Your financial advisor (or your favorite finance Youtuber) might have told you about their great portfolio of diversified ETFs.
Their portfolio of diversified ETFs might sound impressive, but in reality, ETFs are just baskets of stocks and bonds.
An ETF company (typically BlackRock or iShares, Vanguard, or State Street ETFs) will bundle stocks together and sell it under one ticker symbol on the stock market. It looks like a stock, quacks like a stock, but it isn’t a stock.
The most popular ETF tracks the S&P 500 index. For Vanguard, that would be the “VOO” ticker.
For you as an individual investor, ETFs are tax efficient, offer high liquidity, and allows you to diversify your portfolio with ease.
Don’t be conned into thinking ETFs are a holy grail, they’re a tool that is actually easy to access.
P.S. The photo says “passive” portfolio. This is loose, because there are actively traded ETFs, but they’re not very common.
P.P.S. The photo is from my upcoming course getting ready for beta launch soon! There will be a sign-up in the comments below for those interested.
#TheMillionImpactMission