If you had purchased an S&P 500 ETF during the market highs of 2020 you would be up 15% as of today’s market low’s (2/20/20 – 5/12/22). And if you were to have ‘bought the dip’ after the massive sell off – due to Covid19 concerns – in 2020 you would be up 79% as of today’s market lows (3/23/20 – 5/12/22).
‘Buying the dip’ isn’t a secret. It’s not magic. When you take the emotion out your financial decisions and consider long-term trends it’s an intelligent decision as investor seeking long-term results.
What’s the best way to buy the dip? Buy broad market, diversified investments such as ETF’s that capture entire sectors, industries, or an indexes. By allocating your capital into diversified investments such as these you diversify out much of the risk you would take on by simply purchasing individual stocks.
Some ETF’s I would suggest adding to your portfolio as the market pulls back:
- Ticker: SUSA – ISHARES MSCI USA ESG SELECT ETF – An ESG, responsibly invested version of the S&P500 which removes companies in industries involving: alcohol, civilian firearms, controversial weapons, conventional weapons, fossil fuel extraction, gambling, nuclear power, nuclear weapons, thermal coal power and tobacco.
- Ticker: QQQ – INVESCO QQQ TRUST ETF – The Index includes 100 of the largest domestic and international non-financial companies listed on the Nasdaq Stock Market based on market capitalization.
- Ticker: ETY – Eaton Vance Tax-Managed Diversified Equity Income ETF – ETY is a high dividend yielding ETF for investors seeking income/appreciation. The fund seeks to invest in companies operating across diversified sectors. The fund primarily invests in dividend paying stocks. It also writes S&P 500 Index call options with respect to a portion of the value of its common stock portfolio to generate current cash flow from the options premium received.
Interested in learning more? Schedule a call with me HERE.
Warmly,
Mark Sauer
info@AllOneWealth.com
+1(310)355-8286
