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Not familiar with ETFs?
Let’s get you acquainted so you can sleep better at night
// Thread //
Let’s get you acquainted so you can sleep better at night
// Thread //
Instead of purchasing just one company
You get a bunch of companies sold as just one unit within an Exchange Traded Fund (ETF)
Think of a salad
When you buy one, what do you get?
Within the salad there could be chicken, vegetables, fruit and different types of greens
You get a bunch of companies sold as just one unit within an Exchange Traded Fund (ETF)
Think of a salad
When you buy one, what do you get?
Within the salad there could be chicken, vegetables, fruit and different types of greens
ETFs are the same as salads
And like stocks, they're traded on an exchange so you can buy and sell them like you would individual shares
Want to know what the best part is?
Keep reading...
And like stocks, they're traded on an exchange so you can buy and sell them like you would individual shares
Want to know what the best part is?
Keep reading...
Here are 2 reasons why everyone should have ETFs in their portfolio's:
1) They add diversification and therefore lower concentration risk
2) You have access to way more companies that you might not be able to afford if you bought individually
Wait, there's more...
1) They add diversification and therefore lower concentration risk
2) You have access to way more companies that you might not be able to afford if you bought individually
Wait, there's more...
Many ETFs also pay dividends
So not only do you get exposure to more companies
You also get paid for doing so
And there's nothing more passive than earning a dividend
The laziest of all income streams
What's the bad part?
I'll tell you...
So not only do you get exposure to more companies
You also get paid for doing so
And there's nothing more passive than earning a dividend
The laziest of all income streams
What's the bad part?
I'll tell you...
Spreading your money across many different companies comes at a cost
This cost is called the “management expense ratio" or MER
The average ETF carries an MER of around 0.44%
This means that you’d pay around $4.40 in annual fees for every $1,000 you invested into the fund
This cost is called the “management expense ratio" or MER
The average ETF carries an MER of around 0.44%
This means that you’d pay around $4.40 in annual fees for every $1,000 you invested into the fund
But some funds are notorious for providing low MERs
And when you think about it
It's not much of a cost considering you're paying to decrease your exposure to risk and diversify your portfolio
And when you think about it
It's not much of a cost considering you're paying to decrease your exposure to risk and diversify your portfolio
So next time you're looking for that perfect addition to your portfolio
Try adding some ETFs into the mix
I promise you'll sleep better at night knowing your money is safer
And you'll get to own way more companies than you already do
Try adding some ETFs into the mix
I promise you'll sleep better at night knowing your money is safer
And you'll get to own way more companies than you already do
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If you want to learn how to build an effective dividend portfolio with ETFs to lower your overall risk
And how to take advantage of the Cycle of Wealth so you can compound your earnings like a pro
Everything you need is in my course below: https://bit.ly/DividendCashFlow
And how to take advantage of the Cycle of Wealth so you can compound your earnings like a pro
Everything you need is in my course below: https://bit.ly/DividendCashFlow
