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Frequent Contributor

QQQ or VUG?

I am thinking of adding one these to my portfolio - probably 10-15% - while keeping VTI at 52% as my main core.

My question is: Is it QQQ or VUG?

Much apprciated in advance.

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Frequent Contributor

Re: QQQ or VUG?


@ECEPROF wrote:

I am thinking of adding one these to my portfolio - probably 10-15% - while keeping VTI at 52% as my main core.

My question is: Is it QQQ or VUG?

Much apprciated in advance.
   
      . Both VUG and QQQ somewhat duplicate what you have in tech already. So it amounts to duplicating holdings and maybe adding risk. Of the two VUG seems to hold less risk. You’ll have to check duplication. I suppose with a 10-15% holding it doesn’t matter in this case either/or. It shouldn’t be something to angst over then. 
 
        We own VUG at the current time. To goose its returns we cherry picked individual stocks, mostly FAANGS plus MSFT, added no long term costs, in the dollar amounts we wanted without picking up the losers in the index but with more risk. Overweighing the winners in effect. You could cherry pick from VTI for whatever is attractive to you also. “Managing” and customizing your index quickly and at little cost.

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Frequent Contributor

Re: QQQ or VUG?


@ECEPROF wrote:

I am thinking of adding one these to my portfolio - probably 10-15% - while keeping VTI at 52% as my main core.

My question is: Is it QQQ or VUG?

Much apprciated in advance.


I own QQQ which consists of the top 100 NASDAQ firms. Top 10 stock holdings which are 54% of assets include FAANGs and Other large tech stocks. YTD TR is 15.09% and Er is 0.20%. VUG is a large growth stock fund with 10.2% TR YTD and 0.40% ER. I prefer QQQ because I think tech is going to lead the way in the economic recovery.

I also own AMZN, AAPL, Nflx and MSFT.

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Re: QQQ or VUG?

Intruder "I also own AMZN, AAPL, Nflx and MSFT."

My family spends a lot money every month in these companies (AAPL onc a year). Add VZ here for four phones. Even my five old grand daughter knows how to go to her NETFLIX account and watch her cartoons there. Since they moved here temporarily, I also bought another Samsung 4k QLED TV from Walmart so that my grand children can watch their shows independently when their parents are working. One can watch Disney cartoons and another one can watch Netflix cartoons. So, that is the reason why I think that the future growth will be in Faangs, AAPL, VZ, etc.  We have 11 laptops with MS operating system in this home right now. We are using almost 6 sometimes at a time with no streaming problem. My son uses an office supplied Mac for his work.

I guess that you all get the picture now and you know why I am trying to move into one (only one, not both) of these now. Instead of going with individual stocks, I will start with small number of shares in QQQ. Thank you both.

 

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Re: QQQ or VUG?

I opted for Fido’s FSPGX, which is doing a little better than VIGAX (VUG) recently, and also has the lowest ER among all LG index funds.

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Explorer ○

Re: QQQ or VUG?

Another fund to consider is PRMTX. It has a significant amount of the FANG stocks and is up 23% YTD.

 

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Re: QQQ or VUG?

The reason I would use QQQ

1) it's a cap-weighted index dictated by market and not by managers and what I want.  

2) VZ is not one of the top high tech and why I wouldn't own it.  You are paying for a service that is very competitive, it goes down for years and why VZ isn't a global grower and never will be.

3) Since you already have VTI, QQQ is a good complement.  KISS

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Frequent Contributor

Re: QQQ or VUG?


@chang wrote:

I opted for Fido’s FSPGX, which is doing a little better than VIGAX (VUG) recently, and also has the lowest ER among all LG index funds.


ER is not important when the rate of growth exceeds more that includes the expense ratio. Here is an example. The expense ratio of BIZD is 9.62% because it includes the expense ratios of underlying stocks that are BDCs. They are all leveraged that include the borrowing cost. But, after the expense ratio, the yield is more than 10%. I found that the CEO bought a few tens of millions shares of BIZD when the price dropped to about 1/3 of its NAV. Right now, he has more than 100 millions profit in his pocket. I do not think that he is going to sell all those shares because the price has not reovered yet. I had this before but sold it last year. I bought it this year also only after it started recovering a bit. So, expense ratio is not very important for me.

