29-Year-Old's ETF Dilemma Sparks Reddit Showdown Over VT – 'Would I Just Be Better Off Sticking With VOO Overall And Let It Grow?'

For many new investors, deciding where and how to start, what investment combo works best and how risky they should go can become an overwhelming concern.

Meet a 29-year-old investor whose dilemma has sparked a Reddit showdown over VT in the comments!

The poster’s concern over what he should invest in has prompted him to write on Reddit’s r/ETFs community asking for advice. With no prior stock investment experience, the Redditor is considering a diversifying approach of several ETFs to spread the risk. He looks set on VOO but is curious if adding other ETFs to his portfolio, such as VT, would enhance it.

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Let’s hop onto the comments to see what the investors on Reddit have to say.

Top 3 Suggestions from Reddit for the 29-year-old New Investor

Consider VT if You Want Diversity

Most of the Reddit members in the comments recommended the 29-year-old to invest in VT because it has access to more equities beyond the U.S. market.

“The number of ETFs doesn't inherently add to diversification. For example, VT is significantly more diversified than VOO + QQQM + SCHG (which way too many people in this sub push),” a comment says.

The original poster replied to this comment, asking if the Redditor meant he should go all in on VOO and let it grow. The commenter replied that he doesn't consider VOO a good option if he wants to diversify his portfolio.

“I don't think VOO is nearly diversified enough. [ …] If you were to pick one ETF as a beginner, I'd just go 100% VT,” he explained.

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Stick to VOO for a Simple Strategy

Some Reddit users recommended that new investors stick with VOO because it’s simple and has a strong foundation in U.S. large-cap stocks. One commenter, in particular, suggested VOO as a starting point until the investor has more experience and can look at other ETFs.

“I would just buy VOO starting out. You can invest in other ETFs as you learn more/decide you want a more specific allocation," the Redditor wrote.

One r/ETFs community member thinks the investor should keep a bigger part of the portfolio in VOO even if he decides to split the money between different ETFs.

"If you’re investing for the long term you’ll want the heaviest part of your portfolio to be in VOO regardless. So you’ll be starting out in the right direction," he said.

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Diversify Beyond U.S. Markets and ETFs

A few Reddit members in the comments have advised the 29-year-old new investor to consider diversifying beyond the U.S. markets and even considering bonds or other asset classes.

“I don't think VOO is nearly diversified enough. Diversification doesn't simply mean holding a lot of companies. That's just diversification past idiosyncratic risks. True diversification would include U.S. small/mid caps, international equities exposure and possible bonds. VOO (S&P 500) only exposes you to U.S. large-cap stocks,” says a Reddit member.

On the other hand, another commenter suggested an investment ratio he thinks would enhance the 29-year-old’s portfolio.

“US + INTL: VOO/VTI + VXUS 80/20, 75/25. US + INTL + CASH EQUIVS/BONDS: VOO/VTI + VXUS + BONDS/CASH EQUIV ETF 70/20/10 increase bond exposure if you want less risk (at the risk of stunting growth and returns),” the Redditor wrote.

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