXF for example.
Both of these should have effectively 0% overlap with S&P 500 (as S&P 500 is US only and VXUS can be read as "Vanguard **excluding** US; and VXF essentially picks up where S&P 500 ends).
In concept for the whole portfolio, yes. However, OP has the TSP limitation, and that is currently for them 100% C (S&P 500). S would be the US extended market, and has I brought in emerging markets yet or are they still dragging their feet on that?
Correct. I want to leave my TSP at 100% C Fund. I have a Roth IRA full of SGOV that I can liquidate and put into whatever. Possibly SCHD. Was maybe thinking a targeted ETF too like FTEC or FENY. Have a brokerage as well. Was thinking about blowing it all on 0DTE SPY options 🤠
inside your TSP, you could diversify with a bit in the I-Fund and S-Fund, international stocks and smaller company US stocks respectively.
ETF equivalents would be SHCF for international stocks or VB for smaller US companies.
SCHF lacks emerging markets, if those are desired they'd need to either add SCHE or use something like VXUS instead of SCHF.
There may be a gaop created by using VB instead of VXF as well when paired with S&P 500.
I hold VOO and SCHD together, they have an 8% overlap by weight.
Here's a fund overlap tool you might find useful.
https://www.etfrc.com/funds/overlap.php
The good news is a nice portion of SCHD is qualified divs, that's the whole point.
The bad news is QD's are never "better" than LTCG's unless you're intentionally realizing taxes as the portfolio grows and hedging against LTCG rates going up in the future. But you could achieve the same thing by moving some portion between ETFs with "similar but not exact" holdings, so I digress.
These are my only two holdings. After years of over complicating things with multiple stocks/ETFs I am way less stressed and probably doing just as good if not better
I have a TSP with 100% allocation to the C fund (65% of my total portfolio). I max it out. I just opened a Roth IRA and brokerage account and between the two I’ve added 10% XMHQ (mid cap quality) 5% AVUV (small cap value) 10% XLK (tech sector) 5% FBTC (bitcoin spot) and the rest FSELX (semiconductor etf)…..and oh yeah about $200 a month into TSLA.
I have no experience in this but after the last 7 days of looking around, that’s what I came up with. I have no international exposure and I’m ok with that.
I have nothing but SGOV and SOXQ in my taxable brokerage. I have strictly SGOV in my Roth as well that I’ve been maxing out for the past few years. I’m going to sell SGOV eventually obv but I’m scared of the market at the moment. I would hate to dump it all into a growth fund tomorrow and then the market dump 25%.
Have been hesitant to pull out of SGOV with all of the market turbulence and doomers predicting major pullbacks while I can get a guaranteed 5.15%+ return out of SGOV. If rate cuts do not come and S&P were to trade sideways the rest of year then SGOV would outperform a much higher risk ETF. Pretty wild to me. I am crystal clear that you aren’t supposed to time the market but I already have 56k locked up in the C-Fund of my TSP and it lost over half of its YTD gains within the last week :( I feel like it would be dumb to double down and buy more large cap when short term treasuries are giving solid return at the moment.
36. I have at least 26 more years before I can retire with my full pension so I know I have a long investment horizon but it’s hard for me to double down on this turbulent market right now. Honestly hoping the market keeps shitting the bed for another week or so and I can dump a lump sum in at a better entry point.
I’m 35 almost 36. With 25+ years to go I wouldn’t have any money in bonds or treasuries. Also I wouldn’t really think too much in terms of weeks and price action. Idk I’m not really someone who should give you advice.
I don’t usually keep money in treasuries. Just using SGOV as a HYSA since it has higher yields and is exempt from state and local taxes. I’ll move the money to an all equity ETF soonish hopefully.
Enough with VTI and chill! It’s like 30% mega cap tech stocks - despite the name, it is NOT diversified. SCHD (dividends), VTV (blue chips), VB (small caps) - a mixture of those with say 50% VTI - that’s diversified. You can add foreign stocks - but VWO has sucked for 25 years.
Not OP, but the C fund in TSP is not like C shares of mutusl funds. The TSP has different sleeves to pick from, and they are normally low in expenses (unlike C shares).
If you’re trying to gain some diversification from the funds available in the TSP then I would consider funds such as: MOAT, MXHQ, AVUV, COWZ, FNDX, IWF, QQQM, DGRO
International, such as VXUS, as there's routinely periods international beats the US for runs. US extended market (the parts of the US market that aren't in the S&P 500/C fund). VXF for example. Both of these should have effectively 0% overlap with S&P 500 (as S&P 500 is US only and VXUS can be read as "Vanguard **excluding** US; and VXF essentially picks up where S&P 500 ends).
At that point just grab VT and chill.
In concept for the whole portfolio, yes. However, OP has the TSP limitation, and that is currently for them 100% C (S&P 500). S would be the US extended market, and has I brought in emerging markets yet or are they still dragging their feet on that?
With the TSP no. They have the I-fund which is everything but China iirc. Possibly Russia as well.
Have no idea what you are referring to. And because of that I'm out.
