If You Invest in ONE ETF, Make it This One | Summary and Q&A

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August 9, 2022
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Let's Talk Money! with Joseph Hogue, CFA
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If You Invest in ONE ETF, Make it This One

TL;DR

This video highlights the best exchange-traded funds (ETFs) in various themes, including growth and dividends, to help investors build a well-rounded portfolio.

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Key Insights

  • ๐Ÿ‘ป ETFs provide investors with diversified exposure to various themes, allowing them to capture emerging trends.
  • โœ‹ Growth ETFs focus on companies with high sales and earnings growth potential, such as the ARK Innovation Fund and Vanguard Growth ETF.
  • ๐Ÿ’ Dividend ETFs invest in stable sectors, such as consumer staples and utilities, providing consistent cash flow, as seen with Vanguard Dividend Appreciation Fund, Vanguard High Dividend Yield, and Schwab US Dividend Equity ETF.
  • ๐Ÿ’ Thematic ETFs offer exposure to specific trends, exemplified by the Global X Lithium and Battery Tech ETF, iShares Global Clean Energy ETF, First Trust NASDAQ Cybersecurity ETF, Global X US Infrastructure Fund, Crane Shares CSI China Internet ETF, and ETFMG Alternative Harvest ETF.
  • ๐Ÿซฐ Investors can combine ETFs with index funds for a well-rounded portfolio, with ETFs capturing specific themes while index funds offer broad market exposure.

Transcript

the top etf in this list produced a 136 return over the last five years but it's not the one i'm buying or the one every investor should own of the 15 etfs i'll show you today only one will give you the perfect balance between income and growth hey bowtie nation joseph hogue here and the fourth and what's becoming one of the most popular series on ... Read More

Questions & Answers

Q: What is the difference between ETFs and index funds?

While index funds broadly invest in a market index, ETFs focus on narrower themes or sectors, enabling investors to target specific trends for potentially higher returns.

Q: Why is the Vanguard Growth ETF preferred over the more popular ARK Innovation ETF?

The Vanguard Growth ETF offers a stable long-term return with a low expense ratio, while the ARK Innovation ETF, despite its potential for high growth, has a higher expense ratio.

Q: What are some of the top-performing thematic ETFs?

The video mentions various thematic ETFs, including the Global X Lithium and Battery Tech ETF (LIT), iShares Global Clean Energy ETF (ICLN), First Trust NASDAQ Cybersecurity ETF (CIBR), Global X US Infrastructure Fund (PAVE), Crane Shares CSI China Internet ETF (KWEB), and the ETFMG Alternative Harvest ETF (MJ).

Q: Are income ETFs a good investment option?

Income ETFs, such as the Spider Multi-Asset Real Return ETF (RLY) and Schwab US Dividend Equity ETF (SCHD), offer high dividend yields, making them attractive for investors looking for consistent income. However, they also carry the risk of potential share price declines if stock performance lags behind dividends.

Summary & Key Takeaways

  • The video presents 15 ETFs across different themes, such as growth, dividends, and thematic trends, allowing investors to choose according to their portfolio needs.

  • The growth ETFs discussed are the ARK Innovation Fund (ARK) and the Vanguard Growth ETF (VUG), focusing on tech, biotech, and internet companies.

  • Dividend ETFs include the Vanguard Dividend Appreciation Fund (VIG), Vanguard High Dividend Yield (VYM), and Schwab US Dividend Equity ETF (SCHD), providing stability and income from consumer staples, utilities, and tech stocks.

  • Thematic ETFs offer exposure to specific trends, such as clean energy, lithium and battery technology, cybersecurity, infrastructure, and cannabis.

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