This gives me the ability to essentially double my money every 5 years based on dividend growth alone.The Dividend Investing Resource Center. While you should study and understand the ETFs you invest in, the diversification shields you from bad companies in the ETF. Let's make money together! You need a relatively substantial investment to diversify well. Not saying this is superior or anything. If you want to put your money someplace where it will grow with minimal effort on your part, ETFs are the … I had some extra time and picked through the holdings to see what I especially liked. Everything you need for the house, sit on, categorically and unquestionably hold it. In addition to reducing market volatility, many investors have cut their commitment to time consuming and expensive stock research. Then again, you may make money if markets continue to recover. If you wait 20 years, you will most likely more than double your money no matter what happens in the short-term. Second, if you … Thanks! Better off holding O for instance than a dividend ETF. Hello Everyone, I was planning to liquidity mutual funds I have held for years and buy some stocks or etfs, I have invested in some stocks but was wondering where I should spend roughly 10k on. Nothing wrong with that! Microsoft and Apple yielded like 2.5% for years. Instead of taking concentrated risks by purchasing individual stocks, investors can own an index of stocks with ETFs. Unless you are like Warren buffet smart. You can diversify your portfolio and you can easily create saving plans without cost. ETFs are comparatively lesser riskier than stocks as they consist of a basket of investments, i.e., they are diversified. Stocks are more fun. Please contact the moderators of this subreddit if you have any questions or concerns. Right now it's a great time to start. If you really insist on investing your 100/month, I would buy with as much leverage as possible: options and 3x leveraged etfs (tqqq, spxl, soxl, fngu, umdd will keep going up). By over and underweighting ETF industry sectors, for example, investors can obtain an optimal allocation that suits their financial goals. Buffet had an s&P 500 etf. I probably wasted 10 hours a week on average just commuting places. Other answers are good too, I was using just SCHD for awhile. I stick to funds as often they do not charge to trade, and the buy/sell prices are always the same as each other, so I can leave whenever without worry. If not DGRO is great and so is the Schwab one. It’s a risk vs reward you get much less risk due to diversification with an etf and it’s easier to manage but we individual companies you can have potential for greater reward but it takes time and you are subject to that company if it decides to cut its dividend or has negative sentiment later on. Cookies help us deliver our Services. Happy investing. I like VYM. Other then that I think your 100/month isn't worth investing in the long run and is better to be spend on improving yourself. The eureka moment came to me when I applied one of my simple price based systems to the market indices and realized that if I utilize it here I would have a lot fewer trades and better long-term growth.My thoughts are essentially this. Press question mark to learn the rest of the keyboard shortcuts. Everything else, chuck into the markets wherever you please, that etf would be fine, the S&P has been a good benchmarker, if not a bit high right now, it’s had a strong recovery thanks to firms such as Amazon and FB pulling in big time this quarter. Markets may crash again if we get a second spike of COVID, and you may lose money if that happens. The risk of ETFs depends upon the types of the underlying securities. In a big taxable account, the relative tax flexibility of individual stocks … Edit: recently picked up VSDA, I like their approach to holdings criteria. and ideally at a price with some room to grow for capital appreciation. Invest equally among the stocks you chose from the list above. I think it is better to select individual stocks for dividend growth and ETFs for appreciation growth. So, you are on your way to at least being more informed. I don't participate in the debate because I practice both strategies. I went and picked 10 companies across diverse industries, and now those 10 are 50% of my portfolio, the rest being index and international funds, and I feel more confident with that personally. Not to mention you get holdings of the same companies in both trusts. When you buy a stock you’re investing in a single company — Apple for instance. ETFs offer advantages over stocks in two situations. The difference between a stock and an ETF is like the difference between a can of soup and a whole grocery store. Div yield would be about 2.88% for this portfolio, easy to manage, well diversified, low beta and likely have good growth over the next 10-20 years. Press question mark to learn the rest of the keyboard shortcuts. Get a dividend aristocrat and a utility company, both with dividends over 3% and an even lower beta. Of the SCHD companies, many do not meet those standards, in fact few do. Start with ETFs. General. I had been investing for about 3 years and just as the market … If they are a recognized, financially stable, high-quality stock—known as a blue-chip stock… Buffet won easily. You don’t need to dump thousands into the market straight away. Clearly they were good investments in hindsight. Hi everyone, I’m looking to invest in some stocks and was originally planning on doing half of the money I am planning on spending into an ETF and the other half into individual stocks of one or 2 company’s. Vanguard Mutual Funds vs. Vanguard ETFs: An Overview . Most notably, in my view, dividend ETFs can save investors a lot of time and potential headaches compared to owning individual stocks. I would not split between 2 funds. ETFs … For me it shows lack of conviction in my research and I have found that from back testing fund portfolio’s you dilute the