Focus on Asset Allocation & Minimizing Investment Costs
Listen to The ETF Store Show every Tuesday at 9am on ESPN 1510 as we cover everything you need to know about Exchange Traded Funds and the world of investing.
On our most recent radio broadcast, we explained why investors should focus on asset allocation and minimizing investment costs to achieve long-term investing success. It’s been our observation that too many investors fruitlessly attempt to pick the next hot stock or mutual fund manager instead of building a well-diversified, low cost portfolio comprised of uncorrelated asset classes. With exchange traded funds, or ETFs, investors can use index-based investments to efficiently and cost effectively access a wide range of asset classes around the globe to build an institutional caliber investment portfolio. During our show, we also examined the different types of investment advisors and brokers vying for your business, how they’re compensated, and the pitfalls that you need to be aware of for each.
In our weekly ETF spotlight segment, we took a look at two different ETFs that might serve as core holdings in a well-diversified portfolio. The first ETF, ticker VT, is a cheap, one stop shop for broad based global equity exposure. VT holds approximately 3,700 stocks from around the globe and the index VT tracks represents 98% of the world’s total investible stock market capitalization. The second ETF, ticker TIP, invests in U.S. Treasury Inflation Protected Securities which can provide some inflation protection for the fixed income portion of your portfolio. Learn more about both of these ETFs by listening to the full show here.