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S & P Index (SPY)
Old 02-10-2020, 06:14 PM   #1
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S & P Index (SPY)

Would anyone like to comment about the S&P index (SPY)? I am reviewing it to see if I should make at apart of my portfolio. I would like to consolidate from several domestic US Mutual funds and ETF'S into it.


Anyone in it (like/dislike)??
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Old 02-10-2020, 06:17 PM   #2
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I have it for US large cap allocation in myAA.
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Spy etf
Old 02-10-2020, 06:19 PM   #3
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Spy etf

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I have it for US large cap allocation in myAA.

Do you have mid-cap, small cap (Value, Blend, Growth, etc etc) also in your portfolio?
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Old 02-10-2020, 06:39 PM   #4
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Yes, I have allocation for US large, US mid/large, intl equities, US govt bonds and intl bonds.

FWIW, I also have Fidelity Contra that has various cap levels. Just to be different :-)
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Old 02-11-2020, 04:54 AM   #5
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Quote:
Originally Posted by THUNDER_75 View Post
Would anyone like to comment about the S&P index (SPY)? I am reviewing it to see if I should make at apart of my portfolio. I would like to consolidate from several domestic US Mutual funds and ETF'S into it.

Anyone in it (like/dislike)??
Like or dislike is not how I think of it.

What are you consolidating? The specifics usually result in better responses. Your overall Asset Allocation is important.

If the individual fund fees now are high, that is another factor that suggests consolidation.
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Old 02-11-2020, 05:56 AM   #6
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I hold a good chunk SPY, some RSP, and some VTI. Not a lot of diversity, I know, but some.
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Old 02-11-2020, 12:58 PM   #7
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I am becoming less a fan of index funds all the time, and this is THE index fund. I fear the market cap weighting will eventually (soon) turn on us.

Of course, history shows that I am likely wrong, but for my portfolio, I am trying to value tilt my equities a little more.
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Old 02-11-2020, 01:27 PM   #8
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For portfolio simplification, total market funds are preferable. It is pretty common around here for a poster hold a total US market fund and a total international fund in a proportion according to his/her taste. VTSAX and VTIAX are the Vanguard flavors. Here is quite a good video on home country bias: https://famafrench.dimensional.com/v...home-bias.aspx Again, around here, 70/30 seems to be a popular ratio.

If you are at Fido, they have a couple of no-fee funds that probably will work too, although IIRC their no-fee international fund is not a total market fund. I think the US one is total market.

Our approach is even simpler. We hold VTWAX, which is the whole world. US stocks are (presently) about 55% of the VTWAX portfolio. I think we are somewhat in the minority with zero home country bias.
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Old 02-11-2020, 01:35 PM   #9
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SPY is 10% of my play fund. I have about 5% of my NW in a "play" fund made up of about 12 stocks/funds. SPY anchors that for me. The other 11 (Apple being one) are all just shot in the dark buy on a whim stocks. SOme of my 401K money is in SP500 funds but not SPY.
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concentration of 5 - 10 stocks in SPY ETF
Old 02-13-2020, 02:48 PM   #10
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concentration of 5 - 10 stocks in SPY ETF

Quote:
Originally Posted by bushpilot View Post
I am becoming less a fan of index funds all the time, and this is THE index fund. I fear the market cap weighting will eventually (soon) turn on us.

Of course, history shows that I am likely wrong, but for my portfolio, I am trying to value tilt my equities a little more.



Yea that is what I am reviewing. I noticed that the 10 top stocks (msft, appl, amzn, fb, googl, goog et al (technologies) have 24% of the value of the index. That is steering me away from investing into it until it has a sell off. They have had a good run but can they continue the flight? I am looking for any white papers on the topic to get more insight. Any ideas?
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Old 02-13-2020, 05:27 PM   #11
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Yea that is what I am reviewing. I noticed that the 10 top stocks (msft, appl, amzn, fb, googl, goog et al (technologies) have 24% of the value of the index. That is steering me away from investing into it until it has a sell off. They have had a good run but can they continue the flight? I am looking for any white papers on the topic to get more insight. Any ideas?
You could go with an equal weighting like RSP.

https://www.marketwatch.com/story/lo...tfs-2018-09-26

Listing of alternative SPY etf choices.
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Old 02-13-2020, 06:10 PM   #12
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Quite recently I had 25% of my assets in a SP500 fund. Now I have about half of that {12.5%} in the SP500. The index has had a good run and I have made a good percentage of money on it. I believe the market to be expensive at this time so diversified away from it a bit. As always YMMV.
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Old 02-13-2020, 06:46 PM   #13
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Have owned it for a decade. Simple way to track the market.
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Old 02-15-2020, 10:17 AM   #14
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Originally Posted by THUNDER_75 View Post
Yea that is what I am reviewing. I noticed that the 10 top stocks (msft, appl, amzn, fb, googl, goog et al (technologies) have 24% of the value of the index. That is steering me away from investing into it until it has a sell off. They have had a good run but can they continue the flight? I am looking for any white papers on the topic to get more insight. Any ideas?
Amazon, Google, and Apple are not going to fail any time soon. Technology is not going to regress. People will want the latest and greatest stuff.

I suppose a year from now, after the latest iPhone with 5G technology is released and scarfed up by all the Apple fanboys over the holidays the stock will be over $400 a share. Rinse and repeat.
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Old 02-15-2020, 10:44 AM   #15
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Amazon, Google, and Apple are not going to fail any time soon. Technology is not going to regress. People will want the latest and greatest stuff. ...
I am not particularly worried either, but a couple of points:

1) This is the kind of comment we saw as the tech bubble developed.

2) It mixes up the question of whether these are good companies with the question of whether they are good investments. My usual example is this:
Suppose you walk into the grocery store and encounter the finest display of pears you have ever seen. Each one is perfect, polished, wrapped in gold foil, and in a beautiful individual gift box. The price is $100 each. Would you buy? I don't think so. The pears are beautiful but the price is too high.
Jeremy Seigel's book "Stocks for the Long Run" is a bit dated but is a pretty good read on this general subject. It emphasizes the fact that a good company may not be a good investment, where a dull and uninteresting company may be a winner. Much to my surprise, there is an early edition (314 pages) on line: https://www.riosmauricio.com/wp-cont...e-Long-Run.pdf
(I haven't looked at this book for several years. This post reminded me that there is a 2014 edition which I have now ordered.)
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Old 02-15-2020, 10:55 AM   #16
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VOO (Vanguard S&P 500) has a lower expense ratio at 0.03% vs. 0.0945%.

SPY has very active options so if options are part of your strategy SPY would be better.
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Old 03-04-2020, 08:45 PM   #17
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IVV cost .04. Also, fidelity has some no fee funds worth checking out: FZROX total market and FNILX large cap.
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Old 03-05-2020, 06:03 AM   #18
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Do you have mid-cap, small cap (Value, Blend, Growth, etc etc) also in your portfolio?
VTI covers them all at once if you want that.
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