return of the comparable index. A community by and for dividend growth investors. I’m going to check this out and keep researching. I own dividend growth stocks to create a reliable income … If you're OK with receiving money from private prisons, then SCHD may be right for you; I personally have a problem with it, so it's not going to be something I will invest in, nor the other entities that hold the two main players: CWX and GEO. Vanguard exchange-traded funds (ETFs) are a class of funds offered by Vanguard that are traded, like any other shares, on the U.S. stock exchanges, such as New York Stock Exchange … Every month deposit a couple hundred, on a platform that doesn’t charge to trade each time. When it comes to choosing individual stocks and bonds rather than mutual funds and ETFs, here are five specific reasons to consider: #1: You wish to manage portfolio risk more precisely. I would suggest to do some research into ETFs. Once you graduate and get a real job with real pay, you'll see how pointless the 100/month was. The market trends upward. Hedge fund guys picked individual stocks. Turns out it was people who where dead or forgot about the account. Buying a house is one of the best things you can do. If you have the the time to research the individual stocks and then review each year, then go the stock route. You can invest exactly in what you are interested in. If you have the time/skills/personality to pick individual stocks then you can do that later. Ever since I switched I have greatly benefited from gains. Also expenses. It also takes a lot of time to research individual stocks. ... help Reddit App Reddit coins Reddit premium Reddit … 30 mins Stocks give guarded welcome to U.S. stimulus, wary on Brexit Investing.com 31 mins Bad idea to put 36% on income into stocks right now? If you need the money this year, sit on it - it’s really not worth risking losing a chunk of the deposit for your house. If you don't have enough time, ETFs are the best option for you. Liquidity refers to how easy it is to convert stock or ETF holdings into cash or another investment. ETFs vs individual stocks. To be honest, the best way to make money on the stock market is to invest early and forget about it. Just small amounts, but often (if you don’t have transaction fees). I just have one holding DGRO because of the portfolio of holdings in the trust. Save it for the house 100%. There are a few stocks I like to hold that aren't in this 1 however. 1 month Investing in the popular ETFs (ARK, Clean energy) vs. ETFs can be … … You can set everything up and forget about it. Various risks of ETFs … The beauty of owning ETFs is that it eliminates – or at least controls – such "single-stock risk." Someone explain to me why I don’t just go with a 50% mix of SCHD and DGRO for my dividend growth account. Check out our wiki and Discord! I am a bot, and this action was performed automatically. I realized then how much better it would've been to use that money and buy a good laptop, instead of dealing with my shitty dell laptop from HS. Whereas it is not uncommon for growth companies to fall and pretty much never recover or take many years. There are a lot of great companies that hadn't made it to the champions list because they hadn't been around long enough. There's no right or wrong way here. I started with index funds, then div focused funds, then decided that I didn't want to "earn" money from the way certain companies ran their companies and earn their money, e.g: BLK, WMT, KO, MCD, MO, etc. I choose this over etf over individual stocks just because of the commisions I would have to pay to trade the stocks and options for them all. Press J to jump to the feed. I say go with growth etfs all the way over individual picks. The overall market direction is easier to interpret because the indices move slower and they aggregate the overall market consensus and not just the emotions of investors in a particular stock. If you want simplicity + Dividends, why not just go 50/50 KO and D? I finally saw that I am not smarter than basic growth etfs. Individual Stocks Reddit . ETF's can have lower risk than stocks … I will assume the same rate of return for individual stocks. When you say 85% do you mean of your net worth? What is a good rule of thumb to invest? When that company does well, the stock … I definitely think that you should put your money into a safe index fund, like VTI. Another way to pick some great companies and avoid ETF expense fees is checking out the dividend contenders/challengers/champions/aristocrat lists.This list was originally designed by a guy years back but he passed away some time ago. Examples: Warren Buffets 1 million dollar bet vs a group of Wall Street hedge fund investors. Dividend Yield for stock portfolio is assumed to be 3%. Many people chase higher yeild, others are interested in growth. Individual Stock Cons. There moral of the story is invest in a total market fund and don’t touch, or look, it until retirement. It's probably one of the best "tools" you can utilize for your research diligence. Stocks and ETF's (exchange trade funds) are different, but still potentially profitable for investors. First year of working I put away $37000 into my portfolio which was x3 as much as I had in it when I graduated(after 5 years of "investing"). Most that go this route go through it because of convince. Single stocks could go boom by the time you retire, yes even big boys like MSFT. I picked stocks, had fun doing it too. I like to try to find some challengers and contenders. First, when the return from stocks in the sector has a narrow dispersion around the mean, an ETF might be the best choice. Mutual funds and exchange-traded funds (ETF) can both offer many benefits for your portfolio, including instant diversification at a low cost. (Seriously the returns of dividend based companies can easily beat the index funds... drawdowns can even be good). Reddit 32 mins ETF vs Mutual Fund Reddit … But it should not stop