Even if some disagree, sector ETFs are not a slice of the pie. It's just like a casino. You bet on a sector and hope to achieve an excess return. It can go well, but it can also go wrong. If you're aware of that, then it's okay. And why shouldn't you limit yourself to just three ETFs? First of all, what is your goal with more than three ETFs? You want to switch for a specific reason. Is that still the case? Do you want to go to the trouble of weighting the individual ETFs depending on what's going well or badly?
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@Luffy3D2Y I also find ETF sectors very practical.
For one thing, I think it's less of a casino than investing in a single stock in the respective sector, as you have more diversification. With a stock pick there is more risk in my opinion.
It also saves time when analyzing individual stocks. It's also good if you don't have the confidence to analyze a stock. For example, because of time constraints or because you are a beginner and don't know your way around.
You should still have a rough understanding of the sector and which stocks are in the ETF and their weighting.
But otherwise I see sector ETFs as a good way to invest in a sector with less risk and diversification 😌
For one thing, I think it's less of a casino than investing in a single stock in the respective sector, as you have more diversification. With a stock pick there is more risk in my opinion.
It also saves time when analyzing individual stocks. It's also good if you don't have the confidence to analyze a stock. For example, because of time constraints or because you are a beginner and don't know your way around.
You should still have a rough understanding of the sector and which stocks are in the ETF and their weighting.
But otherwise I see sector ETFs as a good way to invest in a sector with less risk and diversification 😌
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•@Mcl1991 I see it exactly the same way.
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