Assume an investor allocated $100K to each of these four strategies 10 years ago:
- Focus Investing is represented by Apple (AAPL).
- Market-cap-weighted ETF is represented by the Vanguard S&P 500 ETF (VOO).
- High-dividend ETF is represented by the Vanguard Dividend Appreciation ETF (VIG).
- Bond ETF is represented by the Vanguard Total Bond Market ETF (BND).
After 10 years, the final portfolio values of these strategies are:
Sunfortzone
From a 10-year long-term holding perspective:
- Focused investing outperforms market-cap-weighted ETFs.
- Market-cap-weighted ETFs outperform high-dividend ETFs.
- High-dividend ETFs outperform bond ETFs.
Assume an investor allocated $100K to each of these four strategies 10 years ago:
- Focus Investing is represented by Apple (AAPL).
- Market-cap-weighted ETF is represented by the Vanguard S&P 500 ETF (VOO).
- High-dividend ETF is represented by the Vanguard Dividend Appreciation ETF (VIG).
- Bond ETF is represented by the Vanguard Total Bond Market ETF (BND).
After 10 years, the final portfolio values of these strategies are:
- AAPL: $884K
- VOO: $342K
- VIG: $302K
- BND: $116K
Ranked by geometric average annual return:
1. Focused Investing: 24.4%
2. Market-cap-weighted ETF: 13.3%
3. High-dividend ETF: 11.9%
4. Bond ETF: 1.5%
Which one do you favor?
1 year ago | [YT] | 0