We all know the story of the tortoise and the hare and the conclusion that slow and steady wins the race. But regardless of us knowing the story and how it turns out, we still get caught up in the idea, or dream if you will, that we can get rich quick though the means of chasing long-shot investment opportunities.
We have all seen and heard of new investment opportunities that will make you rich; penny stock ideas that will show 1,000% returns, "the next big Initial Public Offering" that you have to own, or perhaps a friend, family member or colleague tells you about a great idea. We all wonder whether or not we should go ahead and pull the trigger on these "once in a lifetime opportunities" and if we made a huge mistake when we don’t.
Today I would like to answer a question posed by you, a reader. A few weeks ago I mentioned one of my favorite ETF's the ProShares S&P 500 Dividend Aristocrats ETF (PACF:NOBL) and a reader named jab commented on the article and asked a question. Jab said,
"Thanks for the info on NOBL. Wasn't familiar with the term/category "dividend aristocrats." How does NOBL compare to others in this category like SDY, VIG, and WDIV?"
So, I would like to take some time and answer this question and give a little more detail on the different metrics I look for when trying to find the best ETF's to invest in when comparing similar category ETFs.
Every investor, no matter age, investing experience or portfolio balance should consider putting a large amount of their investable assets in one of these exchange traded funds.
For the majority of investors, the time and energy required to pick individual stocks for their own portfolio's is too much, not to mention the fact that individual stock picking can just be downright overwhelming. The amount of available information and decoding what it all means is very time-consuming and confusing. Plus, the idea that all your hard earned money is tied up in just a few stocks, which at any moment could dramatically lose value, is very frightening.
The best way to avoid the majority of these problems is by simply buying one or more quality exchange traded funds. ETF's offer investors with a very low cost, diverse portfolio and they don't require investors to follow them on a daily, weekly, or even quarterly basis. The right ETF's are really the closest things an investor can find to a "buy and forget about" investment.