Asset Allocation in Practice: The Ultimate List of US ETF Tickers to Buy Now
Keywords: US ETF Recommendations, VOO, QQQM, TLT, Asset Allocation Portfolio
Theory Class is Over. Time to Go "Shopping."
In the last post, we learned why asset allocation is necessary and why we need to mix "Forwards" (Stocks) and "Defenders" (Bonds). ("Haven't read it yet? Read the previous post here")
Now, you probably have just one question:
"So, what are the actual names? What exactly do I type into the search box?"
Today, I’m giving you the exact stock codes (tickers) for the "national team-level ETFs" that investors around the world trust the most. I’ve cut out the complexity and gathered only the top-tier products with low fees and high trading volume. Bookmark this page and open it every payday.
1. Signing Forwards: US Stock ETFs (Growth)
These are the attackers that will grow your assets. I'll introduce two "index-tracking ETFs" that save you the trouble of picking individual companies.
① S&P 500 Tracker: VOO (Vanguard S&P 500 ETF)
- Feature: It's like buying all the top 500 companies in the US at once. This is the very product Warren Buffett famously advised his wife to invest 90% of her inheritance in upon his death.
- Pros: The expense ratio is dirt cheap at 0.03%. It is the standard for long-term investing.
- Alternatives: SPY (highest volume) and IVV (managed by BlackRock) are essentially the same product. You can buy any of them.
② Nasdaq 100 Tracker: QQQM (Invesco NASDAQ 100 ETF)
- Feature: Invests mainly in tech stocks like Apple, Microsoft, and Nvidia. It has higher volatility than the S&P 500, but historically, its returns have been higher.
- Why QQQM instead of QQQ? The contents are identical to the famous 'QQQ', but **the price per share is lower and the fees are cheaper.** QQQM is much more advantageous for long-term dollar-cost averaging investors.
💡 Tip: Choose VOO for stable growth, or QQQM if you want to grow your assets a bit more aggressively. (Mixing them 50/50 is also great!)
2. Signing Defenders: US Treasury ETFs (Defense)
These are the shields that protect your account when an economic crisis hits. Bonds play slightly different roles depending on their "duration."
① Long-Term Treasuries: TLT (iShares 20+ Year Treasury Bond)
- Feature: Invests in US government bonds with maturities of over 20 years.
- Role: It has the distinct "negative correlation with stocks." In other words, when stocks crash, its price rises the most significantly to offset losses. It is the most popular defender for asset allocation.
② Mid-Term Treasuries: IEF (iShares 7-10 Year Treasury Bond)
- Feature: 7-10 year maturity Treasury bonds.
- Role: It has less volatility than TLT, offering peace of mind. It's a 'stable defender' suitable for those who dislike extreme movements.
3. Signing a Goalkeeper: Gold ETF
An asset that shines when currency values trash or war breaks out. Since gold doesn't pay interest, it's best to limit it to about 5-10% of your total assets.
Recommendation: IAU (iShares Gold Trust)
- Feature: Tracks the physical price of gold.
- Pros: While 'GLD' is the most famous product, IAU has a much lower price per share, making it easy to buy with smaller amounts of money.
4. Shopping List at a Glance (Combinations)
Shall we apply the tickers we learned above to the strategies from the last post?
📋 60/40 Strategy (Simple Version)
Easiest and powerful. You just need to buy two things on payday.
- Stocks 60%: VOO (or QQQM)
- Bonds 40%: TLT (or IEF)
🌦️ All-Weather Portfolio (Ironclad Defense)
Divide it this way if stability is your top priority, even if it's a bit more work.
- Stocks 30%: VOO
- Long-Term Bonds 40%: TLT
- Mid-Term Bonds 15%: IEF
- Gold 7.5%: IAU
- Commodities 7.5%: DBC (Commodity ETF)
[Conclusion] It Starts with Adding to Cart
The tickers introduced today (VOO, QQQM, TLT, IAU) are products verified over and over in the global financial markets. Instead of worrying over strange, speculative stocks, assembling this "Avengers Team" will bring you much greater wealth in the long run.
You don't need to put in a large amount of money at once. Why not start with "1 share of a Forward, 1 share of a Defender" from this month's paycheck?