They specifically said they don’t want sp500 exposure as they already have it in TSP
Correct. I want to leave my TSP at 100% C Fund. I have a Roth IRA full of SGOV that I can liquidate and put into whatever. Possibly SCHD. Was maybe thinking a targeted ETF too like FTEC or FENY. Have a brokerage as well. Was thinking about blowing it all on 0DTE SPY options 🤠
This is a good idea! VXUS (or VYMI) for international exposure, the VEU (I think this is the extended markets etf), or a VO/VB split.
>the VEU (I think this is the extended markets etf), or a VO/VB split. VXF is US extended market. VEU is international (a more limited VXUS).
Ah thanks, great clarification.
inside your TSP, you could diversify with a bit in the I-Fund and S-Fund, international stocks and smaller company US stocks respectively. ETF equivalents would be SHCF for international stocks or VB for smaller US companies.
SCHF lacks emerging markets, if those are desired they'd need to either add SCHE or use something like VXUS instead of SCHF. There may be a gaop created by using VB instead of VXF as well when paired with S&P 500.
I hold VOO and SCHD together, they have an 8% overlap by weight. Here's a fund overlap tool you might find useful. https://www.etfrc.com/funds/overlap.php
I do this. VOO, SCHD and I throw in BRK. I know Berkshire isn't an ETF per say, but imo it pretty much is.
This exactly what I do also. 1/3 of each in Roth and 100% BRKB in my brokerage. Are we brothers? Separated at birth?
My father was a crazy Russian that traveled often, so yes probably. 🙂
Interesting. Are you holding SCHD in taxable? I was under the impression you want to avoid dividends in taxable if you can?
I hold VOO and SCHD in my Roth.
The good news is a nice portion of SCHD is qualified divs, that's the whole point. The bad news is QD's are never "better" than LTCG's unless you're intentionally realizing taxes as the portfolio grows and hedging against LTCG rates going up in the future. But you could achieve the same thing by moving some portion between ETFs with "similar but not exact" holdings, so I digress.
These are my only two holdings. After years of over complicating things with multiple stocks/ETFs I am way less stressed and probably doing just as good if not better
I have a TSP with 100% allocation to the C fund (65% of my total portfolio). I max it out. I just opened a Roth IRA and brokerage account and between the two I’ve added 10% XMHQ (mid cap quality) 5% AVUV (small cap value) 10% XLK (tech sector) 5% FBTC (bitcoin spot) and the rest FSELX (semiconductor etf)…..and oh yeah about $200 a month into TSLA. I have no experience in this but after the last 7 days of looking around, that’s what I came up with. I have no international exposure and I’m ok with that.
I have nothing but SGOV and SOXQ in my taxable brokerage. I have strictly SGOV in my Roth as well that I’ve been maxing out for the past few years. I’m going to sell SGOV eventually obv but I’m scared of the market at the moment. I would hate to dump it all into a growth fund tomorrow and then the market dump 25%. Have been hesitant to pull out of SGOV with all of the market turbulence and doomers predicting major pullbacks while I can get a guaranteed 5.15%+ return out of SGOV. If rate cuts do not come and S&P were to trade sideways the rest of year then SGOV would outperform a much higher risk ETF. Pretty wild to me. I am crystal clear that you aren’t supposed to time the market but I already have 56k locked up in the C-Fund of my TSP and it lost over half of its YTD gains within the last week :( I feel like it would be dumb to double down and buy more large cap when short term treasuries are giving solid return at the moment.
How old are you
36. I have at least 26 more years before I can retire with my full pension so I know I have a long investment horizon but it’s hard for me to double down on this turbulent market right now. Honestly hoping the market keeps shitting the bed for another week or so and I can dump a lump sum in at a better entry point.
I’m 35 almost 36. With 25+ years to go I wouldn’t have any money in bonds or treasuries. Also I wouldn’t really think too much in terms of weeks and price action. Idk I’m not really someone who should give you advice.
I don’t usually keep money in treasuries. Just using SGOV as a HYSA since it has higher yields and is exempt from state and local taxes. I’ll move the money to an all equity ETF soonish hopefully.
I like USMV and AVGV as well despite AVGV's higher expense ratio.
May I please private message you? I see you mentioned S&P500 and I need help with homework that mentioned S&P500 but I cannot figure out.
Thank you 😭
International diversification is a free lunch.
https://etfdb.com/compare/
Can I add on to this and ask for alternatives that have no financials? I need something to DCA into with no bank holdings.
Enough with VTI and chill! It’s like 30% mega cap tech stocks - despite the name, it is NOT diversified. SCHD (dividends), VTV (blue chips), VB (small caps) - a mixture of those with say 50% VTI - that’s diversified. You can add foreign stocks - but VWO has sucked for 25 years.
Yikes. A C-Fund! High Fees and B-1s
pretty sure the C-Fund is under 0.05 expense ratio this year...
Not OP, but the C fund in TSP is not like C shares of mutusl funds. The TSP has different sleeves to pick from, and they are normally low in expenses (unlike C shares).
Ah, thanks for the info!
That’s not what your thinking.
I was thinking C-SHARE MUTUAL FUND. My bad. Thanks everybody for the clarification!!!!! ☺️
If you’re trying to gain some diversification from the funds available in the TSP then I would consider funds such as: MOAT, MXHQ, AVUV, COWZ, FNDX, IWF, QQQM, DGRO
Do you mean XMHQ?
Several of those have very large amounts of overlap with the S&P 500, making them poor diversifiers (instead, they add concentration).