Autopilot ETF Investing: Mid to Long Term

Intel
BruceWay

Go to company page Intel

BruceWay
Aug 10, 2020 4 Comments

Hi! Just some background, I'm in my late 20s, have been investing through Betterment (auto weekly), Robinhood (some individual company stocks here and there), 401k.

I'm happy with my Robinhood investments / returns.
But my returns in Betterment could have been 'better'. It is set at 100% stocks holdings with overall risk (Too aggressive).

If I compare my last 2 years of Betterment portfolio with SP500, the returns are not even close, which makes me question my previously chosen strategy. Could've just put money every week in SPY or VOO and still have better returns.

I think I can tolerate some risk in the near future as I'm not aiming to cash out this money any time soon.

Recently decided to stop Betterment and start investing in ETFs manually through Robinhood.

Robinhood - Because I can do fractional ETFs.

Something like:
VOO - $100 / week
VBK - $100 / week

Any recommendations on the strategy or some ETFs I should look into?

Thanks!

YOE: 2
TC: 110

#personalfinance #investments #betterment #etf #stocks #wealthfront #spy #sp500 #voo

comments

Want to comment? LOG IN or SIGN UP
TOP 4 Comments
  • Step 1: get better TC
    Aug 10, 2020 1
  • One Medical / Eng
    dugitienx

    Go to company page One Medical Eng

    PRE
    Rubicon Project
    dugitienx
    Does Betterment work like wealthfront, where they picked a balanced portfolio across various asset classes? I guess that would be stocks in different sectors or return types in your case? If that’s the case you should expect that portfolio to have less variance than s&p 500, meaning it will probably underperform when s&p has a good year (because the portfolio is dragged down by categories that don’t perform as well), but outperform s&p 500 in bad years (other categories don’t fall as much as S&P).

    With a small sample size of 2 years, it seems quite possible betterment would underperform s&p, especially since s&p has performed well the last few years, but if you look at returns over a long period when the s&p has had good and bad years, the balanced portfolio should do better overall due to diversification and not suffering as much variance.
    Aug 10, 2020 0
  • Gotta pump up those rookie numbers
    Increase your risk tolerance and punt around some leveraged ETFs.......
    Aug 10, 2020 0