Andrew Lokenauth | TheFinanceNewsletter.com
Andrew Lokenauth | TheFinanceNewsletter.com

@FluentInFinance

9 Tweets 19 reads Jun 13, 2023
STOP GAMBLING AND START INVESTING YOUR MONEY IN INDEX FUNDS!
There are over 2,500 index funds to invest in so here are the 5 best:
1) $VOO (S&P 500) - The 500 largest US companies:
Warren Buffett is worth $100 Billion and even he recommends investing in an S&P 500 Index Fund!
Top 3 holdings:
β€’ 6% Apple $AAPL
β€’ 5.5% Microsoft $MSFT
β€’ 3% Google $GOOG
It also covers 11 different sectors of the economy:
2) $QQQ (Nasdaq-100):
100 innovative & tech-focused large-cap companies.
The top 5 companies make up ~50% of the Index Fund.
Top 5 holdings:
β€’ 12.5% Microsoft $MSFT
β€’ 12.3% Apple $AAPL
β€’ 7.8% Google $GOOGL
β€’ 6.2% Amazon $AMZN
β€’ 5.3% Nvidia $NVDA
Top holdings:
3) $VGT (Vanguard Tech):
Focuses on 300+ technology stocks, with higher weightings on $MSFT and $AAPL.
Its top 10 holdings make up 60% of the Index Fund:
Top 3 holdings:
β€’ 22.3% Apple
β€’ 17.1% Microsoft
β€’ 5.6% Nvidia
Top 10 holdings:
4) $VOT (Mid-Cap Growth):
Mid-sized U.S. companies with high growth potential are great asymmetric investments that have a low downside & high upside
More risk = more reward (it's important to be cautious but taking on risk is necessary for higher returns).
Top 10 holdings:
5) $EFA (international large & mid-cap stocks):
International stocks such as Nestle, Toyota, and LVMH Moet Hennessy Louis Vuitton are in this Index Fund.
Largest 5 countries:
β€’ 21.5% Japan
β€’ 12.7% UK
β€’ 12.0% France
β€’ 9.8% Switzerland
β€’ 8.3% Germany
Countries & sectors:
If you invest $100 a week into an S&P 500 index fund, you'll have:
β€’ 30 years: Over $1 million
β€’ 35 years: Over $2 million
β€’ 40 years: Over $3 million
β€’ 50 years: Over $10 million
After 20 years, over 90% of that balance is from doing nothing, it's from compound interest!
Become a millionaire by being lazy:
1) Invest $11 a day into an S&P 500 index fund
2) Wait & let compound interest do all the work
3) In 30 years you should have over $1,000,000
(Based on history, the S&P 500 has returned about 11% per year on average, over the last 96 years)
If you don't know where to start investing, buy an Index Fund that tracks the S&P 500. If you found this thread helpful:
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