Growth Investing

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  • 1.  Need feedback on the growth ETFs selected

    Posted 21 days ago

    Hi,

    I came across the following ETFs on a YouTube channel that focuses on higher annual growth. I'm choosing these for my traditional and Roth IRAs. Let me know your thoughts. Appreciate it. Thanks.

    • VOO
    • VTI
    • VGT
    • VYM
    • VXUS
    • VUG


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    Ananth Parimi
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  • 2.  RE: Need feedback on the growth ETFs selected

    Posted 21 days ago
    Edited by BARRY JOHNSON 20 days ago

    Vanguard ETFs 

    have VERY LOW tracking errors (i.e., they produce returns very close to the benchmark index they seek to track, i.e., they come very close to hitting their expected target returns -- i.e., the basic benefit they are selling and you are seeking)

    AND 

    they provide VERY LOW ERs, many cost under 0.01% ERs (that's $100 per $10,000 per AUM per year.)

     You should always compare ANY ETF from any other vendor to Vanguard to see how much return they provide per dollar cost (ER).

    If you want to be schooled on low-cost investing, go to bogleheads.com

    From there you will quickly find links to model portfolios from 1 Total US Market ETF (I fund with 100% equity) to up to 20 or so very sophisticated highly diversified model portfolios.

    Regards



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    BARRY JOHNSON
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  • 3.  RE: Need feedback on the growth ETFs selected

    Posted 20 days ago
    Edited by BARRY JOHNSON 20 days ago

    Duplicate deleted



  • 4.  RE: Need feedback on the growth ETFs selected

    Posted 20 days ago
    Edited by BARRY JOHNSON 20 days ago
    Some specific feedback on our proposed portfolio
    Good choice on preferring passive index funds over actively managed funds.
    The ones you named would make up a diversified portfolio.
    US Total Stock Market
    VOO tracks an indexed BM of the SPX 500 stocks at a low 0.07 ER. Anchoring your PF on USA total stock market is a good bet on 50/50 future performance at 10% per year.
    VTI tracks an indexed BM for the "Total US Stock Markets" at a very low-cost 0.04 ER. You will have over 7,000 stocks working for/against you. This diversified your PF by tying it into the original anomalous market "factor" - market beta.
    VUG tracks the "Growth" tranche of SPX at a very low-cost 0.04% ER. How much AUM you place here will "tilt" your PF toward growth companies - typically the upper half of the BM.
    Watch Fed FFR decisions here. Lower interest rates may boost growth sectors. Higher will restrict the cost of borrowing to fund growth to future cash flows.
    VGT tracks an indexed BM of the GISC IT sector at a very low-cost 0.04% ER. This tilts your PF even more toward a growth factor strategy.
    EX-US Total Stock Markets
    VXUS tracks a version of the total international market  at a relatively low-cost 0.15 ER. (INTL funds always have higher fees because of the higher fees it takes to manage them.)
    US Total Bond Markets
    VYM tracks a version of the Bloomberg US bond index that covers the vast "fixed income" markets very well. This is a much easier way to diversify a PF than investing directly in bonds at a very low-cost 0.04% ER.
    --------------------------------------------
    My Ben Franklin Analysis is ...
    + You have "paid yourself first" by choosing to use low cost ETFs.
    + You have achieved a high degree of diversification.
    ? Now you need to allocate these assets to balance the returns -risk ratio to fit your risk tolerance.
    ---------------------------------------------
    - You avoided VALUE stocks. Why? Your high return-low risk profile would support this.
    - Your broad indexes water-down the overall QUALITY of your assets.
    Regards,


  • 5.  RE: Need feedback on the growth ETFs selected

    Posted 20 days ago
    Excellent choices here with Vanguard -- you are correct -- they track very well
    and the expense ratios are so low it's mind-blowing.
    IF you what exposure to  Emerging Tech type holdings add VWO
    and
    VYMI is International High Dividend Yield focused on large and mid-cap -- value oriented and passive investment
    These will expose you to international "newcomers" --- 
    Only food for thought -- check out to what hold inside them

    Karen P. Kamenir
    Dobson Glen
    Mesa, AZ 85202
    (C) 267-269-1573


    "The capacity to learn is a gift; the ability to learn is a skill; the willingness to learn is a choice."


    No matter how many mistakes you make, or how slow your progress, you are still way ahead of everyone else who isn't even trying.  T. Robbins







  • 6.  RE: Need feedback on the growth ETFs selected

    Posted 20 days ago
    Edited by ROBERT ADAMS 20 days ago

    VGT is great! I've owned it since April 2020, and it's a keeper. My children will inherit it from me. I like VUG, but I own Schwab's analog, SCHG (bought it in 2012). It's also a keeper.

    I'd give the rest of this list a big yawn.

    Personally, I'd avoid any "international" fund. They've been chronic underperformers over the long haul. 

    Barry, I humbly suggest "tracking errors" are irrelevant. What I care about are the assets the ETF actually holds. Beyond that, I don't give a whit about the underlying index. As long as the ETF holds good assets, is growing, and is making money for me, I'm a happy camper. The SEC will get onto them if they stray too far from the index's holdings, so I'm content to passively ignore any deviations. What is far more important to me is whether the ETF is selling at a discount or premium when I want to buy/sell it.

    Addendum: There are many good reasons why the managers might want to deviate a bit from the index. One is so they're not selling (or buying) at the same time other funds are doing the same thing. There is research to indicate fund trading that lags the index by several months produces better results. 

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    Rob Adams
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  • 7.  RE: Need feedback on the growth ETFs selected

    Posted 20 days ago
    Edited by BARRY JOHNSON 20 days ago

    Dr Bob

    I admire and highly recommend your use of Occam's' Razor to cut to the main point.

    My sorry excuse for watching tracking error is evaluate how good the fund managers are at executing his/her strategies. I compare the TRs of comparable alternative ETF choices to see if I can find a better fund manager.

    If a fund manager does not cover/offset lost tracking error margins with higher marginal returns, I apply "Barry's Razor" .... I cut them out of the portfolio.

    I don't tolerate "over promise and under deliver" very well.

    Regards



  • 8.  RE: Need feedback on the growth ETFs selected

    Posted 20 days ago

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    PS to Ananth Parimi

    Morningstar just posted a potentially very useful article that would be very useful on this thread's topic.

    "The Best Funds to Rebalance Your Portfolio for 2026" dated 12/4/25

    Here's the link The Best Funds to Rebalance Your Portfolio for 2026 | Morningstar 

    Ananth, I think you will find Morningstar's data much more reliable than YouTube data.

    Regards



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    BARRY JOHNSON
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