Originally Posted by JaxRed
If you are talking to me, I don't have much interest in an ETF or mutual Fund. I know you posted in an earlier thread that regular folks can't pick well so leave it to the pros. I don't subscribe to that.
Besides being "fun", I don't want to pay expense ratios of .5% or similar. If you have a $200,000 account that's $1,000 in fees you are paying a year.
Sure, but DYV has 100 holdings of diversification. You have 3. If you bought 100 holdings at $10 a trade, you just paid $1,000. This fund actually has an expense ration of .4% so it would be less than that. You also have to rebalance now and then and make new purchases if you are buying each month like you are, so by my math you probably come out ahead.
I like to "subscribe" to what I call a core and explore philosphy. No matter what you think the market isn't set up for the average guy to win, but I do agree that researching and buying some stocks is fun and can help portfolio performance if done properly. I like to take about 20-25% of my funds (my explore) and do something like what you are doing and then I put the rest (my core) into longer term professionally managed investments like ETFs or funds. I feel it allows for greater portfolio diversification, better long term performance and doesn't punish me as badly if my picks were wrong.