Best growth investment ETF for today's market

[CoachKandSportsguy]

XLG by far

top 50 largest cap stocks in the SP500, all US oligopolies and world dominate players in most if not all sectors.

plenty diversified, and plenty concentrated to deliver superb earnings growth. . not so much with dividends but with revenue and earnings growth along with EPS growing stock buybacks

brought to you by python portfolio strategy backtesting.

former finance guy

[Stu from NYC]

XLG by far

top 50 largest cap stocks in the SP500, all US oligopolies and world dominate players in most if not all sectors.

plenty diversified, and plenty concentrated to deliver superb earnings growth. . not so much with dividends but with revenue and earnings growth along with EPS growing stock buybacks

brought to you by python portfolio strategy backtesting.

former finance guy

OK I will bite, what in the world is a python portfolio strategy backtesting?

[manaboutown]

Although it is not an ETF I have no complaints about the performance of the shares of NVDA I purchased in 2022 nor of the BRK I bought in the middle 1980s.

The ETFs VGT and VOO have done well over the last few years, too. Again, no complaints.

[Caymus]

The new "Nifty Fifty"?

[CoachKandSportsguy]

The new "Nifty Fifty"?

Ding Ding Ding
We have a winner

[CoachKandSportsguy]

Although it is not an ETF I have no complaints about the performance of the shares of NVDA I purchased in 2022 nor of the BRK I bought in the middle 1980s.

The ETFs VGT and VOO have done well over the last few years, too. Again, no complaints.

MAT,

nice purchases . . .

As far as VOO goes, which is the SP500, which is the same as SPY ETF from another vendor, XLG has beaten the VOO/SPY since 2015 on an annual basis, but more importantly on a CAGR as well . . . which is why I made the statement I did, but not by alot, but enough to have it show up on the portfolio performance as beating the SP500

[CoachKandSportsguy]

OK I will bite, what in the world is a python portfolio strategy backtesting?

python, free software to program to do almost anything you want it to do, including
portfolio evaluation software addins, packages, which performs portfolio statistics over time of your portfolio construction rules against any benchmark.

professionals now use python with the addins that can do any, and i mean any, calculation from almost any field, and any financial calculation, as well as any portfolio analysis. and its free. .

quantastic!

[onfire]

XLG is a good pick. VUG is another excellent choice, it has more diversification and lower expense ratio.

[Stu from NYC]

python, free software to program to do almost anything you want it to do, including
portfolio evaluation software addins, packages, which performs portfolio statistics over time of your portfolio construction rules against any benchmark.

professionals now use python with the addins that can do any, and i mean any, calculation from almost any field, and any financial calculation, as well as any portfolio analysis. and its free. .

quantastic!

Darn something else they did not teach us about in business school.:bigbow:

[Boomer]

Never mind

I just deleted my rather extensive questioning of Python and why I am wondering why it is free.

I do not have time to look into this further right now.

Boomer

[Caymus]

Ding Ding Ding
We have a winner

I suppose that diversification is officially overrated.

I recently moved some funds into SPYV(Value) which is trailing SPY. Maybe someday the other 99% of the market will recover:angel:, The Japanese market is now near the high it set in 1989.

[CoachKandSportsguy]

Darn something else they did not teach us about in business school.:bigbow:

me neither, and MS Office hadn't even been invented yet. . .

and believe me, its hard to teach an old dog new tricks, and its very slow going for me because the python syntax is so different than any other programming language I have ever used. . . .

taken about 4-5 months to get the data downloaded from various sites and loaded into my SQL server so I can actually do something with the data. .

So now I have to learn how to use machine learning to find the signals, which is also a python package, and after looking at other people's scripts, i need another course with private tutors and as many cheat sheets as possible!

[JRcorvette]

If you are Old do you really want Growth…? Or do you you want Security and Income! I know what I want.

[CoachKandSportsguy]

If you are Old do you really want Growth…? Or do you you want Security and Income! I know what I want.

Rules for Retirement:

a) you have enough
b) you have had enough

I have had enough, but I don't have enough, so trying to maximize the money i do have is the reason for the programming quest.

XLG filled with the top 50 stocks is not really HIGH growth, but slow and steady GDP + growth, considering that they only give 1%+ in dividends, you could also say there is some value in there as well.

