Why use ETFs?
Do you want simple, tax-effective, cost-effective investments? Many experts suggest that ETFs are among the most simple, tax-effective and cost-effective means for individual investors to invest in diversified portfolios of stocks (or bonds), with fees and operating costs lower than other types of funds, and more predictable annual taxes for investors remain invested.
How do ETF investments work?
Investors can buy and sell ETFs (exchange traded funds) using an investment account, and with a single purchase have ownership participation in a portfolio of numerous stocks of numerous companies, usually selected according to the investment rules of the ETF. Different ETFs hold different portfolios of stocks. Some own stocks of companies in the US and some own stocks of companies around the world. Some are designed to own a selection of lower risk stocks. Some ETFs are designed to hold bonds or other investments.
Why Diversification is Important?
Diversification is an important investment principle because it reduces risk. By investing in many companies, instead of a few, the effects of any one company doing poorly are reduced.
Why invest now?
Do you want financial freedom? Many experts suggest to start investing “now” because it takes a long time to build wealth and financial freedom.