SIMPLE 3 Fund Portfolio to CRUSH the S&P and Build Your Million Dollar Account.

[@knockoutlightz]

I have a 3 fund portfolio but I have finally decided to invest in ETFs, alongside. I’m looking at SCHD, VOO, XLK or SCHG.

[@ShelleyfromCali]

Great picks! I like XLK and SCHD equally!

[@knockoutlightz]

​@@ShelleyfromCali thank you! Actually would it be silly to have both?

[@ShelleyfromCali]

Not necessarily though there is a fair amount of overlap but that’s not necessarily a negative. Having a diverse portfolio is KEY; that being said my initial deposit of 90K has grown to over $650K in only just ten months :)

[@philcrowley007]

I lost a lot chasing individual stocks and I feel pretty stupid for not understanding how investing works. I have a double major in economics but I’ve been trying to make sense of the market. Well done on profits!!

[@ShelleyfromCali]

Keep it simple, buy things you understand, take some risk but don't try to shoot the lights out. I’m invested in equity index funds, ETFs and various high-quality stocks and use a CFA. On average, she takes 10% of earnings, but using *Lina Dineikiene's* system makes it much more hands-off. I conservatively follow her recommendations and market entry and exit points, and tbh this has quite increased my prospects of making money.

[@Gman-69]

Love these kind of videos! Thanks Dave

[@wealthadventures]

Thanks!

[@jamiechen9130]

I used to also think SCHD is thee best balanced ETF as well. But now I found IYK is an even better suited ETF for this portfolio. If I replace SCHD with IYK, the total returns are about same for 10 years and 1% better for 5 years in back test. More importantly, this portfolio beat SPY in all measures: best year: 31.64% vs 31.33%, worst year: -5.76% vs -18.23%, max drawdown: 15.96% vs 23.95% for the last 5 years.

[@wealthadventures]

Hi. Thanks! I will check it out. It is definitely heavy in the top 3 holdings (PG, KO, PEP) but performance has been strong.

[@vestedinterest5655]

I recently sold out of many of the positions I had picked up in my daughters custodial accounts. I'm looking at a mix 50/40/10 for their accounts SCHD/VUG/Individual stocks. Appreciate the content.

[@wealthadventures]

Nice!

[@RichMoeckel]

I like JEPI for 9.59 yield every 30 days! It's a beast. SCHD and DIVO are my others

[@wealthadventures]

I'm a JEPI owner!

[@Alisters_Adventures]

That’s 9.59% a year not every 30 days, are you out of your mind?

[@wealthadventures]

@@Alisters_Adventures I think he just means that it pays every month.

[@troythomas1437]

The JEPQ matches the XLK but with less risk and also some loss on the upside. I added the VYMI because of diversification but also 4%+ dividend. I love the concept you mentioned about how lean this is with just the best companies.

[@davesaint86]

Also, look at swapping out XLK with XLP. Lower return and lower drawdown, but still good returns.

[@wealthadventures]

Will do! Thanks Dave.

[@moneymanfernando1594]

I only own SCHD out of these three however I own a lot of other ETF`s. I am mostly interested in income now and some growth. I do like these videos blending different etf`s.

[@wealthadventures]

Thanks! I get it. As you know, I dabble in income as well!😆

[@castroeladio]

SCHD on sale this year

[@CharlesTriesToRetire]

VGT, SCHD, BND in a 60/30/10 crushes this portfolio over every time period. It also has less max draw down. The problem is that as I played with things the result varied wildly with even small changes. Pick 20% BND and suddenly it was a bottom performer. Pick a slightly higher ratio of SCHD and it still works. Bump it up again and boom you are below voo. I got really good results with your portfolio using 40% XLK and XLV and 20% SCHD. Still beat VOO. But then some variations tank. I'm beginning to think that this stock market thing has some randomness to it that makes back testing less useful than it feels like it is.

[@wealthadventures]

Ha! Sounds about right. You should read "The All-Weather Retirement Portfolio" by Randy Thurman. He dives deep into portfolio allocation and tweaks everything looking for the perfect balance. Good read. Problem is, the future doesn't care much about past history and tends to toss out new problems.

