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There's no such thing as a risk-free investment
But did you know you can own pieces of companies such as Amazon, Apple, or Microsoft with limited risk?
It's pretty easy actually
Learn how in
"ETF's Explained"
- A THREAD -
But did you know you can own pieces of companies such as Amazon, Apple, or Microsoft with limited risk?
It's pretty easy actually
Learn how in
"ETF's Explained"
- A THREAD -
1.
Kicking it off with the basics..
An ETF is known as an exchange traded fund
These funds own a collection of securities
ETFs trade in the same way regular stock would
Kicking it off with the basics..
An ETF is known as an exchange traded fund
These funds own a collection of securities
ETFs trade in the same way regular stock would
2.
So what are some of the advantages of ETFs?
- Lower fees
- Diversification
- Trades similar to stock
- Limited capital gains tax
This doesn't mean they don't there aren't any disadvantages..
So what are some of the advantages of ETFs?
- Lower fees
- Diversification
- Trades similar to stock
- Limited capital gains tax
This doesn't mean they don't there aren't any disadvantages..
3.
Some of the disadvantages include
- Lower dividend yield
- Less Diversification (some ETFs focus on individual sectors)
- Some ETFs are taxed higher than others (ETF that holds precious metals)
Overall the pros outweigh the cons
Let's go over some of my favorites...
Some of the disadvantages include
- Lower dividend yield
- Less Diversification (some ETFs focus on individual sectors)
- Some ETFs are taxed higher than others (ETF that holds precious metals)
Overall the pros outweigh the cons
Let's go over some of my favorites...
4.
Let's start by looking at the Invesco $QQQ ETF
This is an absolute POWERHOUSE
- It's up 22.02% YTD
- Its up 80.02% in 3 years
- It's up 133.5% in 5 years
It's top 3 holdings are:
- Apple 12.17%
- Microsoft 11.25%
- Amazon 10.88%
What's not to love about this ETF?
Let's start by looking at the Invesco $QQQ ETF
This is an absolute POWERHOUSE
- It's up 22.02% YTD
- Its up 80.02% in 3 years
- It's up 133.5% in 5 years
It's top 3 holdings are:
- Apple 12.17%
- Microsoft 11.25%
- Amazon 10.88%
What's not to love about this ETF?
5.
Next up we'll look Vanguard S&P 500 ETF $VOO
You can't go wrong with this one
It's not as tech focused as $QQQ is though
Over the last 5 years this ETF is up 55.01%
It's top 3 holdings are:
- Microsoft 5.99%
- Apple 5.77%
- Amazon 4.49%
Next up we'll look Vanguard S&P 500 ETF $VOO
You can't go wrong with this one
It's not as tech focused as $QQQ is though
Over the last 5 years this ETF is up 55.01%
It's top 3 holdings are:
- Microsoft 5.99%
- Apple 5.77%
- Amazon 4.49%
6.
Looking for a dividend ETF?
Vanguard's High Dividend Yield ETF $VYM is a must
They pay a 3.75% yield
Don't expect crazy returns now
Over the last 10 years this ETF is up 115.82%
It's top 3 holdings are:
- Johnson & Johnson 3.86%
- Proctor & Gamble 3.03%
- JPMorgan 2.97%
Looking for a dividend ETF?
Vanguard's High Dividend Yield ETF $VYM is a must
They pay a 3.75% yield
Don't expect crazy returns now
Over the last 10 years this ETF is up 115.82%
It's top 3 holdings are:
- Johnson & Johnson 3.86%
- Proctor & Gamble 3.03%
- JPMorgan 2.97%
7.
I personally own these 3 ETFs and have been adding to my positions over time
$QQQ has been my strongest ETF position thus far
This ETF tends to be more volatile than most as it's mainly tech focused
$VOO & $VYM aren't as volatile and will still bring you long term gains
I personally own these 3 ETFs and have been adding to my positions over time
$QQQ has been my strongest ETF position thus far
This ETF tends to be more volatile than most as it's mainly tech focused
$VOO & $VYM aren't as volatile and will still bring you long term gains
Wondering what ETFs you should be invested in?
Let me help you out
Join over 75 people subscribed to The Big Picture
I'll give you both short and long term setups to look at
All you have to do is buy
Use code "money" for 33% off https://gum.co/elIOM
Let me help you out
Join over 75 people subscribed to The Big Picture
I'll give you both short and long term setups to look at
All you have to do is buy
Use code "money" for 33% off https://gum.co/elIOM
