ETF investing is a great adventure. You have a lot of options to consider and really the potential for a good return is high too. Of course, there are no guarantees and you have to be smart in terms of which ETF’s you invest in. however, without diversity it can be difficult to get the returns you want. Branching out and creating a strong investment portfolio will make all the difference in the world and you should think about the ones that can help you the most. The following are five great options to consider which might enable you to diversify without having to look at mutual funds.
The Top Five Exchange Traded Funds to Diversify Your Portfolio
- Real Estate
- The Dow Jones Industrial Average
- S&P 500
- Gold Shares
ETF can offer lots of options to choose from. The above are just five of the top options that can help you to diversify your portfolio. They can be well worth considering whether you have lots of money to invest with or very little. You have many avenues to explore which can be great. For instance, if you like the idea of investing in gold but don’t have the capacity to store you could look at investing in an ETF with Gold Shares. These can really help and it’s worth thinking about too.
It’s about making your portfolio work for you and making a more diverse approach to investing might make things more interesting. Remember, not all sectors are going to be strong at the same time and that might mean there are times when another investment works far better than another. You really cannot always rely on one investment to break the bank or one to make your fortune. ETF is great but you can’t just have one option available to you. It’s like putting all your eggs in one basket, what would you do if the basket broke? You’d lose a lot and it’s not ideal to say the least. However, if you split up your investments it could prevent disaster.
Is It Safe To Diversify?
A lot of investors, both new and experienced, often believe it’s easier for them to keep to one investment type and that is their personal choice. However, is it really the smartest move? Well, it’s hard to say because as we all know, anything can happen. Markets are strong one minute and weak the next and it doesn’t happen in all sectors either. When you look at diversifying it can be a little easier and sometimes safer than just having one investment option. Again, the choice is yours but it’s something to think about nonetheless. ETF investing can work and being diversified can be useful too but it does have to work for your needs.
Diversify To Your Advantage
Having a portfolio which is diverse might enable you to invest a little smarter and the way you want to invest. Mutual funds are good but they have a few drawbacks that don’t appeal to everyone which is why ETF’s are so popular. You could make them work for you and there are lots of funds to consider trading in as well. ETF can work for you.