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- 11 April 2021
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Ok, so this is not really specific to ETFs, nor is it necessarily about 'losses'.
My example, and my question, is really about how we make decisions on whether its likely more profitable to hold onto a stock that might be trading at less than its value or according to its long-term trajectory, so as to buy into something that is performing better.
For me, I have around $20k in the Vanguard Diversified Growth ETF (VDGR) and, ideally, I'd like to sell these and divert into something with less exposure to bond markets and lower management fees.
The issues is that the ETF hasn't fully recovered from the crash in 2020, and seems to be recovering pretty strongly. As such, I'm reluctant to sell now, if I can expect a certain % growth from that ETF within the next year (for example), that will likely outstrip the growth in whatever I invest in elsewhere.
The mitigating factor I guess is that it is really an index fund, so if any other ETF tracking similar markets should grow proportionately.
Considering this, are there any other factors you guys are aware of that should be influencing my decision to 'hold em or fold em'? Tax, brokerage, div payouts ? What in general are the techniques you use to decide when to cash out of something that is no longer meeting your expectations ?
My example, and my question, is really about how we make decisions on whether its likely more profitable to hold onto a stock that might be trading at less than its value or according to its long-term trajectory, so as to buy into something that is performing better.
For me, I have around $20k in the Vanguard Diversified Growth ETF (VDGR) and, ideally, I'd like to sell these and divert into something with less exposure to bond markets and lower management fees.
The issues is that the ETF hasn't fully recovered from the crash in 2020, and seems to be recovering pretty strongly. As such, I'm reluctant to sell now, if I can expect a certain % growth from that ETF within the next year (for example), that will likely outstrip the growth in whatever I invest in elsewhere.
The mitigating factor I guess is that it is really an index fund, so if any other ETF tracking similar markets should grow proportionately.
Considering this, are there any other factors you guys are aware of that should be influencing my decision to 'hold em or fold em'? Tax, brokerage, div payouts ? What in general are the techniques you use to decide when to cash out of something that is no longer meeting your expectations ?