The difference between a stock and an ETF is like the difference between a can of soup and a whole grocery store. I finally saw that I am not smarter than basic growth etfs. 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. There are a lot of great companies that hadn't made it to the champions list because they hadn't been around long enough. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. As a college student the smartest thing you could do is invest that 100/month in yourself, not into stocks. Buffet had an s&P 500 etf. If you need the money this year, sit on it - it’s really not worth risking losing a chunk of the deposit for your house. That's actually really smart keep at it, my #1 is BAC and PBR, ETF. Someone explain to me why I don’t just go with a 50% mix of SCHD and DGRO for my dividend growth account. You'll be fine. Dividend ETFs offer a number of attractive characteristics. Edit: recently picked up VSDA, I like their approach to holdings criteria. Many people chase higher yeild, others are interested in growth. If you want to spend a lot of time doing research and managing your funds, then individual stocks. I had some extra time and picked through the holdings to see what I especially liked. Stocks and ETF's (exchange trade funds) are different, but still potentially profitable for investors. Thanks! This week Dale looks at investing in Exchange Traded Funds (ETFs) vs individual stocks to identify which is the better investment. If you don't have enough time, ETFs are the best option for you. If you have the the time to research the individual stocks and then review each year, then go the stock route. The beauty of owning ETFs is that it eliminates – or at least controls – such "single-stock risk." Buffet won easily. In a big taxable account, the relative tax flexibility of individual stocks … A community by and for dividend growth investors. Almost any post related to stocks is welcome on /r/stocks. The tabs for everything are on the bottom of the excel sheet. Reddit 32 mins ETF vs Mutual Fund Reddit … Many don't care about underlying holdings or at least many of them in a given ETF. Save it for the house 100%. When it comes to choosing individual stocks and bonds rather than mutual funds and ETFs, here are five specific reasons to consider: #1: You wish to manage portfolio risk more precisely. Better off holding O for instance than a dividend ETF. In addition to reducing market volatility, many investors have cut their commitment to time consuming and expensive stock research. Vanguard Mutual Funds vs. Vanguard ETFs: An Overview . What is ideal is to buy a growth company that offers decent yield. Might get worse drawdowns in the former but the health of the business is easy to look at. First, when the return from stocks in the sector has a narrow dispersion around the mean, an ETF might be the best choice. If you have time, it would be better to do some stock picking. Start with ETFs. Personality holding O and LAND (albeit REITs, but the concept is similar). ETFs. Vanguard exchange-traded funds (ETFs) are a class of funds offered by Vanguard that are traded, like any other shares, on the U.S. stock exchanges, such as New York Stock Exchange … (Seriously the returns of dividend based companies can easily beat the index funds... drawdowns can even be good). Vanguard, one of the world's largest asset management firms with more than $5.6 trillion in assets under management, has … Instead of taking concentrated risks by purchasing individual stocks, investors can own an index of stocks with ETFs. Buying a house is one of the best things you can do. Typically "dividend growth" ETFs are an easy way to get a certain result over time. It's probably one of the best "tools" you can utilize for your research diligence. The majority of dividend ETFs hold between 50 and several hundred companies and … 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. Press J to jump to the feed. 100% of saved money? By over and underweighting ETF industry sectors, for example, investors can obtain an optimal allocation that suits their financial goals. Div yield would be about 2.88% for this portfolio, easy to manage, well diversified, low beta and likely have good growth over the next 10-20 years. Second, if you … For me it shows lack of conviction in my research and I have found that from back testing fund portfolio’s you dilute the return of the comparable index. I’m going to check this out and keep researching. I own dividend growth stocks to create a reliable income … If they are a recognized, financially stable, high-quality stock—known as a blue-chip stock… There's a long standing debate between buying individual stocks vs. index funds. If you want simplicity + Dividends, why not just go 50/50 KO and D? Not saying this is superior or anything. 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 have the time/skills/personality to pick individual stocks then you can do that later. The risk of ETFs depends upon the types of the underlying securities. I consider just putting it all in VYM at times. If you want to learn the fundamentals, get a paper account. Cookies help us deliver our Services. Examples: Warren Buffets 1 million dollar bet vs a group of Wall Street hedge fund investors. 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. There moral of the story is invest in a total market fund and don’t touch, or look, it until retirement. There are a few stocks I like to hold that aren't in this 1 however. I definitely think that you should put your money into a safe index fund, like VTI. Diversification is an attractive feature of ETFs. Also expenses. What is a good rule of thumb to invest? I think it is better to select individual stocks for dividend growth and ETFs for appreciation growth. Investors can choose from many high-profile growth stocks. 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. Microsoft and Apple yielded like 2.5% for years. I had been investing for about 3 years and just as the market … They are the ETF version of a balanced mutual fund. Unless you are like Warren buffet smart. 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. I am a bot, and this action was performed automatically. might as well look at how to use the search function. 