#ETFs have become so popular that the money invested in ETFs has gone up by 3,000% since 2003. According to Statista, the number of ETFs in 2020 reached 7,602 globally. That makes picking the right #ETF difficult - particularly for beginners.

One of the questions that come up first is: Which one is the best ETF to buy?

There isn’t that one perfect ETF that fits everyone’s needs. However, a good place to start with is looking at ETF providers. The two biggest ones globally are:
Blackrock with $2.1 tn in assets under management and 399 ETFs, and
Vanguard with $1.6tn in assets under management and 82 ETFs.

These two ETF providers combined offer over 480 ETFs - so no matter what ETF you are looking for, they will probably offer it. Sticking to those 2 ETF providers is a good starting point if you are a beginner.

Next step: How do you build your stock portfolio? If you believe in passive and diversified investing with low-cost ETFs and #IndexFunds then there is an investment strategy that is easy to implement: The #CoreSatellite strategy.

The strategy was invented by Fischer Black and Jack Treynor. They both believed in the efficient market theory which assumes that all information about a #Stock is already priced into the share price at any given time. Therefore, it’s almost impossible for active investors to beat the market. However, Black and Treynor believed that there are some opportunities out there where some #Stocks can generate a higher return than the overall market.

That’s why their investment strategy had 2 components: A core and satellites. The core is the center of that #Portfolio that passively tracks “the market”. The satellites are used to overweight specific industries, countries or asset classes that have the potential to produce higher returns than the market. This means that the satellites are the actively managed part of the portfolio.

In this video, we are focussing on the Core part of the Core-Satellite Portfolio. These are ETFs that shouldn’t be missing in a well-diversified investment portfolio. But what are the best #CoreETFs to invest in? What choices are there for US investors and international investors from Europe, South America and Asia? These are the questions that will be answered in this video. Enjoy!

⏰⏰ Timecodes ⏰⏰
0:00 Intro
0:43 Core Satellite Portfolio Explained
1:32 Core ETF No 1: VOO
4:33 Core ETF No 2: VTI
6:34 Core ETF No 3: VT
8:58 Final Thoughts

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DISCLAIMER: This video is for educational purposes only and merely cites my own personal opinion. In order to make the best financial decision that suits your own needs, you must conduct your own thorough research and seek the advice of a licensed financial advisor if necessary.

#ETF2022 #ETFPortfolio #BestETFs #IndexFunds #VTI #VOO #VT