Comment Updates: ETFs
ETFs, or exchange-traded funds, are a collection of assets — usually stocks — that you can invest in on the public markets. Instead of owning stock in a single business, investors have the opportunity to invest in hundreds of companies at once, providing immediate diversification and a much more secure investment.
ETFs will aim to mimic the movements of a particular index, such as the S&P 500 or the Nasdaq, or even something more niche like The Dividend Aristocrats Index. Because of this, they are usually passively managed and have much lower fees than mutual funds. However, unlike mutual funds, the end goal of an ETF is not to beat the market, but to match its returns. This will result in more muted movements both up and down.
At MyWallSt, we strongly endorse buying individual businesses you believe in and holding them for the long-term. This is how we achieve our market-beating returns. However, that does not mean we ignore ETFs either. In fact, we recommend seven different funds as part of our shortlist that cater to a range of both specialist and broad market-based offerings, allowing users to apply a more general indexing strategy or get into the weeds of some future-relevant trends.
Ranging in focus from small-caps, to REITs, to international dividend payers, and even the cybersecurity and robotic industries, there’s something in there for everyone.
For beginners who may not have the confidence to start picking individual stocks just yet, ETFs are the perfect jump-off point to get skin in the game. Irrelevant of your experience in the market, ETFs can prove to be foundational aspects of building a diversified and balanced portfolio.
We have updated all seven of our recommended ETFs to reflect the changes in composition over the last year.
Read the updated comment for the Vanguard S&P 500 Index (VOO).
Read the updated comment for the Dividend Aristocrats Index (NOBL).
Read the updated comment for the PureFunds ISE Cyber Security ETF (HACK).
Read the updated comment for the Vanguard Small-Cap EFT (VB).
Read the updated comment for the Global Robotics and Automation ETF (ROBO).
Read the updated comment for the International Dividend Appreciation ETF (VIGI).
Read the updated comment for the Vanguard REIT ETF (VNQ).
Is there a specific stock on the shortlist that you’d like our analyst team to revisit? Let us know through the ‘Contact Us’ button in the MyWallSt app menu.