Comments on: 10 Reasons I Love to Invest in ETF’s

By: PipsToday

PipsToday — Wed, 03 Oct 2012 06:11:00 +0000

I am a stock trader, invested in mutual funds as well because I believe on “Don’t put all eggs in a bucket” philosophy. Recently, I added ETFs in my trading portfolio to extent my investment areas. However, I am new in ETFs investment. I am agree with your some points but these points are also same in stock and mutual funds like “Lowered Transaction Costs” and “Allows For Better Focus “.

By: Henry Drew

Henry Drew — Thu, 05 Apr 2012 16:22:03 +0000

Thanks for the article. I think it’s very enlightening. Also, promotes the use of ETFs as a means of investment in the stock market. In my blog I’m doing the same. One aspect that is important to note is that with the use of ETF’s can be accessed a very good returns.

I say this because many people insist on the issue of diversification as central. This topic is doing much damage to long term personal savings. Highly diversified mutual funds, generating an average of 4% per year. All reports I’ve read, point out that with 4% a year, you can not save enough to have an adequate pension. The bad news is that 6% does not reach.

I’m promoting the idea that people will have to spend a little more time to manage their savings, investing properly. The ETF’s are tools to generate good returns without having to devote much time to follow up these inversionses. Congratulations.!

By: Money Infant

Money Infant — Fri, 16 Mar 2012 00:20:57 +0000

Using ETF’s as the core of your portfolio and then investing in individual stocks as the outliers is a common strategy. It gives you all the diversification and risk protection in the core with the chance for outsized returns from your individual stock selections. Plus it is a good way to have a safe portfolio while still satisfying the gambler inside

By: Money Infant

Money Infant — Fri, 16 Mar 2012 00:18:37 +0000

I’ll be looking forward to your post on how you bought your first ETF.

By: Money Infant

Money Infant — Fri, 16 Mar 2012 00:15:49 +0000

I know you love ETF’s and thought of you when I was writing this. Glad I didn’t miss anything. ETF’s have become extremely flexible in the past 19 years, with an ETF available to track darn near anything. I guess that should be #11

By: Money Infant

Money Infant — Fri, 16 Mar 2012 00:13:07 +0000

Yes, addressed in #5, 6 and 8. I do agree though that indexed mutual funds (providing you can avoid excessive management fees) are a suitable alternative to EFT’s.

By: Poor Student

Poor Student — Thu, 15 Mar 2012 23:32:35 +0000

I like the diversification of ETFs most, as just about everyone here has said.

But then again the gambler in me believes that there are stocks that are undervalued, so I do have one particular stock now and am always researching good ones. But a broad market ETF should be the backbone, you can always allocate some money and use that as your “fun money” to use to buy individual stocks.

By: MyCanadianFinances

MyCanadianFinances — Thu, 15 Mar 2012 22:46:59 +0000

I have yet to start investing myself but I must say that as soon as I am able I will be investing largely into ETFs. I will most likely be solely investing in ETFs for a good portion of my life until I can build up enough capital to be properly diversified.

By: Nick

Nick — Thu, 15 Mar 2012 21:23:36 +0000

Ha! Yeah, we’re pretty aggressive over here…

By: CultOfMoney

CultOfMoney — Thu, 15 Mar 2012 18:47:35 +0000

Right on! I really live the diversification of ETFs. No more finding out one day that the individual stock you invested in missed earnings, or had a lawsuit filled against them and suffering a whack to the portfolio value. As you know, I invest only in ETFs, because of all the reasons you list here. Lower expenses, lower risk, and with such a high percentage of a stock’s price correlated to industry or even sector, I just don’t see the risk/reward trade-off being worth it. Thanks for making the list, it should help folks new to the (fairly new) world of ETFs too.