This is why we feel that ETFs are still a better bet. Sure, if you believe in a stock, why not give it a shot? But by and large, using an ETF to get your exposure will be more cost-effective for you by giving you lots of exposure at a low price. It will also be more cost-effective in terms of time – do you have hours to devote each day to researching single stocks? Few do. [How to Put Cash to Work.]
But do keep in mind the issue of too little exposure to too many areas – you could be cheating yourself out of returns. It’s key to strike a balance between too much of a good thing and too little to reap rewards.
For more information on ETF investing, visit our ETF 101 category.
Max Chen contributed to this article.