Why I Sold All Of My Stocks (I Only Invest In ETFs)
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- čas přidán 15. 06. 2024
- So at this point, since you’ve probably read the title, you know that Dennis and I have sold off all of our investments in individual stocks - well, maybe not all of them just yet, but we have started to sell them, and plan to get rid of all of them from our portfolios over the next couple of months.
If you’ve been watching our videos, then you probably aren’t surprised, because we’ve been talking about investing in passive ETFs for a while now - but, if you’re new, you might be wondering why we aren’t investing in any single stocks, especially when you think about all of the arguments out there, and stories from other people, about investing in single stocks and analyzing what the best ones are.
In this video, we'll break down why we started investing in single stocks in the first place, what we learned from the experience, and why we plan to sell all of our single stocks and only invest in passive ETFs moving forward.
Do you invest in single stocks? Let us know in the comments below!
0:00 We sold (almost) all of our single stocks
1:16 Here's why we started investing in stocks...
3:48 ...but we learned stock picking = active investing
6:58 Passive investments outperform active investments
9:56 Here's what our stock portfolio looks now
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Disclaimer - This content is for education and entertainment purposes only. Steph & Den do not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
What do you invest in? Let us know! 😊
VT and VEQT ❤
XEQT, also robô advisor, biginner .
@@Gustagustapt Well, depends on your age and the appetite for your risk taking. The younger you are the higher the risk one can take.
A small amount of RBC. My dad recommended it and got mad at me for selling it for XEQT, so I keep a small bag
Great video! XEQT + robo advisor growth portfolio 10, and a small portion in SLF (company matched)
“If you aren't thinking about owning a stock for ten years, don't even think about owning it for ten minutes.” That's typically been my approach for purchasing individual positions and the ones I've chose seem to have good business models and are predictable which are things I typically lean toward. Every individual stock I own has a specific task. Some are for growth while others could be for dividends to aid me in DCA'ing into positions if I have a hard financial month ( I'm a photographer ) Overall, Index funds are my largest position solely because they aren't as attractive and I dont need to look for anything large for the next 30+ years just stay consistent and let it run in the background.
Thank you so much for sharing 😊 we love to hear that index funds are your largest position for the long-term, too!
Jack bogle, the man who saved us all ❤
Steph & Den, This is fantastic! I subscribed right away!
Thank you so much! We’re glad you’re here 😊
Literally just what I needed to hear!
🙏🏿🙌🏻 we love to hear that!
ETFs are the Canadian get out of jail card.
Hey guys! Absolutely love your channel. You are helping guide millions of Canadians' out there! Keep up the great work!I just wanted to add my 2 cents to this video. I also sold off the majority of my individual stocks. The reality is, if you don't know how to value a company. You will be blindly buying the stock, just hoping it goes higher. Hope and luck isn't a prudent strategy. I think what most investors do, is put all their money into exciting individual stocks, blindly. So my advice. At least 50 to 70% of your hard earned money should be in an index/etf. Actually even as high as 90%. The remaining 10% you can try your luck with individual stocks. But the bulk of your money or net worth should be held in an quality low expense ratio ETF. I'm in VFV. And i'm here to tell you. My net worth has grown exponentially since 2020. I look at the individual stocks that i currently own as my bonuses. But i'm no reliant on the short term success of them. So that alone allows me to be patience with them. Plus if any of them went to zero. It would financially ruin me, because they are only a small percentage in my portfolio!
Another great vid from y’all 🤩
🙏🏿🙏🏻 thank you so much!
Thanks to you guys for bringing me to this ETFs path: Currently, XQQ 20%, VFV 30% and XEQT 50%. For now, setup the auto deposit every 2 weeks, min 10 year investment goal with 15% of my income. Started with Tfsa.
We love to hear that! That sounds like an amazing set up and plan 🙏🏿👏🏻
Yesssss 🎉 just what I was thinking. I also sold out of individual stocks. I lost 7k of my money Im bad at picking stocks and I dont have access to the information before hand like large institutional investors do
🙌🏿🙌🏻 thank you for sharing that! It’s always a tough lesson to learn, but thankfully you didn’t lose more!
what are your opinions on the crypto spot ETFs
I really enjoy individual stocks, especially if you are playing with house money or funds you are okay with losing. I love having faith in a position, knowing that one day it will thrive. I've had a few times when -40% turned into 100% returns. It's pretty cool, but again, I only play with what I'm willing to lose, like $30 a week, for example. Now I'm looking into ETFs and hoping they come down a bit (VFV) so I can try it again and maybe DCA? I don't know, but I'm looking forward to the journey.
