Shares & Derivatives
Index ETFs Portfolio Diversification
By Finance Smiths  •  February 5, 2016
Holdings of Index ETFs My previous post on Choice of Index ETFs had links to relevant websites that allow you to view the top holdings in each index ETF. Always take the time to understand what the holdings are in each index ETF! For us to achieve global diversification, we wanted to make sure that there is minimal overlap of the holdings in each index ETF. This can be an important point to note. There are many types of ETFs in the world and it is essential that you know their investment strategies and what they are investing in. Sometimes, the holdings of a few index ETFs can overlap significantly and you don’t achieve diversification by investing in all of them. Ideally, the holdings of the index ETFs in your portfolio should be as different as possible. While I am on this issue, I should highlight my preference for physical ETFs instead of synthetic ETFs. This is ......
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By Finance Smiths
Late 30’s couple with 2 small kids living in Singapore writing about our financial progress as a family.
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