With an ETF, you can get exposure to
just about any asset class in the world, very cheaply — just basis points — and what do people use them for?
We like to
talk about each asset class and how they all work together and grow in different ways and different amounts during the year.
In this video we take you through all that you need to
know about asset classes and tell you how you need a combination of these asset classes to meet you financial goals.
It does not
matter about the asset class portfolio you use, each one is expected to reflect different risk and return investment characteristics, and will perform differently in any given market environment.
The most important key to any successful trading strategy, to me, is knowledge —
knowledge about the asset class; knowledge about the asset market; knowledge about the asset itself; and knowledge about how other traders view the asset.
(Important note: I'm talking
about asset classes here — stocks, bonds, real estate investment trusts, etc. — not individual securities.)
MPT seeks to identify a portfolio allocation designed to offer the highest potential reward with the lowest amount of risk possible for any given level of risk, using broad diversification and historical
data about asset class price fluctuation for this purpose.
Try large - cap value stocks Understanding performance: The S&P 500 Index 10 things every investor should
know about asset classes.
Learn about asset classes, diversification and the three investment paths available to you within the VRS Defined Contribution Plans.
There are ETFs that invest in
just about every asset class - stocks, bonds, real estate investment trusts (REITs), commodities, and precious metals.
Active mutual funds sometimes get a bad rap as a group overall, but when combined with index funds they can represent a great way to get diversified exposure to just
about any asset class.