๐๐๐๐ฎ๐ฎ๐ฎWarren Buffett believes in the power of investing in ETFs, in particular his favourite ETF is $Vanguard S&P 500 ETF(VOO)$ which tracks the S&P500 Index at a low expense ratio of just 0.03%. I must confess I also like to invest in ETFs and they have generated good returns for me.
ETFs or Exchange Traded Funds have been increasingly popular in recent years. In contrast I find that investing in single stocks gives me more anxiety especially when bad news hits. For example $Tesla Motors(TSLA)$ share price has been rather volatile recently due to intense competition leading to lower profit margins. Its share price is now down by 20% year todate and has dropped out of the S&P500 Top 10 holdings.
ETFs form the core of my portfolio. My main ETFs are plain vanilla ones like $SPDR Portfolio S&P 1500 Composite Stock Market ETF(SPTM)$ $STI ETF(ES3.SI)$ $TRACKER FUND OF HONG KONG(02800)$ and $iShares Core S&P/ASX 200(IOZ.AU)$
Then there are my Thematic ETFs of which $Energy Select Sector SPDR Fund(XLE)$ is my best performing ETF, up 45%. I have also invested in $iShares Blockchain and Tech ETF(IBLC)$ as Bitcoin has been surging upwards and all stocks involved in Crypto Technologies and Blockchain have jumped.
With the power of ETFs I gain access to hundreds of stocks at a low cost, diversify my portfolio and minimise my risks. Best of all I get to collect nice, juicy dividends on a regular basis. This is a great source of passive income while waiting for capital growth.
How many stocks should I hold? I have lost count due to the combined power of my ETFs. I wish I had the wisdom when I first started investing to focus on ETFs. But it is never too late to start.
Investing is a marathon, not a sprint. With patience and time in the markets, that's when the magic of compounding will happen.
@MillionaireTiger @TigerStars @Daily_Discussion @Tiger_comments @TigerClub @Tiger_SG
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