Are you already invested in boring index ETFs?
Have you retired as a “stock picker” after realizing that most professionals cannot beat the market in the long run?
That’s great, but there is still a way to amp up your investment returns that is not complicated.
In this post, I will share an often ignored investment strategy that will beat index fund investing in the long term and help boost your returns!
You won’t have to fear huge losses during bear markets and you can enjoy amazing annual returns in bullish years while riding the wave of rising stock prices!
This only requires less than 30 minutes per month to do and is very simple to employ!
Introduction and Framework of the Strategy
With this strategy, you will continue using stock market index fund ETFs. You will also add bond funds if you don’t have them yet. You can even add sector-based ETF index funds in other categories like real estate or commodities.
For simplicity’s sake, we will focus on stock and bond index funds. If you already have your index funds set up in your account, you will be a few steps ahead of the pack.
If you are fairly new, I would focus on low-fee index fund ETFs from Vanguard. Go here to see their list of ETFs.
ETF stands for Exchange Traded Funds and index ETFs will hold hundreds to thousands of companies in them. You are buying a small slice of all those companies when you invest in an index fund. ETFs are available in every type of investing sector.
The next step will be to pick from 3 to 6 of these ETFs to use for the strategy.
Include index ETFs that represent the general stock market, the general bond market, high-yield stock index ETFs, and more growth-oriented stock indexes.
Those will be the ETFs that are bought and sold in your account and make up your portfolio.
The Strategy You Will Use