Article of the Week
"Don't Sleep On This Simple ETF Combo"
As you know by my name, I love dividends. And in addition to sharing on here, I write regularly in the investment platform- Seeking Alpha.
My goal there is to teach everyday investors about building wealth, so they won’t to need to work to traditional retirement age.
I want to help you take control of your life, have F.I.R.E.
And the platform allows writers to share one article once a week free of charge. So, I like to share them with all my current & future subscribers. (see below).
Current Prices:
Schwab U.S. Dividend Equity ETF (SCHD): $27.54
Fidelity High Dividend ETF (FDVV): $57.03
With the large amount of traditional & covered call ETFs hitting the market in recent years, investing has never been easier in my opinion. However, one problem I see is investors holding too many in their portfolios.
This leads to portfolio saturation, or “over diversification”. And too much of this can lead to underperformance. This is why it’s important to combine ETFs that have minimum overlap, and have different strategies.
For example, holding multiple ETFs that track the S&P 500 (SP 500) is saturation instead of actual diversification since they all hold similar equities. They were just created by different investment advisors like Vanguard, BlackRock (BLK), and State Street (STT).
In this week’s article, I give investors an ETF combo that not only delivers income, but growth as well with minimal overlap.
Happy Investing!
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