Are you a novice to exchange traded fund (ETF) investing?
If you would like to build an all-ETF portfolio, there are some things to consider.
- Diversification: As a new investor, this is a must-have for a portfolio. Given that we’ve had a decline in the market, it is a good time to get in. We encourage large, mid, small and international ETFs. From a diversification standpoint there is Vanguard Total Stock Market (VTI) which offers quick and easy allocation. The underlying index has a bit of everything.
- Do not over-allocate domestically: Remember that the world’s market-cap is two-thirds that outside the United States. As U.S. investors, we tend to do a vast majority of allocation domestically, because it’s what we know. We should be looking more internationally. Vanguard FTSE All-World ex-US (VEU) gives just international stocks in the index.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.