A vote of confidence for my investing strategy
Today was a good reminder of why I started diversifying the ETFs I’ve been investing in. Pictured below is the percentage gain / loss for each of the four (4) I have been contributing to. You can see that with the exception of VTI and SPY which are similar in their loss for the day, the other 2 vary greatly.
The short explanation of each is:
- VTI: 3,000 large cap equities
- QQQM: 100 large cap Nasdaq equities
- IWM: 2,000 mid-cap equities
- SPY: 500 large cap equities
In term of aggressiveness I would rate them in the following order from least to most (could also be read least risk to most risky):
VTI
SPY
IWM
QQQM
This would be the same order I would propose for volatility as well. So, if you are risk and volatility averse, VTI is your best bet.
But having a piece of all four is a nice mix that gives you broad exposure to the market. My goal has been and continues to be to consolidate away from individual equities (i.e. Apple, Tesla) into these four ETFs, where it’s much easier to track my portfolio, and gives me one less thing to think about.