Investing

Couch potato investing for the last 14 years - tracking my progress

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  • Nov 30th, 2020 5:12 pm
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Jr. Member
Nov 18, 2017
104 posts
30 upvotes
Anyone own SPDR Dow Jones ? Input is appreciated

MER for the SPDR Dow Jones Industrial Average ETF is 0.17%; it yields 0.9%.
Jr. Member
Nov 18, 2017
104 posts
30 upvotes
I want a ETF with maximum growth as possible. MER risk is not as important. Any suggestions ?
Deal Addict
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Apr 12, 2009
1286 posts
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Scorpionking999 wrote: I want a ETF with maximum growth as possible. MER risk is not as important. Any suggestions ?
VEQT. All equity exposure.
"Portfolios are like a bar of soap. The more you touch it the smaller it gets" - Preet Banerjee
[OP]
Deal Addict
Oct 1, 2006
2154 posts
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Montreal
Scorpionking999 wrote: Anyone own SPDR Dow Jones ? Input is appreciated

MER for the SPDR Dow Jones Industrial Average ETF is 0.17%; it yields 0.9%.
I prefer VTI over SPDR Dow Jones. VTI is better diversified and also contains mid and small cap companies. 3573 companies in total, while SPDR Dow Jones contains "only" 30 large cap companies.
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Dec 2, 2017
373 posts
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Scorpionking999 wrote: I want a ETF with maximum growth as possible. MER risk is not as important. Any suggestions ?
If MER is not an issue and you are looking at maximum growth by using US listed ETFs, why not to try leveraged ones like SSO and TQQQ.
Not the best choice when market this high, but it gives you much better return than DIA
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Feb 26, 2017
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EuRaFree wrote: If MER is not an issue and you are looking at maximum growth by using US listed ETFs, why not to try leveraged ones like SSO and TQQQ.
Not the best choice when market this high, but it gives you much better return than DIA
The risk you take with leverage is that you can wipe out almost all the value of your portfolio. A 30% loss with a fund that is 2x leveraged leads to a 60% loss. To recover from a 60% loss you would need a 150% gain.
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May 11, 2014
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Iqaluit, NU
EuRaFree wrote: If MER is not an issue and you are looking at maximum growth by using US listed ETFs, why not to try leveraged ones like SSO and TQQQ.
Not the best choice when market this high, but it gives you much better return than DIA
Chance7652 wrote: The risk you take with leverage is that you can wipe out almost all the value of your portfolio. A 30% loss with a fund that is 2x leveraged leads to a 60% loss. To recover from a 60% loss you would need a 150% gain.
Leveraged ETFs are really only meant for short term trades. As @Chance7652 has shown, decay is a significant issue, especially overtime.
https://study.com/academy/lesson/what-i ... ility.html . And remember, these ETFs are priced daily, so any small down day slowly overtime will reduce the price even though over time the index tracked may grow.

The "safer" form of leveraging over longer term is margin or borrowing to invest. You have a set loan, and set interest you pay and similarily can have the return of 2x, 3x without the issue of decay. Of course, interest and fees are an issue and margin is of course subject to margin calls. Used responsibly with even a payment plan intwined can help reduce risk even further.

Of course the use of leverage on it's own is risky, and I wouldn't recommend those starting out doIng it from the get go.
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Jr. Member
Nov 18, 2017
104 posts
30 upvotes
Thanks everyone for the input. Will look into VEQT and VTI

Does anyone own Vanguard S&P 500 ETF (VOO) ?

Warren Buffet recommended this and has good reviews. Low MER. Looks good.
Deal Fanatic
Jul 4, 2004
7439 posts
662 upvotes
Toronto
Scorpionking999 wrote: Thanks everyone for the input. Will look into VEQT and VTI

Does anyone own Vanguard S&P 500 ETF (VOO) ?

Warren Buffet recommended this and has good reviews. Low MER. Looks good.
VOO is a USD fund, but that works to your advantage because withholding taxes are recoverable in registered accounts.

VFV is the Canadian version, without the recoverable withholding taxes - but this probably won't drag your portfolio much anyways....
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Apr 12, 2009
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While VOO “could” provide higher returns, it’s still mainly US focused. Something like VGRO/XGRO/VEQT has better geographical diversification if you’re only looking to invest in one ETF.

Not saying VOO is a bad choice, but just be aware of the drawbacks.
"Portfolios are like a bar of soap. The more you touch it the smaller it gets" - Preet Banerjee
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Jun 15, 2012
2837 posts
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Saskatoon
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Buffett, investors are focusing “not on what an asset will produce but rather on what the next fellow will pay for it.”

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Jr. Member
Jan 18, 2016
185 posts
52 upvotes
Winnipeg, MB
MrMom wrote: @ukrainiandude, did you come up with this snip on your own or did you just take @twowood's post from another thread from 8 hours earlier without giving credit where credit is due?
relax MrMom, attribution is due to JP Morgan, not the dude who has mastered ctrl-c, ctrl-v.
Jr. Member
Nov 18, 2017
104 posts
30 upvotes
Drew_W wrote: VOO is a USD fund, but that works to your advantage because withholding taxes are recoverable in registered accounts.

VFV is the Canadian version, without the recoverable withholding taxes - but this probably won't drag your portfolio much anyways....
Thanks for your input. How can one recover withholding taxes ? Is it tax deductible or how is it recoverable if you buy ETF ?

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