Investing in ETFs could make you wealthy

You can make some money by investing in ETFs. We’ll cover, S&P 500 ETF, Total stock market ETF, high dividend yielding ETF, REIT ETF, growth stocks ETF, innovation ETF, emerging market. by the end of this post you will have an idea how investing in ETFs could make you wealthy.

You can invest into individual stocks Or group of stocks. We are only going to focus on group of stocks.

ETFs – exchange traded funds, are a collection of stocks that are group into a single investment. ETFs reduce your risk by diversifying your portfolio. Investing into a ETF means that you could be investing into tens or into hundreds or into thousands of different stocks depending the type of ETF you chose.

Investing has risk. So do your own research because you can win or lose money. By investing in ETFs you are minimizing your risk. If you invest into a ETF that has 500 or to make it easier, 100 different stocks and one of them goes bad, then you portfolio does not get affect by much since 1 out of 100 is just 1%.

In the S&P 500 for example The good thing is that if one the company is doing too bad it may get delisted. If it gets delisted then another new companies is listed.

ETFs are passive income, you can invest into one ETF which is a group of companies or multiple ETFs which are multiple group of companies. You can just set it up and forget it, since they are managing it for you. You can even start with $1 depending on which platform or brokerage you choose.

If you are going to be investing into ETFs understood that this is a long term strategy. In a market you can either day trade, meaning you trade every day. You can swing trade meaning you trade within days, weeks or months or you can do long term strategy one year plus. Trading long term has tax benefits.

S&P 500

S&P 500 is a stock market index tracking the performance of 500 large-cap companies in the us. There are many ETFs that track the S&P 500.

An index fund is an investment that track a market index.

SPY is an index fund that track the S&P 500. By investing into SPY you investing into 500 us Large cap companies. SPY is a SPDR S&P 500 ETF Trust.

VOO is another index funds that track the S&P 500. The same, by investing into VOO you are investing into 500 us Large cap companies. VOO is a vanguard 500 index fund ETF.

Always check the ETFs Expense ratios. This is how much money you are paying for them to manage your money.

If you interest in finding more info about the ETFs you can go to google.com type VOO or SPY or whatever ETF you are interested in.

If you are interest in finding more information about the ETFs like the top holdings. Meaning what % of each companies the ETF hold. like a hypothetical example, Apple holding 5.92% or Microsoft Corp holding 5.62%, then you can go to finance.yahoo.com

You can also go to the ETFs websites to find more info.

Total Stock Market

Total stock market is a stock market index tracking the performance of the Entire stock market. There are many ETF that track the total stock market. Most total stock market index funds track 3000 or more stocks.

VTI is a Vanguard total stock market index fund ETF. By investing into VTI you are investing into the entire US market. This include large-cap, mid-cap, and small cap.

High dividend yield

In the stock market you can make money by appreciation or through dividend.

Making money by Appreciation is when you make a profit by buying a stock at one price then the price goes up and then you sell it a higher price. Therefore, you end up making a profit.

Making money with dividend investing. By the end of the year the company that you invested take a portion of the profit and give it to the shareholders. The dividend you get back is either fixed amount or %. You can either reinvest the dividend or use that money for something else.

Some companies pay dividends monthly, quarterly or yearly.

There are qualified dividend and ordinary dividends.

Qualified dividend are tax as long term capital gains.

Ordinary dividends are tax as short term.

RDIV and VYM are ETFs that focus on getting high dividends.

VYM is a Vanguard high dividend Yield ETF.

RDIV is a Invesco S&P ultra dividend revenue ETF.

Investing into dividends stocks are good for steady cashflow.

REIT ETF

REIT eft are real estate investment trust. REIT are companies that own or finance income producing assets. Instead of you investing into real estate directly, you investing into the company stock. REIT pay 90% of its profits back to shareholders through dividends.

IYR is a iShares US real Estate ETF.

VNQ is a Vanguard real estate index fund ETF.

Growth Stock ETF

Growth stock ETF is a growth investing strategy where focus is on growth.

SYLG is a SPDR S&P 600 small cap growth ETF.

QQQ is a Invesco QQQ trust series 1 ETF. It tracks the Nasdaq 100 index. It focus on the 100 largest non financial companies. such as tesla, apple, amazon, Microsoft etc.

Innovation ETF

Innovations ETFs focus on new things like new products, new technologies, new patents. New is the key. Just look back and think about internet, cell phones, videos games. TV, ratio etc. You see how far we have come. Therefore, Innovation focus on new things.

ARKK Innovation EFT is a equity ETF. It focus on new things.

There are other EFT like ARKG etc.

Emerging Market ETF

A emerging market is a market that has some characteristic of a already establish market but that is not yet an establish market. The us has the highest economy.

You can invest in EFT outside of the US that has small economy. It give you diversification because of different country around the world. Such as china, India and others. Since their market is small, it has chance to growth bigger.

IEMG and VMO are two ETF that you can invest.

IEMG is a iShares core MSCI merging markets ETF. Focus on large, mid and small cap.

VMO is a Vanguard Global Momentum Factor EFT. Focus on long term capital appreciation.

That’s it.

Now, start and adjust as you go.