Comments on: The Importance of Diversification http://www.americanconsumernews.com/2007/04/the-importance-of-diversification.html News for Consumers in Changing Times Sun, 12 Feb 2012 04:49:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Burn http://www.americanconsumernews.com/2007/04/the-importance-of-diversification.html/comment-page-1#comment-594 Burn Thu, 19 Apr 2007 15:22:00 +0000 http://www.americanconsumernews.com/2007/04/the-importance-of-diversification.html#comment-594 I agree with your suggestion to use index funds to easily diversify. Even if you have less than $100 to invest, you can buy a total stock market ETF and instantly have your money in every stock in the US market.<br/><br/>Mutual funds were the standard way to do this in the past, but now ETFs can provide the same kinds of advantages with less fees and smaller minimum investment requirements.<br/><br/>If you search google for "diversified etf" you will get a lot of examples of portfolios of a few etfs that will provide large amounts of diversification. Even if you have less than $1000 you can buy a set of etfs that will give exposure to the US stock market, foreign markets, real estate, commodities, and bonds. I agree with your suggestion to use index funds to easily diversify. Even if you have less than $100 to invest, you can buy a total stock market ETF and instantly have your money in every stock in the US market.

Mutual funds were the standard way to do this in the past, but now ETFs can provide the same kinds of advantages with less fees and smaller minimum investment requirements.

If you search google for “diversified etf” you will get a lot of examples of portfolios of a few etfs that will provide large amounts of diversification. Even if you have less than $1000 you can buy a set of etfs that will give exposure to the US stock market, foreign markets, real estate, commodities, and bonds.

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