If you want to build a #Diversified, #Passive and low cost portfolio, then there is no way around #ETFs. They are one of the simplest and most convenient investment products for beginners and long-term #Investors.
#ETF stands for exchange traded fund and it makes more sense if you read it backwards:
It’s a fund that is traded on a stock exchange. The first ETF, the S&P 500 Trust ETF, was launched in 1993 by State Street.
And since then, ETFs have become incredibly popular. According to Statista, over 1,300 new ETFs were launched in 2021 alone - so there is plenty of choice for private investors.
One common ETF mistake is home country bias. It means that investors heavily overweight stocks from their own country over those from other countries. What investors end up with is a huge concentration risk towards 1 country - which is dangerous from a diversification standpoint. This example shows how easy it is to lose money with ETF investing. However, in order to have long-term success with ETFs, you should avoid simple mistakes - and it’s so easy to avoid them!
That’s why in this video, we will look at the 5 most common ETF mistakes and how to avoid them.
⏰⏰ Timecodes ⏰⏰
0:00 Intro
0:42 Mistake No 1: Too Obsessed with Costs
2:09 Mistake No 2: Tracking Difference
3:36 Mistake No 3: Home Country Bias
5:02 Mistake No 4: Active Investing
8:17 Mistake No 5: Diversification Illusion
9:35 Final Thoughts
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DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.
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