4 ETF Portfolios for Beginners in 2023 (SIMPLE STOCK PORTFOLIO CONSTRUCTION)
· 08.01.2023 · 16:15:02 ··· ··· Sunday ·· 7 (0)
fu academy #ETFs are investment products that track a particular index, such as the S&P 500, or a specific asset class, such as gold or real estate. They are bought and sold on stock exchanges, just like individual stocks, and can be held in a brokerage account or a retirement account, such as a 401(k) or IRA.
ETFs offer many benefits for investors. One of the main advantages is that they provide broad diversification, as they typically hold a basket of underlying securities, such as #Stocks or bonds. This can help reduce risk by spreading it across a larger number of assets. ETFs also tend to have low expense ratios, which means that they have lower ongoing fees than some other types of investment vehicles. Additionally, ETFs can be easily bought and sold throughout the trading day, providing investors with flexibility and liquidity.
Overall, ETFs can be a convenient and cost-effective way for investors to gain exposure to a specific market or asset class. They can be used as part of a long-term investment strategy or as a tool for tactical asset allocation.
There are several things that new investors should consider when building their own ETF equity portfolio:
#AssetAllocation - It's important to allocate your assets across different asset classes, such as stocks, bonds, and cash, in a way that aligns with your investment goals and risk tolerance. This can help you diversify your portfolio and manage risk.
#Diversification - Consider diversifying your portfolio by holding a mix of different ETFs that track different indexes or asset classes. This can help you spread risk across a larger number of securities and industries.
Cost - Look for ETFs with low expense ratios, as these will have lower ongoing fees and may be more cost-effective in the long run.
Liquidity - Choose ETFs that are highly liquid, meaning that they have high trading volumes and can be easily bought and sold on the market.
Investment objective - Clearly define your investment objective, such as long-term growth or income generation, and choose ETFs that align with this objective.
Risk tolerance - Consider your risk tolerance when selecting ETFs. If you are a more risk-averse investor, you may want to choose ETFs that track more conservative indexes or asset classes.
Investment horizon - Consider your investment horizon, or the amount of time you plan to hold your investments, when choosing ETFs. If you have a longer-term horizon, you may be more comfortable taking on more risk in exchange for potentially higher returns.
The main focus of this video is: Simplicity. This video shows 4 portfolios in which a maximum of 3 ETFs are used to build a well-rounded all-ETF and all-equity global #InvestmentPortfolio. The first portfolio is the World Market Cap Portfolio. This one invests globally and weighs the country exposure by the size of their stock markets. The second portfolio is the Dividend World Portfolio. This one invests in companies that pay out high dividends are usually more stable with higher profits that can support high payouts. The third portfolio is the Green World Portfolio. This one invests in companies with above-average ESG ratings. The fourth and last portfolio is the World GDP Portfolio. This one weighs the country exposure by a country’s share in the global GDP distribution.
In this video, I will show you how you can easily build these 4 different #ETF portfolios yourself in a simple and cheap way. I will also give you insights into the composition, costs and the performance of each of them. Enjoy!
⏰⏰ Timecodes ⏰⏰
0:00 Intro
0:48 Why Global Diversification?
1:54 Portfolio No 1: World Market Cap
4:17 Portfolio No 2: Dividend World
6:06 Portfolio No 3: Green World
8:44 Portfolio No 4: World GDP
10:12 Final Thoughts
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DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.
#VTI #VEA #IEMG #ESGV #VSGX #DividendPortfolio #3FundPortfolio #ESGPortfolio #WorldPortfolio
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