Over the last few months you may have read my blogs on ETFs (Exchange Traded Funds).
In my view, ETFs have and will continue to revolutionise how everyday investors invest as more and more become aware of the huge advantages of index investing via ETFs.
I’m not alone in this view. The Oracle of Omaha, Warren Buffett, went on the public record in February last year in his annual letter when he said:
“The goal of the non-professional … should rather be to own a cross-section of businesses that in aggregate are bound to do well. A low-cost S&P 500 index fund will achieve this goal.
My money, I should add, is where my mouth is: What I advise here is essentially identical to certain instructions I’ve laid out in my will. …. My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund……I believe the trust’s long-term results from this policy will be superior to those attained by most investors – whether pension funds, institutions or individuals – who employ high-fee managers.”
In my blogs I have demonstrated how such a strategy smashes managed Super Funds and active Managed Funds which is verified and proven by S&P Dow Jones research in their SPIVATM ScoreCard.
SPA3ETF is an investment approach that is the culmination of my 25 years’ experience in trading, investing and researching the financial markets that is designed to:
- Make it really simple for everyday investors to outperform the active managed funds and the indices with their own portfolio of a single to a few ETFs.
- Take less time managing an ETF portfolio than one might spend watching a single ½ hour TV show a week. There is no need to invest in individual stocks.
- Do a handful of trades a year to avoid being invested in the equities markets during severe bear markets, such as 2008, when they next come.
- Maximise dividends while the markets are not in bear markets.
- Optionally use manageable leverage, such as the Oracle of Omaha does, to boost returns even more.
