ETFs for Beginners

Investing can feel really overwhelming and confusing. Clark goes back-to-basics on the fastest-growing area of investing: exchange-traded funds (ETFs).
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[@ggsd4903]

I love this man. He's a goddamn national treasure.

[@BiggMo]

I suspect ETF’s are desirable for market timer investing. Just buy and hold.

[@vince8436]

Index ETFs and Individual stocks only with one exception. Index Mutual Funds in 401k.

[@martinguldnerAutisticSwanGuru]

I prefer 3 different State Street S&P 1500 ETFs, SPTM market cap weighted, VLU value tilted weighted, MMTM momentum Tilted over VTI less small cap exposure owns about 90% of US stocks.

[@davidfolts5893]

When I am gone, I like mutual funds for the simplicity they will provide my wife. One or two basis points in favor of EFTs is meaningless noise and added complexity when you strip out the cost of the bid spread expense. Simplify, simplify, simplify.

[@steveludwig4200]

Actually there is LESS "complexity" to ETFs AND if the market is losing ground quickly and you want (or need) to sell quickly, you get the price at the time of the trade, not at the end of the day. As an example, a stock broker friend that's actually on the floor of the NYSE called me one morning in 2020 just after trading opened and said "Get out of "XYZ" S and P ETF NOW...the S and P will likely be down over 500 points by the end of the day." I got all out of that fund a minute later when S and P was down 75 points and it ended up down over 600 points by close of trading, saving me about $70K that I would have lost if I owned a simple S and P Index Fund.

[@steveludwig4200]

@@RickMartinTH-cam Actually there is LESS "complexity" to ETFs AND if the market is losing ground quickly and you want (or need) to sell quickly, you get the price at the time of the trade, not at the end of the day. As an example, a stock broker friend that's actually on the floor of the NYSE called me one morning in 2020 just after trading opened and said "Get out of "XYZ" S and P ETF NOW...the S and P will likely be down over 500 points by the end of the day." I got all out of that fund a minute later when S and P was down 75 points and it ended up down over 600 points by close of trading, saving me about $70K that I would have lost if I owned a simple S and P Index Fund.

[@davidfolts5893]

@@steveludwig4200The long-term buy-and-hold investor is best served by maintaining a proper asset allocation between low-cost index and bond index funds and rebalancing when their asset allocation deviates more than five percent. Being able to purchase ETFs the same way as stocks is why Jack Bogle, the founder of Vanguard, was initially opposed to the creation of ETFs because he felt it offered too much temptation for people to attempt to time the stock market.

[@terry_willis]

@@steveludwig4200 I remember that event when it dropped 600 points that day. But the next day it was up 700 points. :))

[@autohelix]

​@@steveludwig4200You would have not lost anything. You only truly lose money when you sell.

[@grayfox9911]

Thanks for this!

[@suehofkamp8594]

First of all you need to explain what ETF stands for.

[@Crazyferretlady-in5sd]

I believe it stands “electronically traded funds”

[@suehofkamp8594]

@@Crazyferretlady-in5sd Thanks! 😊

[@MorpheusMind]

Wow! I'm so disappointed in your clark. You didn't even mention bitcoin ETFs 😂

[@XXPS60]

[@Bob-wm5pz]

Been hearing alot of good things about stocks like. UPST, MRNA. PARA. Tdoc. Sqqq roku. Bby.❤

[@autohelix]

No