Currently, US stocks are at high levels with no good entry points. Don't chase highs, don't go all in. Using "phased investment + dollar-cost averaging + laddered position building + cash cushion" is the most stable approach. Below is a ready-to-execute plan for you 👇

1. Establish the General Principles (2026-02-11)

- No chasing highs: The S&P/Nasdaq is near all-time highs, only buy on pullbacks.

- Total position limit: Single ETF ≤30%; Broad-based index ≤50%; Sector ≤20%.

- Keep cash: Reserve at least 20%-30% cash to buy the dip during major corrections.

2. Priority ETF Selection (Suitable for phased/DCA)

1. Broad-based Anchor (Must-have)

- $VG S&P 500(VOO.US) (S&P 500): Expense ratio 0.03%, stable, diversified, reliable long-term.

- $Invesco QQQ Trust(QQQ.US) (Nasdaq-100): Tech leaders, AI main theme, slightly higher volatility.

- $VG Total Stock(VTI.US) (Total Market): Broader coverage, lower volatility.

2. Dividend/Defensive (Defense + Income)

- $Schwab US Div Eq(SCHD.US): High dividend + stable earnings, suitable for long-term holding.

- $VG Hg Dvd Yld(VYM.US): High dividend broad-based index, high diversification.

3. Sector/Thematic (Growth potential, small position)

- SOXX/SMH: Semiconductors (AI core), high volatility, only small phased positions.

- **VGT**: Pure tech, more concentrated than QQQ.

3. Buying Strategy When No Good Price (Follow directly)

1. Dollar-Cost Averaging (DCA) (Most hands-off, enforces discipline)

- Invest a fixed amount weekly/monthly into **VOO/SCHD**.

- Benefits: Automatically averages cost, no need to watch the market, avoids buying at the peak.

2. Laddered Position Building (Buy more as it falls, pyramid method)

Divide total capital into 10 parts, buy based on pullback depth:

- Pullback **-5%**: Buy 1 part (10%).

- Pullback **-10%**: Buy 2 parts (cumulative 30%).

- Pullback **-15%**: Buy 3 parts (cumulative 60%).

- Pullback **-20%+**: Buy 4 parts (full position).

3. Initial Light Position Probing (Can do now)

- Use **5%-10% of total capital** to build a base position (e.g., VOO/SCHD).

- Wait for pullbacks to add the rest, don't chase highs.

4. Which ETFs Can Be Tried with a Small Position Now, Which to Avoid

✅ Can try small position/DCA (Now)

- VOO, VTI, $Schwab US Div Eq(SCHD.US): Broad-based + dividend, strong long-term logic, small base position.

- $Invesco QQQ Trust(QQQ.US): Tech main theme, only DCA, not a heavy one-time position.

❌ Avoid/Watch now

- High-priced, high-premium sector ETFs (e.g., some narrow AI/semiconductor ETFs).

- Short-term hype, theme ETFs without earnings support.

- Niche ETFs with high fees and poor liquidity.

5. Rebalancing & Taking Profits (Simple version)

- Profitable ETFs (e.g., AVAV, ALLW): Continue holding, don't add on highs.

- Losing ETFs (e.g., HOOD, INTU): Sell/reduce per previous advice, recycle capital to ETFs.

- Take profits: For a single ETF up 20%-30%, reduce position by 1/3; up 50%+, reduce by 1/2, lock in gains.

6. One-Sentence Summary

Now: Don't chase highs, light base position, DCA + laddered building. Prioritize **VOO/SCHD/$VG Total Stock(VTI.US)**. Keep enough cash for a big drop.