Exchange Traded Funds Question. Can You Help?
In these volatile economic times, I’ve been told it may be a good idea to move my money into high yielding (dividend paying) exchange traded funds…within my IRA.
Does this make sense?
In these volatile economic times, I’ve been told it may be a good idea to move my money into high yielding (dividend paying) exchange traded funds…within my IRA.
Does this make sense?
Exchange Traded Funds are good vehicles as they have low expenses. They are not actively managed and have low expenses. I’m guessing the reason someone would tell you to put money into dividend paying stocks is that paying dividends is a reflection of a Strong balance sheet. In that sense I agree with the recommendation.
I believe you never put your eggs in one basket. I also like to be in a good managed no load fund as opposed to a passively managed funds such as an ETF. For my money I like small cap funds right now. I like RVT which is a closed end fund selling at a 17.6% discount now.
All that said I would never put more than 20% of my money in any fund.