Just a quick post here to let you all in on why I’ve put a lot of my portfolio into ETFs, exchange-traded funds.
ETFs are groups of funds that typically follow some sort of rule. Many of them try to match indexes, like the S&P 500, while others try to match those indexes but with growth or value qualifications.
Either way, they’re better than traditional mutual funds in that they typically have much lower expenses and also no human nature bias. Human nature is good at making irrational decisions, whereas there are tons of stock trading strategies that make rules-based decisions and return highly positive investments consistently.
That’s why I did a lot of research into finding the best ETFs for me and then bought them. I highly recommend it, especially for young investors looking for long-term gains.