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Do You Put Your Money in Index ETFs? There Might Be a Better Option
Here’s a comparison of the most popular index ETFs.
Index investing is a popular investment strategy nowadays. It’s an ideal route for people who want to invest but don’t have the time, know-how, or energy to research stocks and compile a portfolio.
Because, let’s face it, handpicking stocks requires a ton of due diligence. We all want to build long-term wealth — investing in index exchange traded funds (ETFs) is an inexpensive and convenient alternative.
But not all index ETFs are equal. Are you maximizing your returns (and future wealth)?
How does your portfolio stack up against some of the most popular funds?
Before we get to my analysis, let’s walk through ETFs to make sure we’re on the same page. If you’re familiar with ETFs and index investing, you can skip ahead to the comparison.
What is an ETF?
An ETF is a type of security that trades like a stock but has exposure to multiple underlying assets. It’s like a basket of investments — you can buy a single ETF and have exposure to 50 assets (stocks, bonds, commodities, real estate, etc.).