Etf portfolio examples

There are a lot of different investment options out there, and the sheer number of choices can be overwhelming, even for seasoned investors. But ETFs are pretty easy to compare and obtain relative to other securities.

How much of my portfolio should be in etfs

And the first step toward investing in ETFs is understanding what they fundamentally are and how to differentiate them.

ETF stands for exchange-traded fund. An ETF allows you to purchase a large number of securities — stocks, bonds or commodities — all at once. 

You can think of an ETF like a grocery basket, but instead of filling your basket with eggs and milk, you fill it with stocks or bonds.

And, instead of purchasing each item individually, you purchase the entire basket all in one go! 

Like an individual stock, ETFs are traded on an exchange throughout the day and there are tons of ETFs to choose from. Some ETFs are full of stocks, some hold bonds, and others track the performance of a certain market sector (healthcare, pharmaceuticals, communications, etc.) or a certain index (like the S&P 500, Dow Jones, etc.). 

You might think that a