3 Index Funds is All You Need in 2024

You know we love us some stock picks here on the channel but sometimes I feel like we’re overcomplicating investing. In fact, the three index funds I’ll show you today would have beaten the average investor return by 6.5% a year over the last two decades! Research by Dalbar shows the average investor earned just 2.9% annually in the 20 years through 2020. Most investors trading in and out of stocks trying to find that next stock to buy end up just shooting themselves in the foot and barely earn enough to keep up with inflation. That 2.9% annual return is less than half the long-term return on stocks and even under the 4.8% return on a straight bond portfolio!

But the simple index fund portfolio I’m going to show you today will more than triple that return with less stress and without a minute worrying about the market. I'll reveal those three index funds to buy along with what type of investor should use this strategy!

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Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
#indexfunds #etf #etfs

[bukki]

I have over $200k ready to be invested, however I am having trouble trying to find out what investments would be best during this present economy. Heard index funds and ETFs provide diversified stock market exposure while spreading risk. How true?

[Dantursi]

SCHD outperformed VTV over 5 and 10 years and is very low cost. Just had bad luck this year. Many of us have a boatload in the S&P500 index in 401k's, so not having apple, Microsoft etc as top holdings (if at all) in SCHD is a good thing. Still have the bulk of my $500k portfolio in SCHD.

[ugojazzy]

No doubts, a good way of growing and saving your money is through investing . You don't need to have much before you can invest. "That little money you have now can make you millions if you invest it wisely". I wasnt financial free until my 40’s and I’m still in my 40’s, bought my second house already, earn over 3 crore on a yearly basis through passive income and got 4 out of 5 goals, just hope it encourages someone that it doesn’t matter if you don’t have any of them right now, you can start TODAY regardless your age

[arigutman]

Index funds are the easiest means to investing and when investing into a basket of quality stocks, you cannot really go wrong... Great video, Joseph!

[davidbrooks]

1.VTI
2.SCHD
3.SCHG... is all you need just play it safe and to make money!!
..4. My bonus pick Berkshire Hathaway

[riverraven]

Nice summary, I would say however that perhaps focussing too hard on US centred funds is a bit shortsighted and throwing at least a portion of your portfolio into global trackers is maybe something to consider. This is not advice, just my opinion.

[trevorsaul]

Great Video, Mr. Joseph. I'm trying to understand the chart at time marker 9:23. I think you may have mis-labelled them cause it appears that the Traditional 60/40 portfolio outperformed the strategy you suggested in the video. Am I reading that wrong?

[matthewlandings]

I agree. Instead of following fad stocks, one could still stick to a global ETF and avoid losing money. Alternatively, if someone really wants to invest in individual stocks, instead of following the fads of the moment, it is better to use automatic tools for stock picking like the Everest formula that is based on fundamental data and algorithms, so it does not follow the bias of analysts or YouTubers.

[r.ryansadeghian]

What's the difference between VTI and Voo then?

[michaelpark]

i only have VIG and VUG 50% each in my ROTH IRA

[tommytators]

Question. Why have a portfolio of multiple dividend stocks with high and low dividend payouts if you just stick with a larger quantity of just a few different ones like SCHD and then maybe a couple that are solid that pay out a little more? Thanks in advance

[SpeedyPenguin]

I didn't really understand your argument that VYM, with 57% of its holdings in "just" 4 sectors, is less diversified than the S&P500. The table you presented showed SPY having 63% of its holdings in just 4 sectors. So VYM seems more diversified to me, although more heavily weighted across different sectors. Did i misunderstand something there?

[jm-zuig]

Hey body what we should do with frbk stok banks keep going down and you said it was going down by mistake please let us know

[ronako]

I think towards the end, you say the three fund portfolio did better at over 60 grand, but the chart itself shows the 60/40 portfolio in yellow outperforming the three fund portfolio. Was that a mistake?

[forgiveandmoveon]

Hi Mr. Hogue, thanks for sharing. In your personal professional opinion, do you recommend people in their 50s to invest in a large blend index fund?

[MisterProducts]

I would not have so much exposure to real estate, especially right now...

[HClips]

do I keep purchasing the index fund I am interested in or is it a one time purchase?

[PeteBuchwald]

IYR is interesting. Thanks for that tip. I was looking at another Vanguard real estate ETF the VNQ, which seems less diverse but has a higher dividend, and lower cost.

[richardjohnson]

Joseph, I like your take on this. As you indicated, some of us don't want the complication or stress of building a stock portfolio. Building a portfolio of index funds is a brilliant way to invest without stress. (I do invest in stocks, too. Like you, I like it.)
A total stock fund is a good basis (VTI). Further, being invested in a fund like this automatically gives a person international exposure. All good.
P. S. Dilbert is one of my heroes.

[iank]

6:00 Anheuser busch a solid company? 😬