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Anonymous
I am setting up a RSP with FSMOne, and is deciding between VT or VOO. Any thoughts on this?
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Tan Choong Hwee
02 May 2021
Investor/Trader at Home
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Chris
02 May 2021
Owner and Writer at Tortoisemoney.com
In my opinion, if you could choose 1 and 1 only between the two. I would say take VT for a more diversified approach. While the US market has outperformed the global indices in the past decade, past performance is no guarantee of future returns and the returns may flip in the coming decade. That said, if you're more bullish on the US, you can go ahead with VOO as long as you're aware of the risk. But personally I would advise VT for a true buy and forget approach.
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Agree with Chris on VT if you choose only 1 to invest. However, you can invest in both with a core satellite investing approach. VT can be in your core portfolio, which is strategic and long term (buy and forget approach); and VOO in your satellite portfolio, which is tactical and thematic (VOO being US theme).
One thing to note, VT already has substantial allocation to US, so VT+VOO could be too heavy on US. You could replace VOO with other themes, like China, Disruptive Innovation, etc.