In other words, can i make an extra 5-10K a year to pay for extra travel . .

[Stu from NYC]

If you are Old do you really want Growth…? Or do you you want Security and Income! I know what I want.

Considering we are living longer do need growth to go with that income so as to not run out of money. Not to mention in 10 years a chance social security will reduce monthly payments as our elected officials keep kicking the can.

To me a good basket of good no load mutual funds or etf's is the way to go.

[MrChip72]

This is because cyclically, large caps have done exceptionally well in the past 10 years or so. Many small cap stock indexes went up 300% in value between 2000-2012. During that same time, the S&P100 went up 20% in total.

Extend your graph back an extra 14 years and you'll see that the S&P500 is going to beat each of those indexes over the full 22 years.

[Chi-Town]

S&P is knocking on 5000's door, Dow is at an all time, and my cash is making over 5%. A 50/50 investor is riding high.

[CoachKandSportsguy]

Never mind
I just deleted my rather extensive questioning of Python and why I am wondering why it is free.
I do not have time to look into this further right now.

Boomer

Python is a high-level, general-purpose programming language. Its design philosophy emphasizes code readability with the use of significant indentation. Python is dynamically typed and garbage-collected. It supports multiple programming paradigms, including structured, object-oriented and functional programming.

I don't what all that means, just show me how to use it like i'm 5 years old. . .

Python (programming language - Wikipedia (https://en.wikipedia.org/wiki/Python_(programming_language))

That's the easy part. The hard part is that there are thousands of libraries / addins / packages which are customizations to do almost anything, written by real programmers. To be truthful, I can't understand most of the instructions provided with each package, so its google how do i do this in python.. . ChatGPT is also very helpful, though i don't trust it as it hasn't always worked for me.

The academic competitor is R software, which is very similar and can do almost anything as well. R is free as well.

[CoachKandSportsguy]

/// duplicate

[coralway]

Mags

[spinner1001]

Never mind

I just deleted my rather extensive questioning of Python and why I am wondering why it is free.

I do not have time to look into this further right now.

Boomer

The thought is similar to why Wikipedia is free and Encyclopedia Britannica is not — and yet both exist. Free and paid competitive products each have advantages and disadvantages.

Free products like Wikipedia and Python are things, made practical by the free internet, where socialism does tend to work even though those products have some blemishes. Many people cannot afford the paid alternatives or are unwilling to pay for them.

[Sully2023]

XLG by far

top 50 largest cap stocks in the SP500, all US oligopolies and world dominate players in most if not all sectors.

plenty diversified, and plenty concentrated to deliver superb earnings growth. . not so much with dividends but with revenue and earnings growth along with EPS growing stock buybacks

brought to you by python portfolio strategy backtesting.

former finance guy

Wow, surprised to see we are now offering financial advice on this site. Your XLG fund has a significant higher cost (0.20) for the fund than most Vanguard funds. The Vanguard funds own the same shares with the top 10 holdings and expense ratios of 0.03 or 0.04 are significantly lower. Just saying.

[randykw]

Although it is not an ETF I have no complaints about the performance of the shares of NVDA I purchased in 2022 nor of the BRK I bought in the middle 1980s.

The ETFs VGT and VOO have done well over the last few years, too. Again, no complaints.

Agree.
I bought VGT in Mar.'19 @ $194. Still have it @ $513.

[MidWestIA]

I used invest in stuff like xlg qqq voo ... but I got tired of mediocre returns. Fidelity webinars Amsbury Research now and then (you can see his you tube) and mainly he has calcs he does to say when it's safe to be in or out of the market but at the end he would show the etf sectors the money was going into and out of. HHmmm why don't I chase the money sector stocks. SO now nvda meta crwd BUT use a stop loss order at like 97% if you do this things change fast. up 39% from Oct doing that

[MidWestIA]

I used to use qqq voo but got tired of slow returns now I follow the leading stocks in the leading sectors but it needs stop loss orders without that I was up 75% then only 24% in a year. Put qqq xlg on a yahoo finance chart then add nvda, meta, crwd

[manaboutown]

S&P is knocking on 5000's door, Dow is at an all time, and my cash is making over 5%. A 50/50 investor is riding high.

