How much of your portfolio is in ETFs vs stocks and why?

I’m new to investing and started with big market cap stocks like AMZN, MSFT, and GOOG for the long term. I’ve also got some riskier ones like AMD and SOFI.

I’ve noticed that individual stocks are much more emotional—bigger ups and downs, more rewarding sometimes but also way more stressful. ETFs seem safer, with less volatility and not as time-consuming.

What’s your mix of ETFs vs individual stocks? Also, if I want a portfolio with names like TSLA, V/MA, SPGI, Nike, ASML, etc., is there an ETF that fits this, or would it be better to build it myself? I’ve heard people talk about MAGS ETFs but don’t see them being recommended much—why is that?

I’m 100% in ETFs and mutual funds (they’re similar enough). I just don’t believe I can beat the market over the long term, like 40 years until retirement.

I keep about 10% in stocks. That way, if they tank, it’s not a big deal because the indexes will make up for it in the long run.

Calling investing ‘entertaining’ is more like gambling, not actual investing.

Wei said:
Calling investing ‘entertaining’ is more like gambling, not actual investing.

That’s true, but sometimes making small bets can still be fun and profitable if you keep it in perspective.

I only have about 5% in individual stocks. My retirement accounts are all in funds, but I have a small taxable account for stocks. I treat it as a hobby. If it were for something serious, like paying off my house, I’d stick with funds. It’s easier to stay rational that way.

If you think investing is about emotions or entertainment, you’re a perfect candidate for 100% index funds.

I’m 21, and my current allocation is 18.5% in stocks and the rest in ETFs. That’s the highest I’ve seen here, but 66% of my total wealth is in crypto (mostly BTC). It’s just how I handle risk.

I keep 10-15% in individual stocks, but I pick ones that aren’t already heavily weighted in the indexes. Otherwise, what’s the point?

Almost no individual stocks. I keep a couple small ones just to feel like I’m doing something.

I’m 100% in ETFs and mutual funds. I don’t have the time or interest to dig through financial data for individual stocks. It’s a ton of work to find good ones, and I’d rather use my time on other things.

@Harper
You don’t have to do it yourself. Just follow good recommendations. For example, buy WAB, IRM, and GS tomorrow—you’ll beat the S&P 500 by Christmas.

About 90% of my retirement is in funds, with a few stocks in my Roth. For post-tax dollars, it’s flipped—90% in stocks and 10% in ETFs/gold.

I’m 0% in individual stocks right now. My 401(k) is in a target-date fund, and my brokerage account is in broad market ETFs. My IRA is split: 40% SSO (2x daily S&P 500), 30% VOO, and 30% cash. I also sell cash-secured puts for some extra yield.

@Floyd
Target-date funds? Do you know when you’ll actually need the money?

Emerson said:
@Floyd
Target-date funds? Do you know when you’ll actually need the money?

What do you mean by that?

I’m messing around with my ‘hope fund’ since IT stuff is on pause. Threw $25k at $PSNY because it’s up 35%. Any insights on their earnings this week?

I inherited my dad’s portfolio. It’s 150 different stocks—no funds or ETFs. Managing it all is overwhelming, so I’m probably going to sell most of it.

All ETFs, no individual stocks.

I’m holding cash right now, waiting for the market to drop further.