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Can you have too many ETF's in portfolio?

Is this a good long term ETF Portfolio for a beginning investor? Also Should I use Sharebuilder?

  • Hi So I am 23 and just started working full time. I have been investing about 15% of my paycheck ($300) a month into Vanguard's Total Stock Market ETF through ING Sharebuilder. I want to make a more diversified portfolio of the following Vanguard ETFs at the following percentages: VTI: 25%, value stock ETF (VTV) 25%, small cap growth stocks (VBK) 20%, Emerging Markets (VWO) 10%, World index without US stocks (VEU) 10%, and US bond index (BLV) 10%. To do this I would have to upgrade my sharebuilder account for the free auto investments, which would be $12 monthly. Since I can only invest 300 a month is this $12 a month worth it to add diversity to my portfolio or should I still with my current VTI investment which only costs $4 a month in comission. Also feel free to give any advice on the portfolio I suggested, It is just one I threw together myself so I'm not sure if its well balanced or not. I am looking to buy and hold these positions for 30ish years.

  • Answer:

    I found this great article on ETFs Im a big fan of http://www.bigtrends.com/ and this article talks about 3 Niche markets showing strength and I think it has great value for people like you and I. Check them out.

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It is my opinion that ETFs in general are a bad investment. They not only contain good stocks but also bad stocks. If you are using Sharebuilder, use your money instead to buy 6 dividend paying blue chips stocks in equal amounts. Maybe CVX, PG, PEP, NVS, NEE, ITC. Chances are pretty good that these 6 will outperform your 6 ETFs over the next 10 years.

muncie birder

In my opinion, as a successful personal investor; At your age I would skip bonds or bond funds, investing only in stock. Having only three or four funds would simplify the portfolio and make keeping track your investments easier. I would also probably save that three hundred a month until I could buy larger positions in each fund to reduce my comissions.

michael p

From the looks of it, I think its best to have a manageable amount of different investment so as to keep track of each. If you think that you can manage them all then go ahead. The proportions are fine. You might want to watch the market for each of them and formulate a pattern as to how good each is doing and then decide to invest. You don't want to make any rushed decisions that will last permanently. Here is a stock market website you can check out.

WILBUR

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