New investor- Few questions please

Hello! It’s great to see you taking an interest in investing and asking questions—there are no silly questions when you’re learning!

Regarding your query about potentially doubling up with the Vanguard Diversified High Growth Index ETF (VDHG) and the iShares S&P 500 ETF, it’s important to understand the composition of these ETFs. The iShares S&P 500 ETF focuses solely on the top 500 companies in the U.S., providing a concentrated exposure to large-cap U.S. equities. On the other hand, VDHG is a more diversified fund that includes not only U.S. stocks but also international equities, bonds, and other assets. It aims for higher growth by allocating a significant portion to equities. While there is some overlap in U.S. equities, VDHG offers broader exposure, including different asset classes and regions. Therefore, adding VDHG could complement your existing portfolio rather than just duplicating it.

As for setting up regular investment amounts, this is a personal decision that depends on your financial situation and goals. Investing smaller amounts regularly can help spread out the cost of purchases, potentially reducing the impact of volatility (this strategy is known as dollar-cost averaging). If your funds are limited, it might be more manageable to focus on one or two ETFs rather than spreading your investment too thin across multiple options. This approach can help you build meaningful positions in selected ETFs while keeping things simple.

Regarding the timing of your investments, such as waiting every 7 weeks to auto-invest, the key is consistency rather than timing. Regular investing at set intervals can help in building your investment habit and potentially reduce the impact of market volatility. However, make sure to consider the transaction fees associated with each investment if they apply.

Since you’re using Pearler, it’s beneficial to explore their features designed to support long-term investing, such as auto-invest, which can automate your investment process

Show more.....

Hi Vanessa.

No such thing as a silly question, we all start at the same place :)

1- Yes, it would be doubling up if you add those extra fund options. In fact, your current options are also doubled up – they each contain large US companies.

2- How far you spread it is up to you. It can be smart to focus on your preferred options given you do have some overlap. So if there was one fund you aren’t that fussed with, it could be worth just focusing on the others. This won’t necessarily affect your returns, it’s just a matter of making things easier for yourself.

3- Every 7 weeks may be a perfectly fine investment frequency. If you’re working with smaller sums of money, it definitely pays to make those purchases less often so you don’t lose too much to brokerage fees. So if you’re happy with that frequency, there’s definitely nothing wrong with it.

Hope that helps :)