If I had $10000 and wanted a diversified portfolio, would it be safe to say that I can just purchase a bunch of ETFs? Like purchasing an ETF that invests in Large Cap, Mid Cap, International, Bonds, etc.
2007-10-23 22:36:22 · 5 answers · asked by Jeffrey M 1 in Business & Finance ➔ Investing
What you're looking to do is "diversification". The Key will be "asset allocation". Are you going to watch them regularly and change your weighting as needed? Or do you want to only look at the portfolio once a year?
How much do you want to mirror the market? If you want above average growth.... you'll have to over-weigh in selected markets.
ETF's are not "safe". They're an inexpensive way to generate returns, equal to the market they represent. As an example, if EEB (Chinese market ETF) goes down..... it could lose 50% very quickly.
Using ETF's is a great way to invest... if done correctly.
2007-10-24 00:45:43 · answer #1 · answered by Common Sense 7 · 0⤊ 0⤋
Yes...it would be the same as thousands and thousands of 401's that are invested in an array of " mutual funds".
( My daughters' have similar portfolios in IRA's...invested in EWA, XME, PBW, EWS,DBA, PID....Australia, metals, alternative energy, Singapore, agriculture and " dividend payers") They do just fine...
2007-10-24 08:42:13 · answer #2 · answered by jebediabartlett 6 · 0⤊ 0⤋
You need to ask this question to a licensed experienced professional advisor not to the folks on this site.
Investing is not a do it yourslef project
Losing money can never be fun nor will it help you accomplish your goals.
2007-10-24 01:55:53 · answer #3 · answered by Richard Jackel 3 · 0⤊ 2⤋
You can, or your can just purchase one asset allocation mutual fund that has exposure to all those instruments.
2007-10-24 02:46:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
iShares MSCI ACWI Index Fund (ACWI)
2016-05-25 10:07:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