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Proprietary Data Insights Top ETF Searches This Month
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Any Easy Way To Invest Your Money If You Want To Retire |
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For every person who tells you they got rich day trading, buying crypto or riding tech stocks, there are countless others who couldn’t make those things work. Or those things worked until they didn’t. While we have nothing against any of these methods – and frequently discuss them – the tried and true way to get rich and, maybe more importantly, retire comfortably is a relatively slow and steady approach to long-term investing. And it looks a little something like this… Since the beginning of the year, The Juice has been covering investing basics from dividend stocks to ETFs. You can access all previous editions of The Juice right here. More recently, we got to work constructing an ETF portfolio for long-term investors. We love ETFs because they help take the guesswork out of investing. While it’s next to impossible (and, we think, riskier) to truly diversify your portfolio via individual stock picking, you have a fighting chance if you buy ETFs. And, specifically, if you take a broad-to-specific approach to ETF investing. We’ll show you what we mean by broad-to-specific approach in a second. In fact, it’ll be self-explanatory. This doesn’t mean you shouldn’t buy individual stocks. Clearly, there’s money to be made and stock picking can be part of a well-rounded approach to investing, be it in the short or long term. It just means that the foundation of your portfolio should cover as many bases as possible to get you to where you want to go 10, 20, 30, 40, 50 years from now. And there’s no more straightforward way than using ETFs to get there. We started our ETF portfolio journey last month with several ETFs that cover large segments of the market. We suggested taking a look at these two broad market ETFs first:
From there, we narrow it down a bit with broad exposure to a wide array of dividend-paying stocks via these ETFs:
No shock that three of these four ETFs populate the top five list of the most searched ETFs among investors in Trackstar, our proprietary sentiment indicator. Owning these ETFs puts you in a lion’s share of the big name stocks, overweight on market leaders such as Apple (AAPL) and Nvidia (NVDA). You can see all of the details at the link above. From there, we got more specific, adding the following ETFs:
Important point: This assumed you wanted broad exposure to real estate, the larger housing market and artificial intelligence through semiconductor stocks. Herein lies the beauty of ETF investing. If you’re bullish on some other market segment, part of the world or other theme, there’s an ETF to satisfy your craving. These areas just happen to be our favorites for long-term investors. And, quite frankly, if you stopped right here, you’re in better shape than quite a few investors. But, instead of stopping, we’ll switch things up a little bit and round out our ETF portfolio with the #3 name on today’s Trackstar list of the most searched ETFs:
JEPI is a somewhat unique, actively-managed ETF that owns a core of low-volatility S&P 500 stocks (right now, Adobe (ADBE), Microsoft (MSFT), Visa (V), PepsiCo (PEP) and Costco (COST) are among the ETF’s top ten holdings). From there, the fund regularly sells out-of-the-money S&P 500 index options (essentially covered calls) to generate ongoing income that it distributes to its shareholders. As of July 14th, the ETF yields roughly 10.6% on a 12-month rolling basis. This fund is super popular with investors, but we think it’s more than a fad. With a relatively low expense ratio (0.35%) for an actively-managed fund, it’s worth a look to round out our ETF portfolio if you have a goal of collecting income. Of course, you can opt to reinvest your JEPI dividend payments into new shares of the ETF. The Bottom Line: Over the last month, we have detailed what we think is a well-rounded ETF portfolio, suitable for long-term investors. Of course, your specific situation dictates how you’ll get about investing and the specific names you’ll own. Therefore, you can take what we have and tailor it to your needs, goals and risk profile. That said, we aimed to cover enough bases – from broad to specific – to construct a portfolio that strives for diversification among actual stocks as well as sectors and investment styles/approaches. There’s broad market passive (SPY, QQQ), dividend growth passive (NOBL, SCHD), sector-specific passive (VNQ, XHB, SMH) and income-oriented active (JEPI). If nothing else, these eight ETFs provide a nice starting point for your own due diligence. |
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