Is investing your savings solely in spy a bad idea?
Title pretty much says it all. Incoming analyst with 30k saved up. I know that trading restrictions are pretty annoying and everyone at my bank just uses etfs. With that said, I’m looking to invest about half of my savings, would it be okay to dump it in spy? Curious what other professionals who don’t have time to actively trade do.
Very few "retail traders" I know make the same ROI or more than $SPY. Some may be a few points above, but with considerable amount of time, stress and effort invested. There is no problem in investing in index ETFs if you have no interest in other research/trading/investment efforts.
Would you say the same logic could be applied to something like qqq, or would you advise away from a 100% allocation given its more concentrated nature.
Regardless in what you invest, I would also do some research, develop an investment plan for the year ahead (if possible), and understand the forecasts for the ETF you are aiming at.
I am personally not invested in QQQ because I pick my own stocks within the tech sector (based on interest, public perception or simply a hunch).
Don’t buy SPY, believe it was a .75% expense ratio. Would rather buy a low cost alternative
It’s 9bps. Could also do voo for 3, but was more about the concept the specific sp500 etf
buy VTI and get all the small caps thrown in for 4bps
Not a bad idea
Probably the best thing to do other than having it all sit in a low-yielding savings account
It’s totally fine but would consider VOO or VTI instead simply due to expense ratio. All are incredibly liquid.
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