To diversify our ETF investments further, lets look at the VPL – Vanguard Pacific Stock Index Fund.  As the name implies, investing in the VPL is investing in the stocks of the Asia-Pacific region.  It has 2497 stocks, so buying VPL is buying a large part of all of the Asia-Pacific stocks.

People invest in international stocks like the Asia-Pacific fund to further increase their diversification.  Because, like we said, when the US stock market is down, the Asia-Pacific stocks may be up.  And that’s where Read the rest of this entry »

Okay, so in prior posts we’ve just looked at US stocks.  But there’s a whole world out there, and it has many profitable businesses, and stocks, as well.

And we know that diversification within our US stocks can lower risk.  Because it kind of evens out the ride, i.e. when some stocks go down, others may go up.

Similarly, adding international stocks can increase our diversification.  Because sometimes when the Read the rest of this entry »

After looking at large companies stocks ETFs in recent posts, we have started looking into small company stock ETFs.  So why would we do that?  After all, large companies typically have well established products and a well-established financial history.

However, their big growth days may be behind them.  So investing in them is less risk, but perhaps less reward.  And so the value of their stock may be less volatile, swing up and down less, be more stable and less heart stopping.

On the other hand, people can invest in small, newer companies.  And they do that because their big growth days could still be ahead of them.  Of course, they don’t have as much Read the rest of this entry »

Here’s another sample chapter from my latest book Exchange-Traded Funds Investing For Beginners.  The book has been well received, so I’ll, post a number of excerpts for your review in future posts.

And if it interest you, you can review the book for free right here.

We’ve been previewing the chapter entitled Different Types Of ETF Investments.  And in our latest posts we have looked at ETFs holding large companies stocks (large caps).  These companies typically have well established products and a well-established financial history.

However, their big growth days may be behind them.  And so the value of their stock may be less volatile, swing up and down less, be more stable and less heart stopping.  So investing in them is less risk, but perhaps less reward.

Small US Companies Stock ETFs (Small Cap)
On the other hand, people can invest in smaller, newer companies.  And they do that because their big growth days could still be ahead of them. Read the rest of this entry »

Here’s our last large stock ETF sample chapter from my latest book Exchange-Traded Funds Investing For Beginners.  The book has been well received, so I’ll post a number of other excerpts for your review in future posts.

And if they interest you, you can review the book for free right here.

That said, here’s an excerpt from the chapter entitled Different Types Of ETF Investments.  It begins like this…

VTI Vanguard Total Stock Market Index Fund ETF
Investing in the VTI is investing in the total stock market.  So instead of investing in 30 large key industry stocks, like the DOW, or 500 large company stocks, like the S&P 500, you are investing in 3948 stocks. That’s pretty much all of the Read the rest of this entry »