How Many EFT's to buy?

GeorgeF · #1 10-22-2005, 03:22 PM

If you buy 10 different index funds my guess is you will have recreated a broad market index fund, like SP500, only you will be paying higher expenses.

On the other hand if you are willing to buy out of favor sectors then you might be able to juice your returns long term by accepting short term pain.

Sniper · #2 10-22-2005, 06:40 PM

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If you buy 10 different index funds my guess is you will have recreated a broad market index fund, like SP500,

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George,

ETFs cover many different areas, and are a good choice if you want to segregate your diversification and weightings, without having to select a specific stock. They will also generally be subject to lower volatility.

Its certainly possible to select 10 ETFs that would have no correlation to the SP500, if you so desired!