My husband & I decided to do the same thing & have slowly been selling out of our single stocks too.
Happy to hear that you're on the same page 😊
Need a financial planning advice for new comer in Canada... Would you please create a video series on that.... How to balance investments home and other expenses ( Car, etc...)
Thank you for this suggestion! It’s on our list + coming soon 😊
I agree with you guys! I use most of my investment in etf or gic that slowly grow with capital gain and dividents. I think it is a peace of mind when you can spend your energy making more money and knowing that your investment is growing day by day.
Thank you for sharing! We agree with the peace of mind part, too - it really is a nice feeling 😊
I have a 4 month old son so I can't risk my future money too much haha. Btw, would you mind making a video about rental property? What is a benefits of buy it compares to the first main residence? Thank you. I would love to hear your opinion. And I live in Vaughan.
Hi I just bought etfs nvidia 15 shares and tge rest of mag7 1 share for each, in the next 10 years for every 30days Imma put money in 200-500 split in all. Goal is to buy and hold. That’s my strategy, Imma a beginner at this and I hope I made the right decision. What do yall think? Any recommendations or suggestions?
I have the standard: SP 500, Canadian, and International/ emerging market ETF portfolio, also with a dividend etf (xdiv) because the idea of frequent compounding dividends is appealing, but I may sell that and allocate the value through the other etf’s. The only individual stocks I hold are enbridge and Telus; the annual dividend is nice and they are enduring Canadian companies that seem to be really safe over the medium to long term.
That’s great - sounds like a solid foundation! Are you allocating equally to all ETFs in the portfolio?
And agreed, we had Telus and Emera, but stopped adding to them a while back. Those dividends were nice though. 😊
Are you guys part of the blossom community? :)
I invest my money to XEQT and VFV mainly tho I still have individual stocks will get rid of those once I get back my returns. :)
I invest in the following ETFs
30% VFV
30% XQQ
20% VDY
20% XID
Currently planning to max out TFSA and FHSA by end of the year
That’s awesome! 👏🏿👏🏻 I (Den) should also have my TFSA fully maxed out by the end of the year. We’ll need to hear the update on how things are going.
Whats diff between XQQ or XEQT, why XQQ just curious
@@jordan.h6821 No XEQT because I don’t want European exposure + want to narrow down to investing only in india among the emerging markets. Hence I am following my strategy.
@@jordan.h6821 xqq Is the Canadian NASDAQ etf and is a lot more growth oriented compared to vfv and others
While the market is up and you've got some high returns on individual stocks and they've hit new highs and may be getting overvalued it may be wise to take profits and convert that $$ into ets to limit the downside. It may be okay in tfsa, rsp and similar accounts but others you may want to consider taxes and see what makes more sense. If the market hits lows some individual stocks get cheaper than the market as they did 6+ months ago at that point the reverse might make sense also (selling etfs to buy some individual stocks) for higher returns. I like to see this done with a portion of the portfolio and not betting the farm on it just fyi.
Single stocks when buying in the Canadian markets. ETF's when buying in global markets. Single stocks are more risk more reward, etf's are less risk less reward. It's nice to have a mix. I also pick up a lottery ticket every couple of months...extremely high risk of losing, but extremely high rewards, and some day I swear my numbers will come up lol. It's al gambling no matter which path you choose eh. Another chill vid, love the work, keep it up.
Thank you so much 😊 + thank you for sharing!
Also - 😂 love that you’re aware that it can be gambling, depending on what you’re doing with your money!
I agree. Since Canada only has a few stocks worth investing in, just stock pick. Everything else go ETFs
It's very interesting the psychology when you invest in the stock market, the most difficult part is having patience. Stick to the plan for the long term is the best thing, I am starting to invest more on ETFs as well.
That’s definitely true! It’s also interesting seeing how different market cycles affect new investors. You’ll often see very different perspectives on investing depending on what the market looked like when someone first started investing (for example started in 2008 vs 2021). Thanks for the comment 😊
I believe passive investing is the most foolproof way to keep up with inflation and also making a return on your investments.
