INVESTING IN ETFs

You want to invest, but picking individual stocks seems too stressful and risky. What if you pick the wrong one? What if you can only afford to invest a little bit? Sure, you might have a diverse looking portfolio. But if you only one two shares of each company … long term, what’s that gonna do for you?

You might be better served buying a few different exchange traded funds (or ETFs). These funds are like baskets and they can be broad market, like SPLG, which is an S&P500 index fund (it owns 500 large US companies), or you can buy sector specific ETFs.

Remember, there’s no 100% right or best way to invest. It all comes down to how involved you want to be. I personally invest heavily in index funds, individual growth and dividend stocks, and some small speculative stuff (nothing more than I’m willing to lose).

You might find that you don’t have the time or interest in picking individual stocks. That’s totally fine. It’s not “wrong.” And there isn’t a “better way” to invest. The best way to invest is the way that makes you feel comfortable.

Maybe you want a broad market S&P500 index fund and a portfolio comprised of dividend paying ETFs. In this video, I chose three dividend paying ETFs, but I made a point to find three that had as little overlap as possible.

You might decide you’re fine with one S&P500 index fund. Or you might decide you want a mixture of index funds broken down by sector. In my latest TikTok, found here, I walk through an example of a diverse portfolio via sector specific ETFs.

Happy investing.