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What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 4:04 pm
by milosz19
Hello Everyone,

I am thinking of investing in an equity ETF to supplement, and hopefully boost returns, of my core holdings - voo (S&P 500). What are your favorite ETFs that fit that bill? (I was thinking of

Thank you for your feedback.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 5:24 pm
by SteveJones
I'm trying to get my wife involved in our investments. The CFO of her company got in her head we should invest at least a part of the equity we will make off the sale of our home to REIT since that money was already 'invested' in real estate. She really respects his opinion so against my judgement we invested money into the Vanguard Real Estate Index Fund Admiral Shares as a 'test'. It keeps her engaged and is such a small part of our portfolio I don't feel like I am cheating on my boglehead values. And at the end of the day you should have a little fun with money too.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 5:31 pm
by MotoTrojan
TQQQ; I turned $400K into $32M (don’t actually do this).

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 5:38 pm
by vineviz
milosz19 wrote:
Wed Mar 13, 2019 4:04 pm
I am thinking of investing in an equity ETF to supplement, and hopefully boost returns, of my core holdings - voo (S&P 500). What are your favorite ETFs that fit that bill? (I was thinking of
The three best equity assets for diversifying the S&P 500 are small cap value, emerging markets, and utilities.

In small cap value the best funds IMO are SPDR® S&P 600 Small Cap Value ETF (SLYV) for tax-advantaged accounts and Vanguard S&P Small-Cap 600 Value ETF (VIOV) for taxable accounts.

In emerging markets I like iShares Core MSCI Emerging Markets ETF (IEMG) but Vanguard FTSE Emerging Markets ETF (VWO) is good too.

In utilities I think Fidelity MSCI Utilities ETF (FUTY) is a great choice.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 5:42 pm
by AerialWombat
Global X Funds SuperDividend REIT ETF (SRET) is my favorite ETF, period. It's my third largest securities holding, and the core of my REIT tilt. It's not a good fit for everybody, obviously.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 5:44 pm
by MotoTrojan
vineviz wrote:
Wed Mar 13, 2019 5:38 pm
milosz19 wrote:
Wed Mar 13, 2019 4:04 pm
I am thinking of investing in an equity ETF to supplement, and hopefully boost returns, of my core holdings - voo (S&P 500). What are your favorite ETFs that fit that bill? (I was thinking of
The three best equity assets for diversifying the S&P 500 are small cap value, emerging markets, and utilities.

In small cap value the best funds IMO are SPDR® S&P 600 Small Cap Value ETF (SLYV) for tax-advantaged accounts and Vanguard S&P Small-Cap 600 Value ETF (VIOV) for taxable accounts.

In emerging markets I like iShares Core MSCI Emerging Markets ETF (IEMG) but Vanguard FTSE Emerging Markets ETF (VWO) is good too.

In utilities I think Fidelity MSCI Utilities ETF (FUTY) is a great choice.
My real answer is more inline with this; I’d tilt with some S&P600 small value (deeper small factor exposure than Vanguard small funds).

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 6:22 pm
by Figuring_it_out
MotoTrojan wrote:
Wed Mar 13, 2019 5:31 pm
TQQQ; I turned $400K into $32M (don’t actually do this).
Ha and it can do the reverse in short order too. :)

congrats!

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 9:03 pm
by MotoTrojan
Figuring_it_out wrote:
Wed Mar 13, 2019 6:22 pm
MotoTrojan wrote:
Wed Mar 13, 2019 5:31 pm
TQQQ; I turned $400K into $32M (don’t actually do this).
Ha and it can do the reverse in short order too. :)

congrats!
I wish this was the truth... well I did do this with PortfolioVisualizer.com.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Wed Mar 13, 2019 9:14 pm
by HEDGEFUNDIE
vineviz wrote:
Wed Mar 13, 2019 5:38 pm
milosz19 wrote:
Wed Mar 13, 2019 4:04 pm
I am thinking of investing in an equity ETF to supplement, and hopefully boost returns, of my core holdings - voo (S&P 500). What are your favorite ETFs that fit that bill? (I was thinking of
The three best equity assets for diversifying the S&P 500 are small cap value, emerging markets, and utilities.

In small cap value the best funds IMO are SPDR® S&P 600 Small Cap Value ETF (SLYV) for tax-advantaged accounts and Vanguard S&P Small-Cap 600 Value ETF (VIOV) for taxable accounts.

In emerging markets I like iShares Core MSCI Emerging Markets ETF (IEMG) but Vanguard FTSE Emerging Markets ETF (VWO) is good too.

In utilities I think Fidelity MSCI Utilities ETF (FUTY) is a great choice.
Vineviz, for this use case do you prefer utilities over a min vol factor fund? If so why?

Re: What is your favourite non-total market/SP500 ETF?

Posted: Thu Mar 14, 2019 6:23 am
by vineviz
HEDGEFUNDIE wrote:
Wed Mar 13, 2019 9:14 pm
vineviz wrote:
Wed Mar 13, 2019 5:38 pm
milosz19 wrote:
Wed Mar 13, 2019 4:04 pm
I am thinking of investing in an equity ETF to supplement, and hopefully boost returns, of my core holdings - voo (S&P 500). What are your favorite ETFs that fit that bill? (I was thinking of
The three best equity assets for diversifying the S&P 500 are small cap value, emerging markets, and utilities.

In small cap value the best funds IMO are SPDR® S&P 600 Small Cap Value ETF (SLYV) for tax-advantaged accounts and Vanguard S&P Small-Cap 600 Value ETF (VIOV) for taxable accounts.

In emerging markets I like iShares Core MSCI Emerging Markets ETF (IEMG) but Vanguard FTSE Emerging Markets ETF (VWO) is good too.

In utilities I think Fidelity MSCI Utilities ETF (FUTY) is a great choice.
Vineviz, for this use case do you prefer utilities over a min vol factor fund? If so why?
Probably. For one thing, utilities generally have had a much lower correlation with the S&P 500 than most minimum volatility funds (though an ex-US min vol fund might not be a bad choice) and higher volatility: the two essential qualities of diversification.

A minimum volatility fund might be a good replacement VOO, but probably not a good diversifier for it.

Utilities have been a particularly good diversifier for every period I've tested them in. And because they are such a small sector within most indexes, adding a little more to a portfolio can have a big impact on diversification.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Thu Mar 14, 2019 7:30 am
by asif408
My favorite ETFs are those that have the worst trailing 5-10 year performance. So right now that would be gold miners (GDX/RING), energy (VDE/FILL), & EM value (PXH/FNDE).

In 5 years it will probably be something else.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Thu Mar 14, 2019 8:48 am
by KSOC
I like Vanguard Small Cap Index VSMAX, which I hold in taxable. When the time comes to rollover my 401k to Vanguard, the plan is to take some of the fixed & place in REITS, to up my AA to 60/40. Then I'll have the Three Fund plus REITS. SS & pension should cover expenses so I'll take a little more risk.

Re: What is your favourite non-total market/SP500 ETF?

Posted: Thu Mar 14, 2019 9:12 am
by Wyodoc
+1 to VIOV
I also like small cap intnl space with Vanguard intl small cap VSS (which includes EM small) and more recently I've been using Ishares MSCI small-cap (SCZ)