ETFs are a trap. Put most of your money in single stocks. It is ok to diversify, you don't need an ETF for this.
Nay, it is not just “ok”. It is imperative that you diversify if you want a strong and resilient portfolio.
More seriously, I would still worry about order execution and transaction costs. You are likely to end up on the wrong side of the bid/ask spread when playing against the big boys.
If you're actually serious about this, you might as well start your own ETF. Or just buy this one I found after a quick Google: https://www.proshares.com/our-etfs/strategic/spxt Buying multiple sector-specific ETFs is another approach. I'm told that utilities are good to hold during a downturn.
So I am sure this is not viable for many people as buying an ETF counts like 1 trade, but investing the same money in the underlying assets count like 10s of trades.
Not necessarily
ETF managers execute block trades outside the normal market, sometimes through dark pools, not even reported to the public.
Fidelity, Vanguard, etc ask JPMorgan, Goldman to execute these block trades and pay them a fee. This fee can exceed the “slippage” a retail investor can face.
ETF are just noob introduction to the stock market and great one at that but to maximize returns you want to be more specific and intentional about your picks.
Where etfs are great even after you learn a lot, is exposure to whole sectors of the industry. That’s how I treat them: one - etf - an index of how a particular industry fares.
Source: I basically live solely from investments at 30
Honestly it’s a free for all game so no one has any interest to share their secrets and methods. When you lose money I make money. Better player wins.
That's unbelievable! Even Warren Buffet only makes 19% - 20% compounded every year. That would make you one of the top investors ever.
Not really.
Plenty of hedge funds and HFT firms make 40-100% each year (before fees) over 30-40 years…
Citadel’s “stock picking ability” is 40% annual returns since 1999
They just don’t advertise this because it’ll make retail traders and passive ETF investors really sad
You could hit up juleiie from above for his/her winning method I suppose, or you put a portion of your savings into an appropriate ETF and get on with your life.