Individual Stocks & Bonds, Mutual Funds, or ETFs?

If your goal is low costs, broad diversification and/or sector investing, you might favor ETFs. ETFs are the perfect investment vehicle for diversification in industries where the portfolio manager wants broad exposure to specific sectors.

Related: 10 Bargain ETF Picks for Trade Wars, Tech Drama

There are clear long term advantages to controlling your own investments. The goal is to use the optimal mix or combination of investment vehicles that best meets your objectives and goals.

Personally, I like to use a combination of individual stocks and ETFs. This allows me to meet the important portfolio management goal of keeping expenses low. Investing in individual stocks allows me to target the best companies which are priced with a margin of safety. ETFs allow me to select specific sectors or countries where I might want broader diversification.

Do you stick to one investment vehicle or use a combination?

This article was republished with permission from Arbor Investment Planner.