08-07-2021, 03:54 PM
I own some passive index funds so no need to over evaluate them, but today I was looking around Vanguard as it is about time for an annual adjustment. Here are a few things I noted just giving the top ten holdings a quick look.
Russell 2000- AMC is #1 holding. UGGG! but oh well, I guess it meets the investment criteria. It's a small % holding but you know they entered near the top of recent valuation. The ETF I hold is Russell 2K Growth and AMC is absent. I guess it is a Reddit "value" stock lol. I am just splitting hairs, but it is conceivable ten more meme stocks could enter the top of this fund if the games continue for another year. They'll sell them after they crash per their rules.
Vanguard large cap funds. I quickly noted about 15 funds were within 1% performance for a year or more. SPY-Large CAP Growth-Total Stock market US- Total stock market all world, and many more. You guessed it, top 10 holdings virtually identical. FAANG plus the next five rock star stocks. It makes no difference what fund you invest in. Same list in near identical order.
No wonder the SPY outperforms most other funds. New passive money entering every day. You have to buy a fund that specifically targets value or dividends to escape the marketing, and of course those funds don't over perform any year lately so they don't look at all attractive to the new fund shopper.
I found my mid cap index fund less annoying.
Russell 2000- AMC is #1 holding. UGGG! but oh well, I guess it meets the investment criteria. It's a small % holding but you know they entered near the top of recent valuation. The ETF I hold is Russell 2K Growth and AMC is absent. I guess it is a Reddit "value" stock lol. I am just splitting hairs, but it is conceivable ten more meme stocks could enter the top of this fund if the games continue for another year. They'll sell them after they crash per their rules.
Vanguard large cap funds. I quickly noted about 15 funds were within 1% performance for a year or more. SPY-Large CAP Growth-Total Stock market US- Total stock market all world, and many more. You guessed it, top 10 holdings virtually identical. FAANG plus the next five rock star stocks. It makes no difference what fund you invest in. Same list in near identical order.
No wonder the SPY outperforms most other funds. New passive money entering every day. You have to buy a fund that specifically targets value or dividends to escape the marketing, and of course those funds don't over perform any year lately so they don't look at all attractive to the new fund shopper.
I found my mid cap index fund less annoying.