I’m Keith DeGreen and this is your Investors Minute.
Many of our incoming clients hold specific stocks. They often wonder whether they should hold those shares, rather than have us manage that money within ETFs.
Here’s the key: You will probably still own your favorite companies, even after you switch to a professionally-managed ETF portfolio.
For example, Apple is a favorite investor holding, and it has done well this year. But Apple is about 14% of QQQ – a favorite ETF that tracks the NASDAQ 100; it’s about 4% of SPY, which tracks the S&P 500, and it’s about 16% of XLK – a popular tech-sector ETF.
Diversifying in this manner can protect you against the steep decline of a single stock – even Apple — while empowering you to participate on the upside.
FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Newport Beach: 949-333-3450. Scottsdale: 480-609-9900. www.DeGreen.com. Minimum portfolio requirement $500,000.
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