BEST ETFs FOR 2018 - YouTube

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Today we're talking about the four best easy acts for 2013.

Three of these are rock solid picks and the fourth one I'm going to lead to the end where

you can see what I'm talking about.

That's going to be my one speculative pick for the year for those of you watching this

video you probably already know what an ETF is.

For those of you that don't and ETF simply stands for exchange traded fund and ETF is

a security that tracks an index of commodity bonds or a basket of funds or assets.

Kind of like an index fund does.

Unlike mutual funds and ETF trading like common stock on the stock exchange this means that

it's very liquid and it's also a lot less expensive or there's less fees involved with

an ETF because it's passively managed.

It's not like a mutual fund it's actively managed.

So who picks that I'm going to show you today aren't necessarily in the sexiest ETF in the

world but I guarantee you if you regularly contribute investment amounts whether it's

weekly monthly or even yearly.

Yes.

Some of the gains that you've seen in the past were definitely in the wake of a millionaire

in 30 or 40 years and that's no joke.

So with that being said let's get into it.

Number one is VUG Vanguard a growth fund.

This is the single largest holding in my personal portfolio and keep in mind that I'm a medium

to long term investor.

This

one is definitely going to stay there for literally decades.

This is why contributing to for a number of years now and the returns have been pretty

good.

The VUG fund the growth fund actually focuses on third 313 U.S. large cap growth stocks

and they've been relatively stable over the years.

So the one year return has been twenty four point to seven percent which is awesome versus

the S&P 500 which has only returned about 17 point nine.

The five year returns have been a hundred and one and a half percent versus the same

period against the S&P which has been 89 percent.

This means that over five years for every dollar you put in you get a dollar back in

investment.

So if I put in ten thousand dollars over that period of five years I made ten thousand dollars

on top of that.

That's pretty good in the stock market considering the low level of risk with this ETF.

It's not always that they have or Apple Amazon Facebook alphabet which is Google visa Home

Depot Coca-Cola Conklin's and Philip Morris So this gives you a good mix of large cap

growth companies with a solid one point twenty 8 percent dividend yield.

And this makes this a guaranteed staple in my portfolio for a long time to come.

Number two we have the spider S&P 500 ETF trusts.

So this is literally the oldest ETF ever created.

It

was launched in 1993 probably prior to a lot of my viewers birthday to be honest and pretty

close to where I was born as well.

One of the most solid.

Over these last years the spider S&P 500 literally traps all the companies that are contained

within the S&P 500.

And you guessed that I mean it's had a great return especially after the recession.

So the one year has been 18 percent returns.

And the five year has been eighty nine point six.

So again for every let's say 100 dollars that you put in over the last five years you're

hitting eighty nine dollars on top of that.

That's a pretty good return to you guys again for the low level risk.

The top 10 holdings and the spider S&P 500 trust or Apple Microsoft Amazon Facebook Johnson

and Johnson Berkshire Hathaway that's Warren Buffett's holding company J.P. Morgan Chase

ExxonMobil gold and Bank of America the spider 500 trusts for investors who want just a little

bit less volatility as I mentioned.

And it's a great set it and forget it ETF that you just had to have monthly just like

the Vanguard Growth Fund is.

So that's my number to pay for 2013.

Number three.

I am the Vanguard high dividend yield.

Dividend paying stocks tend to perform better when you look at it apples to apples as a

group compared to non dividend stocks over the long term.

And they also weather tough economic times a little bit better as well.

So this is this ETF is for investors who want exposure to rock solid dividend stocks but

don't want the guesswork necessarily involved picking individual ones.

So this fund invests in 401.

Stocks that paid higher than average dividend yields and specifically excludes REITS so

read is a real estate investment trusts.

There's no real estate holdings in this.

Yeah the one your return has been twelve point three six and the five year has been seventy

point to four.

So those are pretty solid numbers you guys.

The top 10 holdings are Microsoft Johnson and Johnson J.P. Morgan Chase ExxonMobil Wells

Fargo Procter and Gamble Chevron AT&T Pfizer and Intel.

The

dividend yield for this overall portfolio is two point eighty five percent.

So for those of you that don't know what a dividend yield is it's very simple.

So look at it this way the dividend is when a company has excess funds on its balance

sheet so it pays you in as an investor you can either be a monthly dividend quarterly

dividend or a yearly dividend.

So that 2.5 percent.

Put that into perspective for you if you invest a hundred dollars.

You're getting paid two dollars and 85 cents annually if you invest a thousand dollars

is 20 50 annually.

If you invest ten thousand dollars.

Two hundred and eighty five dollars annually.

And finally if you invest a hundred thousand dollars you're getting back 2300 50 dollars

annually.

And if you do a million obviously that's twenty thousand five hundred.

So when you keep adding to a fund like this over time and it not only isn't growing with

appreciation because the ETF is valued higher the dividend yield is also excuse me also

pay you your monthly quarterly or annually.

So are you getting paid that weighs well.

So this is a pretty good pick for the long term not just for 2013 as well number for

our ETF investment trust.

So the arc ETF is an actively managed form that focuses on companies working Next-Generation

sectors and mostly they're investing in the Bitcoin Investment Trust which is pretty cool.

So they're investing in cryptocurrency that are investing in companies like 10 cents a

big data cloud computing companies.

So it's got a nice mixture of recognizable names as well as the lesser known speculative

companies.

So the big Bitcoin Investment Trust is actually the top holding in art and this fund is betting

heavily on bitcoin and crypto currencies.

So while that may seem like an unnecessary know heavy risk.

I believe this could possibly be a huge payoff based on what we've been seeing crypto especially

in 2017.

So let's take a look at the one year the one year it's gone up about eighty five point

three percent.

And the maths this year has been in existence in October 2014 and since then it's been about

a hundred and thirty nine percent gain which is crazy you're almost doubling and a half

times your money.

So the top 10 holdings as I mentioned earlier Bitcoin Investment Trusts Amazon Athena hello

Twitter Tesla to you in Netflix and via Google and Midhat cargo bay.

And I have no idea who that company is I need to look into that.

So Bitcoin and the block chain as we all know are going to be the ultimate disruptors especially

in finance going from 2018 and everything that we know about business and finance is

going to change over the next several years.

So I think that this ETF could be one to hold onto.

So if you don't want to invest directly into crypto currencies are you scared or risk averse

take a shot at heart.

This

could be a really cool ETF in the long run.

And those are my top four ETF for 2013.

E-commerce are a great way to invest over the long term with low volatility and if you're

a passive investor edX are a great way to get solid numbers without having to spend

hours per week per month however you want to research and picking individual stocks.

So my question of the day below is which of these funds are you most likely to invest

in.

And if you know please let me know if you're still unsure I'd be happy to answer any questions

that you may have in the comments.

If you get any value out of these videos you guys please share them with your friends and

family subscribe if you haven't already.

I really appreciate it.

These videos take a long time to make and with all that being said.

Have a prosperous day.

Hey are you going to invest in cryptocurrency in 2013.

I know.

OK.

What is that.

Good answer.

I agree or maybe I shouldn't say that is the reason you download it.

All right thank you.