avatarFernando Lopes

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Abstract

s plenty of choices around.</p><p id="2812">As a starter and to get a feeling for volatility, <b>Market ETFs</b> are generally your first step. They give a high level of diversification because they track a large index such as the S&P500 and generally, they have very low-cost fees associated (less than 0.5%).</p><p id="4691">ETFs are traded just like a normal stock and are associated with a ticker symbol. Your broker should normally provide access to a selection of these financial products.</p><h1 id="9a56">What do I hold?</h1><p id="5bed">I hold ticker symbols: <b>VUSA </b>and <b>IPRP</b>. These are European traded ETFs because I am based in Luxembourg. Therefore, transaction fees are very low using my broker (actually 1 transaction per month is free). You should make sure you do not pay much in transaction feed if you want to invest regularly.</p><p id="12d1" type="7">So I do use ETFs as a savings account!</p><p id="a7b0">Every month I put some money aside just for it and I do not trade them (normally!).</p><p id="d37a"><b>VUSA </b>is a Vanguard ETF that tracks the S&P500, with an expense rate of 0.07%. The YTD return is 17.63% and currently has a dividend yield as of 1.72%.</p><p id="fb27"><b>IPRP </b>is an iShares ETF that holds securities in Real Estate. Expense rate of 0.40%. The YTD return is 13.60% and currently has a dividend yield as of 2.92%.</p><p id="77d6"><b>Do you hold any ETFs? Which ones? Let me know in the comments below.</b></p><p id="2868"><b><i>If you like my content, please check my other stories:</i></b></p><div id="31a6" class="link-block"> <a href="https://readmedium.com/3-side-income-ideas-for-2019-5d4480bfd352">

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These Are the ETFs I Hold in My Portfolio

Photo by Fabian Blank on Unsplash

Currently, I only hold 2 ETFs in my portfolio (April 2019). As far as I can see, ETFs are a great tool to start investing in the stock market.

Exchange Traded Funds generally contain a set of securities (some more than others). So, for that reason, they are an easy way to add diversification to your portfolio.

Maybe I am biased and considering I still define myself as a beginner investor, mainly because I do not have a track record of many years, I consider ETFs as a wise choice for beginners.

Any non-experienced investor tends to start with stock picking and generally attached to the companies that we have some kind of relationship with. Either we are consumers/customers of such companies or we got a suggestion from a family member, friend or a finance analyst.

While it might be attractive the idea of picking up a few apples from the tree, young investors lack knowledge in the fundamental and technical analysis of the markets.

So how can ETFs help me?

There are many types of ETFs: the ones that follow the market, the ones that track commodities or the ones that focus on specific industries. There is plenty of choices around.

As a starter and to get a feeling for volatility, Market ETFs are generally your first step. They give a high level of diversification because they track a large index such as the S&P500 and generally, they have very low-cost fees associated (less than 0.5%).

ETFs are traded just like a normal stock and are associated with a ticker symbol. Your broker should normally provide access to a selection of these financial products.

What do I hold?

I hold ticker symbols: VUSA and IPRP. These are European traded ETFs because I am based in Luxembourg. Therefore, transaction fees are very low using my broker (actually 1 transaction per month is free). You should make sure you do not pay much in transaction feed if you want to invest regularly.

So I do use ETFs as a savings account!

Every month I put some money aside just for it and I do not trade them (normally!).

VUSA is a Vanguard ETF that tracks the S&P500, with an expense rate of 0.07%. The YTD return is 17.63% and currently has a dividend yield as of 1.72%.

IPRP is an iShares ETF that holds securities in Real Estate. Expense rate of 0.40%. The YTD return is 13.60% and currently has a dividend yield as of 2.92%.

Do you hold any ETFs? Which ones? Let me know in the comments below.

If you like my content, please check my other stories:

Disclaimer: I am not a financial advisor. Always do your own research when investing.

Investing
Personal Finance
Finance
Money
Stock Market
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