[@troythomas1437]

I have an idea about using a variant of this inside a Health Savings Account. I am about to retire at 64 with 1 million dollars. The HSA has roughly $100,000. I will not be able to contribute anymore after 1 year. I will be using this fund to pay health bills. I am considering the following: 50% SCHD, 25% JEPQ, and 25% VYMI. SCHD AND JEPQ give protection in a draw down and VYMI gives diversification with international funds the overlap comparison looks really good and all three give good dividends to pay the health bills. What do you think. P.S. started my 20 year old daughter with exactly what you have except 50 xlk, 25 schd and 25 xlv.

[@wealthadventures]

Sounds pretty good. 3 solid funds that could play well together.

[@brucef1299]

Interesting. Thanks for planting the seeds. XLV and XLK were not on my radar previously. I'm also an older investor and share your concerns with max drawdown and equally important tax efficiency as most new money has to go into regular investment accounts.

[@wealthadventures]

Hi. They are good funds but certainly focused in specific sectors. That is part of the reason they work with SCHD. Protecting that nest egg... that will be part of this build as we go forward!

[@brucef1299]

@@wealthadventures Awesome. I didn't want to be so bold as to ask, but I think you read my mind. Would love to see your picks/thoughts/suggestions for tax-friendly investments in taxable retirement investment accounts. I may even share mine. =)

[@teslacybertruck8769]

Great content! I will try to invest this way! Thank you!

[@wealthadventures]

Thanks! Good luck!

[@Tommy_ZM]

55% VGT and 45% SCHD is the best portfolio in terms of risk/reward Growth should beat value, but depending on when you start your backtest you’ll see value sometimes does better. 65% Growth 35% value gives you a better chance to win but understands that value has a place. This helps diversify AND reduce risk. Lots of diversification is false and doesn’t reduce risk. It also has about 2 times the amount of tech as VOO, the typical S&P. Tech is what makes the world move and there’s a reason why the S&P’s largest position is tech. Tech historically does the best and most likely will do the best, but there are plenty of markets where tech can go down. You don’t want 100% tech, but having about 50% in high quality tech (like apple and Microsoft rather than Facebook and Tesla) gives you the high returns without astronomical risk.

[@Jpsantos94]

I completely agree with you but my gut is saying picking VGT, which doesn’t have Amazon, goog, googl, meta, and tesla is not the best decision going forward. VGT is excluding 5 out of the top 10 stocks by market cap. Something like SCHG or QQQM which has all of those + apple and Microsoft seems like a better choice going forward. Do you agree? But then who knows if all these small tech companies in VGT that no one has ever heard about becomes the next giant. It’s so hard to decide lol.

[@CFH298]

@@Jpsantos94 If you run backtests on SCHG + QQQM (to include QQQ since QQQM was recently introduced) in any form of asset allocation, VGT still out-performs no matter what.

[@Yetitrader33]

Thank you for the very good video. Looks like XLK doesn't include TSLA. What do you think about replacing XLK with SCHG to get some exposure to TSLA?

[@wealthadventures]

Certainly could... just look at the overlap.

[@striperkid]

That was a very good video. Thanks for the back test portfolio link. That's really going to come in handy for me. I just subscribed to your channel.

[@wealthadventures]

Thanks! That is a good site. Use it all the time. I have not tried the paid version.

[@LuisHernandez-dy1rq]

Great video and insight . So your thoughts on XLK vs VUG factoring the cost ? XLK is 0.10 vs VUG is 0.04

[@loit8185]

Vug is much better

[@loit8185]

You are correct

[@wealthadventures]

VUG is a solid ETF and good for a portfolio. However, it also contains stocks like Home Depot and UPS which are already being picked up by SCHD. I wanted these to be as distinct as possible. Plus 10 year total return of XLK is 467% vs VUG at 257%. XLK is just a clean tech play.

[@LuisHernandez-dy1rq]

@@wealthadventures and if you compare it to VGT?

[@wealthadventures]

@@LuisHernandez-dy1rq That would be a better 1/1 replacement for XLK. And it has performed exceptionally well in the past.

[@tessjones5987]

You are such a Professor. Thank you

[@philelmo]

Never considered XLK and XLV, thanks. Gonna sell puts on it to own some in the growth account instead of TQQQ which I worry about if I really do get put, but it’s very rare due to the high IV. I’ll compare the IV on XLK/XLV vs TQQQ. Atleast TQQQ is easy to roll whereas when I tried XLF it is very hard to manage/roll

[@wealthadventures]

I prefer to stick with QQQ for options. XLK and XLV can work selling simple puts but not ideal.

