I’m Keith DeGreen and this is your Investors Minute
ETFs permit us to own our favorite stocks, while limiting our downside risk through diversification.
Here’s one example: I’ve often mentioned QQQ – the ETF that tracks the price performance of the 100-largest companies on NASDAQ. Its top five holdings are: Apple, Microsoft, Google, Facebook and Intel.
Want to invest in our great industrial sector? XLI’s top five holdings include General Electric, Union Pacific, 3M, United Technologies and Boeing.
Or perhaps you want to invest in the Dow Jones Industrial Average of 30 stocks. DIA is an ETF that tracks the Dow Industrials: Its top five holdings are Visa, IBM, Goldman Sachs, 3M and Boeing.
Incidentally, XLI and DIA have overlapping holdings. This raises another important issue: How to avoiding portfolio overlap. More on this tomorrow.
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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