Nowadays, we can see a growing interest in companies that offer actively managed portfolios consisting solely of ETFs. This is an innovative approach that has become very popular in the US and is starting to become more widespread in Europe. Secure Wealth Management, for example, founded six years ago, offers a range of diversified ETF portfolios to satisfy all risk appetites, using only the most liquid ETFs available.
What is an ETF?
In money management, the right approach is fundamental. With funds, you can bet on investments. To multiply your wealth, you need to take some risk. When deciding to invest in mutual funds, you should consider options such as FIOs, FIZs and ETFs. What is an ETF? It is described as passive investing, which for many of us is the best possible option. Because it is one of the passively managed funds, its management costs are lower than those of funds that try to conquer the market. With Secure Wealth financial, you can benefit from an affordable, highly liquid portfolio solution along with advice from an experienced professional, which is definitely worth it as it all comes at a much lower cost than a traditional bank or financial advisor.
How to start investing?
Secure wealth financial is best started with ETFs. Simplicity, ease of monitoring and widely available ready-made portfolios and investment strategies make clients more likely to choose this option. Additionally, ETFs are traded throughout the day which allows us to sell them at any time and they are easily accessible at any DM. When deciding to invest in ETFs on the American stock exchange, one can choose between various commodities, real estate, bonds, companies, etc. The first step before creating any investment portfolio must be to analyse one’s own situation, i.e. to determine one’s objectives and risk tolerance and capacity, and to take into account any other relevant aspects that may affect one’s strategy. In addition, we need to know what loss we can afford, what time horizon we are interested in and what the minimum satisfactory rate of return is. The shorter the period over which we intend to invest, the safer the asset we should choose. After determining the horizon, we define the maximum loss we can afford. For some people 10% will be a high value, while for others it is not. It is worth remembering that safer assets is a relative term, i.e. there is no investment that will not generate a loss for sure – even if you keep your money in cash you will lose through rising product prices, i.e. inflation.