With the current market turmoil lately, many investors are seeing their financial statements take a pretty severe hit. Most are unaware of what they are invested in, or how to adjust their portfolio. But, the "diy investors" out there know that using ETF's is a great way to diversify when needed.
The question is which ETF's to choose, and how to know that they are a good addition to a diversified portfolio. Let's take a look at one way that you can delve into the myriad of ETF's and come out the other end diversified.
The first thing we will want to do is look at what makes us feel that our portfolio is diversified? Would you like to include the S&P 500? Maybe we could add some Gold or other commodities? And, of course we will want to have some ETF's that are not based in the states. Maybe, Europe, Brazil, Mexico? No matter how you choose to diversify, I can promise you that there will be at least one ETF ready to accept your business.
Let's start with the S&P 500. If you are frequent reader of my posts you will know that I prefer the
Next we will look at commodities. Depending on which you choose there can be many options. Let's say you focus on Gold
Lastly, we will look to add some global diversification. To do this you can choose a country that interest you and focus on that, or you can use them all! We will give you a few examples of our favorites.
To focus on Europe, which is a hot topic right now, we can look at the Currency Shares EUROPE
The Olympics are coming up so lets talk about Brazil. Maybe you think that investing in Brazil during the Olympics is a worthwhile investment. One good way to use an ETF for that will be using the
Lastly, we have Mexico. if you feel you need some exposure to Mexico then consider the ETF