The expense ratio of GLAD is 8.22% but it yields more than 10% after the expesnse ratio. So, why should I worry about the expense ratio? I have made good money with several BDCs also in spite of their high expense raitios. Since I expereinced these trades in the past two years, I do not worry about expense ratios at all. Actually, I stopped selling them this year. I shifted more cash from VTI towards these BDCs because they were cheap in my ROTH accoounts to avoid paying taxes in these distributions.

 

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Re: QQQ or VUG?

Wow, those are expense ratios! Comparing FSPGX (0.035%) to VIGAX (0.05%) seems pointless compared to those!

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Re: QQQ or VUG?


@John_H wrote:

Another fund to consider is PRMTX. It has a significant amount of the FANG stocks and is up 23% YTD.

 


So? QQQ 10 yr TR is 19.11% while PRMTX 10 yr TR is 18.48%.

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Re: QQQ or VUG?


@Intruder wrote:

@ECEPROF wrote:

I am thinking of adding one these to my portfolio - probably 10-15% - while keeping VTI at 52% as my main core.

My question is: Is it QQQ or VUG?

Much apprciated in advance.


I own QQQ which consists of the top 100 NASDAQ firms. Top 10 stock holdings which are 54% of assets include FAANGs and Other large tech stocks. YTD TR is 15.09% and Er is 0.20%. VUG is a large growth stock fund with 10.2% TR YTD and 0.40% ER. I prefer QQQ because I think tech is going to lead the way in the economic recovery.

I also own AMZN, AAPL, Nflx and MSFT.


+1

Agree, if I held it, my choice would be QQQ for the reasons @Intruder as mentioned and for the same reasons. In this unusual market the tech stocks should fair well and gain quicker when market recovers.

Vug would be more duplication with a growth tilt to an index LC fund

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Re: QQQ or VUG?

I compared the charts over various time periods... and I can’t argue with them: QQQ beats VUG over every interval. I’m sure it beats FSPGX, which I own, too. I will have to consider using QQQ in the future, even though its ER is higher than the 0.03-0.05% of the index funds.

As an aside, I was surprised to see a hotel chain like Marriott and utilities like Exelon and Xcel in the Nasdaq top 100. I guess they “grow” by acquisitions, not innovation.

https://www.invesco.com/us/financial-products/etfs/holdings?ticker=QQQ

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Re: QQQ or VUG?

QQQ is certainly doing better. But its design is so narrow - top 100 nonfinancials on Nasdaq Exchange only. It does a great PR for Nasdaq. But these times are strange - 5 FAAMG stocks [FB, APPL, AMZN, MSFT, GOOGL] are 45.55% of QQQ, 35.07% of VUG. 21.56% of SPY.

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Re: QQQ or VUG?

Another ETF that might worth considering is VUG (VG information technology), it has more technology companies than QQQ or VUG and equal or better performance for 1, 3, 5 yr  durations.  You might want to supplement this with QQQ.

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Re: QQQ or VUG?


@02barrett wrote:

Another ETF that might worth considering is VUG (VG information technology), it has more technology companies than QQQ or VUG and equal or better performance for 1, 3, 5 yr  durations.  You might want to supplement this with QQQ.


Thank you. I am going with VGT for now. As you said, I compared VGT with QQQ for 1,3, and 5 years using stock charts. It looks like that it is better than QQQ. No FB on the top 10 either. So, I like it even more.

Screenshot_2020-06-30 VGT - Vanguard Information Technology ETF Vanguard.png

Thanks again.

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Re: QQQ or VUG?

Facebook doesn’t seem to be held by the fund at all.

https://investor.vanguard.com/etf/profile/portfolio/VGT/portfolio-holdings

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Frequent Contributor

Re: QQQ or VUG? [New Sector Classification Splits FAAMNG]

The new sector classification have split FAAMNG, and several stocks [FNG] such as FB, NFLX, GOOGL were moved to communications sector [SPDR XLC].   http://www.sectorspdr.com/sectorspdr/sector/xlc/holdings

More on SPDRs   http://www.sectorspdr.com/sectorspdr/

Tech XLK  has [AAM: AAPL, AMZN, MSFThttp://www.sectorspdr.com/sectorspdr/sector/xlk/holdings

So, FAAMNG has been defanged by SPDRs (-:)


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