[@muratshogenov9563]

Thanks! I got schd, Schv, SCHG, Schx (30%, 30%, 10%, 20%). But I’m going to rebalance with xlk. And reduce Schx.

[@rOHRshackartpottery]

Hi Dave, I am really enjoying your videos, especially those regarding ETF’s for the over 50 crowd. But I am an 85 year old investor that is looking primarily for ETFs with high dividends and little risk. I am using the dividends for current income but am too old for speculations. How about the over 80 group. BTW am 50% in SCHD but would like even a higher dividend. Already own MO & EPD, is there a reality ETF that I should investigate?

[@wealthadventures]

Hi. For income, I do like JEPI which is a covered call ETF. They are doing a good job with that fund over at JP Morgan. Selling those call options will reduce the beta (fund sensitivity to the stock market) and allow you receive some income each month. JEPQ would be similar but I prefer JEPI overall.

[@rOHRshackartpottery]

Thanks!

[@wealthadventures]

@@rOHRshackartpottery Happy to help!

[@scarfo441]

you said that these funds beat the s and p 500 going back 10 years?...i hope you back tested longer than that...i dont trust no backtesting from 2009 til 2020...that was the time the fed pumped all that money into the markets...id like to see how it does around and or between 2000 til 2003 or 04

[@wealthadventures]

Hi. SCHD was started in 2011 so hard to accurately back test prior. However, since this is an attempt to beat the S&P, each fund was on the same footing for the most part.

[@RealKimJungUn]

Why XLV over SCHG?

[@wealthadventures]

Covering a different sector. Healthcare versus large cap growth.

[@garyschmelzer]

Schd 100% all in

[@wealthadventures]

One and done!

[@garyschmelzer]

@@wealthadventures yes sir I’m 54 years old and all I’m doing is all in 100% SCHD

[@wealthadventures]

@@23chnge And it may continue to fall... but I like their process for picking stocks. I think long term it will provide a nice return so I'm still buying.

[@UpwardMindset-he5mz]

vwo

[@fabiGBOtown]

Its so weird to not have vti in a portfolio lol. I love it though, keep it up

[@wealthadventures]

I'm getting crazy!🤣

[@jamesec1949]

I like it. I’d also add XLU as interest rates start to come down at some point. Hopefully.

[@wealthadventures]

I think adding some utilities would be perfectly fine.

[@jamesec1949]

@@wealthadventures Thanks Dave

[@jordanw1649]

My Roth IRA has VTI, XVUS, VNQ (50%, 25%,25%.. that’s Total Stock Market, International Stock Market, and Real Estate ETF). My brokerage account has mainly SCHD. I am also in Realty Income for the monthly dividend.

[@josephburke7729]

Thoughts on XLK versus QQQ? Historically, QQQ has signicificantly outperformed XLK and has more diversification.

[@wealthadventures]

Hi. QQQ has been solid but it will overlap in some positions with XLV and SCHD. I was looking for a pure tech play and XLK fit well. XLK has outperformed QQQ over the last 1,3,5, and 10 years based on what I see. Hard to argue with QQQ as a pick! It has been a good one.

[@chipnorris2504]

Would love a review on SVOL. 17% div monthly and has been keeping up well with the S&P

[@wealthadventures]

I'll take a look. I was looking at how to make a home brew out of it. "Do it yourself SVOL."

[@JRF12402]

Do you think its okay to have SCHG & SCHD in your portfolio? Thanks

[@wealthadventures]

Yes. I actually own both. They compliment each other well in my opinion.

[@bfine1962]

Good video. What portfolio build would you do for a new born? All growth or more broad?

[@wealthadventures]

Lucky kid! I would focus on growth for sure.

[@bigjj974]

Great Job Thank You

[@Bullseye120]

Dave, what about also adding SPTM or using it as a 25% substitute? Broader diversification, plus provides some "anchor qualities" as well.

[@wealthadventures]

You certainly could. The problem becomes that, as you add more, you will mirror the market return. SPTM performs almost exactly like the S&P. It is a solid fund and will add diversity... 🤷‍♂

[@dpragain]

FTEC is a good one too

[@wealthadventures]

Good fund!

[@binarybrian]

Some other SPY hunters that I like: XSD, SPGP, OMFL

[@wealthadventures]

Thanks! Will check them out.

[@Omar-nr8fm]

I would add DGRO

[@phamthehung2]

Wow, that's awesome over 10 yrs. How about over 20, 30 years?

