New investor- Few questions please

Question

Hey Guys, Im a new investor trying things out and after some advice, thanks in advance and sorry if silly questions, im very new!

-I currently have some efts- ishares global 100, vanguard s&p 500 etf, invesco qqq trust but looking at the following Vanguard diversified high growth INDEX ETF- VDHG & IShares S&P EFT 500

Will i be doubling up if i choose those ones too?

I also was wondering should i set up regular amounts into each account or choose just 1 or 2 to give larger sums to?
(the sums i mean are small i dont have a lot to work with!)

Final question- should i wait say every 7 weeks to auto- invest to save on any fees?

Thanks so much! i appreciate your help!

Answer

Hello! It’s great to see you taking an interest in investing and asking questions—there are no silly questions when you’re learning!Regarding your query about potentially doubling up with the Vanguard Diversified High Growth Index ETF (VDHG) and the iShares S&amp;P 500 ETF, it’s important to understand the composition of these ETFs. The iShares S&amp;P 500 ETF focuses solely on the top 500 companies in the U.S., providing a concentrated exposure to large-cap U.S. equities. On the other hand, VDHG is a more diversified fund that includes not only U.S. stocks but also international equities, bonds, and other assets. It aims for higher growth by allocating a significant portion to equities. While there is some overlap in U.S. equities, VDHG offers broader exposure, including different asset classes and regions. Therefore, adding VDHG could complement your existing portfolio rather than just duplicating it.As for setting up regular investment amounts, this is a personal decision that depends on your financial situation and goals. Investing smaller amounts regularly can help spread out the cost of purchases, potentially reducing the impact of volatility (this strategy is known as dollar-cost averaging). If your funds are limited, it might be more manageable to focus on one or two ETFs rather than spreading your investment too thin across multiple options. This approach can help you build meaningful positions in selected ETFs while keeping things simple.Regarding the timing of your investments, such as waiting every 7 weeks to auto-invest, the key is consistency rather than timing. Regular investing at set intervals can help in building your investment habit and potentially reduce the impact of market volatility. However, make sure to consider the transaction fees associated with each investment if they apply.Since you’re using Pearler, it’s beneficial to explore their features designed to support long-term investing, such as auto-invest, which can automate your investment process and help you stick to your investment plan without having to manually make purchases each time. Pearler is focused on helping investors like you build wealth sustainably, so leveraging these tools can be very advantageous.Feel free to keep asking questions and exploring different investment strategies that align with your financial goals. Happy investing!You can find out more about this topic here: Why Is Vdhg So PopularDisclaimerI am an AI-powered chatbot and not a financial advisor. The information provided is for educational and informational purposes only and should not be considered as financial advice. Investing involves risks, and past performance is not indicative of future results. It is important to conduct thorough research and consider your own financial situation and risk tolerance before making any investment decisions. It is always recommended to consult with a qualified financial advisor or professional before making any investment decisions.

Answer

Hi Vanessa.No such thing as a silly question, we all start at the same place :)1- Yes, it would be doubling up if you add those extra fund options. In fact, your current options are also doubled up – they each contain large US companies.2- How far you spread it is up to you. It can be smart to focus on your preferred options given you do have some overlap. So if there was one fund you aren’t that fussed with, it could be worth just focusing on the others. This won’t necessarily affect your returns, it’s just a matter of making things easier for yourself.3- Every 7 weeks may be a perfectly fine investment frequency. If you’re working with smaller sums of money, it definitely pays to make those purchases less often so you don’t lose too much to brokerage fees. So if you’re happy with that frequency, there’s definitely nothing wrong with it.Hope that helps :)

Answer

Thanks Dave, appreciate your help! -Do you recommend any two in particular i focus on for example Vanguard diversified high growth INDEX ETF- VDHG &amp; IShares S&amp;P EFT 500

The other ones i mentionedhave i dont have much in them anyway as im just starting out so i guess i would just make my regular auto payments perhaps in the two main ones above? or should i just choose 1 only to focus on

Thanks heaps for your help!

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Dave Gow - Strong Money Australia

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