Anonymous
Anonymous asked in Business & FinanceInvesting · 1 month ago

Long term investing- VOO and VYM both? ?

I’m just getting started in investing. I’m currently 27 and have a 401k along with a brokerage account. I have a share of VYM and I’m looking to invest in it consistently for many years. Does it make sense to also invest in VOO? I like VYM for the high dividends, would it be good to get some more growth as well with VOO? Or should I only invest in one or the other? 

Update:

Also, my 401k already has some index funds in it. So the main reason I got a brokerage account is to be able to save more and start investing to create a substantial dividend income over years of investing consistently. I would like some growth too, so that’s why I was considering adding VOO. 

3 Answers

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  • kswck2
    Lv 7
    1 month ago

    One thing you might consider is to open a ROTH IRA in addition to the 401k, and add to it post tax. Just read ALL the rules on having one first. In THAT account, you can build your dividend paying stocks portfolio-you just cannot spend it for years yet. Which is kind of what you really want anyway. 

    And when researching index funds, ETF's or mutual funds, it would be wise to not just research Them but to compare them TO Each Other, as even similar index funds differ. 

  • 1 month ago

    VOO long term. 

  • Anonymous
    1 month ago

    VYM consistently underperforms VOO by about 20%. 

    If you insist on investing in dividend paying stocks at the age of 27, I hope you have the good sense to do it in your 401k instead of a taxable account.

    It's good you're putting so much way, but your general investing strategy leaves something to be desired.

    Back in March when the market crashed you should have bought some individual stocks like AAPL.

    As far as index funds go, I prefer Vanguard's 500 Growth index better than the regular Index 500.    Basically, they take the 500 stocks of the S&P 500, overweight the winners and dump the dogs.  It's a fund very similar to the regular Index 500 but with a few simple tweaks, outperforms.

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