For just a good, basic portfolio we almost always talk about VTI or VOO for your US core and maybe QQQ/QQM as just a satellite. But long term, won’t you get better returns with QQQM even accepting the drawdowns will likely be higher in between? Maybe in the short term it’s safer, but is it really that much safer if we’re talking 20-40 years?
What’s the reason not to just go QQQM rather than VTI/VOO etc. when looking at long term ETF holds?
byu/BigSwiftysAssociate instocks
Posted by BigSwiftysAssociate
7 Comments
IMO – QQQ will continue to outperform VOO. But as time goes by the overlap will only get stronger as tech dominates the modern economy and will still only grow larger. As it stands today your top weights are almost the same in NVDA AAPL GOOGL MSFT AMZN META AVGO.
I hold both VOO and QQQM.
Please post this on bogleheads and let us know how it goes 🙃
The reason? QQQ can go down faster than SPY
I’m basically 100 precent qqqm lol
As some say past performance doesn’t help much. QQQM is about 8-10 percent down since October. And VOO is up a little. Maybe 3 percent. So maybe a good times to invest if you believe in tech.
The biggest reason is QQQM is partly an exchange bet, not just a quality bet. You’re concentrating in whatever happens to list on Nasdaq, so if the next winners sit somewhere else you miss them for a pretty arbitrary reason.
I hold qqqm in my main brokerage
VOO/QQQM in my Roth.
I’m a tech guy, and understand the volatility.
I believe in it, and think it’s a great fund.
Make sure you have a longish horizon though 5+ years.