The optimal split for your ETF portfolio, considering your goal of diversification and risk management, can be allocated as follows:
- Vanguard S&P 500 ETF (VOO): 40%
- VOO provides broad exposure to the U.S. large-cap market with a low expense ratio of 0.03%. It's a solid core holding for diversified U.S. stocks.
- Schwab U.S. Dividend Equity ETF (SCHD): 30%
- SCHD focuses on dividend-paying stocks, making it suitable for income-focused portfolios. Its 0.06% expense ratio is relatively low, ensuring minimal cost impact.
- Invesco NASDAQ 100 ETF (QQQM): 15%
- QQQM offers exposure to NASDAQ with a focus on non-financial stocks, providing a mix of growth potential and reduced financial sector risk. Its 0.15% expense ratio is higher than VOO but still reasonable.
- JPMorgan Nasdaq Equity Premium Income ETF (JEPQ): 10%
- JEPQ's active management and ESG factors, along with its 0.35% expense ratio, make it a good addition for those seeking a more targeted approach, especially for income generation.
- iShares Core Dividend Growth ETF (DGRO): 5%
- DGRO focuses on dividend growth and payout ratio, providing a niche within the dividend-focused space. Its 0.08% expense ratio is low, keeping costs under control.
This allocation balances broad market exposure (VOO), dividend-focused growth (SCHD), NASDAQ representation (QQQM), active income strategy (JEPQ), and a smaller but distinct dividend growth component (DGRO). Adjustments can be made based on personal risk tolerance, investment horizon, and market conditions.
4/17/2025 02:47pm
