By George T. Padula, CFP®
As of the end of 2019, there were nearly 8,000 Exchange Traded Funds (ETFs) worldwide and approximately 2,000 in the United States. In August 2020, ETFs and Exchange Traded products accounted for $7 trillion plus in assets on a global basis with U.S. accounting for $4 trillion. There are so many ways to create portfolio allocations and there are new ETF investments coming out, almost daily it seems. One can create allocations incorporating themes, or fundamental metrics, factor analysis, growth expectations or any host of sound valuation criteria. Many of the new ETFs have catchy and unique ticker symbols to help them get remembered and stick out in a crowded marketplace. It got me thinking – what about picking ETF portfolios simply based only on ticker symbols? Why not? It could be fun.
I reviewed 1,600 ETFs (yes 1,600!) from ETF Database (an incredibly inventive and original name, but it does the job) and came up with a few thematic-named portfolios based only on ETF tickers. I have no idea how they would perform and am not making any predictions, projections, or conclusions from any of these. Rather it is just a fun way to look at different ETFs given that there are more than most people know to find.
If you like automobiles, perhaps you would invest in these ETFs.
This health crisis has caused us to focus more on our homes and perhaps you’ve noticed that some home repairs are necessary. If so, then hammer these into your portfolio.
However you believe, contemplate, pray, or meditate, these investments may help you get through the tough times.
Duuude, if you are living for the weekend or looking for a higher investing consciousness then look no further than these.
Pets are a big part of our lives and the internet is just chock full of funny pet videos to help us avoid work and provide some smiles. Whether the bark of these ETFs will be better or worse than their bite remains to be seen.
Some are using the opportunity to eat healthier while stuck in the house. If that’s you, then consider:
Others of us are still in a comfort food phase and these could hit the spot.
This next group may seem a bit insulting for those of us (ahem!) of a certain demographic.
Let’s hope these are better.
In order to properly social distance, this portfolio may do the trick.
If you’ve read this far, maybe you must be thinking that investing this way is just a …
All kidding aside, one does NOT create investment portfolios based on just on ticker symbols, names, or affinity for various brands. More than anything, we want to reiterate the need to diversify, be aware of the place each investment has within your investment strategy, and understand how they all interact with one another to support long-term financial goals.
ETFs are created to mirror, as closely as possible, the price of an index or thematic grouping of underlying assets. As you can see, there are many kinds of ETFs. It is important to look underneath the hood to make sure the underlying securities provide you with the exposure you are targeting. ETFs may be worth exploring for your portfolio, and we recommend that you seek guidance from an advisor to consider your desired risk, objective, and full financial picture.
Hopefully, this gave you a chuckle and not some Z’s (FYI: ZZ was the NYSE ticker symbol for Sealy, the mattress company before its merger with Tempur-Pedic in 2012).
About the author: George T. Padula, Jr.
George T. Padula, Jr., is a principal and wealth manager of Modera Wealth Management, LLC. He specializes in small business owners, college planning, retirement planning, endowments and foundations and charitable giving. In addition, George also serves as Modera’s chief investment officer.
George holds both the Chartered Financial Analyst® certification and the CERTIFIED FINANCIAL PLANNER™ certification. He earned a Master of Business Administration degree in finance from Boston College’s Carroll Graduate School of Management and a Bachelor of Arts degree from Colby College.
George is a member of the FPA, NAPFA, the Boston Security Analysts Society, the Boston Estate Planning Council, and the CFA® Institute. He also is on the Advisory Council for The Samfund.
Modera Wealth Management., LLC (“Modera”) is an SEC-registered investment advisor. SEC registration does not imply any level of skill or training. Modera may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration. For information pertaining to our registration status, fees and services, please contact us or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov) to obtain a copy of our disclosure statement set forth in Form ADV Part 2A. Please read the disclosure statement carefully before you invest or send money.
This article is limited to the dissemination of general information about investment advisory and financial planning services that is not suitable for everyone. Nothing herein should be interpreted or construed as investment advice nor as legal, tax or accounting advice, personalized or otherwise. We recommend you seek the advice of a qualified attorney or accountant for legal, tax and accounting-related matters. This is not a substitute for personalized investment or financial planning from Modera. The information herein should not be considered a solicitation to engage in a particular investment or financial planning strategy. The statements and opinions expressed in this article are subject to change without notice.
Investing in the markets involves gains and losses and may not be suitable for all investors. Individual client asset allocations and investment strategies differ based on varying degrees of diversification and other factors. Diversification does not guarantee a profit or guarantee against a loss.
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