Key insights
- An individual investor is considering shifting savings from USFR (Treasury Floating Rate ETF) to VOO/SPY (S&P 500 ETFs) for long-term growth, driven by a desire for better returns and portfolio diversification. This reflects a potential shift in retail investor sentiment towards risk assets as personal financial situations stabilize and fixed income yields decline, which could provide a modest tailwind for US equities.
Not looking for financial advice or instruction, just a general consensus while I continue researching. I moved my savings a few years back to USFR to at least get a little dividend earnings that reinvest automatically from it just sitting there. I'm not displeased with the results, but now than my life has normalized after a rough patch (along with the fact that USFR's dividend rate has dropped by nearly 2% since then), I'm looking into investing it properly long-term.
I want to move it to a better long-term option with a good bit of diversity and see that VOO or SPY are good options for investing in the S&P 500. In your opinions, is that a better place to move my money to, or should I leave it for now and continue researching better options? Any links to articles and professional discussions on this for more insight are greatly appreciated.