NEW (better) 4 ETF Portfolio beats everything! (BEST Simple Investing Guide 2026 📈)

Investing Simplified: A 5-Minute Strategy

Introduction to the Investment Strategy

• The speaker introduces a simple investment strategy that can be set up in about five minutes, claiming it has outperformed the market for the last decade.

• Emphasizes that 99% of viewers can invest using specific ETFs in a straightforward portfolio approach—set it and forget it.

• The speaker, Nolan Goa (Professor G), stresses the importance of personal empowerment in managing finances without needing a financial advisor.

Types of ETFs Not Included in the Strategy

Bond ETFs

• Bonds are mentioned as historically safe investments but have underperformed recently, making them unsuitable for this strategy.

• The speaker notes that bonds have declined by -5% over the past five years, indicating they do not provide safety during market downturns.

International ETFs

• International ETFs are deemed outdated due to globalization; investing solely based on geography is no longer effective.

• The speaker argues that large companies operate globally, making geographical distinctions less relevant for investment decisions.

Key Insights on Market Trends

• Globalization allows major companies to gain market share across multiple regions; thus, investing in these companies is more beneficial than focusing on international markets.

• Long-term performance is prioritized; international ETFs like VXUS have only appreciated at around 5% annually since inception.

Recommended Investment Strategies

S&P 500 ETF

• The S&P 500 ETF is recommended as a foundational investment. Options include VU or SPYM from Vanguard and State Street respectively.

• Historical data shows an average annual appreciation of over 11% for SPYM since its inception, highlighting its reliability through various economic cycles.

Technology-Focused ETF

• A technology-focused ETF is suggested for higher potential returns. It should encompass broader sectors beyond just technology or AI to mitigate risk while aiming for growth.

Investing Insights: QQQM and SCHD ETFs

Overview of QQQM

• QQQM and QQQ are identical in their investment strategy, both tracking the NASDAQ 100. However, QQQM has a lower expense ratio of 0.15% compared to QQQ's 0.20%.

• Over the past decade, QQQM has achieved an impressive average annual appreciation of over 19%, indicating strong growth potential.

• The top holdings in QQQM include major tech companies like Nvidia, Apple, Microsoft, Google, and Palantir, reflecting its technology-heavy focus.

Investment Strategy Considerations

• While aiming for broad growth is essential, investors must be cautious as high-growth sectors like technology can experience significant volatility.

• Protecting against downside risk is crucial; a well-balanced portfolio should include stable investments to mitigate losses during market downturns.

Portfolio Management Assistance

• The speaker offers personalized portfolio strategy consultations to help individuals balance risk effectively.

• Interested parties can apply for a consultation via a link provided in the video comments.

Importance of Recession-Proof Investments

• For safer investments during economic downturns, it's advisable to choose funds with minimal technology exposure and those that feature recession-resistant companies.

• SCHD is highlighted as a preferred ETF due to its focus on dividend-paying stocks that can provide returns even when market growth stalls.

Market Cycles and Timing

• Investing during low periods or when valuations are favorable is key; historical trends show that value stocks often outperform after tech booms.

• Recent performance indicates that tech-heavy indices like S&P 500 have thrived due to AI advancements but may face corrections as market dynamics shift.

Future Outlook for SCHD

• As interest rates decline (projected by mid-2026), there will likely be a shift from high-yield savings accounts back into equities offering dividends above inflation rates.

• A significant amount of capital currently held in safe assets could flow into SCHD as it presents an attractive option for income generation amidst changing economic conditions.

Conclusion on Investment Timing

• Now is considered an opportune time to invest heavily in SCHD before anticipated growth occurs by the end of 2026.

Investment Strategies Using ETFs

Overview of ETFs in the Portfolio

• The speaker discusses various ETFs, each serving a specific purpose: SPYM as the foundation reflecting average stock market performance, QQQM for higher risk and potential rewards, and SCHD for downside protection and passive income.

Introduction to SPMO

• SPMO is introduced as the Invesco S&P 500 Momentum ETF, which combines elements of growth and safety. It focuses on companies within the S&P 500 that exhibit strong momentum.

Characteristics of SPMO

• The fund measures performance based on price movements over the past year, targeting large-cap US equities with strong recent performance that may continue to thrive in trending markets.

• SPMO rebalances semiannually to maintain its focus on high momentum stocks, ensuring investments are current. Its expense ratio is 0.13%, with a total of 100 stocks in its portfolio.

Performance Insights

• Since inception over ten years ago, SPMO has averaged an annual appreciation of over 18%, showing similar growth potential to QQQM while providing more stability.

• In contrast to other funds during market downturns (e.g., QQQM dropped 32% in 2022), SPMO only fell by 10%, demonstrating its resilience compared to both growth-focused and market-average ETFs.

Top Holdings and Personal Investment Strategy

• Key holdings include major companies like Amazon, Nvidia, Meta, JP Morgan, Walmart, and Costco. The speaker emphasizes personal investment in this ETF through taxable brokerage accounts.

Tailored Portfolio Strategies

• The speaker outlines three different investment strategies based on individual circumstances:

• Person One: Young professional seeking aggressive growth; suggested allocation: 30% SPYM, 25% SPMO, 25% QQQM, 20% SCHD.

• Person Two: Near retirement looking for stability; suggested allocation: 25% SPYM, 25% SPMO, 20% QQQM, 30% SCHD.

• Person Three: Retiree focused on wealth preservation; suggested allocation: 50% SCHD, 25% SPYM, 15% SPMO, and 10% QQQM.

Conclusion & Further Learning Opportunities

• Emphasis is placed on having emergency funds outside investment accounts tailored to individual needs.

• The speaker offers personalized consultations for deeper insights into portfolio management based on unique financial situations. Additional resources are provided for further learning about investing strategies.