How should I split my Roth IRA between VTI and QQQ?

It’s doesn’t matter. Would you rather have a $10 bill or 2 $5 bills?

70/30 is totally reasonable if you understand that QQQ portion is basically an extra bet on large-cap tech/growth. Personally I’d keep VTI as the core and use QQQ as the tilt. At 22, the bigger win is probably just maxing the Roth consistently every year and leaving it alone.

Agreed. At 22, maxing out consistently is the key.

There's nothing I could say that hasn't already been said better in this thread on the same topic.

QQQ is recency bias and marketing, not fundamentally sound investment philosophy. There is no economic or fundamental justification for why a company listed on the Nasdaq is inherently superior to one listed on the New York Stock Exchange. As an example, the dot com crash saw QQQ drop over 80% with 14 years to recover. Furthermore, everything in QQQ is already contained in VTI. Splitting only concentrates into those large caps, which historically underperform over multi-decade periods. If you truly want a factor based approach, look into adding small cap value ie. AVUV.

Recency of 20 + years of outperformance? Okay 👍🏾

Typical arrogant Redditor ignorance dismissing over 100 years of market data and basic index mechanics because you looked at a 20-year chart. Okay 👍

It didn’t exist before then 🤣. Stay lagging in VT buddy

Tech stocks don’t have 100 years of market data.

Bank stocks used to be all over the list of leading market equities because they were loosely regulated and their books were leveraged to the tits

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Listen to u/RandolphE6, OP. Everything in QQQ is already in VTI, and there is no basis for investing in "the 100 largest non-financial companies listed on the Nasdaq" as opposed to any other company or set of companies.

I see this argument all of the time. And I do agree it's a risky bet. I fail to see how no one ever makes the comparison of s&p 500 and nasdaq 100. QQQ is the top 100 out of 3000 nasdaq listed stocks. VOO is the top 500 stocks out of 12,000. How is it wrong to purchase QQQ out of the perceived quality of being in the top 3% of a index, but it's okay to purchase VOO out of the perceived quality of being in the top 4.1% off a market? I think nothing of the index, and everything of the "top tier" involved. It could be the Zebra 100 for all I care. This is my mindset any ways. I own AVUV as well and am fully on board with your argument for it. I just see so many people with the "nasdaq is inherently" argument, and I'm not sure that's how everyone investing in QQQ perceives the situation. Maybe I'm an outlier, it's a numbers game to me. Genuinely curious how what is stated above would be a false comparison, or is inherently flawed. If I am wrong in some fundamental way that I'm not perceiving please lay it out for me so I have a better understanding of this "inherently" argument.

Go 65% VTI, 25% VXUS as your base. Then the last 10% for trading, speculation/fun, etc, examples would be gold, ibit, or single stocks, or if you want to tilt QQQ. That way 90% of your portfolio is responsible and balanced and automatic and you can ease some of the desire to "beat the market" with that last 10%.

VXUS is up 83% over the last 10 years compared to the S&P 500 being up 253%. Why VXUS over S&P 500? When does the benefit of diversification kick in?

S&P 500 is up 253% over the last 10 years compared to MU being up 3170%. Why S&P 500 over MU? When does the benefit of diversification kick in?

Pfft why bother with MU when you could invest in NVDA 10 years ago.

Yeah, you can get rich quick if you just 150x your wealth every 10 years.  Anything else is underperformance and will keep you poor.

Be a man and 50/50 TECL amd QLD. You are 22, you have plenty of time

I went 50/50 approx 20 years ago. As you can imagine, both investments are doing great but the tech heavy side has outperformed by a large number. No idea what the future will hold but my bet remains the same; AI companies will likely grow in to cash cows from cash burners. VTI + QQQ (or VGT) with equal weighting is a good play.

0% QQQ and 100% VTI

Dump the QQQ and just get VT and be done.

If u really dont mind risk, LEAPS on ur favorite tech blue chip lol

I would recommend \~15% maximum for a sector/thematic/factor tilt — large cap growth isn’t one of the most favorable factors. Small cap value is, but even I cap SCV at 10-15%. You want to diversify with international. Add VXUS, AVNM, AVNV, or DFAX. The latter three attempt to beat the benchmark VT and have so far, but you take tracking error risk. If you’d regret some underperformance then stick to the benchmark. If you believe in Avantis/Dimensional methods and implementations, try out the latter three funds, with AVNV being my favorite for a larger value tilt.

QQQ should almost always be a small satellite unless you have an above average risk tolerance. They're are some who go 100% qqq but these are definitely outliers. I've personally held it at between 10-13% over the years. If your really young your portfolio could use the growth, but it's a riskier hold than VTI in a severe downturn.

Yup and a lot of us are 100% international with Trump tanking domestic markets. 

QQQM: SCHG: SPMO: VOO: VGT: SCHD: Lots of overlap

Do you understand there’s essentially no difference because of concentration? You are basically owning QQQ with VTI so just pick QQQ and find another asset that doesn’t have overlap of your aim is true diversification. All these people saying 70/30 VTI QQQ is a good idea… VTI is 46% overlapped with QQQ. Your true composition is therefore Non-QQQ component of your portfolio .70 x .54=0.378 QQQ component of your portfolio .70 x .46=0.322 .30 x 1=0.3 0.322 + 0.3=0.622 QQQ IS 62% of your entire portfolio!!

I'm 50/50

All vt.

50-50. Make it a race and see which one makes you more. I have done this several times putting 10k in several funds, and see what happens in a few years.

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70/30 vti/vxus. qqq is a random collection of 100 companies, all of which are well represented in vti.

FXAIX, VTI, SCHD