[@wealthadventures]

SCHD has not been around long enough to easily test 20 or 30 years.

[@ifern4545]

Excellent selection, thanks. Personally I like JEPI because the monthly dividends and stable price, since I'm close to retirement JEPI works like a charm.

[@mattyHi1892]

Be careful with overlap. I’ve noticed to many vanguard or to many Schwab ETF’s and lots or stock overlap.

[@wealthadventures]

Yup!

[@susansigner8896]

I prefer a mix of: 50% SCHD Health & Consumer 40% NULG Tech & Financial 10% XLK Tech

[@Ghairco]

Thank you sharing.

[@0007tad]

Im wondering if you are still bullish on SCHD ,with all the volatility and the banks going bust, since SCHD is somewhat heavy in the Banks sector ?

[@wealthadventures]

Yes. Still think they have a good selection criteria. Financials make up about 13% and that is not just banks. I will continue to add.

[@HatingDrink]

Gonzalez Jason Gonzalez Jose Martin David

[@nsharma99]

Thanks so much!

[@bfine1962]

unrelated to this video, would you do a covered call on IEP now that the shorts crushed it? seems like a shot at a good return.

[@wealthadventures]

Hey. I would not. I would lean toward a credit or debit spread based on your feelings about it. That way you can define your risk.

[@ifd742]

great video!

[@Dividendflywheel]

Where were you 20 years ago? 😅 I could have used your insights. I got a couple of questions. Is this portfolio the result data mining? Your thoughts on “mean reversion” over the next decade or more.

[@wealthadventures]

Hi. This developed from looking at sector performance and reviewing different products that I thought would work well together. Mean reversion... well, with relation to the S&P, goal is to find segments that will offer superior growth over the next decade.

[@armaciudi]

I get a lot of videos on my feed with people that go all-in in SCHD. Is it to be expected to get a similar return in the near future as it did in the past, considering that they changed a lot of its biggest positions?

[@wealthadventures]

Nobody knows! But I like their system for stock selection. I think it is a good option for people that want to keep investing simple.

[@WayneNicholsInvestor]

Great stuff!

[@wealthadventures]

Thanks Wayne!

[@motrader273]

nice as usual. sold some puts in schd and xlv in case I can get them cheaper. Waiting for a drop before xlk. I have though naked puts in most big tech and I think i am covered there.

[@crohmer]

lol

[@HipOperation99]

Let's check back in 10 years

[@vikasgupta1828]

Thanks

[@wealthadventures]

Welcome!

[@gjackson651]

Ive been DCA into XLV>SCHD>VTI I've been contemplating switching out VTI for SCHG🤔

[@wealthadventures]

Tough decisions! All good funds.

[@vichart011]

How about adding CC to these etf ?What dte and delta would be ideal ?

[@wealthadventures]

Hi. You certainly could but I would be selective. Wait for some volatility. I would probably look at monthly expirations with a 20-30 delta.

[@nataliavega2708]

If I have Roth IRA , traditional Ira and brokerage account how should I split those percentages ?

[@wealthadventures]

Hi. Are you talking about where you invest with this 3 fund portfolio?

[@nataliavega2708]

@@wealthadventures hi,, yes.

[@wealthadventures]

@@nataliavega2708 My personal opinion is that this is good start for both a retirement account or a brokerage account. You could replicate it in both or split them up.

[@meganterry4014]

"Wow, this video was incredibly informative and helpful in understanding the importance of investing wisely.

[@nathielrollin2297]

simple, I want to invest aggressively, how can I connect with your mentor?

[@meganterry4014]

@@nathielrollin2297 My FA is Dodai Neil. You can easily look him up. He is very well experienced.

[@macorenomerle7233]

My colleague who lives in Georgia told me of this smart man Dodai Neil, he manages his portfolio and he has over $100k invested.

[@CFH298]

I have all my assets in Betterment and getting charged a 0.25% management fee. What's a good to go with either Fidelity or Vanguard?

[@wealthadventures]

Hi. I'm a fan of Fidelity. Pretty good service overall in my experience and I don't think I pay any routine fees aside from option trades.

[@CFH298]

@@wealthadventures thanks! I did come across M1 and seems pretty good with no fees, except for the funds themselves. All good options I suppose :)

[@richardthorne2804]

Great choices 👍

[@wealthadventures]

Thanks!

