Next ETF Buys
Diversify With ETFs In 2018
Last November I started investing in ETFs. Now I own 21 different ETFs and plan on purchasing many more, providing me with a diversified foundation of investments. In order to narrow my choices and focus on a few ETFs I have applied a new strategy. Here is my simple 5 step process:
Step 1 - Create an ETF Buy List of all the dividend paying ETFs you want to own for the long term. (My ETF Buy List)
Step 2 - Create an ETF Screen to narrow down the best of the best ETFs from your ETF Buy List. My Screen Criteria:
- Dividend Yield > 1.50%
- Morningstar Rating 4 OR 5 stars
- Net Expense Ratio < .30%
- 5 Year Total Return > 15%
- Annual Dividend > $1.50
Step 3 - Run your ETF Buy List through your ETF Screen to shorten your ETF Buy List.
My ETF Buy List went from 48 ETFs to 9 ETFs.
Step 4 - List all ETFs that are in the same category and remove the competitors that have the lower market cap. Now my list has only 2 ETFs SPY and VTV.
Step 5 - Purchase your ETFs starting first with the one priced closest to its 52 week low. My full position for a purchase will be $15,000 per ETF.
Here are my next ETF buys: