Monday, July 29, 2013

ETFs Rather Than Stocks?


ETF Guide has an excellent presentation on the comparative pros and cons of individual stocks and ETFs (exchange-traded funds).
Quickly, ETFs provide a single acquisition of a security providing that might equal or surpass the diversification gained by buying a dozen or more stocks.
See:

If you seek income flow (as we retired folk tend to do), look into VYM (Vanguard High Dividend Yield ETF).
If you are a risk-averse investor, you need to know that the ticker symbols presented here in boldface are leveraged and thus considered riskier than the others.
All ETFs named show double-digit total returns for the last three years through June 30, 2013.

These two ETFs show average annual double digits for the last 3 months, 2013 to date through June 30, the last 12 months, and both the last 3 and 5 years: QLD (ProShares Ultra QQQ) and UCC (ProShares Ultra Consumer Services). Both are leveraged to run 2x the daily return of the index it represents. 

The following ETFs were up double digits in the last 3 months, the year to date through June 30, the last 12 months, and the last 3 years:
BHH, MVV, OTR, RSU, UKF, UVU, UWM, VO, VOT, VTI, VYM. Those shown in boldface are leveraged.

For a detailed listing of exchange-traded funds, see:

Also, ETF Guide measures ETFs against mutual funds, ETNs, and closed-end funds. See:

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