[@imdoc7872]

SCHD then add QQQM when we enter a bull market

[@wealthadventures]

Let me know when it starts!

[@MC-gj8fg]

No small cap value? SLYV perhaps?

[@Dividendflywheel]

Yes. I have small cap value in my portfolio AVUV, SLYV & PRSVX Courtesy of Avantis and Paul Merrian

[@crohmer]

@@Dividendflywheel .79% expense, ew

[@evanguarino2514]

how do you feel about schd 33% VTI 33% SCHG 33% porfolio

[@wealthadventures]

That is fine. I imagine it would give you a close to market return.

[@evanguarino2514]

how do you feel about VUG

[@wealthadventures]

Solid fund. Good tech play. I've owned some shares for many years.

[@echoeversky]

You could do a crazy industrial and energy play by doing a 2 to 1 blend of TSLA and TSLY. :3 TSLA is practically a startup ETF. Like the core concept, love the Portfolio Visualizer.

[@yankeedoodle6293]

I’ve got 4 million in my brokerage account. Still all cash and earning 4.5% on my money market fund.

[@wealthadventures]

I'm still largely in cash as well.👍

[@kayebryer4267]

S&p 500 50% schd 25% and xlk 25% for me

[@wealthadventures]

I like it! Keep it going!

[@vickibennett6579]

Looking to invest for 5 yr returns……????

[@johnc7279]

Just buy the haystack vti

[@wealthadventures]

Certainly the simple approach!

[@johnaleffi5509]

SCHD is not having a good yr. 16% Lower than Sp500

[@wealthadventures]

Hi. It is off to a rough start but I still like their selection criteria over the long term. Looks more attractive as it drops down near 70. Tech is off and running for sure!

[@live4aliving]

just started watching but my guess is schd,voo,jepi

[@effervescentrelief]

currently holding jepi and schd, have been thinking about adding voo or vti.

[@wealthadventures]

Batting .333 puts you in the hall of fame!😆

[@LeonWilk2]

My honest advise to new investors ,buy and hold quality stocks. Ignore market forecasts and opinions, they're mostly entertaining but not very helpful

[@MuzixMaker]

A year ago QYLD was the darling. Just saying.

[@wealthadventures]

Hi. It was never my darling. Not a good option IMO.

[@MuzixMaker]

@@wealthadventures sorry I wasn’t clear, I meant in general with most of the financial channels not necessarily yours. Now SCHD is almost universally touted as the best thing going. Invest wisely.

[@wealthadventures]

@@MuzixMaker Yes! SCHD is the current darling for sure. I think for most, the selection criteria makes it a winner.

[@christianperalta3226]

Thoughts on schd, schy, avuv, ftec.

[@lyndajones1133]

starting off saying its not a complete portfolio then being vague about it isnt good for people starting out, you lost me.

[@wealthadventures]

Hi. Sorry for the confusion. I think this is a good portfolio to beat the S&P over the long term. However, like the S&P, it lacks things like bonds and international stock exposure that would help make it a "complete" portfolio in my mind.

[@vijaymisra1833]

If the objective is to beat S&P then why not just have s&P that every other ETF fails to beat consistently!

[@mikepinzine7791]

Can you go through cefs I like Evt

[@jason60chev]

Be difficult to accumulate shares at those high prices!

[@wealthadventures]

Many brokerages now offer partial shares.

[@jason60chev]

@@wealthadventures I suppose that enables folks to buy on a budget and they do add up, but will take a very long time to accumulate enough shares to pay the monthly bills. Most people have hard enough time saving for cab fare. (extreme example)

[@joeschmoe1794]

Just buy a 3x long ETF that tracks the S&P 500.

[@stuinvests]

Those are three terrible choices.

[@wealthadventures]

Well 0 out of 3 ain't... oh wait, never mind.

[@cph885]

Would that be a good setup for roth ira 2050?

[@wealthadventures]

Hi. I think it will hold up well long term. Nice combination of tech, healthcare, and select value. Just my personal view!

[@chanchaipornlukkanasiri7046]

Why XLK over QQQ?

[@wealthadventures]

XLK is a pure tech play so overlap is minimal with SCHD. QQQ will overlap with SCHD and XLV. This way, if you want to add tech, just increase XLK. VGT would probably be a good alternative for XLK.

[@chanchaipornlukkanasiri7046]

@@wealthadventures thank you