ETF vs Single Stocks: Which is REALLY Better for You?

TOPICS AND TIMESTAMPS:
ETF or Stocks 0:00

Should you invest in ETFs or single stocks? What's the best strategy for your financial future? In this episode of The Money GPS, we'll compare these two types of investment vehicles, discuss the pros and cons of each, and help you determine which one may be a better fit for your portfolio.

📈 Introduction: ETFs vs Single Stocks
An overview of the difference between ETFs and single stocks and the potential risks and rewards of each.

🚫 Predicting the Market: A Reality Check
Discussing the difficulties and uncertainties of predicting market trends over the long term and why most people are likely to fail in these attempts.

🌐 The Advantage of Broad-Based ETFs
Exploring the benefits of investing in broad-based ETFs, which cover the overall market, provide diverse sector exposure, offer potential for decent returns, and limit downside potential.

💼 Making Money vs Preserving Wealth
Discussing the philosophy that business should be used for making money, while traditional assets, including stocks, should be viewed primarily as tools for preserving wealth.

⚠️ Concentration Risk in ETFs
Detailing the risks of ETFs that concentrate heavily in a few big names, including the potential for severe market impacts if everyone decides to exit at once.

Remember, investing isn't a one-size-fits-all proposition. It's crucial to understand your risk tolerance, financial goals, and market trends when making investment decisions. Stay tuned to The Money GPS for more insights into financial planning and investment strategies. If you found this episode informative, don't forget to like, share, and subscribe.

#ETF #stocks #moneymirrormethod

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[Winterbiker]

Thanks, I tend to agree with you. In these uncertain times the broad brush approach with ETF’s is safer than most.

[FabiWann]

ETF's when the market is at or bellow fair value, value stocks when ETF's are overvalued. Check stock maket cap to GDP and CAPE ratio.

[manuelagerlach]

I agree. Before buying stocks or other financial instruments, you have to do your homework.

[hahamasala]

I like that I can trade ETFs for free in real time and there are lower fees. Mutual funds might be better for buying and holding.

[imdoc]

Great video! I think it is so important for people to understand wealth creation vs investing to get rich quickly. The part about creating a business is also so important.

[GreenFacePowerRanger]

Thanks for the ETF jargon buster screen!!

[steltoronto]

Thank you once again David excellent video and very informative. 😊👍

[blastoffbat]

Excellent video, David, very very informative. I personally do "NOT" like to take risks, especially at my age . I say, always know what and where you are putting your money into, just saying!!

[kattyparry]

I agree. These etfs are heavily relying in like 7 companies

[modernsoccer]

Etfs if you can contribute a lot monthly or time is in your favor like late 20's or early 30's, single good growth stock if starting late in 40's or very low monthly contributions

[Godfather]

As a dividend investor I’m always looking for good deals to dollar cost average, but I mostly have my Roth IRA focused on ETFs and REITs since they would get taxed to death. And I have my regular portfolio with individual stocks that I buy fractions of daily so I can take advantage of the highs and lows without losing tons of money

[robinhoodblack]

After learning so much about markets cycle and economic cycles this past 2 years and being in the red on a lot of my growth stocks i understand why most should stick with ETF. I said i will start getting ETFs but i still like to pick certain small cap plays so i just have to balance it out. I have a question though. According to my understanding from my Financial Management college teacher, an ETF is like S&P, NAS, DOW. While mutual funds are actively managed. My question is 1st is that fairly accurate and if so do sector based ETFs exist? Like green energy, health care, or consumer staples ETFs for example?

[abqmalenurse]

Hmm. I wonder how the people who invested in Bear Stearns, Enron or SVB agree with this?

[AndersonChao-vszf]

In my opinion and experience to be fair stock is for those whoever day trade should work better but if you are swing trade or buy and hold EFT must better way to invest, also here thing day trade i recommend professional only otherwise too risky if you are not sure i always go by ETF less risky and safer have more chance to gain

[trrealestatenycrealestate]

WHY NOT BUY THE MAGNIFICENT 7 SINCE ALL THE ETF'S ARE MOSTLY ARE LOADED WITH THESE STOCKS?

[SpiffyGolfTV]

I'm investing in ETF and stock, but if you would investing to stocks, before you are need study the company would you are invest and watch the PE ratio for understad what are you go risk. I'm lucky I'm lose in one year 3, 66% before understad much of the market

[lilblackduc]

With the uproar in Asia concerning Taiwan, I'm apprehensive about investing in FAANG-type stocks, which would otherwise seem like a good long term investment..🤔 😳

[Dmindthinker]

I think you’re mixing a few things together and or confuse a little how index and etf works.

[anthonytwohill]

I wouldn't mind if I die before 65.

[swerve]

But David, you said someone taught you how to trade. You do know daytrading is different from investing, right? Investing is no good, right now.
I make $700 per day from daytrading. Yes, I trade in a way I know how my day turns out.