It really comes down to time in the market. The longer the better. Especially now with robo advisors it’s much easier to set aside a certain amount for the long term and ride the volatility decreasing your risk the closer you get to your goals
Great topic to cover and as always keep going! 🍊
We agree! Time in the market is key (investing as early and consistently as possible). 😊
Thank you so much!
Good point.. the market has been crazy lately, a few surprises here and there.. with all the global happenings taking place I think it's safe to say that a severe global recession is looming..
Hello steph and den i got a question, so for XEQT i was confused on why both of you are investing it in your TFSA instead of your RRSP to avoid the 15% dividends on U.S stocks since XEQT as them in it ???
Great question! Tax efficiency in your portfolio is an interesting topic that we’ll definitely talk about in a future video. For us, we do plan on purchasing XEQT in our RRSP, as well, once our TFSAs and FHSAs are both maxed out (so we plan to invest in XEQT within both / all of our investment accounts as of right now).
does this mean you have to pay taxes on the dividends or only when you sell the stock?
@@jordan.h6821 so I think it’s when the dividends are payed out since it’s U.S Companies. Not sure if it’s when it’s sold as well
Carefree investing through etf is great but there is something you guys forgot to mention. ETFs usually have costs associated with them or fees. To be honest I stay away from etfs because anytime I look at the holdings. The basket usually has some stocks I wouldn’t want to invest in. ETFs are great when you’re already retired. High yield dividend accounts are the way to go. Growth wise you’ll lose a lot if you stay in ETFs in the long run. Create your own basket and stick with that
Passive ETFs have some of the lowest fees available (not to be confused with actively managed ETFs that have particularly high fees). For example, VOO and ARKK are both well known ETFs, but their costs are dramatically different. One is a passive ETF (VOO) and the other is an actively managed ETF (ARKK).
For the average investor, it can be tough to know where to start, let alone creating a single stock portfolio to stick with.
Thank you for your comment + sharing your thoughts 😊
@@stephandden for sure 👍 I think understanding how ETFs works as a whole is important.. diving out of individual stocks and simply putting it into ETFs isn’t really having control and would argue is the same as a robot advisor at that point.
Ark imo is trash Cathie is investing in Roku another example of an etf I wouldn’t playlist in…
Save the fees they add up ! Create your own playlist and stick with companies you believe in and you’ll never lose. Look outside of Wealthsimple and get more international.
One of the biggest mistakes that I've made in my life and one that I regret everyday is not investing in individual stocks years ago because my skillset is perfectly suited for it. I agree that most people are better off investing in ETFs, indexes, and mutual funds because investing in individual stocks takes a particular skillset but as with everything else there's always a small % of the population that can succeed or thrive at something where most people might not. IMO it's worth at least trying it, even if it's initially in a paper account, to see if you're one of those people. Unfortunately for me it took years for me to take the leap because i was intimidated but once I did individual stock picking turned out to be much more lucrative for me over the long term. BTW, the way you handle your finances is the complete opposite of how I handle mine but you're both so engaging I can't help but watch 🙂
Thank you for sharing your take + experience! Also, thank you for watching - we love to hear that 😊
Those 10% active investors that beat the market are also professionals. When I realized this, I sold off all my stocks and just indexed. It's better for me to work harder at my job and make more income than to spend a fraction of the time a hedge/pension fund professional would at picking any stock. VGRO/XGRO or ZGRO and chill. Read more books, lots of books. And then maybe, maybe, tweak your investments.
Hi Steph & Den, I think this is a question for men. We generally have a need to fight benchmarks. But the truth is that if you buy quality and prosperous stocks, the returns are much higher than ETFs (this is also true of losses).
You're totally right! I have 90% ETF and 10% stock picks but honestly so far I don't perform well at all.
Love that you have 90% ETFs! 👏🏿👏🏻
I am with single stocks at the moment but want to sell it away and follow your footsteps.
I am just wondering if you are via Managed Investing or Self-directed Investing (assuming you are on Wealthsimple).
Hi! You should check out our video titled ‘Wealthsimple Invest Portfolio Results After 3 Years (+ I’m Switching To Wealthsimple Trade!’ 😊
I was using Managed Investing for 3 years (and it was great!), but recently switched to Self-Directed Investing.
