ENHANCE
BUY
SEND TO WATCHLIST
GOAL:
MIMIC:
ETFs rely on broad diversification to limit volatility and justify fees.
An alternative is to invest in a concentrated baskets of stocks that Mimics an ETF’s performance and volatility without the fees.
Pro
•Direct stock ownership
•Ability to adjust stocks sizing
•Active rebalancing keeps you inline with the current market, not the market from a year ago
Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing
Enhance:
ETFs rely on broad diversification and while this can limit volatility it can also dilute performance
An alternative is to augment an ETF with a concentrated baskets of stocks that enhance the profile of an ETF’s performance and volatility with half the fees.
Pro
•Direct stock ownership
•Reduce fees by 50%
•Active rebalancing keeps you inline with the current market conditions, not the market from a year ago
Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing
Select:
ETFs rely on broad diversification around a very broad theme. They are not necessarily designed for performance rather they provide exposure. The result is often a very broad collection of stocks
An alternative is to augment an ETF with a concentrated baskets of stocks that enhance the profile of an ETF’s performance and volatility with half the fees.
Pro
•Direct stock ownership
•Reduce fees by 50%
•Active rebalancing keeps you inline with the current market conditions, not the market from a year ago
Con
•Concentrated positions can increase stock specific risk
•Requires active rebalancing
XLE
SPY
XLV
XLF
CCC
Ticker: SDY
Holdings: 103
Name: INVESCO Trust Series 1
Fee: .2%
Contrary to what big finance would like you to believe, ETF’s are not the answer to every investment idea!
Pick a goal and an ETF and explore stock ownership as an alternative to paying fees to corporate America!
ETFs are dead. Try this instead...