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IVV vs NDQ and JNDQ
Investing Strategy
Hi all I’ll be quick as I created a post here before that never went live + don’t have the time to rewrite! I have NDQ and JDNQ which i use as my (US200 Exposure) I am considering swapping there 2 which act as 1 into one ETF such as IVV. Alongside this I also hold FANG because I want to double down on US tech. I feel like holding FANG alongside IVV certainly gives me balance, simplicity and exposure but am wondering if I am missing something else big picture with this swap. I understand returns with IVV are less than the NDQs but as I said I still have FANG and IVV has less overlap. Overall just looking for some thoughts and opinions on my own thought process! Am I missing something or am I going down a sensible track. Thanks.
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Hey Kyle,
In my mind FANG and NDQ as you pointed out are massive overlap. If you wanted broad exposure and then double up on tech then you’re correct that IVV with FANG would do that.
Other people will vary in their thought process as to whether that’s a good idea or not, since performance is not permanent so it’s not a given that tech just keeps beating everything else, thereby increasing risk by doubling down may not actually give greater rewards.
But for the switch you are considering, it does sound like it would give you what you’re after. The other issue to be mindful of is capital gains tax if you’ve got decent gains on these holdings so far. If it’s not much then probably no big deal – the longer you wait, the more CGT that will probably end up being owed.
Hope that helps
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