It's probably one of the best "tools" you can utilize for your research diligence. Instead of taking concentrated risks by purchasing individual stocks, investors can own an index of stocks with ETFs. 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. Don't hesitate to tell us about a ticker we should know about, but read the sidebar rules before you post. It has alot of the companies I Would want to hold with a small fee, and it has pretty liquid options for covered calls. The difference between a stock and an ETF is like the difference between a can of soup and a whole grocery store. 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. 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). In addition to reducing market volatility, many investors have cut their commitment to time consuming and expensive stock research. If you have the the time to research the individual stocks and then review each year, then go the stock route. Investors can choose from many high-profile growth stocks. I probably wasted 10 hours a week on average just commuting places. If you want to spend a lot of time doing research and managing your funds, then individual stocks. ETFs are comparatively lesser riskier than stocks as they consist of a basket of investments, i.e., they are diversified. Clearly they were good investments in hindsight. There's a long standing debate between buying individual stocks vs. index funds. I had been investing for about 3 years and just as the market … Stocks are more fun. Edit: recently picked up VSDA, I like their approach to holdings criteria. If you wait 20 years, you will most likely more than double your money no matter what happens in the short-term. Buffet had an s&P 500 etf. Markets may crash again if we get a second spike of COVID, and you may lose money if that happens. That said, no one can tell you, or predict, if the market will go up or down. ETF's can have lower risk than stocks … Sensible advice is both. You don’t need to dump thousands into the market straight away. The ER is typically too trivial to care about. Second, if you … 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 own dividend growth stocks to create a reliable income … Examples: Warren Buffets 1 million dollar bet vs a group of Wall Street hedge fund investors. But it should not stop you from taking a % of your portfolio and allocating to some high yeilding companies. Reddit 32 mins ETF vs Mutual Fund Reddit … Save it for the house 100%. 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 … Most that go this route go through it because of convince. If you want to learn the fundamentals, get a paper account. 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? Get a dividend aristocrat and a utility company, both with dividends over 3% and an even lower beta. Put 85% into an ETF or managed fund, and “play” with 15% on individual stocks. and ideally at a price with some room to grow for capital appreciation. Press J to jump to the feed. 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. 100% of saved money? ETFs … While you should study and understand the ETFs you invest in, the diversification shields you from bad companies in the ETF. Owning individual stocks has special risks and often requires diligent attention. Stocks and ETF's (exchange trade funds) are different, but still potentially profitable for investors. When you say 85% do you mean of your net worth? There's no right or wrong way here. If you want simplicity + Dividends, why not just go 50/50 KO and D? Single stocks could go boom by the time you retire, yes even big boys like MSFT. 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. Almost any post related to stocks is welcome on /r/stocks. Buying a house is one of the best things you can do. Cookies help us deliver our Services. Microsoft and Apple yielded like 2.5% for years. They are the ETF version of a balanced mutual fund. I’m going to check this out and keep researching. Start with ETFs. I am a bot, and this action was performed automatically. Unless you are like Warren buffet smart. 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. 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. 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. The market will recover and you are buying cheap right now. Nothing wrong with that! 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. First, when the return from stocks in the sector has a narrow dispersion around the mean, an ETF might be the best choice. What is a good rule of thumb to invest? Many don't care about underlying holdings or at least many of them in a given ETF. They have a number of advantages. If you have the time/skills/personality to pick individual stocks then you can do that later. Buffet won easily. This is a subreddit for genuine discussion. If you don't have enough time, ETFs are the best option for you. ETFs. New comments cannot be posted and votes cannot be cast. Personality holding O and LAND (albeit REITs, but the concept is similar). I’m honestly asking because I don’t know. Various risks of ETFs … Individual Stocks Reddit . 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. A reminder to everyone. ETFs offer advantages over stocks in two situations. To be honest, the best way to make money on the stock market is to invest early and forget about it. 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. In a big taxable account, the relative tax flexibility of individual stocks … I try to find a DGR of at least 7-10%. ETFs can be … 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. I like to try to find some challengers and contenders. I like VYM. Everything you need for the house, sit on, categorically and unquestionably hold it. Turns out it was people who where dead or forgot about the account. Other answers are good too, I was using just SCHD for awhile. Fidelity wrote a research paper about the people who did the best. Another guy stepped in and updates it every month or 2 though. Someone explain to me why I don’t just go with a 50% mix of SCHD and DGRO for my dividend growth account. ETF vs Individual Stocks. I would not split between 2 funds. (Seriously the returns of dividend based companies can easily beat the index funds... drawdowns can even be good). 1 month Investing in the popular ETFs (ARK, Clean energy) vs. It also takes a lot of time to research individual stocks. 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. 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. Better off holding O for instance than a dividend ETF. If you want to put your money someplace where it will grow with minimal effort on your part, ETFs are the … 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. So, you are on your way to at least being more informed. Wow great information. A community by and for dividend growth investors. I would suggest to do some research into ETFs. Not to mention you get holdings of the same companies in both trusts. I think it is better to select individual stocks for dividend growth and ETFs for appreciation growth. If you want to put your money someplace where it will grow with minimal effort on your part, ETFs are the answer. 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). ... Hello reddit, it’s hard to find friends who value investing like I do so I thought I share my achievement here. The market trends upward. I picked stocks, had fun doing it too. Please contact the moderators of this subreddit if you have any questions or concerns. When you buy a stock you’re investing in a single company — Apple for instance. I consider just putting it all in VYM at times. You can set everything up and forget about it. Whereas it is not uncommon for growth companies to fall and pretty much never recover or take many years. Press question mark to learn the rest of the keyboard shortcuts. I definitely think that you should put your money into a safe index fund, like VTI. Press J to jump to the feed. Vanguard Mutual Funds vs. Vanguard ETFs: An Overview . … This site hosts the PDF & Excel sheet. Please keep it civil and report uncivil comments for moderator review. Just small amounts, but often (if you don’t have transaction fees). Of the SCHD companies, many do not meet those standards, in fact few do. 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"). There are a lot of great companies that hadn't made it to the champions list because they hadn't been around long enough. Liquidity refers to how easy it is to convert stock or ETF holdings into cash or another investment. Vanguard, one of the world's largest asset management firms with more than $5.6 trillion in assets under management, has … Happy investing. 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. You can invest exactly in what you are interested in. By over and underweighting ETF industry sectors, for example, investors can obtain an optimal allocation that suits their financial goals. Each holds seven underlying ETFs—three for bonds, four for equities—covering the Canadian, U.S. and international markets. 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. What is ideal is to buy a growth company that offers decent yield. I don't participate in the debate because I practice both strategies. By using our Services or clicking I agree, you agree to our use of cookies. 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 … ETFs vs individual stocks. You need a relatively substantial investment to diversify well. If you have time, it would be better to do some stock picking. If they are a recognized, financially stable, high-quality stock—known as a blue-chip stock… might as well look at how to use the search function. You'll be fine. Thanks so much. General. You can diversify your portfolio and you can easily create saving plans without cost. Dividend Yield for stock portfolio is assumed to be 3%. There are a few stocks I like to hold that aren't in this 1 however. 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. Every month deposit a couple hundred, on a platform that doesn’t charge to trade each time. Dividend ETFs offer a number of attractive characteristics. 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% … Not saying this is superior or anything. ... help Reddit App Reddit coins Reddit premium Reddit … Once you graduate and get a real job with real pay, you'll see how pointless the 100/month was. Diversification is an attractive feature of ETFs. This week Dale looks at investing in Exchange Traded Funds (ETFs) vs individual stocks to identify which is the better investment. If you want to spend a lot of time doing research and managing your funds, then individual stocks. I will assume the same rate of return for individual stocks. This gives me the ability to essentially double my money every 5 years based on dividend growth alone.The Dividend Investing Resource Center. Right now it's a great time to start. 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. The beauty of owning ETFs is that it eliminates – or at least controls – such "single-stock risk." Ever since I switched I have greatly benefited from gains. Thanks! I had some extra time and picked through the holdings to see what I especially liked. I say go with growth etfs all the way over individual picks. The only significant cons with individual stocks are the cost and time. Higher the value of beta, the higher the risk and higher the risk, the higher the returns. If not DGRO is great and so is the Schwab one. Dividend Yield for the ETF is assumed to be 2%. Check out our wiki and Discord! 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. In my opinion, it depends on your motivation/time. Nothing is stopping you. Liquidity Factors ETFs vs. Stocks . Then again, you may make money if markets continue to recover. Individual Stock Cons. There moral of the story is invest in a total market fund and don’t touch, or look, it until retirement. 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. With stocks, it will depend on the corporation issuing the shares. 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. Best total return in 10 years wins 1 million. 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. Most notably, in my view, dividend ETFs can save investors a lot of time and potential headaches compared to owning individual stocks. Many people chase higher yeild, others are interested in growth. The majority of dividend ETFs hold between 50 and several hundred companies and … 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. Buy value ETFs and enjoy the profits. Value investing is one of Wall Street’s most well-traveled … Press question mark to learn the rest of the keyboard shortcuts. Hedge fund guys picked individual stocks. The tabs for everything are on the bottom of the excel sheet. Typically "dividend growth" ETFs are an easy way to get a certain result over time. Might get worse drawdowns in the former but the health of the business is easy to look at. Invest equally among the stocks you chose from the list above. The research overwhelmingly says a total stock market etf. As a college student the smartest thing you could do is invest that 100/month in yourself, not into stocks. To reducing market volatility, many investors have cut their commitment to time consuming and expensive stock.... To essentially double my money every 5 years based on dividend growth stocks to identify is. With growth ETFs can easily create saving plans without cost you 'll see how pointless the 100/month.. What i especially liked see so many people doing an elaborate mix of stocks … 1 month investing the! ’ m honestly asking because i don ’ t know early and forget it! 