New to Investing? Here’s a List of ETFs
Exchange-traded funds (ETFs) are a great starting point when you are ready to start investing and learning the ropes. With people losing their shirts on meme stocks, the Bear market spiral, and crypto, there is an opportunity to start SMART+ER than the average investor.
It’s important to consider this, especially if you are a new investor.
Studies of stock pickers found that the vast majority of professional money managers โ about 85% โ underperform the market over a multiyear period. This means that they can win (and win big) in the short run, and lose way more the next cycle.
So next time you hear about the hottest ticket in town, ask about their track record. And then go for something with a bit more certainty than gambling.
Table of Contents
There are Advantages and Disadvantages to Consider when Investing in an ETF
Advantages
- ETFs typically have lower expense ratios than mutual funds, which can save you money over time.
- They can provide instant diversification by tracking a broad market index, such as the S&P 500.
- There are ETF requirements such as disclosing holdings.
- Additionally, there is a degree of Tax efficiency and Flexibility since you trade them throughout the day, like stocks. The latter is a massive benefit over mutual funds.
Disadvantages
- ETFs may have trading costs, such as a commission or bid-ask spread.
- They may not track their underlying index perfectly, due to factors such as trading costs and market impact.
- Some use leverage, which can magnify your losses as well as your gains.
- Many end up over-diversifying with multiple ETFs in their portfolios.
- ETFs can be complex and even overwhelming at first.
- And finally, you can still lose money if you come in at a high and get hit with a low. The real barometer is time. The longer you have to invest the better you will perform.
Check out some of the ETFs that are available, below. I’ll be updating this list periodically since there are plenty more. But I have to vet them first. Bonus for all the readers, if you want to get a near-accurate view of the TNFG Investment Portfolio with all the holdings, click because it’s blue. It will send you to the google sheets view.
People ask and I always deliver on transparency.
Build a Diversified Portfolio from the Start
Go with one that’s tied to an INDEX
ETF Ticker Symbol | Name | Annual Expense Ratio | 5-Year Average Annualized Return | Price Per Share as of 4.13.23 |
$VOO | Vanguard S&P 500 | 0.03% | 10.9% | $379.78 |
$IVV | iShares Core S&P 500 | 0.03% | 11.0% | $415.17 |
$SPY | SPDR S&P 500 | 0.095% | 10.9% | $413.41 |
$QQQ | NASDAQ 100 Index | 0.20% | 15.35% | $319.24 |
$SPLG | SPDR Portfolio S&P 500 | 0.03% | 11.20% | $48.61 |
$SCHX | Schwab U.S. Large-Cap | 0.03% | 10.72% | $48.76 |
$DIA | SPDR Dow Jones Industrial Average ETF Trust | 0.16% | 8.76% | $340.37 |
Nothing’s Wrong with a Bit of High-Dividend ETFs
ETF Ticker Symbol | Name | Annual Expense Ratio | 5-Year Average Annualized Return | Price Per Share as of 4.13.23 | Dividend Yield |
$FDVV | Fidelity High Dividend | 0.29% | 10.29% | $38.79 | 3.76% |
$JEPI | *JPMorgan Equity Premium Income | 0.35% | — | $54.88 | 11.41% |
$VYM | Vanguard High Dividend Yield | 0.06% | 8.64% | $107.12 | 3.10% |
$FIDI | Fidelity International High Dividend | 0.39% | 0.58% | $19.59 | 5.44% |
$VYMI | Vanguard International High Dividend Yield | 0.22% | 3.14% | $64.18 | 4.45% |
$SPYD | SPDR Portfolio S&P 500 High Dividend | 0.07% | 6.25% | $38.26 | 4.49% |
Even Industry Specific ETFs exist
ETF Ticker Symbol | Index/Industry Tracking | Annual Expense Ratio | 5-Year Average Annualized Return | Price Per Share as of 4.13.23 | Dividend Yield |
$JETS | U.S. Global Jets | 0.60% | -9.03% | $18.07 | 0.82% |
$VDE | Vanguard Energy | 0.10% | 8.44% | $120.09 | 3.87% |
$QCLN | Clean Energy Industry | 0.60% | 12.03% | $52.84 | 0.55% |
$XSD | SPDR S&P Semiconductor ETF | 0.35% | 23.62% | $195.84 | 0.44% |
$BETZ | Sports Betting & iGaming | 0.75% | -11.70% | $16.34 | 0.58% |
$IPO | Renaissance IPO | 0.60% | 0.30% | $28.45 | 0.11% |
$FDIG | Crypto Industry and Digital Payment | 0.39% | — | $17.55 | — |
$SMH | VanEck Semiconductor ETF | 0.35% | 21.22% | $252.32 | 0.94% |
$TAN | Invesco Solar ETF | 0.69% | 25.12% | $77.00 | 0.12% |
$FTEC | Fidelity MSCI Information Technology Index ETF | 0.08% | 17.58% | $112.91 | 0.81% |
2 Comments
Pingback:
Pingback: