These Are the ETFs I Hold in My Portfolio
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.
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Disclaimer: I am not a financial advisor. Always do your own research when investing.
