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Anonymous
I understand that the simplest way to invest is to DCA into a low cost index fund such as VOO, QQQ or IWDA, which is what I have been doing so far. I'm hoping to explore some systematic ways to achieve a higher return such as using option strategies or value averaging for ETFs. I searched online but I'm still not sure whether they are actually better than DCA. Any advice on suitable strategies and ETFs?
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For ETF, say S&P 500 it is made up of 500 of the largest and most stable companies in the United States. You're investing in all the stocks that make up the S&P 500 in order to mirror the index's performance. Since such ETFs are all taking the same approach what will be useful is to pick funds with low expense ratio and tracking error determine how efficient the funds are.
QQQ -0.2% https://www.invesco.com/qqq-etf/en/home.html vs
VOO - 0.03% https://investor.vanguard.com/etf/profile/fees/voo.
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Taxes are another major barrier to beating the market. When you pay tax on your investment returns, you lose a significant percentage of your profit. The capital gains tax rate is 15% to 20% unless your income is very low. And that's the tax on investments held for at least one year. Stocks held for a shorter term are taxed as ordinary income.
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Option is the good way to earn extra $$, I always do that for SPY, using VIX index to decide when should i open option~
*but for beginner you may use paper account to learn first, otherwise option can hurt you alot
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Purpose of value averaging is not to beat the market, but to reevalute your DCA amount and goals eve...
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I invest in Amplify Transformational Data Sharing ETF (NYSE: BLOK), see my profile for more info., thanks for your attention.