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. Another guy stepped in and updates it every month or 2 though. Various risks of ETFs … … You can diversify your portfolio and you can easily create saving plans without cost. You don’t need to dump thousands into the market straight away. Stocks are more fun. Then again, you may make money if markets continue to recover. Check out our wiki and Discord! By using our Services or clicking I agree, you agree to our use of cookies. and ideally at a price with some room to grow for capital appreciation. Thanks so much. You can invest exactly in what you are interested in. Other answers are good too, I was using just SCHD for awhile. The research overwhelmingly says a total stock market etf. I will assume the same rate of return for individual stocks. 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? Sensible advice is both. In my opinion, it depends on your motivation/time. Most notably, in my view, dividend ETFs can save investors a lot of time and potential headaches compared to owning individual stocks. I don't participate in the debate because I practice both strategies. Press J to jump to the feed. For a small account, all advantages of individual stocks over ETFs are too trivial to care about (while the disadvantages of individual stocks might still be significant). Just small amounts, but often (if you don’t have transaction fees). The overall market direction is easier to interpret because the indices move slower and they aggregate the overall market consensus and not just the emotions of investors in a particular stock. Owning individual stocks has special risks and often requires diligent attention. 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. Please contact the moderators of this subreddit if you have any questions or concerns. The market will recover and you are buying cheap right now. This site hosts the PDF & Excel sheet. Individual Stock Cons. If you want to put your money someplace where it will grow with minimal effort on your part, ETFs are the … I started with index funds, then div focused funds, then decided that I didn't want to "earn" money from the way certain companies ran their companies and earn their money, e.g: BLK, WMT, KO, MCD, MO, etc. Whereas it is not uncommon for growth companies to fall and pretty much never recover or take many years. If you want to spend a lot of time doing research and managing your funds, then individual stocks. About 60% of my account is spread between SPYD, VIG, VTI, SCHD, and I'm trying to grow it to closer to 75, other ETF thats like 2% is XLE. I like to try to find some challengers and contenders. Of the SCHD companies, many do not meet those standards, in fact few do. Put 85% into an ETF or managed fund, and “play” with 15% on individual stocks. Every month deposit a couple hundred, on a platform that doesn’t charge to trade each time. I say go with growth etfs all the way over individual picks. Individual Stocks Reddit . There's no right or wrong way here. I just have one holding DGRO because of the portfolio of holdings in the trust. Depends, I personally like companies that continuously increase their dividends and have been around for a very long time, if you have a great company then you don't need all the others that are included in a fund, however if you feel more comfortable that way, go for it, the only drawback I believe is that you have constantly fluctuating dividends and no steady increases. Not to mention you get holdings of the same companies in both trusts. Dividend Yield for stock portfolio is assumed to be 3%. So, you are on your way to at least being more informed. Turns out it was people who where dead or forgot about the account. Hi everyone, I’m looking to invest in some stocks and was originally planning on doing half of the money I am planning on spending into an ETF and the other half into individual stocks of one or 2 company’s. 30 mins Stocks give guarded welcome to U.S. stimulus, wary on Brexit Investing.com 31 mins Bad idea to put 36% on income into stocks right now? This gives me the ability to essentially double my money every 5 years based on dividend growth alone.The Dividend Investing Resource Center. Get a dividend aristocrat and a utility company, both with dividends over 3% and an even lower beta. ETFs vs individual stocks. Wow great information. If you wait 20 years, you will most likely more than double your money no matter what happens in the short-term. I know in my case, i really enjoy the feeling of picking the stocks and being really "involved" but if that's not a priority for you, by all means go with well diversified ETFs. You can set everything up and forget about it. Best total return in 10 years wins 1 million. The only significant cons with individual stocks are the cost and time. The market trends upward. I picked stocks, had fun doing it too. ETFs … The market’s steep slide during the coronavirus crisis has exposed the pros and cons of buying individual stocks and purchasing index funds that provide exposure to a broad basket of stocks … Nothing wrong with that! Press question mark to learn the rest of the keyboard shortcuts. A reminder to everyone. Single stocks could go boom by the time you retire, yes even big boys like MSFT. Everything else, chuck into the markets wherever you please, that etf would be fine, the S&P has been a good benchmarker, if not a bit high right now, it’s had a strong recovery thanks to firms such as Amazon and FB pulling in big time this quarter. I’m honestly asking because I don’t know. ETFs can be … ETFs are comparatively lesser riskier than stocks as they consist of a basket of investments, i.e., they are diversified. ETFs offer advantages over stocks in two situations. Fidelity wrote a research paper about the people who did the best. ETF vs Individual Stocks. First year of working I put away $37000 into my portfolio which was x3 as much as I had in it when I graduated(after 5 years of "investing"). Each holds seven underlying ETFs—three for bonds, four for equities—covering the Canadian, U.S. and international markets. When that company does well, the stock … I like VYM. 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