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Re: Vanguard EFT's & S&P Sectors
edz4ce
02-25-2008, 6:59 PM | Post #2491502
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rkbsmith, I just invest in ETFs. You can invest in ETFs similarly to mutual funds. Vanguard has large, mid and small-cap ETFs. You could invest in these, which I think would cover many sectors? You need to do homework by looking at the prospectus on each fund, to see what is covered. It's more risky to seek out sector funds because they are focused on only one small area of the market. You might take the approach of, 20%-20%-20%, in a small, mid and large-cap, Vanguard ETF. I'll figure that you're fairly young. So, with that assumption, you'd have a long time to bare the risks. You could modify those risks with a cash and bond position, or cash only, with the other 40%. You didn't give out any information about yourself, so I have to make assumptions. When you get comfortable with investing in ETFs you could say, take 10% of that cash position and find a "hot" sector to try. Vanguard ETFs are among the least expensive, regarding fees, with a good track record of competence. So, the small, mid and large-capitalization ETFs should cover what you're looking for instead of buying 10 or so, sector funds. If you don't already have a discount broker try finding one and buying online. It's a lot cheaper. Unlike mutual funds, your broker will charge you for buys and sells but that's a small price. You won't be hassled by the mutual fund company for selling too soon. There are foreign ETFs also...you might want to check out the many other ETF companies who carry them, too.
Topics
broker
Large-cap
prospectus
sectors
Vanguard ETF
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