you from taking a % of your portfolio and allocating to some high yeilding companies. For a small account, all advantages of individual stocks over ETFs are too trivial to care about (while the disadvantages of individual stocks might still be significant). The research overwhelmingly says a total stock market etf. The ER is typically too trivial to care about. Owning individual stocks has special risks and often requires diligent attention. I see so many people doing an elaborate mix of stocks. Thanks so much. Another guy stepped in and updates it every month or 2 though. Vanguard, one of the world's largest asset management firms with more than $5.6 trillion in assets under management, has … 100% of saved money? Fidelity wrote a research paper about the people who did the best. If you want to put your money someplace where it will grow with minimal effort on your part, ETFs are the answer. You'll be fine. With stocks, it will depend on the corporation issuing the shares. The tabs for everything are on the bottom of the excel sheet. This site hosts the PDF & Excel sheet. Dividend Yield for the ETF is assumed to be 2%. Best total return in 10 years wins 1 million. Please keep it civil and report uncivil comments for moderator review. The market’s steep slide during the coronavirus crisis has exposed the pros and cons of buying individual stocks and purchasing index funds that provide exposure to a broad basket of stocks … Dividend ETFs offer a number of attractive characteristics. ETFs. There's a long standing debate between buying individual stocks vs. index funds. Wow great information. This week Dale looks at investing in Exchange Traded Funds (ETFs) vs individual stocks to identify which is the better investment. As a college student the smartest thing you could do is invest that 100/month in yourself, not into stocks. Diversification is an attractive feature of ETFs. I consider just putting it all in VYM at times. If you have time, it would be better to do some stock picking. Sensible advice is both. You won't be diversified, but are you going to tell me the largest beverage company in the world and a utility company that's granted a monopoly by the government are going to go under? By using our Services or clicking I agree, you agree to our use of cookies. That's actually really smart keep at it, my #1 is BAC and PBR, ETF. Liquidity Factors ETFs vs. Stocks . Personality holding O and LAND (albeit REITs, but the concept is similar). I know in my case, i really enjoy the feeling of picking the stocks and being really "involved" but if that's not a priority for you, by all means go with well diversified ETFs. They are the ETF version of a balanced mutual fund. Your portfolio with these stocks would look like this: ~2-3% starting yield (based on which stocks you choose) ~10-15% 5 year DGR ~30-40% … Might get worse drawdowns in the former but the health of the business is easy to look at. If you want to spend a lot of time doing research and managing your funds, then individual stocks. The market will recover and you are buying cheap right now. Or how I could've bought a cheap used car instead of commuting everywhere, let me tell you going grocery shopping by bus for 5 years IS NOT THE RIGHT PLAY. Put 85% into an ETF or managed fund, and “play” with 15% on individual stocks. ... Hello reddit, it’s hard to find friends who value investing like I do so I thought I share my achievement here. Investors can choose from many high-profile growth stocks. Many don't care about underlying holdings or at least many of them in a given ETF. What is ideal is to buy a growth company that offers decent yield. Nothing is stopping you. might as well look at how to use the search function. Typically "dividend growth" ETFs are an easy way to get a certain result over time. Depends, I personally like companies that continuously increase their dividends and have been around for a very long time, if you have a great company then you don't need all the others that are included in a fund, however if you feel more comfortable that way, go for it, the only drawback I believe is that you have constantly fluctuating dividends and no steady increases. Higher the value of beta, the higher the risk and higher the risk, the higher the returns. Almost any post related to stocks is welcome on /r/stocks. It has alot of the companies I Would want to hold with a small fee, and it has pretty liquid options for covered calls. Value investing is one of Wall Street’s most well-traveled … Each holds seven underlying ETFs—three for bonds, four for equities—covering the Canadian, U.S. and international markets. Owning individual shares lets you invest in particular companies, while buying ETFs lets you track broad swaths of the market or a set of stocks picked by a professional. If you want to spend a lot of time doing research and managing your funds, then individual stocks. In my opinion, it depends on your motivation/time. I’m honestly asking because I don’t know. Buy value ETFs and enjoy the profits. Personally I was looking for companies with: a history of raising dividends by at least 7-10% per year, solid growth of earnings per share and cash flow indicating they are healthy. They have a number of advantages. ETF vs Individual Stocks. About 60% of my account is spread between SPYD, VIG, VTI, SCHD, and I'm trying to grow it to closer to 75, other ETF thats like 2% is XLE. Press J to jump to the feed. A reminder to everyone. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. The majority of dividend ETFs hold between 50 and several hundred companies and … I try to find a DGR of at least 7-10%. If you want to learn the fundamentals, get a paper account. This is a subreddit for genuine discussion. The only significant cons with individual stocks are the cost and time. That said, no one can tell you, or predict, if the market will go up or down. New comments cannot be posted and votes cannot be cast.
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