Yes, I bit the bullet when I hit 80 a couple years ago and went about 50-50 equity securities and T-bills/money market funds. I did not have to sell any securities to accomplish this as I sold a couple of commercial real estate properties and put enough of the after tax proceeds into T-bills and money market funds to arrive at this distribution.

The stock market has moved up so much that I am now about 65-35. I plan to leave it as is as most of it is taxable on sale and I have enough in cash set aside to feel comfortable about it.

[CoachKandSportsguy]

Wow, surprised to see we are now offering financial advice on this site. Your XLG fund has a significant higher cost (0.20) for the fund than most Vanguard funds. The Vanguard funds own the same shares with the top 10 holdings and expense ratios of 0.03 or 0.04 are significantly lower. Just saying.

I am not selling anything,
I am not collecting fees,
SEC no longer prosecuting for anything but insider trading,
and that isn't happening here, so we can continue

If you check the returns, the difference in the compound growth rate exceeds the difference in fees,
which is more about marketing when looking at exactly the same funds with exact same benchmarks and composition goals
ie, don't care about fees, only care about after fee return. . .

good luck.

[Chi-Town]

Yes, I bit the bullet when I hit 80 a couple years ago and went about 50-50 equity securities and T-bills/money market funds. I did not have to sell any securities to accomplish this as I sold a couple of commercial real estate properties and put enough of the after tax proceeds into T-bills and money market funds to arrive at this distribution.

The stock market has moved up so much that I am now about 65-35. I plan to leave it as most of it is taxable on sale and I have enough in cash set aside to feel comfortable about it.

It's been a good couple of years for sure. I rebalanced the IRAs because of no tax lmplications. Didn't with the rest.

[D.C.Villager]

XLG by far

top 50 largest cap stocks in the SP500, all US oligopolies and world dominate players in most if not all sectors.

plenty diversified, and plenty concentrated to deliver superb earnings growth. . not so much with dividends but with revenue and earnings growth along with EPS growing stock buybacks

brought to you by python portfolio strategy backtesting.

former finance guy

I keep running into mentions of this fund, so I did some thorough research and you are 100% correct. 10 year return for XLG is 14.38%, 10 year return for SPY (an S&P ETF) is 12.76%.

This is a link to MANY articles that I read comparing XLG to S&P 500. XLG vs. SPY — ETF comparison tool | PortfoliosLab (https://portfolioslab.com/tools/stock-comparison/XLG/SPY)

I moved some of my SPY over to XLG in my 401k , where there are no tax consequences for doing such. Thank you for planting the final seed that made me act

[CoachKandSportsguy]

I keep running into mentions of this fund, so I did some thorough research and you are 100% correct. 10 year return for XLG is 14.38%, 10 year return for SPY (an S&P ETF) is 12.76%.

This is a link to MANY articles that I read comparing XLG to S&P 500. XLG vs. SPY — ETF comparison tool | PortfoliosLab (https://portfolioslab.com/tools/stock-comparison/XLG/SPY)

I moved some of my SPY over to XLG in my 401k , where there are no tax consequences for doing such. Thank you for planting the final seed that made me act

one of the more interesting points of this type of fund, is that there is a huge amount of survivorship bias built in. What that means as an example: not predicting this for the binary thinking types: If TSLA starts falling cause Elon gets put in jail, the fund would replace TSLA with the 51st stock, and would maintain its large company bias. And in the same point at the bottom 50, up and coming stocks will start to infiltrate the bottom 45-50 as their market cap grows and the out of favor falls. .

The other interesting point, at some point the technology sector will start to go sideways, being overvalued and will time correct, and the next 43 will pick up the dollars, and continue. The only way active managers have to beat the index as their benchmark is too overweight the top stocks in the index and hope that the lousy 450 or 493 will not outperform, which is what this ETF represents. .

anyway, for those with a legal viewpoint, I am not selling anything, I am not receiving any compensation, and I am invested a large portion of my IRA in the XLG. These posts are only to increase awareness of high quality investments which may outperform your current portfolio, but due your own due diligence as I am not a CFP, CFA, CMT, CTA or any other C%%