@@stephandden Oh so you are doing it on your own : self-directed but buying ETFs instead of stocks. Makes sense. Thanks for your prompt response 🙂
Is investing in all-in-one ETFs better than doing a robo-advisor? Thanks! (Assuming risk level is the same)
The all-in-one ETFs (specifically XEQT) can be cheaper than the WS Robo-advisor. And assuming you use Wealthsimple, you can actually automate your deposits and buys to be just as hands-off as the robo-advisor. Another big difference is that unlike a lot of robo-advisors that change/buy different funds depending on the economic climate, with the all-in-one ETFs, the underlying holdings (so the 4 ETFs that make up the overall one) stay the same.
Both are great alternative products, but it’s really all about what you want personally. Check out Steph’s ‘Wealthsimple Invest Portfolio Results After 3 Years’ video where she talks about switching to an all-in-one ETF. 😊
I do a mixture of ETFs and single stocks.
There is a huge advantage with the ETFs as this is more diversification.
You don’t get burned with stocks like AQN. I did own this one, but sold it a long time ago when it was still green for me.
My ETFs are mostly high paying ETFs for income.
My blue chip stocks and some other ETFs are growth.
Examples:
ETFs
HYLD., HHLE, BMAX, BANK, ENCL, HDIV, UMAX, SVOL, etc
Stocks Examples
Apple, Amazon, google, oil stocks, Costco, VISA
Notes:
1) TECH ETF could easily replace the Apple, Amazon, etc
2) I’m a Canadian investor
3) I’m old and grey, so I don’t invest in the latest fads like bitcoin, hot stock of the day. 😂
4) I track all of my investments in a spreadsheet towards for a yearly return and willing to sell when things change or do not work out.
Thank you so much for sharing! 😊
Hey Steph & Dan, can you make a video on the best cash back credit cards in Canada? ILY
Yes, we'll add it to our list! We have a video about credit cards coming out next week, too 😊
Totally, I’ve been thinking about individual stocks to sell off, too! Won’t ever sell my Apple shares tho 😅😂
Ha! We understand that 😅 love that you’re thinking of focusing on passive ETFs, though 😊
Oh wow a begginer here . I dont even have a TFSA and I am on a low income. Where to start please??
Hey! Check out our video called ‘How To Invest Your First $1,000 In The Stock Market’ - then, we also have one called ‘TFSA, Explained’ if you want to learn about that account 😊
Let us know if you have any questions!
@@stephandden thank you guys . I will definitely check these 2 out . 👍
ETF and passive investing is so much smarter long term especially when you think about compounding interest.
👏🏿👏🏻 yes to this!
do you guys have a roth ira as well?
We don’t because we live in Canada! The equivalent here is called a TFSA (Tax Free Savings Account) 😊
So far I invest in 3 ETFs : XEQT, VOO, VFV. Maybe I will get more in the future but I’m 36 and I just start my investment journey. There are a lot things I don’t know I don’t know 😅
That’s great! And haha we hear you on that one. The reality is that we’re all constantly learning and adjusting as we go, but having a solid foundation makes things a lot easier 😊
How come you’re buying all 3 of those ETFs?
@@stephandden I Watch lot of videos and read Ramit Sethi’s book (I will teach you to be rich). But you guys help me figure out what could work in Canada.
Finally I hold VOO in my RRSP account (I heard that’s is better to hold VOO in your RRSP when you live in CANADA to avoid the 15% withholding tax). VFV and XEQT hold in my FHSA account.
I want to get a diversified portfolio and be more agressive. My goal is to reach 100k$ in 3-4 years.
How does your portfolio looks like after all this changes?
We both currently invest in an ETF called XEQT! Dennis has been for the past two years, and shared how his portfolio is looking now in a recent video called ‘Investment Portfolio Results After Two Years…’ 😊
@@stephandden Thank you for the reply! I love you guys!
So far I have my portfolio standing out at an investment of 80% in stocks while 20% in ETF’s, the companies in which I have invested so far have proven good and no doubt they are compounding machines which are giving a good ROIC year over year, but ETF’s are always a safer investment for a longer duration.
I am way more comfortable in single stocks, ETF too slow and too boring for me.
I sold all my stocks too. Just got to be too much to worry about.
We feel you! What are you investing in now? 😊
@@stephandden Mostly ZEQT
Do you know much about options ?
We’re familiar with options, and have seen that they’ve become more popular over the past several years! We don’t invest in them ourselves.
AVGE -Avantis All Equity Markets ETF to the list for worldwide cover in 14 different sectors/Industries.
