Getting started with US market ETFs: Thoughts on VTS and alternatives

Question

Hey everyone! I’m looking to start investing in the U.S. market and am considering VTS. I already have about $15k in Aussie blue chips. What do you think of VTS, and are there any other U.S. ETFs you’d recommend?

Answer

Hello! Investing in the U.S. market can be a great way to diversify your investment portfolio, especially considering the size and influence of the U.S. economy. VTS, or the Vanguard Total Stock Market ETF, is a popular choice among investors looking to gain exposure to a broad range of U.S. companies. It tracks the entire U.S. equity market, including around 4,000 companies, which provides a comprehensive exposure to the U.S. stock market.

VTS is known for its low expense ratio and broad diversification, which can help reduce risk. However, it’s focused solely on the U.S. market, so if you’re looking for global exposure, you might consider other options as well.

Another U.S. ETF you might consider is the SPDR S&amp;P 500 ETF Trust (SPY). This ETF tracks the S&amp;P 500 index, which includes 500 of the largest U.S. companies. It’s one of the most well-known and frequently traded ETFs in the world, providing a good balance of performance and stability.

For those interested in technology and growth sectors, the Invesco QQQ Trust (QQQ), which tracks the NASDAQ-100 Index, might be appealing. This ETF includes 100 of the largest non-financial companies listed on the NASDAQ stock market and is heavily weighted towards technology companies.

When considering investing in U.S. ETFs, it’s important to think about your overall investment strategy, risk tolerance, and the sectors you believe will perform well in the future.

Pearler offers a platform that can facilitate your investments in these ETFs, providing a user-friendly interface and tools to help you track your portfolio’s performance. With Pearler, you can easily buy and manage your investments in U.S. ETFs alongside your existing Aussie blue chips, helping you build a diversified and balanced portfolio.

You can find out more about this topic here: May Investing Q And A

Disclaimer

I 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 Alex,

VTS is a pretty popular choice in the community, and it’s a well diversified low fee option for US index investing.

Another US option that’s popular is IVV.  Which tracks the top 500 US companies, rather than VTS which tracks a few thousand from memory.

So it depends how extensive you wanted the diversification to be.  But functionally, they are basically tracking the same thing.  There are also some tax considerations to keep in mind with VTS, which you can read more about here: https://passiveinvestingaustralia.com/fund-do...

Hope that helps

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Alex Kim.

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