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For new investors I always suggest starting out building a base in a broad market ETF or Index Fund.
You can buy ETFs that mirror the S&P 500 and have holdings in the likes of $AAPL, $MSFT, $AMZN and 100s more.
ETF investing is easy and hassle free
"Utilizing ETFs"
THREAD
You can buy ETFs that mirror the S&P 500 and have holdings in the likes of $AAPL, $MSFT, $AMZN and 100s more.
ETF investing is easy and hassle free
"Utilizing ETFs"
THREAD
1/
ETF stands for Exchange Traded Fund
Much like a mutual fund, ETFs are a bundle of stocks
They come in all shapes in sizes. They Include:
Major Average ETFs
Industry Specific ETFs
Market CAP ETFs
and many other combinations
ETF stands for Exchange Traded Fund
Much like a mutual fund, ETFs are a bundle of stocks
They come in all shapes in sizes. They Include:
Major Average ETFs
Industry Specific ETFs
Market CAP ETFs
and many other combinations
2/
ETFs differ from mutual funds in that they trade much like a stock throughout the day.
Mutual funds update their price based on their holdings once per day AFTER the market closes and daily prices are finalized.
ETFs differ from mutual funds in that they trade much like a stock throughout the day.
Mutual funds update their price based on their holdings once per day AFTER the market closes and daily prices are finalized.
3/
Here are some advantages of investing in ETFs
Allow for diversification
Low fees
Less research needed
Able to easily track the market
Lowers portfolio risk
Here are some advantages of investing in ETFs
Allow for diversification Low fees Less research needed Able to easily track the market Lowers portfolio risk
4/
Being that ETFs are a bundle of stocks, you tend to miss out on large stock jumps.
But with lower risk, you will limit the volatility you would see in individual stocks, which makes for a good investment when getting started.
Being that ETFs are a bundle of stocks, you tend to miss out on large stock jumps.
But with lower risk, you will limit the volatility you would see in individual stocks, which makes for a good investment when getting started.
5/
Nothing worse than starting your investing journey in individual stocks only to see it drop 20% in one day!
Next, let's look at some of the more popular ETFs and some I utilize in my portfolio.
Nothing worse than starting your investing journey in individual stocks only to see it drop 20% in one day!
Next, let's look at some of the more popular ETFs and some I utilize in my portfolio.
6/
Here are a few popular ETFs that mirror the S&P 500
$VOO Vanguard S&P 500 ETF
$IVV iShares S&P 500 ETF
$SPY SPDR S&P 500 ETF
All 3 mirror the S&P 500 and perform almost indentical to one another.
Here are a few popular ETFs that mirror the S&P 500
$VOO Vanguard S&P 500 ETF
$IVV iShares S&P 500 ETF
$SPY SPDR S&P 500 ETF
All 3 mirror the S&P 500 and perform almost indentical to one another.
7/
The $QQQ is a popular technology ETF
Top 5 holdings include:
- $AAPL
- $MSFT
- $AMZN
- $GOOGL $GOOG
- $FB
The 5 holdings make up over 45% of the ETF
This ETF is up 30% YTD
The $QQQ is a popular technology ETF
Top 5 holdings include:
- $AAPL
- $MSFT
- $AMZN
- $GOOGL $GOOG
- $FB
The 5 holdings make up over 45% of the ETF
This ETF is up 30% YTD
8/
A dividend ETF I utilize is $SCHD which is the Schwab US Dividend Equity ETF
Dividend Yield: 3.32%
Top 5 holdings:
$UPS
$QCOM
$PFE
$BLK
$PEP
A dividend ETF I utilize is $SCHD which is the Schwab US Dividend Equity ETF
Dividend Yield: 3.32%
Top 5 holdings:
$UPS
$QCOM
$PFE
$BLK
$PEP
9/
You can easily have a portfolio of ALL ETFs if you wanted because you are able to diversify your portfolio all while having sector specific focus.
Some key things to look out for are "Expense Ratios"
An expense ratio is what the ETF manager charges to manage the ETF.
You can easily have a portfolio of ALL ETFs if you wanted because you are able to diversify your portfolio all while having sector specific focus.
Some key things to look out for are "Expense Ratios"
An expense ratio is what the ETF manager charges to manage the ETF.
10/
ETFs that are more actively managed have much higher expense ratios that can eat into profits.
ETFs that track the S&P 500 are not actively managed so those expense ratios are nearly 0, at .03% or so.
ETFs that are more actively managed have much higher expense ratios that can eat into profits.
ETFs that track the S&P 500 are not actively managed so those expense ratios are nearly 0, at .03% or so.
11/
If you are interested in hearing more about what ETFs I invest in regularly, sign up for the SEEKER Newsletter.
You can sign up on substack, it is FREE!
Here is a stock analysis that I dropped yesterday on $DIS https://dividendseeker.substack.com/p/disney-surviving-through-a-pandemic
If you are interested in hearing more about what ETFs I invest in regularly, sign up for the SEEKER Newsletter.
You can sign up on substack, it is FREE!
Here is a stock analysis that I dropped yesterday on $DIS https://dividendseeker.substack.com/p/disney-surviving-through-a-pandemic