Interesting! Thank you for sharing 😊
I invest in dividend stocks myself
Do you only invest in dividend stocks? And how come? 😊
Goat of Canadians
🙏🏿🙏🏻
Exposing myself on the internet… but I’ll be going the same lol I have been blindly following y’all’s strategy for years lol 😅
Not blindly following! 😂😂 hahah we love it, you’re the best!
1) Pick good companies
2) Manage risk
3) Be happy when they drop in value (buy more)
4) If you aren't happy when your positions drop in value you either messed up steps 1&2 or you're not cut out for picking stocks, buy ETFs
How do you define ‘good companies’? Are they companies of a certain size? Are they popular or well known companies? Are they companies that have been around for a while? And in that case… how do we define ‘a while’?
When you’re investing for the long term in passive funds that track the market, you’ll always have exposure to ‘good companies’ - and the benefit here is that you’re not relying on yourself, or anyone else, to choose one ‘good company’ from another one.
Another CZcamsr - Ben Felix - has a great video where he breaks down the research that's been done on whether ‘good companies’ make for good investments, if you’re interested in checking it out. 😊
@stephandden in terms of investing, 'good companies' depends on your style of investing. For me it's companies with:
- strong futures
- room for innovation/growth
- economic moats
- juicy gross/operating margins (cash generation)
- Capable management (can they hit targets/beat expectations frequently)
- (there's a reason Microsoft and Starbucks' stock charts look different)
- In summary, tech👍
Margins also being a indirect identifier of moat.
Then I would say a company's valuation comes under risk management, for example a really good company wich is very expensive on typical PEG metrics is more risky than a 'good company' that doesn't have the expensive premium.
i think i only have like 6 individual stocks but everything else is in vanguard ETSs
We love to hear it 😊
Low cost index funds like VFV, ZSP, VDY, XIU, XUU to name a few.
20% Canadian, 60% americana, 10% emerging and 10% global. VOO in USD in my RRSP to avoid dividend ithholding tax.
Would love to see a video on dividend witholding tax :)
Thank you so much for sharing! Good suggestion - we’ll add that to our list 😊
I'm still waiting from Nuvei and Blackberry to pickup so I can sell them. God only knows when that is going to happen.
We hear you on that one! Hopefully you didn’t have too much money in either of them 🙏🏿🙏🏻
Clickbait thumbnail. Thought you were going to talk about the ones you picked.
The title of the video is very direct - ‘Why I Sold All Of My Stocks (I Only Invest In ETFs)’, and the thumbnail has images of stocks and ETFs 😊
@@stephandden well yes it is, but when you put the thumbnail it implies you are talking about what you sold and bought in addition to why you chose ETFs. So the “very direct” title is cancelled out.
Im mostly a dividend investor so i like individual stocks more then ETFs mostly of the higher dividend yield individual stocks has over ETFs and have more in control in what im buying into.
Long-term American ETFs is the way to go for me. Set it and forget it.
Look at the price of a Tesla stock today, and take a second look at it in a couple of years.
Thank you for sharing! 😊
I regret getting into that crypto scam 😡😡😡😡
Oh no! What happened?
@@stephandden Lost some $ and made me realize that its a scam. Its okay tho. Live and learn.
60% ZSP
20% XQQ
20% XEQT (Though I might replace this with more XQQ and ZSP
Interesting! How come you plan to completely remove any Canadian and international/emerging market exposure? Also, thanks for sharing 😊
@@stephandden After thinking about it, I increase XEQT a bit. Reason why I'm going heavy on the US market is because (to me) if the US market crashes, the global market is screwed as well. So XEQT will go down if US does, but the reverse may not be true? Not sure if that makes sense. I'm very new at this as well. But we're still young, and the markets should have enough time to bounce back if something should occur
The only single stocks we invest in is my husband employee stock purchase program through work. It works out to a 17% discount which is worth it to us :)
Would you plan to trim down that position over time or hope to keep loading into it for the duration of your career? Asking because I'm in a similar position & the discount is reduced if I sell anytime in a given year.
@@ryantsui2802 at the moment I think we’ll continue purchasing the max for the duration of his time there. It’s a percentage of each pay check pre-deductions. The rest of our investments are in ETFs and index funds
Thank you for sharing! 😊 Also, that’s great - what percentage of your overall investment portfolio does the rest (ETFs, etc.) take up?