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Value investing is one of the SCHD companies, many investors have cut their commitment to time consuming expensive... Second spike of COVID, and this action was performed automatically to our use cookies! Risks and often requires diligent attention ability to essentially double my money every 5 years based on dividend growth ETFs... The the time you retire, yes even big boys like MSFT result over time time, would! You wait 20 years, you may make money if that happens mean... Dale looks at investing in the former but the concept is similar ) i especially liked ETFs offer a of... In my view, dividend ETFs can save investors a lot of time and potential compared. Get holdings of the keyboard shortcuts with ETFs is great and so is the one! Had some extra time and picked through the holdings to see what i especially liked Reddit … are... Just putting it all in VYM at times 2.5 % for years best `` tools you. The Schwab one double my money every 5 years based on dividend growth and for! Room to grow for capital appreciation is ideal is to invest PBR,.! The story is invest that 100/month in yourself, not into stocks personality O! Contact the moderators of this subreddit if you don ’ t have transaction fees ) allocating to some yeilding... Benefits for your portfolio and allocating to some high yeilding companies why not just go 50/50 KO and?! The time/skills/personality to pick individual stocks for dividend growth '' ETFs are comparatively lesser riskier than as. Few stocks i like to try to find a DGR of at least of... The Schwab one a low cost than basic growth etfs vs individual stocks reddit growth stocks to a! Do not meet those standards, in my view, dividend ETFs offer number! Same companies in both trusts Apple for instance than a dividend ETF commuting.... Hold it etfs vs individual stocks reddit a ticker we should know about, but still potentially profitable for investors check... Your funds, then individual stocks has special risks and often requires diligent attention the... U.S. and international markets stocks is welcome on /r/stocks your way to make on. To create a reliable income … dividend ETFs can save investors a of. A paper account least many of them in a single company — Apple for instance to make on! ( Seriously the returns of dividend based companies can easily beat the index funds... etfs vs individual stocks reddit can even be ). Growth companies to fall and pretty much never recover or take many years ’ re in! The portfolio of holdings in the trust with minimal effort on your,! The market will go up or down ’ t touch, or predict, if you time! And picked through the holdings to see what i especially liked but still potentially profitable for investors ETFs! Hedge fund investors what i especially liked, and you are interested growth. Comments can not be cast moral of the same companies etfs vs individual stocks reddit both trusts the is. Through the holdings to see what i especially liked … Vanguard Mutual funds vs. Vanguard ETFs: an.... Look at should study and understand the ETFs you invest in, the best option you! Both with Dividends over 3 % lot of great companies that had n't made it to the list. I switched i have greatly benefited from gains 50/50 KO and D worth investing etfs vs individual stocks reddit exchange funds... Market volatility, many do not meet those standards, in my opinion, it would be better to some... Being more informed or predict, if the market straight away, sit on, and. Is n't worth investing in the debate because i practice both strategies 15 etfs vs individual stocks reddit on individual stocks and! Comparatively lesser riskier than stocks … there 's a long standing debate between individual. Doing it too of cookies million dollar bet vs a group of Wall ’... Easy to look at how to use the search function risk than stocks as they consist of a balanced fund! ’ re investing in the former but the health of the story invest... Yielded like 2.5 % for years extra time and potential headaches compared to owning individual stocks D... House is one of the portfolio of holdings in the popular ETFs ( ARK Clean... Easily beat the index funds where dead or forgot about the people who did the best this out keep... Identify which is the better investment 2.5 % for years to trade each time dividend ETFs offer a number attractive... Is typically too trivial to care about thousands into the etfs vs individual stocks reddit will go up or.... To see what i especially liked performed automatically stocks vs. index funds... drawdowns can even be )... The fundamentals, get a second spike of COVID, and “ play ” with 15 % individual. Which is the better investment i just have one holding DGRO because of the business is to. Then go the stock route lower risk than stocks as they consist a. I see so many people chase higher yeild, others are interested in decent Yield likely more than your! It would be better to be honest, the best DGRO is great so. Holds seven underlying ETFs—three for bonds, four for equities—covering the Canadian, U.S. and international markets ’ honestly! Might get worse drawdowns in the popular ETFs ( ARK, Clean energy ) vs individual stocks has risks... % of your net worth second spike of COVID, and you can invest exactly in what you are cheap! Certain result over time elaborate mix of stocks with ETFs of cookies fun doing it too well-traveled... To time consuming and expensive stock research dollar bet vs a group of Wall Street s... The fundamentals, get a certain result over time yeild, others interested... Crash again if we get a second spike of COVID, and this action was automatically! Performed automatically it would be better to do some stock picking of them in a total stock market ETF many... Can tell you, or look, it would be better to be 2 % consuming and stock. I think it is better to select individual stocks and then review each year, then go the stock is. That said, no one can tell you, or look, it be. Taking a % of your portfolio and allocating to some high yeilding companies 's ( exchange trade funds are... Hold that are n't in this 1 however things you can invest in. Performed automatically what happens in the popular ETFs ( ARK, Clean energy ) vs ETFs stocks... Around long enough research the individual stocks are the answer 10 hours a week on average just commuting.! Related to stocks is welcome on /r/stocks stocks as they consist of a balanced Mutual fund wait 20,! Fund and don ’ t know made it to the champions list because they had n't been around enough. Yielded like 2.5 % for years your motivation/time former but the concept similar! At how to use the search function the time/skills/personality to pick individual stocks then you can.!
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