Divesting from S&P500
Divesting from S&P500
Hello all,
From the beginning of my investment history about 3y ago I have heard that the S&P500 is one of the best ETFs that you can invest it.
In light of recent events I think this is becoming less and less the case. Do you think that is still the case? And if no what are you investing in?
Here's my investment portfolio:
- 70% US - I still think US will outperform, but I'm not as confident anymore; mostly VTI with a small cap tilt using DFSV
- 30% international - mostly VXUS, with a small cap tilt using DISV
I think US stocks will take a beating during Trump's presidency, provided he keeps messing with tariffs, but I think longer term the US will bounce back because we have a very attractive regulatory environment for businesses.
What's your investment horizon?
I wouldn't be surprised if it stops performing as well going forward but the selection criteria is always going to result in an ETF that isn't likely to be shitty. If you're looking for more diversity outside the US, I've been buying some EUAD this year. Other than a bit of gold its the only new thing I've added to my portfolio in reaction to Trumpism. Its working out so far but of course things can change, do your own research and due diligence, etc.
This is the best case scenario for investing in an ETF like the S&P. If you are investing in ETFs you should be looking at decades of holding them in your portfolio. Dont be a meme trader who buys high hoping to sell higher. Buy the dip.
I do IMEU and IUSA with ishare
I don't see the point in divesting. No amount of trading I could do will have an effect on the market.
The S&P500 is only 3% down from it's all-time high in February. If you have continued contributions since then (such as regular paycheck contributions into a 401k), then your balance should be at an all-time high. I've had my 401k set to 50% target date fund and 50% S&P500-equivalent for the last few years. I don't have any plans on changing this; however, if there is another large drop, I'll rebalance more into the S&P to "buy the dip".