There has been a lot of talk lately that exchange traded funds (ETFs) are dead. The argument goes that the industry has taken advantage of the popularity of ETFs and created 1000's of niche ETFs that go against the principle of what ETFs were originally intended to do - to provide broad diversification in various markets. I still believe they do. This video provides an introduction to how to use ETFs in your portfolio. Even if you are in search of high dividend stock, ETFs can have a place in your portfolio.
I use ETFs in my dividend portfolio to build the core pieces of my asset allocation. It provides the foundation that I use to manage risk and ensure diversification.
This article was written by The Dividend Guy. To learn more about dividend investing, please follow my RSS feed or Twitter account.
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