Prefers a diversified long-term investment in VOO over VUG due to VUG's algorithmic weighting and concentration in mag7 stocks.
VUG is heavily weighted by algorithmic bias towards larger stocks, especially mag7, which outperformed in the last decade but has underperformed recently; prefers diversified exposure in VOO for the long run.
@simplehhuman looking at VUG. it's dictated by algo weighting, biasing larger weight. outperformed since mag7 did very well in last decade but underperformed because of heavy mag7 weight. i think i still prefer diversified long run in VOO.
| Horizon | Raw move | vs SPY |
|---|---|---|
| 1 day | -0.2% | -0.1% |
| 1 week | +0.0% | -0.1% |
| 1 month | -0.7% | -0.1% |
| 3 months | — | — |
| 6 months | — | — |