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Exchange-tradedfunds (ETFs) like Vanguard High Dividend Yield ETF (NYSEMKT: VYM) provide a simple way to invest broadly in a key theme -- in this case, stocks with a high dividend yield -- to generate passive income. So, for more activeinvestors, this ETF could be a good launch pad for picking stocks.
In fact, investing $100 per month in one simple exchange-tradedfund (ETF) will do the trick. Rather, it's the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) -- an exchange-tradedfund meant to merely mirror the performance of the stock market's primary benchmark index, the S&P 500 (SNPINDEX: ^GSPC).
Billionaire investors like Warren Buffett and others are often known for their stock-picking abilities, and for good reason. But it's also important to know that many of the wealthiest investors in the world own exchange-tradedfunds, or ETFs, as well.
However, despite my preference for being an activeinvestor, I've passively invested in several high-quality exchange-tradedfunds (ETFs). I love being a part owner of something tangible that can grow my wealth over the long term.
If you want to be a more activeinvestor than that, and aim for even higher returns, you might engage in both active and passive investing. Devote a significant portion of your money to index funds, and the rest to carefully selected individual stocks -- or whatever you believe in most. Want to aim for more?
For long-term investors who simply want exposure to the energy sector for diversification purposes, the answer is likely to be diversification. Just buy a sector-tracking exchange-tradedfund (ETF) like Vanguard Energy Index ETF (NYSEMKT: VDE). When energy prices are dropping, they'll get the opposite.
You can, instead, buy a gold-backed exchange-tradedfund. But the gold in the fund won't grow over time like a business could. This is why many investors prefer owning precious metals miners. So when precious metals prices are high investors will benefit more directly from the lofty commodity prices.
Let someone else make the decisions If you're an activeinvestor, it might sound counterintuitive, but you can hire someone else to handle subsets of your portfolio. Yet having some exposure to the energy sector can offer valuable diversification to your portfolio. Here are some ways to deal with oil's inherent ups and downs.
Robert Brokamp: When you read the announcement of the approval of these investments from the SEC chair, Gary Gensler for uses the term ExchangeTraded Product, or ETP. That's really just an umbrella term for anything trade on an exchange.
I will be investing every penny into stocks, and maybe a dividend, exchange-tradedfund dividend, ETF. On to Number 7, still here in the Foolish Moves category, smarter moves made by people who are already activeinvestors. "One step I just took," House Hunter, "is to get a side hustle of sorts. Bless you, sir.
Exchange-tradedfunds (ETFs) can be great investment options. ETFs can also be a great way for more activeinvestors to find new stock ideas. They enable you to invest passively in a sector of the market or specific theme. That can allow you to put your investments on autopilot.
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