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3 Ways to Build an All-ETF Portfolio

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  3 Ways to Build an All-ETF Portfolio Building an all-ETF portfolio is a great option for many investors. It offers the ability to construct a highly diversified, low-cost portfolio that can be quickly and easily rebalanced to meet changing market conditions. The three main options for building an all-ETF portfolio include: Keeping it simple Consider using two ETFs to help provide a balanced, diversified portfolio of stocks and bonds. Using only one ETF per asset class means you miss out on having multiple funds that might be able to provide more opportunities to fine tune your portfolio. However, if you're an investor seeking moderate risk and decide that you want 60% of your portfolio in stocks and 40% in bonds. The advantage of this type of portfolio is its simplicity: one stock ETF and one bond ETF. It will be easy to see when you need to rebalance. Middle of the road This an intermediate approach to an all-ETF portfolio could consist of about 10 ETFs. This m...

Five mistakes when buying ETFs

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Five mistakes when buying ETFs Most investors don't know what ETFs all are about. In fact, many of them think that what they're buying is an individual stock.  Here's a rundown of five mistakes to avoid when investing in ETFs:   1. Buying the HOT New Thing.  You'll hear about "the hottest new ETF" all the time, and it's true - there are probably 50 or more ETFs launched every year. But this doesn't mean you should jump on the bandwagon and buy them all! Most of these funds will fall by the wayside after a few years, and some will go belly up within a matter of months.   2. Buying something you don't understand. If you can't explain exactly how an investment works, don't buy it. That's not just true for ETFs - it's true for stocks, bonds, mutual funds and any other security you might be thinking about buying.  Thinking that all ETFs are created equal. There is no such thing as an "average" ETF. Some have a narrow ...