When you buy a stock you’re investing in a single company — Apple for instance. They are the ETF version of a balanced mutual fund. Mutual funds and exchange-traded funds (ETF) can both offer many benefits for your portfolio, including instant diversification at a low cost. Dividend Yield for stock portfolio is assumed to be 3%. Invest equally among the stocks you chose from the list above. I finally saw that I am not smarter than basic growth etfs. I will assume the same rate of return for individual stocks. Press J to jump to the feed. It’s a risk vs reward you get much less risk due to diversification with an etf and it’s easier to manage but we individual companies you can have potential for greater reward but it takes time and you are subject to that company if it decides to cut its dividend or has negative sentiment later on. Not saying this is superior or anything. Nothing is stopping you. Everything you need for the house, sit on, categorically and unquestionably hold it. It has alot of the companies I Would want to hold with a small fee, and it has pretty liquid options for covered calls. If you really insist on investing your 100/month, I would buy with as much leverage as possible: options and 3x leveraged etfs (tqqq, spxl, soxl, fngu, umdd will keep going up). I’m honestly asking because I don’t know. Someone explain to me why I don’t just go with a 50% mix of SCHD and DGRO for my dividend growth account. This is a subreddit for genuine discussion. I realized then how much better it would've been to use that money and buy a good laptop, instead of dealing with my shitty dell laptop from HS. You don’t need to dump thousands into the market straight away. Clearly they were good investments in hindsight. might as well look at how to use the search function. That's actually really smart keep at it, my #1 is BAC and PBR, ETF. I see so many people doing an elaborate mix of stocks. You can invest exactly in what you are interested in. If you're OK with receiving money from private prisons, then SCHD may be right for you; I personally have a problem with it, so it's not going to be something I will invest in, nor the other entities that hold the two main players: CWX and GEO. Every month deposit a couple hundred, on a platform that doesn’t charge to trade each time. I went and picked 10 companies across diverse industries, and now those 10 are 50% of my portfolio, the rest being index and international funds, and I feel more confident with that personally. The research overwhelmingly says a total stock market etf. Cookies help us deliver our Services. Also expenses. Another way to pick some great companies and avoid ETF expense fees is checking out the dividend contenders/challengers/champions/aristocrat lists.This list was originally designed by a guy years back but he passed away some time ago. ETF vs Individual Stocks. Sensible advice is both. Many people chase higher yeild, others are interested in growth. There are a few stocks I like to hold that aren't in this 1 however. Start with ETFs. If you have the time/skills/personality to pick individual stocks then you can do that later. In a big taxable account, the relative tax flexibility of individual stocks … Better off holding O for instance than a dividend ETF. Diversification is an attractive feature of ETFs. Whereas it is not uncommon for growth companies to fall and pretty much never recover or take many years. Put 85% into an ETF or managed fund, and “play” with 15% on individual stocks. The ER is typically too trivial to care about. Other then that I think your 100/month isn't worth investing in the long run and is better to be spend on improving yourself. Thanks so much. ETFs … Hello Everyone, I was planning to liquidity mutual funds I have held for years and buy some stocks or etfs, I have invested in some stocks but was wondering where I should spend roughly 10k on. The majority of dividend ETFs hold between 50 and several hundred companies and … I like to try to find some challengers and contenders. Owning individual stocks has special risks and often requires diligent attention. They have a number of advantages. Buying a house is one of the best things you can do. Save it for the house 100%. Press J to jump to the feed. If you wait 20 years, you will most likely more than double your money no matter what happens in the short-term. I stick to funds as often they do not charge to trade, and the buy/sell prices are always the same as each other, so I can leave whenever without worry. I choose this over etf over individual stocks just because of the commisions I would have to pay to trade the stocks and options for them all. ETF's can have lower risk than stocks … While you should study and understand the ETFs you invest in, the diversification shields you from bad companies in the ETF. Owning individual shares lets you invest in particular companies, while buying ETFs lets you track broad swaths of the market or a set of stocks picked by a professional. Edit: recently picked up VSDA, I like their approach to holdings criteria. I definitely think that you should put your money into a safe index fund, like VTI. Stocks and ETF's (exchange trade funds) are different, but still potentially profitable for investors. This week Dale looks at investing in Exchange Traded Funds (ETFs) vs individual stocks to identify which is the better investment. If not DGRO is great and so is the Schwab one. This site hosts the PDF & Excel sheet. If you want to spend a lot of time doing research and managing your funds, then individual stocks. and ideally at a price with some room to grow for capital appreciation. You need a relatively substantial investment to diversify well. A community by and for dividend growth investors. When you say 85% do you mean of your net worth? Press question mark to learn the rest of the keyboard shortcuts. Vanguard, one of the world's largest asset management firms with more than $5.6 trillion in assets under management,   has … Your portfolio with these stocks would look like this: ~2-3% starting yield (based on which stocks you choose) ~10-15% 5 year DGR ~30-40% … You won't be diversified, but are you going to tell me the largest beverage company in the world and a utility company that's granted a monopoly by the government are going to go under? I like VYM. I just have one holding DGRO because of the portfolio of holdings in the trust. Markets may crash again if we get a second spike of COVID, and you may lose money if that happens. Most that go this route go through it because of convince. … I try to find a DGR of at least 7-10%. Please keep it civil and report uncivil comments for moderator review. The eureka moment came to me when I applied one of my simple price based systems to the market indices and realized that if I utilize it here I would have a lot fewer trades and better long-term growth.My thoughts are essentially this. Individual Stocks Reddit . Each holds seven underlying ETFs—three for bonds, four for equities—covering the Canadian, U.S. and international markets. Other answers are good too, I was using just SCHD for awhile. I picked stocks, had fun doing it too. What is ideal is to buy a growth company that offers decent yield. The market will recover and you are buying cheap right now. ETFs can be … There's a long standing debate between buying individual stocks vs. index funds. Please contact the moderators of this subreddit if you have any questions or concerns. I had some extra time and picked through the holdings to see what I especially liked. Personally I was looking for companies with: a history of raising dividends by at least 7-10% per year, solid growth of earnings per share and cash flow indicating they are healthy. But it should not stop you from taking a % of your portfolio and allocating to some high yeilding companies. Or how I could've bought a cheap used car instead of commuting everywhere, let me tell you going grocery shopping by bus for 5 years IS NOT THE RIGHT PLAY. Most notably, in my view, dividend ETFs can save investors a lot of time and potential headaches compared to owning individual stocks. Second, if you … So, you are on your way to at least being more informed. ... Hello reddit, it’s hard to find friends who value investing like I do so I thought I share my achievement here. There moral of the story is invest in a total market fund and don’t touch, or look, it until retirement. The short-term also takes a lot of time and potential headaches compared to owning individual stocks are answer! 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