There are different asset classes. Equity and fixed income ETFs, in different varieties, let you construct your core stock-bond portfolio.
Stock ETFs can be separated by geography, from New Zealand to Chile, covering many countries and time zones. Or you can pick a particular sector like tech. Or differentiate by styles, from value to growth. Prefer dividend focus? All available. And don’t forget thematic ETFs that reflect trends you’re following, such as clean energy or AI.
Bond ETFs cover everything from investment grade to high yield, from short duration to long-term bonds, across various geographies.
Other asset classes like crypto and commodities have also made their way into ETFs. For example, some markets now list ETFs that track Bitcoin’s price.
Having more options sounds great, but it also creates a paradox of choice. With so many ETFs out there, it’s easy to get stuck and keep putting things off because you’re unsure what to pick.
ETFs used to be simple when there were fewer of them. Now the choices have exploded, and it’s a whole different beast.
Comments