Burned by the Stock Market? Consider These 3 ETFs Instead – Daily Journal Online

§ August 27th, 2021 § Filed under Nanotechnology Journal Comments Off on Burned by the Stock Market? Consider These 3 ETFs Instead – Daily Journal Online

ETFs that track major stock indexes are among the most popular, and there are plenty of good options in this category. Index investing isn't the most exciting strategy, but it has historically yielded fine results. Index ETFs generally grow as the market does, so they'll keep appreciating as long as the global economy moves forward.

The SPDR S&P 500 ETF Trust (NYSEMKT: SPY) and the Vanguard S&P 500 ETF (NYSEMKT: VOO) are probably the most popular ETFs that track the S&P 500 Index, and Invesco QQQ Trust (NASDAQ: QQQ) is a high-profile NASDAQ fund. They're great options with low expense ratios and high liquidity, which makes transactions easy and inexpensive.

Those are the most straightforward ETFs for simple index investing strategies, but I prefer an alternative approach. You can't beat the market if you only own the market, so you'll have to try something different to get better returns. The Invesco S&P 500 Equal Weight ETF (NYSEMKT: RSP) holds the same stocks as other S&P 500 funds, but its allocation strategy is different. In most index funds, the largest positions are the largest companies -- for example, the 10 biggest holdings in the SPDR S&P 500 fund make up 28% of the total portfolio.

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Burned by the Stock Market? Consider These 3 ETFs Instead - Daily Journal Online

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